The Regulation of Grower‐Processor Relations: A Case Study from the Australian Wine Industry
In: Sociologia ruralis, Band 39, Heft 2, S. 186-200
ISSN: 1467-9523
Insights from the recent agro‐foods literature provide a basis for critical assessment of regulatory arrangementsa between wine grape growers and wineries in the Murrumbidgee Irrigation Area (MIA) of New South Wales, Australia. This paper argues that recent political debate over the role of statutory marketing within this production complex has been constructed about a simplistic model of 'regulation.' An alternative model is presented, defining the regulatory framework of the regional sector in terms of the intersections of two axes of social relations. The first of these relates to grower‐winery supply chain structures. Traditionally, MIA grapes have been sourced by wineries through 'handshake' deals constructed in the shadow of a 'safety net' for growers provided by the MIA Wine Grapes Marketing Board, a statutory authority with powers to set minimum prices and to vest the annual wine grapes crop. The second axis relates to the role of 'quality.' Global expansion of wine production has re‐positioned the MIA within global wine consumption space, providing opportunities for local producers to produce wine for premium markets. An implication of this shift has been to promote strengthened vertical coordination within the industry. This framework for understanding regulation establishes a basis for future critical intervention in debates about statutory marketing arrangements for this sector.