The regulation of grower-processor relations: A case study from the Australian wine industry

Insights from the recent agro-foods literature provide a basis for critical assessment of regulatory arrangements between wine grape growers and winer ies 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 simp listic model of 'regulation.' An alternative model is presented, defining t he regulatory framework of the regional sector in terms of the intersection s of two axes of social relations. The first of these relates to grower-win ery supply chain structures. Traditionally, MIA grapes have been sourced by wineries through 'handshake' deals constructed in the shadow of a protecti ve '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 a nnual wine grapes crop. The second axis relates to the role of 'quality.' G lobal expansion of wine production has re-positioned the MIA within global wine consumption space, providing opportunities for local producers to prod uce wines for premium markets. An implication of this shift has been to pro mote strengthened vertical coordination within the industry. This framework for understanding regulation establishes a basis for future critical inter vention in debates about statutory marketing arrangements for this sector.