The Ontario government’s latest budget has been met with enthusiasm from the province’s vintners and brewers, who see the support as a stabilizing force in uncertain times. A key component of this support is the Ontario Grape Support program, which will double the percentage of Ontario grapes in blended wine.
Current Regulations
- Blended wines must currently contain at least 25% Ontario grapes, mixed with wine from other countries like Italy, France, and the United States.
- Blended wines are generally cheaper than traditional wines, making it easier for Ontario vintners and grape growers to compete with international wines that often sell for $10 a bottle or more.
Benefits of the New Program
Aaron Dobbin, president of Wine Growers Canada (WGC), emphasizes the advantages of using hardier Ontario grapes, stating that they can be grown in higher volumes and are less susceptible to adverse weather conditions.
Expected Outcomes
- The new program is expected to lead to thousands of tonnes of Ontario grapes being used in international-domestic blends over the next five years.
- The $175-million program will provide a safety net for wineries and farmers by allowing them to use more local product without having to pay duties on imported wine.
Industry Challenges
- Currently, most domestic-international blends contain around 20-30% local product. Dobbin believes this new plan will significantly increase that number.
- The wine industry has faced challenges due to crop failures caused by extreme weather conditions, such as frost damage and droughts. Last year was particularly devastating due to an early spring freeze.
Global Supply Chain Issues
- The situation was exacerbated by global supply chain disruptions, largely due to the Russian invasion of Ukraine, which caused prices to skyrocket and made it even harder for Canadian producers.
Collaborative Efforts
Dobbin notes that his members are eager to work closely with all levels of government, including federal agencies such as Agriculture Canada and Health Canada, as well as provincial ministries like agriculture and finance.
- Quote from Dobbin: “We want to make sure we get through this together.”
Market Share and Consumer Awareness
Wine Growers estimates that between 50-60% of all wine consumed globally is made from international/domestic blends.
- Dobbin stresses the importance of maintaining market share and staying competitive.
- WGC is developing strategies to ensure consumers know the local content in their products, advocating for labeling requirements that indicate the origin of each component.
Funding Initiatives
The proposal includes increasing funding under several programs:
- Growing Forward 2 (GF2): Helps farmers adapt to changing climate conditions.
- Growing Forward 3 (GF3): Focuses on sustainable practices.
- AgriStability: Aids farm families in managing income fluctuations.
Government Support
Agriculture Minister Lisa Thompson has committed to working closely with her federal counterpart, Marie-Claude Bibeau, to ensure the agricultural sector remains strong despite ongoing economic uncertainty.
- Quote from Thompson: “Our government recognizes agriculture plays a critical role in maintaining food security across the country.”
Campaign for Local Wine
As part of its efforts, Wine Growers has launched an online campaign called #DrinkLocalWine, urging Ontarians to consume more locally produced products rather than imported ones.
- WGC plans to hold events throughout the summer months to encourage people to try different types of domestic/international blends available in Ontario.
This new program is seen as a significant step forward for the Ontario wine industry, providing much-needed support and stability in challenging times.
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