Ontario gives $12 million to grape and wine industry

The province's grape and wine industry is toasting a $12-million top-up from the province.

The funding will be doled out over four years to help grape growers pull out some of their existing vines and replace them with more popular grape varieties. Farmers will also be able to tap into the cash for vineyard upgrades, such as irrigation projects, installing bird netting and purchasing new equipment.

Agriculture, Food and Rural Affairs Minister Carol Mitchell unveiled the cost-sharing program Tuesday at Lakeview Vineyard Equipment in Niagara-on-the-Lake.

Mitchell said the initiative was developed with input from members of the grape and wine industry and ought to have broad appeal for growers and businesses in the sector.

"If a grower needs to shift to a more popular grape variety, we're going to help make that happen," she said. "And if a grower needs new equipment and technology to improve their grape production, we'll also help to get that done."

The program will provide up to 35% of the cost of eligible vineyard improvements.

Any help growers can get with the high cost of doing business is appreciated, said Bill George, chairman of the Grape Growers of Ontario.

"This will allow growers to purchase some equipment for their vineyards that will make them more efficient," he said.

"We're competing in a global environment. We have to be as efficient as we possibly can."

St. Catharines MPP Jim Bradley said the province was convinced to provide the funding in part because grape growers have proven over the years that they are willing to adapt to changing demands of the marketplace and improve the quality of their products.

"I expect as time goes on we'll see a continuing evolution. You'll continue to provide us with input, you'll tell us what's working and what needs tweaking," he said.

Lakeview owner Joe Pillitteri said businesses such as his that supply high-tech equipment to growers and wineries also stand to benefit from the funding announcement.

"It's great because growers in some cases can afford the capital that they previously couldn't and it's capital that will help save them money and guarantee their returns year after year," he said.

Grape Growers of Ontario CEO Debbie Zimmerman said the industry will also lobby the federal government for similar financial support.

"It's a tough job being in this industry," she said.

"Competition is tough. We're fighting for shelf space and also we're fighting Mother Nature in many, many aspects."