Nova Scotia’s wine industry is set to receive $6.6 million in new provincial support as part of a comprehensive program aimed at boosting both farm and commercial wineries.
The funding proposal, announced by the provincial government, includes direct financial support to wineries, the creation of a new wine authority, and the development of a long-term growth strategy for the sector.
The funding includes direct payments to farm wineries at a rate of 65 per cent, an increase from the previous 50 percent, for eligible products sold at Nova Scotia Liquor Corporation (NSLC) outlets. This amounts to an additional $1.6 million, bringing the total investment to $6.6 million.
Commercial wineries will also benefit, receiving direct payments at a rate of 35 percent, with a cap of $1 million per fiscal year for each producer.
The province’s move to enhance its support for the wine industry is partly a response to a trade challenge with Australia that was recently resolved.
The challenge had put pressure on Nova Scotia’s wine sector, particularly regarding market access and competition. In light of this, the government has worked to create a program that supports the industry’s continued growth and competitiveness both locally and internationally.
Allan MacMaster, Minister of Finance and Treasury Board, emphasized that the new program was informed by expert advice and aims to strengthen both sectors of the wine industry. “The situation we are in today was the result of a trade challenge which we were able to resolve. The proposal we put forward is informed by an expert report, which concluded both sectors of the wine industry can be more successful with government support based on what each contributes back to our economy,” MacMaster said.
Despite the increased funding, the farm wine sector has voiced concerns that the proposed $6.6 million still falls short of their needs, which they estimate at nearly $14 million. The sector had hoped for more significant support to cover production costs and expand their reach in the market. Farm wineries play a vital role in the province’s agricultural landscape, and the funding is expected to help alleviate some of the financial pressures they face.
As part of the broader plan, the province will also be establishing a new wine authority, which will help oversee regulations, marketing, and long-term growth strategies for the sector.
Over the last five years, the grape and wine sector in the province has received approximately $40 million in funding from various provincial programs.
While the current proposal has garnered mixed reactions, with farm wineries advocating for more financial support, the province has committed to continued collaboration with the sector. Both the Department of Finance and Treasury Board and the Department of Agriculture will work alongside the NSLC to refine the program and address ongoing concerns.
