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Benefit Cost Analysis of Wine Australia R&D Investments 2021-2022


To evaluate the value of Wine Australia’s R&D investments, AgEconPlus was commissioned to undertake an ex-post benefit-cost analysis of projects which were completed during the 2021-22 financial year. The four randomly selected projects were: 

  • AWR 1701-1.5.1  :  Collecting and disseminating information on agrochemicals.
  • AWR 1701-3.1.1  :  Low and no-alcohol wine products-understanding technical and sensory related challenges and opportunities.
  • AWR 1701-4.4.3  :  Bioprospecting Australian microbial genetic diversity.
  • AWR 1701-3.2.1  :  Putting microbial diversity to work in shaping wine style.

Given the assumptions made for each evaluation, all three investments are expected to produce positive net benefits over 30 years from the last year of investment. 


Economic analyses of four research and development (R&D) projects funded by Wine Australia has been undertaken. The main purpose was to demonstrate the outcomes and benefits that have emerged or are likely to emerge from investment. This forms part of the process for the Council of Rural Research & Development Corporations (CRRDC) that aims to demonstrate the impact, effectiveness and return on investment from the Rural Research and Development Corporations. Wine Australia is funded by statutory levies paid by industry participants, with matching funding provided by the Australian Government up to 0.5 per cent of the industry's gross value of production.

Each of the four analyses provides a description of the constituent projects including objectives, outputs, activities, costs, outcomes, and benefits. Benefits are described qualitatively according to their contribution to the triple bottom line of economic, environmental, and social benefits. While a range of potential benefits of each project are identified, the analysis focused on the most likely and most significant benefit stream. A number of potential benefits therefore remained unquantified and hence the estimated net benefits of some projects may be considered conservative. The analyses were undertaken for total benefits and Wine Australia benefits, including those expected in the future as a result of the investment. 

Investment in all four projects yielded positive results at a 5% discount rate and a 30 year analysis period.

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

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This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.