Wine growers in parts of Australia have a "fear of retribution" if they speak out about contracts with winemakers, the competition watchdog has warned in a new report that exposes a series of problems in the industry.
A lack of competition between winemakers buying grapes, an imbalance in supply agreements meaning that growers wore too much risk, and the inability of growers to negotiate effectively with winemakers were other problems identified.Australian Competition and Consumer Commission "Meanwhile, various supply arrangements appear to favour incumbent buyers of bulk wine grapes, such as exclusive supply clauses, automatic and long-term contract extensions, and difficult contract termination obligations on growers."
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