NORTH East wine businesses say they need the Federal Government to stand firm on its position, giving Australian businesses the right to continue using the name prosecco for its locally made product.
It's one of a number of sticking points in Australia's trade talks with the European Union (EU), which has been laboured over for five years and appears no closer to a resolution, despite Australian Trade Minister Don Farrell's bolt to Brussels this week in an attempt to finalise an agreement.
The EU wants Australian producers to stop using Geographical Indicators (GI) for Australian-made products they believe belong to Europe, but in the case of prosecco, Italy only changed the name of the prosecco grape variety to Glera in 2009, then registering prosecco as a GI with the EU, in an effort to secure exclusive rights to the world's most popular sparkling wine.
The EU wants to prevent Australian producers from using the name prosecco to market their own sparkling wines, made from the same grape variety.
Australia's prosecco market is booming and, according to Australian Grape and Wine, was worth around $204m at the end of 2021.
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With more than half of it coming from the King Valley, it makes it worth more than $100m to the wine industry within the Rural City of Wangaratta, and it is growing each year.
As 95 per cent of Australian prosecco is sold in the Australian domestic market, local producers don't want to confuse consumers by having to change the name of a product, one they have invested heavily in to build its profile and substantial following.
Wines of the King Valley president Dean Cleave-Smith confirmed prosecco accounts for over 40 per cent of all wine production in the King Valley.
He said he would encourage the Federal Government not to budge on the issue of prosecco naming rights, to protect the viability of the King Valley.
"The Australian Government must stand up for the rights of our producers," he said.
"The Italians, through dubious methods, fabricated the notion that prosecco should be a GI whereas their own department of agriculture records, their export documentation and a large body of scientifically and legally considered material, clearly demonstrates that prosecco is a grape variety.
"The Australian Government cannot make decisions that condone and perpetuate the Italian misinformation.
"Prosecco along with half a dozen or so other grape varieties which are also at risk, are critical to the future economic viability of the King Valley producers, and an adverse outcome will have significant implications for future of the industry, and in turn, the broader community."
Minister Farrell says the government "remains strongly committed to the best possible deal for Australian businesses, farmers, workers and the broader community" and that he was prepared to persist, "even if it means the negotiations extend into the second half of this year".
