51
WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17 __________________________________________________________________________________ 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017

2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

2016/17 ANNUAL REPORT

WINE INDUSTRY ASSOCIATION OF WA (INC.)

17 October 2017

Page 2: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Contents

Introduction 3

2016/17 Strategic Priorities 4

President’s Report 5

Treasurer’s Report 8

Chief Executive Officer’s Report 9

Membership Report 12

Technical Report 14

Board of Directors 16

Wines of WA 2016-17 APC Budget 17

Financial Report 18

Appendix – 2016 Vineyard and Production Data

Page 3: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 3

Introduction

The Wine Industry Association of Western

Australia (Inc.) (Wines of Western

Australia), established in 1987, is the

state’s primary organisation of wine

producers.

It is our mission to provide a unified,

strategically influential voice that creates

opportunities for the fine wine regions of

Western Australia.

Industry Overview

Wine is a major value adding industry with

significant regional economic and employment

benefits. In 2014/15 the total value of the WA

wine industry was estimated at $684 million

with a grape value of $65 million. Regarding

market channels, 48% of total value was sold in

WA, 40% in eastern Australia and 12% in

exports.

The Western Australian wine industry produces

about 42 million litres of wine annually

representing just 3% of the volume of

Australia’s wine production but 8.5% of the

value.

WA Wine Industry Vision

As outlined in the WA Wine Industry Strategic

Plan 2014 – 24, WA producers have a shared

vision of:

“a Western Australian wine industry that grows

sustainably and profitably, built on the

reputation of its great fine wine regions”

The pathway to this vision is a unified and

strategical influential industry focused on

regional fine wines of provenance and

authenticity. Producers and Regional

Associations are the custodians of their

Regional brand.

Wines of WA Charter

WA producers have mandated that Wines of

WA should, “provide stewardship of the

industry” to create opportunities for producers

and the fine wine regions of WA.

From an operational point of view, this service

is provided through:

• Advocacy to ensure government, at all

levels, understands our industry – the

benefits we provide to the state

economy, particularly in regional WA

and the assistance and resourcing we

require to further develop out industry.

• Representation to ensure the value of

industry is clearly understood by

government, the community and other

complimentary industry sectors. We

need to ensure our social license to

operate is retained and strengthened.

We need to build strong partnerships

with tourism, agriculture and fisheries by

developing complimentary market

development programs. We need to

raise the stature of our industry so that

West Australians are truly proud of their

wine industry.

• Administration of technical and

marketing program funding to provide

Regional Associations and producers

access to opportunities to improve

business practises and market access.

• Communication to ensure wine industry

participants are aware of the issues that

affect their business enabling them to

make informed decisions on the

direction of the industry and their

individual business.

We look forward to working with Producers and

Regional Associations in 2017-18 on

developing a sustainable and profitable future

for the WA wine industry.

Page 4: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Strategic Priorities 2016-17 Priority Priority Issues Activities and Progress

1. Secure Funding Model for WA wine industry

Implement APC funding model in

2016-17 Financial Year

Assist Regional Associations to implement

APC funding model

Assist producers in complying with APC

funding model

2. Market Development

Secure funding and resources for

export and domestic market

development

Support wine tourism initiatives and

direct sales channels.

Continue engagement with DAFWA, DSD,

AGWA and Regional Associations to obtain

funding and resources export and domestic

market development

Continue working with DAFWA, submit

application for R4R funding.

Deeper engagement with Tourism WA to

ensure “Taste 2020” potential is realised.

Support Busselton airport development and

advocate for supporting infrastructure

across south west

3. RDE & Adoption support for fine wine business model

Smoke taint

Chemical resistance Improved

clonal material (including

alternative varieties)

Business model innovation

Pest and disease management

Sustainable viticulture

Technical Committee to implement

programs to address identified challenges

through the AGWA Regional Program

WoWA to advocate for policy settings and

government support to address identified

challenges

4. Taxation and Regulation

Ensure taxation regime offers best

operational environment for WA

fine wine producers.

Ensure legislation offers best

operational environment for WA

fine wine producers.

Continue to work with producers and RAs to

refine position on wine tax. Support WFA

and WGGA where appropriate and in line

with WA producers.

Advocate for further amendments to Liquor

Control Act to improve access to market, in

particular, direct to consumer channels

Page 5: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

1. President’s Report

Tax

In the last twelve months, WoWA achieved

significant outcomes in delivering benefits

to WA producers. We campaigned hard in

Canberra, with significant help from Senator

Dean Smith, Senator Mathias Cormann,

Christian Porter MP, Nola Marino MP and

Rick Wilson MP. WA producers were facing

the unpalatable situation of seeing the WET

rebate reduced from $500,000 to $290,000.

Additional “skin in the game” tests requiring

ownership of assets across the production

chain would have excluded many producers

and threatened income streams for contract

winemakers.

WoWA successfully prosecute the case to

have the rebate “refocused”, not reduced.

We argued that a cut in the WET producer

rebate was an increase in taxation and

would disproportionally impact WA

producers. The outcome was that we were

able to advocate for the introduction of a

cellar door incentive scheme of $100,000

and secured a floor for the rebate at

$350,000. We were also able to advocate

for the concept of ownership of grapes at

the crusher, rather than the ownership of a

winery as the eligibility criteria. These two

key policy positions ensured that WA

producers from very small to large were

assured of short-term certainty regarding

the WET rebate.

While this was a good short-term outcome,

producers should be on notice that the

Federal Treasury department do not like

rebates such and we need to be proactive

about a simpler and fairer structure into the

future.

Smoke Taint

This year’s vintage was a later than normal

season. Spring was wet and early summer

was cool. Spring burn offs didn’t occur as

planned and we were faced with a situation

of large fuel loads and perfect burning

conditions during Autumn.

What eventuated was a potential disaster

averted. WoWA and Regional Associations

played a pivotal role in communicating and

educating the Department of Parks and

Wildlife about the potential loss of crop and

the financial impact that would have within

regional communities.

Federal Government Export and Regional

Wine Support Package (ERWSP)

In the May 2015 pre-budget submission by

the Winemakers Federation of Australia

(WFA), State Associations provided letters

of support for a support package of $25m

(along with support of WET integrity

measures). It was WoWA that led the

charge at WFA to increase this to $50m

The $50m that was pledged to industry has

had significant WoWA involvement with

Colin Bell and Simone Furlong-Horgan and

me participating in the reference group that

helped build the business plan for

presentation to Federal government. Of the

$32m that is allocated to Wine Australia

with a focus on USA and China, we are

pleased that Simone Furlong-Horgan has

been accepted on the advisory panel over-

seeing that fund.

The business case determined $5m will be

allocated to states, currently targeting

international wine tourism. It is pleasing that

we are working very closely now with other

state associations, and this college of

states will submit a collective submission

which states that the allocation should not

be prescriptive, but rather align with state

Page 6: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 6

and regional strategic plans, as they are all

different and unique to each state. We were

also able to achieve recognition of the

importance of the WA fine wine segment

and its contribution towards wine tourism by

being allocated $1m of the $5m.

Regional Strategic Plans

WoWA pushed the case to Regional

Associations on the importance of

implementing (or reviewing/developing)

their strategic plans. An industry ratified

strategic plan (State and Regional),

provides WoWA, State Government

agencies and Wine Australia with a clear

indication of the resources and partnerships

required at a Regional level to support

industry development.

We have seen Margaret River complete a

strategic review and Geographe a strategic

plan. On top of this, the Great Southern has

started its own strategic plan at the time of

writing.

Because of the Margaret River strategic

review, Wine Australia has aligned

resources to the 50th Anniversary

celebrations by bringing influential US

journalists to Margaret River. Over the

coming four weeks we will see the roll out

of priority activities identified in the strategic

review.

Naturally, more regions will follow this

example, seeing the action from the

Margaret River review and what we will

have is a framework across the wine

regions of WA that allows key stakeholders

to align the right resources to regions.

Revised WoWA Constitution

At last years’ AGM, the new constitution of

WoWA was introduced that now sees it as

a truly representative regional board. It now

has greater regional representation than it

ever has, reflecting its grassroots origins.

Organisational Reform

The national grape grower body, WGGA,

has changed its constitution from a national

grower body, to an organisation able to

represent state and regional bodies

nationally, with an emphasis on small

businesses from the grape and wine

community. It is now called Australian

Vignerons. WoWA has committed to being

a member and sees the leadership at AV as

something that will benefit our industry. AV

understands the importance of being

relevant and transparent. I believe Jo and

Andrew have done an incredible job under

difficult financial circumstances.

The Winemakers Federation of Australia

continues to do an incredibly professional

job in the field of market access, wine and

health. Unfortunately, all the great work the

Federation does will continue to suffer

external criticism, until it seriously

addresses its membership and

representational structure.

The Future

Wine Australia is embarking upon a

marketing program of a scale never

previously contemplated. The timing of this

is potentially the start of what could be the

next boom for Australian regional fine wine.

And WA regions and producers have never

been as well prepared in my time in the

industry to be a part of this.

Wine Australia has spent more time in WA

over the past twelve months than I have

seen before and the level of understanding

of stakeholders’ roles and responsibilities

has never been greater. The plan they seek

to deliver will make for an exciting time

Page 7: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 7

ahead for producers of all shapes and

sizes.

Export Development and Wine Tourism

We continue to develop an industry

business case that will be presented to our

state government when ratified by WoWA

and Regional Associations. It is aligned with

ERWSP federal grant objectives. At the

time of writing, this business case has

evolved from being solely export driven, to

one that needs to include Wine Tourism

and acknowledge that these two areas

need to work together to get greatest

leverage.

If we only present an Industry development

business case about export, we would be

missing an important piece that includes an

“all of industry” and regional development

potential, which includes wine tourism.

The opportunities are again significant for

regional development if we get it right.

Thank You

Once again, I would like to thank Larry for

his tireless work for WoWA on behalf of all

State producers. I look forward to seeing

him work with the newly appointed

chairperson, Trevor Whittington. The

foundations are in place for you to both

excel.

In departing I would like to thank the

following people: Nigel Gallop and Stuart

Watson for convincing me to do this job;

Anthony Wilkes and Chris Furtado who

have been exceptional Vice Chairs; Bryan

Saunders was a great help with his

governance and process advice; David

Martin for drafting tax submissions and;

Colin Bell for his clear thinking when

confronting issues.

I have never been more confident about the

future of the Australian Wine Industry.

P.S. – and yes, the orange tie will continue to be worn at all official wine industry events.

Actions speak louder than words.

Redmond Sweeny President

Page 8: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 8

Treasurer’s Report The financial performance of the

Association in 2016/17 illustrates the critical

importance of a secure funding model and

a clear focus on strategic aims. The fee for

service funding model resulted in an

increase to producer derived revenue.

Through a further refinement of business

operations, fixed costs were significantly

reduced. The Association still delivered on

its core services of advocacy and

representation.

Revenues

Overall revenues increased year on year by

33% reflecting the net impact of two factors

including:

• Implementation of the fee for service

funding model

• an increase in the draw-down of Grant

funding reflecting increased activity this

year

Expenses

Overall, expenses for the Association were

approximately in line with the prior year

reflecting several changes with the significant

ones being:

• A reduction in office expenses (rent and

other outgoings) associated with

reduced space requirements for the

team,

• An increase in wages, superannuation

and annual leave provisions due to

annualised wage movements

• An increase in travelling expenses (intra

and interstate) associated with the CEO

and President’s representation activities

related to proposed change to the WET

and the implementation of the wine

industry APC

Surplus

The net result of the above was that the

Association reported a net surplus for the year

of $68,614, up from a net loss of $8,517 in the

prior year. As a result, the retained earnings at

the end of 2016/17 financial year are $23,532.

Having established a secure funding model via

an APC, the board was committed to

eradicating our negative equity position over the

two years to 2018. It is pleasing to have

achieved this one year earlier than planned

because of ongoing discipline in managing

outgoings.

Redmond Sweeny

Acting Treasurer

Page 9: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 9

Chief Executive Officer’s

Report

As outlined in Strategic Priorities for 2016 -

17, our focus for the year prioritised:

• Implementing the APC funding model

for the 2016 vintage

• Ensuring taxation policy amendments

were affected favourably for all WA

producers

• Ensuring WA producers receive fair

access to Federal Export and Regional

Wine Support Package

The key activities to achieve these aims were,

Advocacy, Representation, Administration and

Communication

Advocacy

In 2016-17, Wines of Western Australia advocated for the industry on the following issues:

• Successfully advocated for a unified national position on WET Rebate reform in response to the 2016 Federal Budget

• Advocated directly to WA Federal MPs, the Treasurer and the Prime Minister, clearly stating WA’s position on Wet Rebate reform.

• Facilitated Regional forums on WET Rebate with Senator Anne Ruston.

• Continued engagement with AGWA to secure resources to support export market development for WA wine producers.

• Communicate WA wine industry policy positions to all parties during the 2017 State Election.

• In collaboration with the table grape industry and Regional Associations continued to advocate for amendments to the Federal Biosecurity Act 2015 which would restrict movement of imported grape products into WA.

• Worked with all Regional Associations and the Department of Parks and Wildlife to establish late season burn-off

protocol to ensure late harvested fruit was not affected by prescribed burning.

Representation

In 2016-17 Wines of Western Australia engaged the following government and industry bodies on the following issues:

• Minister for Agriculture and the Department of Agriculture and Food, Minister for State Development and Department of State Development, advocating for increased funding for market development and industry development.

• Submitted successful application for R4R Growers’ Group Grant – “Pathways to Premium Markets”, a $500,000 R&D project focusing on production capacity, market demand and international best practise for regional brand development.

• Facilitated UK buyers visit to WA in partnership with Regional Associations and Hazel Murphy

• Facilitated annual visit to WA for the Wine Education Centre’s Singapore annexe Dux students

• Partnered with WA Fishing Industry Council and Office of Multi-cultural Interests to host TWA Chinese delegates on Chinese New Year

• Supported Swan Valley Wine Show, Timber Towns Wine Show, Blackwood Valley Wine Show and the 2016 Truffle Kerfuffle through IMP funding

Administration

In 2016-17, Wines of WA administered the following projects on behalf of the WA wine industry:

• Worked with APC administration to develop collection process for FFS collection on the 2016 vintage.

• Compliance requirements for the International Marketing Program funding partnership with DAFWA.

• Compliance requirements for the AGWA Regional program.

• Management of the WA Wine Industry Technical Committee

Page 10: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 10

• Negotiated terms for the WA wine industry service agreement with Australia Post

• Negotiated terms for the WA wine industry co-membership arrangement with CCIWA

• Managed Grant compliance process for R4R Growers’ Group Grant.

• Project management of R4R Growers’ Group Grant, “Pathways to Premium Markets”.

Communication

In 2016-17, we continued to refine our communications processes.

• A monthly e-newsletter which provides non-time sensitive information.

• Social media which provides day to day information. By following Wines of WA on facebook, twitter and linkedin, industry participants receive live updates that are relevant to their business.

• For urgent, critical information, members receive an email or text message directly from me, sent from [email protected]

• Eye to eye on a regular basis to share a coffee or a glass wine, depending on the time of day, discussing what you feel are the key issues affecting your business and region.

Additionally, I urge producers to visit www.winwa.asn.au regularly as we post information and upcoming events to the news-blog that feeds directly to the home page. Finally, the art of communication requires getting the correct message to the right person. This is our biggest challenge as an industry. We continued to work on this in 2016-17. With information collected via the APC process our ability to communicate effectively will continually improve.

Staff Movements

During the 2016-17 financial year, Jodie Pannel continued as Administration and Membership Manager in a .8 FTE capacity. Larry Jorgensen continued as CEO in a full-time capacity.

National Representation

Winemakers’ Federation of Australia (WFA)

Western Australian Board representatives are Anthony Wilkes (Medium Winery Membership Committee), Alexandra Burt (Winemakers’ Federation Executive Council and Small Winery Membership Committee) and Redmond Sweeny (Small Winery Membership Committee). Anthony was MD of Ferngrove and the Vice-President of Wines of WA. He retired at the 2016 AGM from both positions. Alexandra is a former Board member and Treasurer of Wines of Western Australia and runs her family’s wine business, Voyager Estate. Redmond is a partner in Snake and Herring, as well as being the President of Wines of Western Australia.

Australian Vignerons (AV formerly WGGA)

AV is the new iteration of WGGA having revised its Constitution to include producers and growers under a state based membership model. Governance includes a proportional representative Council of members, responsible for strategic policy setting and appointing an independent, skills-based Board. The Board works with the CEO to implement strategy and ensure governance and compliance of the organisation.

AV will provide an independent national body for WA producers with a greater focus on issues that are relevant to small and medium producers.

Colin Bell (Wines of WA Board member) continued as the WoWA representative on AV during 2016-17. Colin is a viticulturist and principle AHA Viticulture has assumed the role.

It is important that WA continues to provide

energised and capable people to these

national organisations to ensure our state

issues are understood and addressed

In addition to these formalised positions, Wines of WA has continued to strengthen our relationships with other State organisations.

Page 11: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 11

The WET Rebate reform process is a good example of this. We will continue to communicate and collaborate with our inter-state partners to advocate collectively where common interests exist.

In closing, I wish to acknowledge the contribution and support of the following people:

• Regional Association Committees who have provided input to the development of policies and programs to support industry development.

• Producers who have provided input to the development of policies and programs to support industry development.

• The Wines of WA Technical Committee, Chair, Jim Campbell-Clause, Lee Hasselgrove, Keith Pekin, Richard Fennessy and Glynn Ward.

• The Wines of WA Board of Directors, and specifically, President Redmond Sweeny, Vice President Chris Furtado, AV State Independent Board Member Colin Bell

• Jodie Pannel, Membership and Administration Officer, Wines of WA

Larry Jorgensen Chief Executive Officer

Page 12: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 12

Membership Report

The WA wine industry implemented a fee

for service APC funding model for the 2016-

17 financial year. The fees were affected

against the 2016 vintage. A fee per tonne

was collected from the owner of the fruit

and crush and distributed to Wines of WA

to provide state based services and to

Regional Associations based on the GI

origin of the fruit to provide regionally based

services.

As noted in the 2015-16 CEO report,

administrative and process challenges were

encountered in the first year, but the industry

can now look forward to greater certainty

around funding. This will enable longer term

planning and strategic thinking for industry

development.

The budgeted revenue from APC collections for

2016-17 was $258,000, based on a 65,000

tonne vintage. The final reported amounts were

$222,142 against 57,000 tonnes

In total, 267 producers provided return forms for

payment with a further 89 lodging “nil” returns.

The aggregated figure, 356, represents the

typically quoted number of active businesses in

WA. Nil returns are attributable to smoke-taint

events, yearly production decisions to balance

inventory and the variety of business models

that exist. As the fee is attributable to the owner

of fruit at crush, businesses that typically

purchase finished or raw wine would not submit

a return form for payment.

Industry Production Data

A significant benefit arising from the APC

collection is resulting production data.

Information collected via the process includes,

GI origin of fruit by variety. This provides an

accurate snapshot of production capacity and

will be invaluable to producers in determining

how to structure their business to best meet

market demand. As industry settles into

acceptance of the APC, further information can

be collected to provide more detail to support

business planning. As summary of the data is

included in Appendix 1. The information will

also be provided to all producers and will be

archived to the Wines of WA website.

Producer Numbers by Production

Category

FFS Collection by Production Category

0-150 tonnes

36%

151-1000 tonnes

34%

>1000 tonnes

30%

Page 13: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 13

Current Member Benefit Schemes

Australia Post

Membership entitles access to the Wines of WA

alliance with Australia Post whereby members

can take advantage of specialised wine

handling and delivery services at significantly

reduced prices in both the domestic and

overseas markets.

Chamber of Commerce and Industry, WA

(CCIWA)

Membership permits access to the dual Wines

of WA / CCI membership agreement. This

provides members with access to the full range

of CCI member benefits including: advice and

assistance on industrial relations, workplace

agreements, worker’s compensation,

occupational safety and health, industry

training, trade, environmental compliance and

more.

Affiliate Membership Benefits

Affiliate members receive the following benefits:

• Advertising events and new products in

the WoWA E-newsletter

• Advertising page link, events and new

products on WoWA website

• Invitation to the facebook members

only group

• Receive regular issues of the WoWA E-

newsletter and keeping up to date with

all the latest wine industry news

• Access and notification to networking events and workshops with WOWA wine producers and growers

• Advertising events and new products in

the “Wine Scene” E-newsletter

• Advertising page link, events and new

products in social media

Page 14: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 14

Technical Committee

The Wines of WA Technical Committee

oversees the development and

implementation of the AGWA Regional

Program for WA. The Program provides

grants based funding for R&D projects with

specific regional relevance.

The Committee also reviews:

• biosecurity

• water security

• resource management

Committee Members for 2015 – 16 were:

Jim Campbell-Clause – AHA Viticulture

Dave Botting – Burch Family Wines

Peter Traeger – Sandalford

Lee Hasselgrove – Mure Viticulture

Yuri Berns – Sittella

Suzie Muntz – Xanadu

Con Simos – AWRI

Alec McCarthy - DAFWA

Mark Gibberd – Curtin University

Dave Kelly - Curtin University

Jeremy Galbreath - Curtin University

Glynn Ward – DAFWA

Richard Fennessy – DAFWA

Keith Pekin – Perth NRM

Michael Considine – UWA

Larry Jorgensen – Wines of WA

AGWA Regional Program 2016-17

activities;

1. Updating growers on managing garden

weevil: This project will examine strategies

identified as possible alternative approaches to

managing garden weevil through a review of

current and emerging practices and will also

support a group of producers to trial and

demonstrate the identified alternative practice

management strategies that have potential to

replace Indoxacarb. This activity will encourage

practice change for managing Garden weevil

through the identification and demonstration of

a broader range of management options. The

DAFWA entomology team will conduct a desk

top review to determine emerging best practice

management for garden weevil and will then

contact the most appropriate research providers

to garner additional information relevant to

conducting trials in West Australian vineyards.

These trials/demonstrations will be utilised to

extend the research findings to the broader

wine grape producing audience.

2. Evaluating and demonstrating alternative

varieties: Approximately 80% of Western

Australia's wine grape production comprises of

five `noble' French varietals. Reliance on such a

small collection of varietals to sustain the

profitability of the WA wine industry while

considering challenges such as climate change

and market trends for example, poses potential

limitations.

One tool available to growers to ensure

continuation of optimum production while

addressing issues such as increasing

temperatures, compressed growing seasons,

limited water availability is through varietal

selection.

This project aims to change the way growers

think when considering the varieties that best

suit their region by pairing varieties with

climates (current and forecasted).

Demonstrating the potential of such varieties by

means of wine tastings and field walks is an

integral pathway to adoption.

3. Benchmarking and extending info on

improving BMP soil health: This activity will

build the capacity of producers to better

understand and interpret soil, irrigation water

and petiole sample analysis results to improve

fertiliser and irrigation management practices.

This activity will involve engaging with a number

of wine grape producers in the Geographe

region to evaluate their irrigation and nutrition

regimes via water, soil and petiole tests and

vine performance records. We aim to help wine

Page 15: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 15

grape producers improve nutrition and irrigation

practices to achieve targeted yield and quality

outcomes. Results would be benchmarked

against each other and against industry

standards.

4. Year 2 - Cabernet Hang-time: The

practice change will stem from the trials and

evaluation work conducted in year one which

will lead to grape growers and winemakers

gaining a better understanding of the most

appropriate time to leave Cabernet fruit on the

vine to achieve the required fruit quality. We

are trying to encourage communication and

understanding of harvest decisions between

winemakers and grape growers and

viticulturists.

Year two of the project will focus on

disseminating this information to industry by

hosting an industry forum in Margaret River.

The forum will utilise outcomes from year one

(field trials, small batch winemaking and

sensory evaluation by AWRI) the DAFWA

Report on Cabernet production in WA and

current research on Hang time being conducted

throughout other regions in Australia and

overseas.

Development of the 2016-17 AGWA

Regional Program

The plan was developed through the West

Australian wine industries technical committee

and WoWA. In January 2016, Larry Jorgensen

(CEO of WoWA) emailed a copy of the AGWA

Regional’s program guidelines to the regional

associations with an explanatory note seeking

their input into the 16-17 program. At the same

time, technical committee members made direct

contact with producers to seek their input into

regional RD&E priorities.

A committee meeting was held at DAFWA's

Bunbury office on the 14th of January to

prioritise regional RD&E issues. This

prioritisation process was based on feedback

from the regional associations and direct

contact with producers. Though the wine

producing regions throughout WA are diverse,

the selected activities for 2015/16 program aim

to be of benefit to all regions.

The committee and Wines of WA would like to

acknowledge that there is scope to improve

industry input into the program and are actively

seeking greater industry representation and

input to the planning process for future regional

programs.

5 Year Strategic Planning Session

In January 2017, the Wines of WA Technical

Committee undertook a facilitated strategic

planning session to identify the RD&E strategic

priorities over the next 5 years.

The process included a request for input from

all WA producers. The responses were collated

by Wines of WA. The Technical Committee

reviewed these, noting the frequency of

identified issues in determining 5 key focus

areas:

• Smoke taint

• Chemical resistance

• Improved clonal material (including alternative

varieties)

• Business model innovation

• Pest and disease management

• Sustainable viticulture

The 2017 - 22 WA Wine Industry RD&E

Strategic Priorities Plan is available on the

Wines of WA website in the Technical Section.

Page 16: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2016-17

__________________________________________________________________________________

Page | 16

Wines of WA Board of Directors

2016-17

Producer Representatives

0 - 150 tonnes Redmond Sweeny (retiring Oct. 2017) President Snake and Herring [email protected] 151 - 1000 tonnes Chris Furtado (retiring Oct. 2017) Vice President Voyager Estate [email protected] Over 1000 tonnes Paul Holmes a Court Vasse Felix [email protected]

Regional Representatives

Swan Valley/Perth Hills/Peel GI Ross Pamment Houghton [email protected]

Geographe GI Pippa Nielsen Vineyard 28 [email protected]

Margaret River GI Bruce Pearse (retiring Oct. 2017)) Pearse Viticulture [email protected]

Margaret River GI Justin Horgan Leeuwin Estate [email protected]

Blackwood Valley/Pemberton/Manjimup GI Troy Schoof Latitude 34 [email protected]

Great Southern GI Nial Twigger Twigger Estate [email protected]

Australian Vignerons State Representative

Colin Bell (Grower)

AHA Viticulture

Director and Viticulturist

(08) 9756 8011

[email protected]

Executive

CEO

Larry Jorgensen

Wine Industry Assoc WA

+61 448 884 161

[email protected]

Page 17: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of WA Proposed Operational Budget 2016 - 17 and Services to be Provided BudgetTotal FFS

required 15/16

Industry Structure and Development $76,000

- Recover APC establishment costs/Assist Regional Associations with APC implementation $30,000

- Assist Regional Associations with strategic planning, securing resources, funding to implement $21,000

- Develop and implement industry structure for decision making and policy development (working with RAs and producers) $20,000

- Provide Secretariat services to APC Committee $5,000

Market Development and Consumer Interaction $60,000

- Secure resourcing for Regional Association and producers through Royalties for Regions programs, Dept. of

Agriculture and Wine Australia$20,000

- Develop Export Market Strategy in collaboration with RAs and producers $20,000

- Assist RAs to implement strategy $20,000

Innovation, RDE&A and Biosecurity

- Provide Secretariat services to Technical Committee $10,000 $66,000

- Administer AGWA Regional Program $10,000

- Develop Biosecurity policies, facilitate communication to relevant agencies for producers $24,000

- Secure additional resourcing for industry development/innovation through extension and adoption $12,000

- Secure resourcing for WA specific R&D requirements (Growers Group R&D Grant) $10,000

Legislation, Regulation, Social Responsibility and Advocacy $55,000

- Establish and maintain high level relationships with all relevant government agencies and industry stakeholders $20,000

- Monitor all legislative and regulatory areas affecting wine producers. Communicate industry policy on these to

relevant agencies and regulatory bodies. Advocate as required. $20,000

- Host an annual networking event at state Parliament House $15,000

TOTAL FUNDING REQUIREMENT $257,000

Refer to pages 22, 23, 37, 38, 39 of WA Wine Industry Strategic Plan 2014-24 for overview of implementation

roles and responsibilities.

Page 18: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of WA Proposed Fee for Service Rates 2016 Vintage

*Production volume defined by grapes owned at crusher **Per tonne fee applied to tonnes processed within production volume category

ie. Producer A - 9 tonnes crushed = $225 + GST Annual Fee Producer B – 350 tonnes crushed: $2090 (Base Fee) + $190 (per tonne fee of 50 tonnes x $3.80) = $2280 + GST Annual Fee

Annual Production Volume Category*

Annual Base Fee (Excludes GST)

Annual Per Tonne Fee** (Excludes GST)

under 5 tonne $100.00 $0.0000

5 - 10t $225.00 $0.0000

11-29t $225.00 $13.1579

30-49 $475.00 $11.8750

50 - 99 $712.50 $7.6000

100 - 199 $1,092.50 $5.7000

200 - 299 $1,662.50 $4.2750

300 - 499 $2,090.00 $3.8000

500 - 749 $2,850.00 $1.9000

750 - 999 $3,325.00 $1.5200

1000 - 1999 $3,705.00 $1.0450

2000 - 3999 $4,750.00 $0.9500

4000 - 5999 $6,650.00 $0.7125

6000 - 9999 $8,075.00 $0.3563

10000+ $9,500.00 $0.0000

Page 19: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

FINANCIAL REPORTFOR THE YEAR ENDED

30 JUNE 2017

Liability limited by a scheme approved underProfessional Standards Legislation

Page 20: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

CONTENTS

Committee's Report 1

Income Statement 3

Balance Sheet 5

Notes to the Financial Statements 6

Statement by Members of the Committee 11

Compilation Report 12

Certificate by Members of the Committee 13

Page 21: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

COMMITTEE'S REPORT

Your committee members submit the financial report of the WINES OF WESTERN AUSTRALIA INC. for thefinancial year ended 30 June 2017.

Committee Members

The name of each member of the committee during the year and if different, at the date of the report;

Redmond Sweeny (President)Chris Furtado (Vice President)Larry Jorgensen (CEO)Paul Holmes a CourtRoss PammentPippa NielsenJustin HorganColin BellTroy SchoofNial TwiggerBruce Pearse

Principal Activities

The principal activities of the association during the financial year were:

Advocacy to confirm government, at all levels, understands the wine industry and also ensure the value ofthe wine industry is clearly understood by government, the community and other complimentary industrysectors.

Administration of technical and marketing program funding to provide Regional Associations and producersaccess to opportunities to improve business practices and market access.

Communication to ensure wine industry participants are aware of the issues that may affect theirbusinesses.

Significant Changes

No significant change in the nature of these activities occurred during the year.

Operating Result

The profit of the association after providing for income tax amounted to $68,613.77.

Signed in accordance with a resolution of the Members of the Committee.

Page 1

Page 22: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

COMMITTEE'S REPORT

Committee Member: _________________________________________________________Redmond Sweeny (President)

Committee Member: _________________________________________________________Larry Jorgensen (CEO)

Dated this 16th day of October 2017

Page 2

Page 23: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2017

2017 2016Note $ $

INCOMEEvents Management 27,067 13,682Grants & Projects 34,926 3,463Interest Received 753 -Membership Fees 231,762 182,644

294,509 199,789OTHER INCOMERecoupment of Expenses 1,364 26,700Other Income 11,640 4,622

13,003 31,322307,512 231,111

The accompanying notes form part of these financial statements.This report is to be read in conjunction with the attached compilation report of RSM Australia Pty Ltd.

Page 3

Page 24: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2017

2017 2016Note $ $

EXPENDITUREAccounting & Audit Fees 2,119 3,950Amortisation - Intangibles 1,955 3,895Bad and Doubtful Debts - 1,000Bank Charges 1,228 1,507Cleaning & Rubbish Removal 408 506Computer Expenses 3,195 2,925Depreciation 524 1,486Electricity & Gas 251 1,834General Expenses 129 209Insurance 6,538 8,778Loss on Sale of Fixed Assets 1,893 -Marketing Expense 5,797 2,127Meeting Expenses 484 5,823Postage 1,056 713Printing & Stationery 5,844 5,893Provision for Annual Leave (1,707) 14,584Rates 838 901Rent 7,744 11,264Stock Write-Off 6,933 -Subscriptions 5,150 -Superannuation 13,765 13,304Telephone 3,578 4,250Travelling Expenses 26,276 12,829Wages 144,900 141,849

238,898 239,628Profit (Loss) before income tax 68,614 (8,517)Profit (Loss) for the year 68,614 (8,517)Accumulated losses at the beginning of thefinancial year (45,082) (36,564)Retained earnings (Accumulated losses) atthe end of the financial year 23,532 (45,082)

The accompanying notes form part of these financial statements.This report is to be read in conjunction with the attached compilation report of RSM Australia Pty Ltd.

Page 4

Page 25: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

BALANCE SHEETAS AT 30 JUNE 2017

2017 2016Note $ $

ASSETSCash and cash equivalents 3 290,637 301,384Trade and other receivables 4 - 15,145.63Inventories 5 - 6,933Advance Payment - Salary Package 904 -Prepaid Expenses 38,595 37,427TOTAL CURRENT ASSETS 330,134.59 360,889.81NON-CURRENT ASSETSProperty, plant and equipment 6 477 2,894Intangible assets 7 - 1,955TOTAL NON-CURRENT ASSETS 477 4,849TOTAL ASSETS 330,611.93 365,738.85

LIABILITIESCURRENT LIABILITIESTrade and Other Payables 8 307,080 410,821TOTAL CURRENT LIABILITIES 307,080 410,821TOTAL LIABILITIES 307,080 410,821NET ASSETS (LIABILITIES) (23,532) 45,082

MEMBERS' FUNDSRetained earnings (Accumulated losses) 9 23,532 (45,082)TOTAL MEMBERS' FUNDS 23,532 (45,082)

The accompanying notes form part of these financial statements.This report is to be read in conjunction with the attached compilation report of RSM Australia Pty Ltd.

Page 5

Page 26: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

The financial statements cover WINES OF WESTERN AUSTRALIA INC. as an individual entity. WINES OFWESTERN AUSTRALIA INC. is a not for profit Association incorporated in Western Australia under theAssociations Incorporation Act (ACT) 1991 ('the Act').

The functional and presentation currency of WINES OF WESTERN AUSTRALIA INC. is Australian dollars.1 Basis of Preparation

In the opinion of the Committee of Management, the Association is not a reporting entity since thereare unlikely to exist users of the financial report who are not able to command the preparation ofreports tailored so as to satisfy specifically all of their information needs. These special purposefinancial statements have been prepared to meet the reporting requirements of the Act.

The financial statements have been prepared in accordance with the recognition and measurementrequirements of the Australian Accounting Standards and Accounting Interpretations, and thedisclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statementof Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors andAASB 1054 Australian Additional Disclosures.

Significant accounting policies adopted in the preparation of these financial statements arepresented below and are consistent with prior reporting periods unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historicalcosts modified, where applicable, by the measurement at fair value of selected non current assets,financial assets and financial liabilities.

2 Summary of Significant Accounting Policies

Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on aspecific identification basis and include direct costs and appropriate overheads, if any.

Plant and Equipment

Plant and equipment is carried at cost or fair value less, where applicable, any accumulateddepreciation and impairment of losses.Plant and equipment is depreciated on a straight line basisover the assets useful life to the association, commencing when the asset is ready for use.

Depreciation

The depreciable amount of all plant and equipment is depreciated over the useful lives of the assetsto the association commencing from the time the asset is held ready for use.

These notes should be read in conjunction with the attached compilationreport of RSM Australia Pty Ltd.

Page 6

Page 27: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

Impairment of Non-Financial Assets

At the end of each reporting period the association determines whether there is an evidence of animpairment indicator for non-financial assets.

Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangibleassets not yet available for use, the recoverable amount of the assets is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevantcash-generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal andthe value in use. Value in use is the present value of the future cash flows expected to be derivedfrom an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognisedin profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered animpairment loss , except for goodwill.

Employee Benefits

Provision is made for the association's liability for employee benefits arising from services renderedby employees to the end of the reporting period. Employee benefits that are expected to be whollysettled within one year have been measured at the amounts expected to be paid when the liability issettled.

Employee benefits expected to be settled more than one year after the end of the reporting periodhave been measured at the present value of the estimated future cash outflows to be made forthose benefits. In determining the liability, consideration is given to employee wage increases andthe probability that the employee may satisfy vesting requirements. Cash flows are discounted usingmarket yields on high quality corporate bond rates incorporating bonds rated AAA or AA by creditagencies, with terms to maturity that match the expected timing of cash flows. Changes in themeasurement of the liability are recognised in profit or loss.

Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short term investmentswhich are readily convertible to known amounts of cash and which are subject to an insignificantrisk of change in value.

These notes should be read in conjunction with the attached compilationreport of RSM Australia Pty Ltd.

Page 7

Page 28: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

Revenue and Other IncomeRevenue is recognised when the amount of the revenue can be measured reliably, it is probablethat economic benefits associated with the transaction will flow to the association and specificcriteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presentednet of returns, discounts and rebates.

Interest revenue

Interest revenue is recognised using the effective interest rate method.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of theservices can be estimated reliably.If the outcome can be estimated reliably then the stage ofcompletion of the services is used to determine the appropriate level of revenue to be recognised inthe period. If the outcome cannot be reliably estimated then revenue is recognised to the extent ofexpenses recognised that are recoverable.If the outcome cannot be reliably estimated then revenue is recognised to the extent of expensesrecognised that are recoverable.Revenue from training services is generally recognised once the training has been delivered.

Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST),except where the amount of GST incurred is not recoverable from the Australian Taxation Office(ATO).

Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivablesor payables in the balance sheet.

These notes should be read in conjunction with the attached compilationreport of RSM Australia Pty Ltd.

Page 8

Page 29: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

2017 2016$ $

3 Cash and Cash Equivalents

CBA Business Transaction A/C 22,926 6,894NAB Cheque Account 266,831 54,446NAB Savings Account 880 240,044

290,637 301,3844 Trade and Other Receivables

CurrentTrade Receivable - 15,146

- 15,146

5 Inventories

CurrentStock on Hand - at Cost - 6,933

6 Property, Plant and Equipment

Office Equipment - at Cost 4,128 34,829Less Prov'n for Depreciation (3,651) (32,541)

477 2,289Furniture & Fittings - at Cost - 2,020Less Prov'n for Depreciation - (1,415)

- 605Software Development - at Cost 7,000 7,000Less Prov'n for Depreciation (7,000) (7,000)

- -Total Plant and Equipment 477 2,894

Total Property, Plant and Equipment 477 2,894

These notes should be read in conjunction with the attached compilationreport of RSM Australia Pty Ltd.

Page 9

Page 30: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2017

2017 2016$ $

7 Intangible Assets

Wines of WA Brand 19,477 19,477Less: Amortisation (19,477) (17,521)

- 1,955Total - 1,955

8 Accounts Payable and Other Payables

CurrentTrade Creditors 111,041 9,812PAYGW Payable 3,862 3,516Superannuation Payable 3,545 3,304Other Payroll Liabilities 433 433Project Advance Payments 161,160 352,832GST Payable 6,553 18,732Provision for Holiday Pay 20,486 22,192

307,080 410,821

9 Retained Earnings (Accumulated Losses)

Accumulated losses at the beginning of the financialyear (45,082) (36,564)Net profit (Net loss) attributable to the association 68,614 (8,517)Retained earnings (Accumulated losses) at the end ofthe financial year 23,532 (45,082)

These notes should be read in conjunction with the attached compilationreport of RSM Australia Pty Ltd.

Page 10

Page 31: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

STATEMENT BY MEMBERS OF THE COMMITTEE

The committee has determined that the association is not a reporting entity and that this special purposefinancial report should be prepared in accordance with the accounting policies outlined in Note 1 to thefinancial statements.

In the opinion of the committee the financial statements as set out on pages 1 to 10:

1. Presents a true and fair view of the financial position of WINES OF WESTERN AUSTRALIAINC. as at 30 June 2017 and its performance for the year ended on that date.

2. At the date of this statement, there are reasonable grounds to believe that WINES OFWESTERN AUSTRALIA INC. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Committee and is signed for and on behalf ofthe Committee by:

President: _________________________________________________________Redmond Sweeny

CEO: _________________________________________________________Larry Jorgensen

Dated this 17th day of October 2017

Page 11

Page 32: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities
Page 33: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

WINES OF WESTERN AUSTRALIA INC.ABN 23 095 700 543

CERTIFICATE BY MEMBERS OF THE COMMITTEE

I, Redmond Sweeny of Dunsborough, certify that:

(a) I attended the annual general meeting of the association held on 17th October 2017.

(b) The financial statements for the year ended 30 June 2017 were submitted to the members ofthe association at its annual general meeting.

Dated this 17th day of October 2017

Committee Member: _________________________________________________________Redmond Sweeny

Page 13

Page 34: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

Western Australian Vineyard Area

WA Wine producing hectares of vineyards 2016

Zone Region Name Sum Of Area (ha)

Greater Perth Peel 79

Greater Perth Perth Hills 187

Greater Perth Swan District 802

Central Western Australia Central Western Australia 28

South West Australia Blackwood 376

South West Australia Geographe 891

South West Australia Great Southern 2,714

South West Australia Manjimup 290

South West Australia Margaret River 5,819

South West Australia Pemberton 513

Total 11,700

Page 35: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

Western Australian Vineyard Area

Great Southern Sub-Regions

Great Southern Other 30

Great Southern Albany 77

Great Southern Denmark 85

Great Southern Frankland River 1,596

Great Southern Mount Barker 834

Great Southern Porongurup 92

Great Southern Sub-Regions

Page 36: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production by Region

WA 2016 Vintage Tonnes by Region

Region Tonnes

Blackwood Valley 784

Geographe 3766

Great Southern 10807

Margaret River 31627

Peel 16

Perth Hills 219

Swan Disticts 3976

Wine Industry Southern Forests 2624

Total 53819

Blackwood Valley, 784 Geographe,

3766

Great Southern,

10807

Margaret River, 31627

Peel, 16

Perth Hills, 219

Swan Disticts, 3976

Wine Industry Southern Forests,

2624

WA 2016 Vintage Tonnes by Region

Page 37: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

Western Australian White Grape Production 2016

Grape Variety - White TONNAGE

SAUVIGNON BLANC 9,631.00

CHARDONNAY 8,939.73

SEMILLON 7,889.81

CHENIN BLANC 2,542.66

VERDELHO 1,120.06

RIESLING 1,118.26

SAVIGNIN BLANC 18.64

MUSCADELLE 209.67

PINOT GRIS 178.93

OTHER 107.64

MUSCAT BLANC A PETITS GRAINS

97.54

VIOGNIER 95.33

FIANO 39.97

VERMINTINO 37.72

GEWURTZTRAMINER 23.18

ROUSSANNE 17.70

VERDEJO 7.49

SCHEUREBE 5.94

ARNEIS 5.75

PEDRO XIMENEZ 3.89

TRAMINER 3.69

ALBARINO 2.00

TOTAL 32,497

Page 38: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

Western Australian Red Grape Production 2016

GRAPE VARIETY TONNAGE

CABERNET SAUVIGNON 8,510.95

SHIRAZ 7,722.36

MERLOT 2,705.83

PINOT NOIR 639.86

MALBEC 558.89

TEMPRANILLO 268.47

CABERNET FRANC 184.52

PETIT VERDOT 184.39

GRENACHE 175.91

OTHER 139.80

SAPERAVI 84.33

SANGIOVESE 38.76

ZINFANDEL 30.61

NEBBIOLO 17.93

MOUVEDRE 16.01

PINOT MEUNIER 15.27

BARBERA 10.26

DURIF 7.84

BRACHETTO 3.80

NERO D'AVOLA 3.30

GRACIANO 1.50

TANNAT 0.75

TOTAL 21,321

Page 39: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Blackwood Valley

Red Varieties Variety Tonnage

SHIRAZ 219.42

CABERNET SAUVIGNON 164.41

MERLOT 83.276

MALBEC 16.509

TEMPRANILLO 9.653

GRENACHE 1.4

PETIT VERDOT 0.25

Total 494.918

White Varieties Variety Tonnage

CHARDONNAY 96.055

SAUVIGNON BLANC 93.46

SEMILLON 93.458

VIOGNIER 5

VERMINTINO 0.96

FIANO 0.4

SCHEUREBE 0.2

WHITE TOTAL 289.533

Page 40: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Geographe

Variety - Red Tonnage

CABERNET SAUVIGNON 587.25

SHIRAZ 542.046

MERLOT 351.719

SAPERAVI 78.365

MALBEC 67.532

TEMPRANILLO 64.659

GRENACHE 31.283

OTHER 23.68

BARBERA 10.26

PETIT VERDOT 5.745

ZINFANDEL 4.744

MOUVEDRE 4.284

SANGIOVESE 3.945

GRACIANO 1.5

DURIF 1.414

NEBBIOLO 0.786

Total 1779.21

Red Varieties

Page 41: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Geographe

Variety - White Tonnage

SAUVIGNON BLANC 680

CHARDONNAY 632.023

SEMILLON 605.452

VERDELHO 25.978

CHENIN BLANC 12.084

RIESLING 7.298

MUSCAT BLANC A PETITS GRAINS 5.48

SAVIGNIN BLANC 5.229

ARNEIS 4.4

VIOGNIER 4.262

VERDEJO 2

PINOT GRIS 1.65

FIANO 0.5

Total 1986.36

White Varieties

Page 42: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Great Southern

Variety - Red Tonnage

SHIRAZ 2600.41

CABERNET SAUVIGNON 1771.12

PINOT NOIR 382.851

MERLOT 262.662

MALBEC 116.89

TEMPRANILLO 45.261

CABERNET FRANC 41.677

GRENACHE 31.241

PETIT VERDOT 9.32

MOUVEDRE 8.974

OTHER 3.005

PINOT MEUNIER 1.447

SANGIOVESE 0.965

NEBBIOLO 0.562

Total 5276.38

Red Varieties

Page 43: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Great Southern

Variety - White Tonnage

SAUVIGNON BLANC 1903.61

CHARDONNAY 1546.15

SEMILLON 1052.37

RIESLING 910.872

PINOT GRIS 32.787

VERDELHO 23.25

FIANO 18.437

VIOGNIER 15.869

GEWURTZTRAMINER 13.429

VERMINTINO 7.2

TRAMINER 3.69

OTHER 3.219

Total 5530.87

White Varieties

Page 44: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Margaret River

Variety Tonnage

CABERNET SAUVIGNON 5661.237

SHIRAZ 3932.052

MERLOT 1833.017

MALBEC 340.655

PETIT VERDOT 144.182

CABERNET FRANC 110.795

TEMPRANILLO 102.286

PINOT NOIR 92.929

GRENACHE 54.593

OTHER 38.942

SANGIOVESE 31.298

ZINFANDEL 20.061

NEBBIOLO 13.304

SAPERAVI 5.967

BRACHETTO 3.8

TANNAT 0.5

MOUVEDRE 0.433

Total 12386.05

Red Varieties

Page 45: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Margaret River

Variety Tonnage

SAUVIGNON BLANC 6007.125

SEMILLON 5821.639

CHARDONNAY 5507.15

CHENIN BLANC 973.473

SAVIGNIN BLANC 353.387

RIESLING 167.143

VERDELHO 139.134

MUSCAT BLANC A PETITS GRAINS 85.375

PINOT GRIS 61.67

VIOGNIER 49.449

FIANO 19.934

OTHER 17.846

VERMINTINO 14.993

SCHEUREBE 5.739

MUSCADELLE 5.013

GEWURTZTRAMINER 4.139

VERDEJO 3.986

ROUSSANNE 2.22

ARNEIS 1.348

Total 19240.76

White Varieties

Page 46: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Peel

Variety Tonnage

OTHER 4.877

SHIRAZ 3.492

Total 8.369

Variety Tonnage

OTHER 2.75

SEMILLON 2

VERDELHO 1.35

CHARDONNAY 0.935

FIANO 0.7

TOTAL 7.735

Red Varieties

White Varieties

Page 47: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Perth Hills

Variety Tonnage

SHIRAZ 30.371

TEMPRANILLO 29.838

OTHER 28.4

CABERNET SAUVIGNON 23.482

MERLOT 16.697

GRENACHE 8.365

PINOT NOIR 4.82

DURIF 1

PETIT VERDOT 0.434

Total 143.407

Variety Tonnage

CHARDONNAY 38.773

OTHER 21

VERDELHO 5.35

VIOGNIER 3.64

SAUVIGNON BLANC 3.125

VERDEJO 1.5

GEWURTZTRAMINER 1

SEMILLON 0.95

TOTAL 75.338

Red Varieties

White Varieties

Page 48: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Swan Valley

Variety Tonnage

SHIRAZ 258.407 CABERNET SAUVIGNON 211.269

GRENACHE 49.023

MERLOT 45.009

OTHER 40.898

CABERNET FRANC 22.509

TEMPRANILLO 16.443

PETIT VERDOT 14.878

DURIF 5.423

MALBEC 4.606

NERO D'AVOLA 3.3

SANGIOVESE 2.55

MOUVEDRE 2.322

PINOT NOIR 0.5

TANNAT 0.25

Total 677.387

Red Varieties

Page 49: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Swan Valley

Variety Tonnage

CHENIN BLANC 1557.098

VERDELHO 908.668

CHARDONNAY 413.327

WHITE -MUSCADELLE 204.66

SEMILLON 122.816

SAUVIGNON BLANC 25.11

OTHER 24.826

VERMINTINO 14.233

VIOGNIER 9.82

MUSCAT BLANC A PETITS GRAINS 6.682

PEDRO XIMENEZ 3.892

GEWURTZTRAMINER 2.95

ALBARINO 2

ROUSSANNE 1.234

PINOT GRIS 0.71

SAVIGNIN BLANC 0.5

TOTAL 3298.526

White Varieties

Page 50: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Wine Industry Southern Forests

Variety Tonnage

PINOT NOIR 158.762

SHIRAZ 136.162

MERLOT 113.447

CABERNET SAUVIGNON 92.18

PINOT MEUNIER 13.827

MALBEC 12.7

PETIT VERDOT 9.581

CABERNET FRANC 9.538

ZINFANDEL 5.8

NEBBIOLO 3.28

TEMPRANILLO 0.334

TOTAL 555.611

Red Varieties

Page 51: 2016/17 ANNUAL REPORT · 2020-04-09 · 2016/17 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 17 October 2017 . ... potential, which includes wine tourism. The opportunities

Wines of Western Australia PO BOX 2091, Claremont North WA 6010

T– 9284 3355 E – [email protected] W – www.winewa.asn

2016 Western Australian Wine Grape Production Variety within Region

Wine Industry Southern Forests

Variety Tonnage

SAUVIGNON BLANC 919.39

CHARDONNAY 705.323

SEMILLON 191.125

PINOT GRIS 82.108

SAVIGNIN BLANC 59.527

OTHER 38

RIESLING 32.943

VERDELHO 16.33

ROUSSANNE 14.244

VIOGNIER 7.294

GEWURTZTRAMINER 1.658

VERMINTINO 0.336

TOTAL 2068.28

White Varieties