BC wine industry asks for up to $317M of public cash to fight off 'unprecedented' threats

The British Columbia wine industry is asking for hundreds of millions of dollars in public funding to help it survive amid “unprecedented” challenges.

It will cost between $162 million and $317 million to pay for a crop replanting program in the province, according to a report from the BC Wine Grape Council (BCWGC).

The study claims 29 per cent of the wine sector’s 12,681 acres have “succumbed to winter damage,” while 30 per cent suffer from diseases and must be replanted to avoid contagion.

It costs an average of $42,360 to replant a single acre, the report says, and between 3,814 and 7,492 acres need to be replanted.

“The challenges facing grape growers and winemakers today are unlike anything we have experienced in the past,” said BCWGC Chair Ross Wise.

“Climate change disasters along with increased incidence of virus and disease pressure are threatening the economic viability of our industry and we need funding in order to combat these major issues.”

BCWGC said wineries were already struggling with reduced yields and decreased tourism revenue due to “climate-change related winter freeze and wildfire events.”

It said government support is “critical” to save the industry.

“The replant funding outlined in this study is in line with federal and provincial investment seen elsewhere in Canada and is certainly warranted given the significance of the economic impact of BC’s wineries,” Christa-Lee McWatters, Wine Growers BC Board chair, claimed.

“In 2019 the total economic impact of the BC wine industry was $3.75 billion with $440 million in tax revenue alone.”

Earlier this year, BCWGC, Wine Growers British Columbia and Cascadia Partners projected a 54 per cent crop loss “across the board,” resulting in a 20 per cent decline in employment in the industry (amounting to 381 job losses).

The report claimed this would mean a $133 million decline in the industry’s revenue and a $100 million loss in government tax intake.

“While the challenges being faced right now are unprecedented, this is not the first time that the BC wine industry has faced such a crisis,” McWatters added.

“In the early 1990s, the North American Free Trade Agreement dramatically transformed the competitive environments for local producers when industry and all levels of government came together and delivered the cost-shared Grape and Wine Adjustment Assistance Program that transformed the BC wine industry into a producer of truly unique, high-quality wine and laid the foundation for more than 30 years of growth.”