swan valley vision 2012

SwanValleyVision2012SecuringthefutureofPerth’sSwanValley

SwanValley&RegionalWinemakersAssociation

Swan Valley & Regional Winemakers Associa�on: Swan Valley Vision 2012


INDEX

EXECUTIVE SUMMARY page 4

INTRODUCTION 5

THE UNIQUE GEOLOGY OF THE SWAN VALLEY 7

HISTORY OF THE SWAN VALLEY 8

CURRENT LAND USE 11

ECONOMIC IMPACT OF WINEMAKING IN THE SWAN VALLEY 12

WINE BUSINESS MODEL FOR THE SWAN VALLEY 13

RELATED BUSINESSES IN THE SWAN VALLEY 16

THREATS TO THE SWAN VALLEY 17

BRANDING: THE AUTHENTIC EXPERIENCE 19

CONCLUSION 21

AppendixA:

Area Boundaries as de;ined by the Swan Valley Planning Act 22

AppendixB:

Swan Valley Geographic Indicator 23

AppendixC:

City of Swan Ward Boundaries 26

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EXECUTIVESUMMARY

The Swan Valley is one of Perth’s iconic a�rac�ons, comparable to Ro�nest Island, Fremantle and Kings Park.

With a unique geology that makes it especially suited to farming it has a long history right back to the earliest

days of the Swan River Colony, and as a home to indigenous people for thousands of years. It is one of the

oldest wine regions in Australia, with wine and table grapes grown in the Swan Valley since 1830.

Today the Swan Valley is effec�vely a small area of about 3000 hectares, as defined by the Swan Valley Plan-

ning Act (SVPA), which prescribes land use within its boundaries. Since enactment in 1995 the SVPA, which

places protec�on of vi�culture at its heart, has been supported by successive Western Australian

governments.

Since implementa�on of the SVPA the wine tourism and visitor business in the Swan Valley has grown

enormously. There are now nearly 150 business servicing 2 million visitors per annum with an es�mated

annual income of $167 million. Approximately 40 wineries account for $92 million of this income. Small

owner operated wineries offer excellent profitability, and there are economic benefits for larger wineries too.

As Perth’s popula�on increases over the next 20 years and beyond the value of the Swan Valley as a

magnificent recrea�onal area blessed with open spaces and rural vistas, virtually within the suburban region,

will become priceless. The Swan River and tributaries which form the head waters of the Swan estuary are

cri�cal natural ecosystems which must be protected from urban encroachment.

Now at a third of its original 10,500 hectares any further decrease in size would see the Swan Valley risk losing

its cri�cal mass. All areas of the Swan Valley have the capacity to support farming and rural ac�vi�es and the

excision of any further area from the SVPA would prove disastrous. Increased popula�on density via

subdivision will create conflict between neighbours and threaten the right to farm and conduct reasonable

commercial agricultural management prac�ces. Allowing developments that are inconsistent with its rural

nature will threaten the special character of the Swan Valley.

Having boomed since 1995 the Swan Valley now has the important job of crea�ng a modern reputa�on. A

reputa�on built on its heritage, its role as the cradle of Western Australia agriculture, its authen�city and its

integrity and the quality and diversity of its produce. Modern branding of the Swan Valley will benefit all

producers and see its agricultural and related tourism industry thrive and grow. It will also become

increasingly a�rac�ve to those Perth residents seeking larger lot sizes. These larger lot sizes allow for an

idyllic rural lifestyle which enjoy the benefits of rural living with the associated ameni�es of a wine region and

will be highly valued as Perth’s suburbs become more densely se�led.

The wine industry is the cornerstone industry in the Swan Valley’s future that includes table grape growing,

equine ac�vi�es, rural lifestyle opportuni�es and other rural pursuits. All of these ac�vi�es are predicated on

the Swan Valley maintaining is rural nature and amenity. People do not visit simply because they cannot

purchase wine, meals, coffee, view a concert or hold a wedding in the city. They visit because of the

wonderful se@ng in which they can conduct these ac�vi�es.

It is essen�al that the Western Australian Government, led by the Department of Planning, and in conjunc�on

with the City of Swan con�nue to support and enhance the SVPA. Planning decisions must be made for the

long term benefit of the greater community of Perth, not the short term expediency that comes from

subdivision. In taking the steps that protect the character of the Swan Valley and the exis�ng wineries and

vineyards, an effec�ve SVPA has created and will con�nue to support a sustainable Swan Valley environment

that allows for reasonable growth.


INTRODUCTION

The Swan Valley is situated between the Swan and Helena River

confluence and Walyunga Pool in the Darling Range. It occupies an area

of 105 square kilometres (10500 hectares). The Avon River descends

from the hills at Walyunga to form the Swan River which flows south

through its flood valley between the Darling Range to the east and the

swampy coastal plains to the west. The historic town of Guildford is

situated at what is now deemed the southern end of the Swan Valley,

although vineyards once flourished in Bassendean and South Guildford.

The Swan Valley was one of the earliest districts of the Swan River Colony

to be se�led in 1829. It is a tremendously important part of Western

Australia, known for its historic significance in the state’s development,

agricultural bounty, its scenic rural vistas, and the outstanding

recrea�onal opportuni�es it offers the people of Perth and their visitors.

The Swan River ecosystem, which forms such an important part of Perth’s

environment, begins in the Swan Valley.

The Swan Valley is currently home to a popula�on of 5539 (City of Swan)

and accommodates an es�mated 2 million visitors per annum

(Swan Valley Visitors Centre). Up to 150 individual businesses cater for

visitors genera�ng an es�mated $167 million revenue.

Subdivision in the early nineteenth century resulted in the break up of

most of the original large land grants and now property sizes are

commonly in the range of 4 – 12 hectares. For many years these lots

sizes supported small family farms, commonly growing grapes. Changing

social and economic condi�ons has meant that the number of lots now

being farmed has fallen and some residents see an opportunity to profit

from subdivision of their land. This would severely impact on the

remaining highly valuable businesses and threaten the heritage and rural

nature of the Swan Valley.

The Swan Valley is currently protected by the Swan Valley Planning Act

(SVPA), which defines the Swan Valley and prescribes planning and

development objec�ves for it. The SVPA ensures the special character of

the Swan Valley will be protected and provide a magnificent recrea�onal

asset for all of Perth (Western Australian Planning Commission Bulle�n

No 80).

SWAN VALLEY PLANNING ACT

Since its incep�on in 1995 the

Swan Valley Planning Act has

served to successfully

preserve the heritage and

amenity of the Swan Valley

and provide certainty to those

seeking to either invest in

businesses catering for

visitors or simply enjoy the

rural lifestyle.

The Swan Valley Planning Act

was not wri2en to last for two

decades, it was wri2en to

provide certainty for the fu-

ture of the Swan Valley.


Without the certainty of land use created by the SVPA the investment

required to allow the Swan Valley to meet its poten�al to be one of

Perth’s major recrea�onal areas for future genera�ons would not be

forthcoming. The agricultural based businesses which contribute to the

character of the Swan Valley and host the visitors will be threatened by

a�empts to reduce the size of the planning area or increase popula�on

density.

Since being enacted in 1995 the SVPA has served to successfully preserve

the heritage and amenity of the Swan Valley and provide certainty to

those seeking to either invest in businesses catering for visitors or simply

enjoy the rural lifestyle. The introduc�on of the SVPA has been

instrumental in the development of a significant number of new wine

businesses, other visitor orientated businesses and a drama�c increase in

economic ac�vity in the Swan Valley. This has improved the a�rac�on of

the valley to residents and visitors alike, whilst preserving its rural

agricultural character. The area defined by the SVPA is just a third of the

total valley area at approximately 3000 hectares (appendix A). This is the

area that is addressed in this Vision Statement.

The northeast subregion of Perth is forecast to grow to an es�mated

popula�on of 258,000 by 2031, a 37 per cent increase on current

popula�on levels. This popula�on increase will require an addi�onal

40,000 dwellings. (DOP 2031 Vision). The Swan Valley will be bound

between Ellenbrook and the new suburbs along the line of the proposed

Perth to Darwin highway in the west, Jane Brook, Stra�on and Midvale in

the south, and Brigadoon and Gidgeganup in the east.

The Swan Valley is a highly a�rac�ve area of open space, offering

excellent recrea�onal opportuni�es that will complement the residen�al

and commercial development in the northeast subregion.

This growth will need to be carefully planned to ensure the natural

a�ributes, built heritage and local character of the area and the right to

farm are protected. It is difficult to see how subdivision of land holdings

within the Swan Valley, resul�ng in increased popula�on density and

pressure on agricultural ac�vi�es will benefit the Swan Valley or

contribute significantly to the necessary growth in dwellings required to

support the future popula�on.

The Swan Valley is defined as a wine region or “Geographical Indica�on”

under the Australian Wine and Brandy Corpora�on Act (appendix B).

VITICULTURE & WINEMAKING

ARE FLOURISHING

Vi�culture is squarely at the

centre of the tourism

experience for the Swan

Valley.

Since the Swan Valley

Planning Act was introduced

in 1995 many new wineries

have been established

including;

Faber

Si2ella

Upper Reach

Heafod Glen

Black Swan

Bella Ridge

Carilley Estate

Lancaster

Harris Organic

Oakover


This defini�on is integral to the integrity and reputa�on of the wines of

the Swan Valley. No wine may be labelled as being “Swan Valley” unless

at least 85 percent of the grapes used to make it are grown within the

defined Swan Valley boundaries.

Building and improving the reputa�on of the Swan Valley for all

producers – wine and others - through strategic collabora�ve marke�ng

is an essen�al step in strengthening business ac�vity in the area.

The Swan Valley & Regional Winemakers Associa�on (SWRWA) is the

industry body represen�ng Swan Valley and surrounding wineries. The

Associa�on represents 35 Swan Valley wineries and 80 percent of

produc�on of Swan Valley wines. The aim of the SWRWA is to encour-

age, promote, advance and protect both the vi�cultural pursuits in the

Swan Valley (grape growing and wine making) and the character and use

of the Swan Valley as an enjoyable and produc�ve environment for all.

The SVRMA has produced this Vision Statement to inform and engage

stakeholders, decision makers and the community of Perth with regard

to the history, the present, and the future of this wonderful and

special corner of our state.

THEUNIQUEGEOLOGYOFTHESWANVALLEY

Within the context of the greater Perth region the Swan Valley is a

unique geological forma�on. Its soils and loca�on are not duplicated in

any other loca�on. The Swan Valley – the area surrounding the river as it

flows from Walyunga to Guildford - is a unique pocket of land on the

Swan coastal plain.

Unlike the sandy soils, limestone ridges, and swamps of much of the

coastal plain that were formed by the sea, the Swan Valley has been

formed by the erosion of the Darling Plateau above.

Adjoining the Swan Valley the erosion of the western edge of the plateau

gives the Darling Scarp the appearance of hills. Along the base of the

Scarp is a shelf which contains a layer of laterite par�ally covered by sand

and ironstone gravel formed by its erosion and debris tumbled down

from the exposed granite rock of the plateau. These ironstone soils have

excellent water holding capacity and are able to support moderate vege-

ta�ve growth. This is well suited to the produc�on of low yielding high

quality wine grapes with li�le or no irriga�on.

SWAN VALLEY & REGIONAL

WINEMAKERS ASSOCIATION

The aim of the Swan Valley &

Regional Winemakers

Associa�on is to encourage,

promote, advance and protect

both the vi�cultural

pursuits in the Swan Valley

(grape growing and wine

making) and the character

and use of the Swan Valley as

an enjoyable and produc�ve

environment for all.

The SVRMA has produced this

Vision Statement to inform

and engage stakeholders,

decision makers and the

community of Perth with

regard to the history, the

present, and the future of the

this wonderful and special

corner of our state.


Extending outwards from the river and its tributaries such as Ellen Brook,

Susannah Brook and Jane Brook are rich alluvial soils of good texture and

fer�lity. These soils are superb for most hor�cultural pursuits. With

irriga�on they support high cropping tablegrape produc�on. With micro

irriga�on systems using low rates of irriga�on they support excellent

quality winegrapes.

West of the river’s flood plains towards the coast, the highly leached

sands contain very li�le mineral traces, being pale grey and infer�le.

No other area has this combina�on of soil, climate and forma�on that

allows for such agricultural uses within the greater Perth region.

HISTORYOFTHESWANVALLEY

The development of the Swan Valley is a key chapter in the history of

Perth and the Swan River Colony. This long term connec�on with the

development and success of the City of Perth is part of the charm and

authen�c experience that life in, and a visit to, the Swan Valley offers.

The Swan Valley has played a very important role as a source of

abundance for its original inhabitants the Nyungah people and then for

successive genera�ons of European se�lers and their descendants, the

people of Perth. It has always been a place that has sustained its people.

With its abundant rivers, brooks, fresh water lakes and river meadows it

had for many thousands of years been one of the key sources of food

supply for the Aborigines of the Swan Coastal Plain. The Nyungah people

lived off the land and conserved resources and preserved the landscape.

While several European expedi�ons visited the Swan estuary before

permanent European se�lement it was the fer�le alluvial flats and flood

plains along both sides of the Swan River upstream from Guildford to the

Darling Scarp that were the chief a�rac�on for Captain S�rling when he

first visited the area in 1827. It confirmed his intent to found a Bri�sh

colony in this isolated part of the Australian con�nent which he did in

1829.

The first European se�lers to Perth quickly claimed the land abu@ng the

Swan River because of its naturally superior soils for agriculture. The

original land grants, known as ribbon grants because of their narrow river

frontage and great depth, were commonly in the order of 1200 to 2000

hectares.

A PLACE OF HISTORY

The first European se2lers to

Perth quickly claimed the land

abuEng the Swan River

because of its naturally supe-

rior soils for agriculture

Grapevines were one of many

fruits planted by colonists and

the suitability of the Swan

Valley for grape growing was

established in the 1830s.

Over 170 years it became

clearly established as an

outstanding loca�on to grow

very high quality grapes.

With economic changes the

Swan Valley community has

returned to a predominance

of smaller business based on

long term investment and

development strategies.

These businesses make use of

the heritage of the Swan

Valley to provide locally

grown products.


The shape of these ini�al parcels of land grants has shaped the style and

loca�on of land holding in the Swan Valley to this day.The land closest to

the river was the primary farming land. With the rela�vely clear land and

fer�le soils the early se�lers established mixed farms to produce fruit

and vegetables and meat for home consump�on and grains and corn to

be milled for flour and sold.

Grapevines were one of many fruits planted by colonists yet the

suitability of the Swan Valley for grape growing was established in the

1830s. Several substan�al vineyards operated in the Swan Valley from

the middle of the 19th century. Houghton, Santa Rosa, Valencia among

others produced local wines for which there was a steady market in the

colony. The Belhus Estate was developed as a substan�al table grape

vineyard in the late 19th century and pioneered the export of high quality

table grapes.

Over 170 years the Swan Valley has become clearly established as an

outstanding loca�on to grow very high quality grapes – for the table, for

drying, and for wine. The deeper richer soils well suited to lush table

grapes, the gravelly ironstone soils on the eastern side ideal for wine

grapes and currants.

AMer many years the colony, and in par�cular the Swan Valley, began to

prosper. Gold rushes from the 1880s caused the popula�on of Western

Australia to swell appreciably. As the mining boom subsided and

immigra�on con�nued to increase there was growing demand for small

farms surrounding Perth.

Many of the original large landholdings were subdivided between 1900

and 1920, oMen into lots as small as 4 to 12 hectares. Among others, two

groups who took up these small farms were southern European

immigrants and returned soldiers from the Great War.

The new landowners largely choose grape growing as an enterprise. In

par�cular the Yugoslav immigrants, skilled in opera�ng small family farms

and experienced in grape growing were a significant por�on of the Swan

Valley popula�on by World War II. Many of the migrant growers

produced wine for their own consump�on with some developing

commercial winemaking businesses.

Post World War II the Swan Valley con�nued to be seen as a place of

opportunity for new migrants. The valley evolved from the 19th century

community of large mixed farms to the 20th century small family

enterprises concentra�ng on labour intense hor�culture.

HERITAGE

Many wineries are in the

hands of the second, third or

fourth genera�on owners.

Some of the oldest wineries in

Australia are found in the

Swan Valley.

Olive Farm 1829

Houghton 1837

Sandalford 1840

John Kosovich 1922

Edgecombe Brothers 1925

Talijancich 1932

Henley Park 1935

Windy Creek 1937

Twin Hills Wines 1937

Jane Brook 1954

Garbin 1956


Changes in the market for table and dried grapes and the development

of addi�onal vi�cultural areas in Western Australia from the 1980s has

coincided with significant genera�onal and cultural change. This has

made many family farming business less viable.

Offspring have sought greater educa�onal and employment

opportuni�es off farm and the ability of ageing parents to con�nue to

operate their highly labour intensive farms producing low value

commodity products has diminished (this trend is not unique to the Swan

Valley). Unfortunately many farming families have not chosen to

upgrade or maintain their farms or have ceased to operate as a commer-

cial farm.

Prior to 1995 there were very few visitor facili�es in the Swan Valley.

Since the incep�on of the SVPA at the end of the twen�eth century, the

growth in visitor numbers has created a new business opportunity for

high quality value added branded products, especially wineries. Since

1995 twenty new wineries and fiMeen new winery restaurants, and five-

breweries have been established.


CURRENTLANDUSE

The present Swan Valley area has been largely spared from subdivision

and urbanisa�on for nearly seventy five years and it remains a largely

agricultural area. It has always been widely recognised as valuable

hor�cultural land, making a significant contribu�on to Western

Australia’s agriculture. By the 1970s, its proximity to a growing Perth

meant that its value as an area of open space, within the corridors of

development became widely recognised. The need to preserve the

special character of the Swan Valley for its important contribu�on to the

culture and amenity of Perth has been recognised by poli�cians and

planners.

As a result successive regula�on and legisla�on has been developed with

the intent of suppor�ng the con�nuance of vi�culture and other suitable

rural ac�vi�es.

Land use within the Swan Valley is regulated by the SVPA and the City of

Swan Local Planning Scheme No 17 (LPS No 17). This plan has as its

objec�ves to promote the core area of the Swan Valley primarily as a

hor�cultural, recrea�onal, tourism and landscape resource; to provide

for limited rural living within the Swan Valley such that it enhances the

character and amenity of the valley and ensures compa�bility with

produc�ve rural ac�vi�es; and to protect high quality hor�cultural soils

from development which would jeopardise their current and future use.

These planning rules have provided a frame work for substan�al

economic development that has seen millions of dollars invested in

vi�culturally focused, agriculturally based businesses that straddle

produc�on and tourism opera�ons. There is an urgent need to ensure

the SVPA and LPS No 17 are fully aligned, and that they are completely

effec�ve at restric�ng inappropriate development.

Throughout the valley ac�ve vineyards and farms, equine proper�es and

well maintained rural lifestyle proper�es are now interspersed with land

that is no longer ac�vely farmed, oMen unmaintained by aged residents

or absent owners. A por�on of land owners see the social and economic

changes in the valley as crea�ng an opportunity to subdivide their land.

The expecta�on of some land holders that land not ac�vely farmed may

be considered for subdivision is not supported by the Swan Valley

Planning Act, the LPS No 17, nor by the SWRWA.

AGRICULTURAL LAND

PRESERVED

The Swan Valley it has been

largely spared from

subdivision for nearly 75 years

and it remains a largely

agricultural area.

It has always been widely

recognised as valuable

hor�cultural land, making a

significant contribu�on to

Western Australia’s

agriculture.

By the 1970s, its proximity to

a growing Perth meant that its

value as an area of open

space, within the corridors of

development became widely

recognised.

Planning decisions at local and

state level since have

reflected this.


It is impera�ve that the Department of Planning and the City of Swan

take a responsible role in ensuring that no such expecta�on is

encouraged. Residents unable or unwilling to maintain their proper�es

should be encouraged to seek opportuni�es in more suitable locali�es.

For long term elderly residents closely aligned to the Swan Valley there

are many suitable opportuni�es to downsize within close proximity.

The no�on that some residents who are no longer able or no longer seek

to enjoy the a�rac�ons and business and lifestyle opportuni�es offered

in the Swan Valley should be en�tled to subdivide their land at their

profit but ul�mately at the expense of other current and future

landholders and the Perth community is unreasonable.

THEECONOMICIMPACTOFWINEMAKINGIN

THESWANVALLEY

Currently there are over 40 wineries in the Swan Valley, crushing 3300

tonnes of locally grown wine grapes and about 6000 tonnes of grapes

from outside the Swan Valley. The annual value of Swan Valley grown

wine grapes is es�mated at $3.3million, the wine produced at

$32million, and the total value of all income of the Swan Valley wineries

at $92million.

In addi�on to winemakers, another 100 plus visitor orientated

businesses contribute an es�mated $75million to the Swan Valley econ-

omy. It is es�mated table grapes and other hor�cultural products

contribute a further $20million to the Swan Valley’s economy. The total

value of grapes, wine and visitor services generated in the Swan Valley is

in the order of $187million.

The introduc�on of the Swan Valley Planning Act in 1995 has led to a

substan�al investment in the Swan Valley’s wine industry. Over half of

the current wineries have been established since the Act was

introduced. OMen commencing as family owned and operated business-

es requiring substan�al ini�al investment in land, vineyards, wine

produc�on and visitor facili�es, many are now well established and

profitable, with growing reputa�ons for quality wine. These wineries are

now purchasing high quality wine grapes from independent growers to

supplement their own produc�on.

ECONOMIC IMPACT

The annual value of Swan

Valley wine grapes is es�mated

at $3.3million, the wine

produced at $32million, and

the total value of all income of

the Swan Valley wineries at

$92million.

The annual contribu�on table

grapes and other hor�cultural

products grown in the Swan

Valley is $20million.

The total value of grapes, wine

and visitor services generated

in the Swan Valley is in the

order of $187million.


Further these wineries are not seeking cheap grapes as wineries did in

the past, but rather high quality grapes from well maintained vineyards,

a much be�er commercial opportunity for independent growers.

Whilst there are no longer as many vineyards in the Swan Valley as fiMy

years ago when table grape and dried grape produc�on dominated,

there has been a drama�c change from unbranded commodity

produc�on to high quality, value added, branded produc�on.

This changing dynamic creates an opportunity for rebranding the Swan

Valley to a vibrant centre of high value, authen�c local produce, raising

the image of the valley and its produce. This in turn will create the

opportunity to introduce premium pricing for suitably high quality

products and services.

WINEBUSINESSMODELFORTHE

SWANVALLEY

The small lot sizes in the Swan Valley and the proximity to the large

residen�al popula�on of Perth makes the Swan ideally suited for small

wine businesses with a focus on direct sales. Some larger proper�es

which have remained rela�vely intact since colonisa�on are well suited

to more substan�al wine businesses.

Direct sales, including cellar door sales, mail order, e-commerce, and

func�on sales are the most profitable for any wine business as the win-

ery receives full retail price. This allows small wineries to compete more

effec�vely with much larger wine companies. In addi�on wineries are

able to claim a rebate of up to $500,000 of their wholesales sales tax (the

Wine Equalisa�on Tax or WET). This equates to the first $3.4million of

cellar door sales or $1.7million of wholesale sales being wholesale tax

free (ATO tax ruling WETR 2009/2). All Swan Valley wineries take

advantage of this lucra�ve direct sales opportunity and most operate a

retail cellar door outlet on their property.

Small wineries relying almost exclusively on direct sales and effec�vely

retaining the wholesales sales tax, have an excellent business model.

The opportunity for growth is achieved by op�mising direct sales by

expanding their capacity to service visitors and u�lising new social media

channels. Ver�cally integrated wine businesses offer addi�onal visitor

services including dining, func�ons, entertainment, and accommoda�on.

CONNECTING DIRECTLY WITH

CUSTOMERS

The small lot sizes in the Swan

Valley and the proximity to

the large residen�al

popula�on of Perth makes

the Swan ideally suited for

small wine businesses with a

focus on direct sales.

Direct sales, including cellar

door sales, mail order, and

func�on sales are the most

profitable for a wine business

as the winery receives full

retail price.

All Swan Valley wineries take

advantage of this lucra�ve

direct sales opportunity and

most operate a retail cellar

door outlet on their

property.


These generate income in their own right as well as increasing the

opportunity for greater wine sales.

Successful established small wineries in the Swan Valley can realis�cally

expect to achieve between $500,000 and $2million in direct wine sales at

up to 50% gross margin. These businesses have excellent profitability.

With a strong direct customer base wineries may consider wholesale

sales.

Wholesale is not as profitable as direct sales, but may benefit the busi-

ness overall by defraying fixed costs and achieving savings through im-

proved scale. Wineries may choose to sell direct to retailers and on

premise businesses (i.e. cafes, bars, pubs and restaurants) or engage a

distributor. Generally the opportunity to engage third party distributors

to build wholesale sales only occurs once a winery has established their

brand and a profile and reputa�on in the marketplace. The poten�al for

wholesale sales is even higher than direct sales. Given sufficient invest-

ment it is not unreasonable for a small Australian winery to build

domes�c sales of between $1—$2 million over several years. A similar

opportunity exists for export sales.

There is outstanding poten�al for the Swan Valley wine industry to

con�nue to grow. Firstly, its major market of Perth is expected to grow

by half a million residents by 2031. Secondly Australians con�nue to

spend more on recrea�on, alcoholic beverages, food, and ea�ng out

(ABS 6530.0 - Household Expenditure Survey, Australia: Summary of

Results, 2009-10).

Thirdly, Perth is also well connected to the rela�vely nearby Asian mar-

kets which offer growth opportuni�es. The obvious a�rac�on is the re-

gion’s rapidly rising consumer base. Over the next five to 10 years, the

number of middle and upper income earners in South-East Asia is ex-

pected to increase to 100 million people, out of a total

popula�on of more than 550 million (WA Department of Agriculture &

Food). The Department of Agriculture & Food has developed in

conjunc�on with industry a three year interna�onal wine marke�ng

strategy with a strong focus on emerging Asian markets.

It is reasonable to expect at least a propor�on of Swan Valley wineries to

experience substan�al growth in the future. It can be expected that

some Swan Valley wineries will emulate the success of many well

established wineries in the south west and achieve substan�al wholesale


and export success. It is also reasonable to expect further new entrants

to the Swan Valley wine industry and that they will con�nue to grow

requiring addi�onal fruit sources and seeking new markets.

A further advantage of winemaking in the Swan Valley is the cost of grape

growing is substan�ally lower than other Western Australian regions.

Wine grapes are generally grown on the shallower, less fer�le soils out-

side the richer alluvial deposits. Combined with efficient micro-irriga�on

systems, vine growth and yield is generally higher compared to cooler,

we�er regions. Together with the hot climate which offers a low disease

environment, this means opera�ng costs are rela�vely low. Nor do vine-

yards suffer the freight costs incurred opera�ng in the south west.

The three largest wineries also take advantage of the outstanding direct

market opportunity offered by the Swan Valley and also have substan�al

vineyards producing rela�vely low cost (by Western Australian

standards) grapes. The combina�on of excellent direct sales, low cost

grapes and scale allow them to create a viable large scale wine business.

The high capital cost of vineyard investment mi�gates against wineries

growing all of their own grapes. Small wineries commonly seek to

purchase high quality fruit to supplement their own produc�on on an

annual basis. This creates the opportunity for lifestyle residents to

develop small high quality vineyards on their property in partnership with

wineries.

Similarly, some table grape growers may be a�racted to conver�ng part

or all of their produc�on to wine grapes.

These factors, combined with higher land costs rela�ve to other Western

Australian grape growing regions, ensures that wineries will find it an

a�rac�ve proposi�on to source addi�onal, well priced grapes from stand

alone Swan Valley growers rather than develop their own new, large

scale commercial ventures. Hence it is reasonable to expect growth in

demand for Swan Valley grown wine grapes.

POTENTIAL FOR SWAN

VALLEY WINE BUSINESS

There is outstanding poten�al

for the Swan Valley wine

industry to con�nue to grow.

It is reasonable to expect at

least a propor�on of Swan

Valley wineries to experience

substan�al growth in the

future.

It can be expected that some

Swan Valley wineries will

emulate the success of many

well established wineries in

the south west and achieve

substan�al wholesale and

export success.

It is also reasonable to expect

further new entrants to the

Swan Valley wine industry

and that they will con�nue to

grow requiring addi�onal

fruit sources and seeking new

markets.


RELATEDBUSINESSESINTHESWANVALLEY

A board range of businesses contribute to the agricultural focus of the

Swan Valley.

Historically growing table grapes and grapes for drying was the dominant

form of vi�culture in the Swan Valley. Whilst wine has been made in the

Swan Valley since the earliest days of the colony, it is only in the last 30

years that wine grape growing has come to dominate vi�culture.

For well over 120 years the Swan Valley has enjoyed an impressive

reputa�on for the outstanding quality of its table grapes. A large body of

growers today con�nue to produce very high quality table grapes that

are oMen sold direct to the public through roadside markets, sold at the

Perth wholesale fruit market, or despatched directly to leading retailers.

Generally table grape vineyards are located on the richer alluvial soils

close to the river.

The Swan Valley climate allows growers to bring fruit to market at

different �mes to that grown further north. This shiM in ripening seasons

creates a market opportunity for Swan Valley producers. However, Swan

Valley growers s�ll face business risks with the poten�al weakening of

the quaran�ne on imported (including eastern states) fruit that protects

Western Australian growers from various diseases. Table grapes add

$19.1m to the state economy (source DAFWA, Value Chain Modeling

2011 - unpublished).

The agricultural nature of the Swan Valley and the a�rac�on created by

wineries provides the opportunity for a range of businesses to offer

services to those visitors. Restaurants, breweries galleries, art studios,

func�on centres, concert venues, accommoda�on providers as well as

many tourist transport businesses all benefit and contribute to the over-

all a�rac�on of the area. These related businesses provide services to a

very wide range of people including Perth residents, interstate and

interna�onal visitors.

The Swan Valley is the home to many equestrian ac�vi�es, some

commercial and others providing private recrea�on. Many residents

maintain their own horses and provide agistment to others. The State

Equestrian Centre at Brigadoon is a substan�al development catering for

a wide range of equestrian ac�vi�es.

RELATED BUSINESSES

The Swan Valley hosts not

only wineries. It is home to;

• Table grape growers

• Restaurants

• Cafes

• Galleries

• Tour operators

• Studios

• Func�on centres

• Concert venues

• State Equestrian Centre

• Equestrian suppliers &

services

• Specialty crops &

hor�culturalists


THREATS TO THE SWAN

VALLEY

Development, reduc�on in

minimum lot sizes, and

increased popula�on will

inevitably impact the region.

An unco-ordinated and

unchecked approach to

development of visitor

orientated services may allow

the Swan Valley lose its focus

and integrity as a wine region.

Successive state governments

are to be applauded for

introducing and refining the

Swan Valley Planning Act

which sets as a core principle

the protec�on of vi�culture.

There is an urgent need to

ensure the SVPA and LPS No

17 fully align, and that they

are completely effec�ve at

restric�ng inappropriate

development.

There are numerous training stables, agistments, riding schools, equine

supplies, veterinary prac�ces and other even�ng and equestrian opera-

�ons all providing services to residents and visitors.

Many hor�culturalists produce melons, stone fruits, citrus, olives and

other fruit and vegetables. There are specialty business enterprises such

as plant nurseries, aquaculture, and Christmas tree planta�ons as well as

cut flowers. Dis�lleries, breweries and confec�onery manufacturers are

also part of the tourism mix, although they have no direct connec�on to

agriculture in the Swan Valley.

Making use of close access to markets there are also Swan Valley

businesses quarrying clay for brick and �le manufacturer and blue metal

for construc�on and road building. There are also three substan�al brick-

works located in the area.

THREATSTOTHESWANVALLEY

Agriculture is at the heart of the Swan Valley’s heritage and culture and

therefore its marke�ng brand and visitor appeal.

Changes in land uses away from tradi�onal agricultural ac�vi�es,

reduc�on in minimum lot sizes, and an increased popula�on have the

poten�al to create conflict with tradi�onal land uses and inevitably

impact on the ability of vi�cultural businesses to con�nue normal

farming ac�vi�es and could catastrophically effect their ongoing viability.

Normal responsible agricultural prac�ces create noise and dust and

uli�se safe and approved agricultural chemicals that many poten�al

small landholders would consider unacceptable near or on the boundary

of their property. For example the safe and responsible applica�on of

organic elemental sulphur, widely used to control powdery mildew on

vines in spring and summer, gives rise to sulphur vapours that may cause

distress to householders within close proximity to vineyards. Subdivision

will inevitably result in conflict between commercial farmers and those

occupying small land holdings created by subdivision.

Aesthe�cally, it will also disrupt the rural landscape and alter the broad

vistas that give the Swan Valley its open space –its rural appeal.


An increased popula�on will demand greater services such as retail, health

and educa�on in the limited physical area of the Swan Valley which will

exacerbate the poten�al for conflict with agriculture.

An uncoordinated and unchecked approach to development of visitor

orientated services may allow the Swan Valley lose its focus and integrity as

a wine region. New businesses that fail to engage and develop an

a�achment to the Swan Valley’s heritage, or that fail to enhance the

region’s agricultural se@ng, are undesirable. Businesses such as flea

markets, cafes, small goods producers, truck depots, machinery and me-

chanical workshops that do not have an agricultural basis should best be

located in retail, commercial or manufacturing precincts established for

such purposes. There is no lack of such precincts close to the Swan Valley.

Coordina�on between government departments and agencies, and

different levels of government, is cri�cal. Successive state governments are

to be applauded for introducing and refining the Swan Valley Planning Act

which sets as a core principle the protec�on of vi�culture.

However other departments such as the Department of Water need to be

aligned to the Act in its support for vi�culture. For example , by not

implemen�ng the 20 percent groundwater alloca�on reduc�on for grape-

growers in the Swan Valley, recognising that grape growing, and par�cularly

wine grape growing, is an extremely efficient user of ground water, and as

acknowledged by the SVPA, grapegrowing underpins the long term

economic and social value of the region as a visitor-based a�ractor of Perth

The availability of water is a major issue facing Perth as a whole. There

needs to be a water strategy developed for the Swan Valley, considering all

users groups, water sources and water conserva�on techniques with a view

to suppor�ng the SVPA and providing a sustainable water source to support

vi�culture. The level of water actually required to produce wine grapes is

very low rela�ve to other water uses, and in fact substan�al areas of grapes

are grown without irriga�on. Current alloca�on of ground water to agricul-

ture in the Swan Valley is only 10.5 GLpa of which it is es�mated less than 5

percent or 0.5 GLpa is used for irriga�ng winegrapes. Irrigated winegrape

vineyards almost invariably employ very effec�ve micro-irriga�on systems

and the Department of Water’s Licensed applica�on rate is 3 ML/ha/a com-

pared to 15 ML/ha/a for vegetables, 9 ML/ha/a for citrus, 9 ML/ha/a for

horses, 7.5 ML/ha/a for golf courses and ovals and lawns, 5 ML/ha/a for

tablegrapes. Recent field trials by Perth Region NRM found actual water

use in commercial vineyards was 1.0 Ml/ha/a or less.

WATER USES

Wine grapes use less than 5%

of the 10 gigalitres of ground

water allocated to agriculture

in the Swan Valley annually.

Depending on the season

commercial winegrape

vineyards use around

1 megalitre per hectare per

year. Much less than

vegetables, citrus, horses,

ovals or table grapes.

It is reasonable that the

quan�ty of groundwater

available to sustain the wine

grape industry, and see it

grow, will be con�nue to be

available.


AN AUTHENTIC PLACE

Vineyards and wineries play a

cri�cal role in developing the

region’s reputa�on for high

quality, authen�c produce.

Time poor modern consumers

view the open space, greenery

and rural ambience of the

Swan Valley as an outstanding

short break leisure op�on

from Perth, suitable for either

an hour, a day or a weekend.

Wineries are an outstanding

vehicle for providing a

des�na�on and ac�vi�es for

visitors.

Local Swan Valley wine and

food op�ons ,from iden�fia-

ble producers, iden�fies

authen�city of produce and

its providence.

Clearly it is the combina�on

of both the seEng and the

product that is cri�cal.

Given the rela�vely low water requirement, an effec�ve water strategy

for the Swan Valley should ensure there is ample ground water available

to support new and exis�ng vineyards. It is not unreasonable for the

State Government to consider making the provision of water for

vi�culture in the Swan Valley as a community service obliga�on and

direct a minimum alloca�on of ground water be set aside.

BRANDING:THEAUTHENTICEXPERIENCE

Over the last twenty years what the Swan Valley offers visitors has

changed. The heritage, rural ambience and scenery has been

maintained, but the range and quality of wines, the food and dining

experiences, galleries, concert venues, tours, and breweries have

become bigger, be�er and more sophis�cated.

However, there are s�ll many old percep�ons about the Swan Valley in

terms of the experience offered, the size of the tourism industry, quality

of the experience, quality of the wine or availability of accommoda�on.

There is a wonderful opportunity to change these old percep�ons of the

Swan Valley. Firstly our offering is excellent and matches the demand of

modern consumers. Consumer demand for branded, high quality prod-

ucts has grown. In par�cular Australians have become great consumers

of sophis�cated leisure ac�vi�es, food and beverages.

There is demand for products that are high quality, local, authen�c, have

integrity and can be traced to their source. Consumers wish to know the

providence of the food and beverages they consume. Typically these

products are demanded by more discerning consumers who are

prepared to pay a premium for them. The Department of Agriculture and

Food’s Buy West Eat Best food labelling and promo�on campaign, which

promotes locally farmed, fished and processed products , is an example

of catering to this demand and has been a smash hit.

A updated brand strategy would communicate the Swan’s many

a�rac�ons to the people of Perth and beyond, and is �mely to ensure

that its reputa�on reflects the current experience.

Modern branding of the Swan Valley will benefit all producers and see its

agricultural and related tourism industry thrive and grow.


There is the opportunity for the providers of all types of ac�vi�es offered

within the Swan Valley to take part in a coordinated branding strategy.

A branding strategy would enable all operators to highlight the authen�c

nature of the experiences on offer within the Swan Valley, encouraging

more people to enjoy the Swan Valley and due to its loca�on, return

oMen. SVWMA believes in focusing on not what we lack but the many

advantages and offerings we have. A branding strategy, by defining the

Swan Valley, can also assist in understanding what ‘fits in’ and what

‘doesn’t fit in”. Whilst vineyards and wineries are the cornerstone to the

Swan Valley’s success in achieving this branding vision, all the producers

and craMs people of the Swan contribute.

Vineyards and wineries are normally large proper�es and are therefore

cri�cal in contribu�ng to the open space, greenery and rural ambience.

They also play a key role in developing the region’s reputa�on for high

quality, authen�c produce. Further they are an outstanding vehicle for

providing a des�na�on and ac�vi�es for visitors. Besides the produce

itself, what makes the people of Perth value the Swan Valley so highly is

its proximity and ease of access and its obvious rural farming nature.

Whilst it is highly accessible and close to Perth, visitors to the Swan

Valley feel they have leM the city behind and appreciate the open spaces

and vistas, the rural ambience, the greenery, and the peacefulness and

lack of clu�er. They seek interes�ng ac�vi�es and experiences whilst

visi�ng. Crucially the physical a�ributes and the type of experiences and

ac�vi�es offered need to match each other. It is impera�ve that the

ac�vi�es offered are suitable for a rural agricultural environment.

They should not by their nature threaten or impinge on agricultural

ac�vi�es. Food and wine is a natural match for the Swan Valley’s

agricultural environment. Some other ac�vi�es are also well suited and

can add to its reputa�on and brand strength. For example craMspeople

who draw their materials and inspira�on from the Swan Valley, cultural

ac�vi�es that reflect the history of the area– before and aMer white

se�lement; nature based ac�vi�es that u�lise the natural resources such

as the river, bridle trails or surrounding hills. There are undeveloped

opportuni�es for eco-tourism and cultural tourism and recrea�onal

ac�vi�es linked to the Swan River.

COMMUNICATING THE

SWAN VALLEY BRAND

What the Swan Valley

provides and the modern

consumer demands is in

harmony.

The heritage, authen�city and

accessibility that the Swan

Valley offers have become

key consumer demands.

Clear and well communicated

branding of the Swan Valley

allows consumers to under-

stand that the experiences

the region provides will meet

their needs.

Vineyards and wineries are

cri�cal to the Swan Valley’s

success in achieving this

branding vision.


THE FUTURE FOR THE

SWAN VALLEY

It is impera�ve that the

ac�vi�es offered and the

development supported in the

Swan Valley are suitable for

an agricultural environment.

They should not threaten or

impinge on agricultural

ac�vi�es.

It is essen�al that the Swan

Valley maintains as its

primary focus that of an

agricultural area. This is what

makes it special.

If these vistas and the

character of the Swan Valley is

changes then we lose the very

reason people con�nue to

come to the Swan Valley.

CONCLUSION

The Swan Valley is a unique and special place. It has dis�nc�ve character

and history. It has evolved from a place of abundance for indigenous Aus-

tralians, the mixed farming of the English pioneers, the small family vine-

yards and orchards of hardworking soldier se�lers and migrants to today’s

businesses serving the food, wine, craM, and recrea�onal needs

of the people of Perth.

Previous genera�ons of landowners and planners have preserved the agri-

cultural role of the valley. Today’s genera�on of landholders are

responsible for ensuring that the Valley is preserved, prospers and

contributes posi�vely to the future of Perth. The vistas of the river, the vine-

yards, natural bush land and farms are close to the original vistas

enjoyed by the early se�lers of the Swan Valley. All these combined

contribute to an authen�c place and an authen�c experience for visitors to

the Swan Valley.

It is essen�al that the Swan Valley maintains as its primary focus as that of

an agricultural area. Businesses that contribute to its agricultural

nature and deliver authen�c local produce will thrive. The scenic vistas of

the river, the vineyards, and the hills create the atmosphere of open space

that is so valuable.

In the face of the growth in Perth’s popula�on, with the demand for more

development, the value of the Swan Valley as an iconic a�rac�on for the

people of Perth will only increase and jus�fies its protec�on.


APPENDIXA

Area Boundaries as defined by the Swan Valley Planning Act

Effec�ve Boundaries 18 June 2006


APPENDIXB

SWAN VALLEY GEOGRAPHIC INDICATOR

Australian Wine and Brandy Act.

Wine Australia is an Australian Government statutory authority established in 1981 to provide strategic support to the

Australian wine sector.

One of six core responsibilities of Wine Australia is: Defining the boundaries of Australia's wine producing areas

Wine Australia's primary stakeholder is the Australian Government. Other principal stakeholders include wine and brandy

producers who pay the Wine Grapes Levy and exporters, who pay the Wine Export Charge.

A Geographical Indication (GI) for wine is an indication that identifies the wine as originating in a region or locality where a

given quality, reputation or other characteristics of the wine is essentially attributable to the geographical origin.

GIs are determined by the Geographical Indications Committee, a statutory authority of Wine Australia, and listed on the

Register of Protected Geographical Indication and Other Terms, which is maintained by Wine Australia.

Textual descriptions and maps

all Australian Geographical Indications included in the Register of Protected Names. Each entry includes a textual description

and a map.

In each case the textual description is the legal definition. The maps are graphic representations only. In the event of

an inconsistency the textual description takes precedence.

Swan Valley

The Australian Geographical Indication "Swan Valley" was entered in the Register of Protected Names on 6 January 2003 in

response to a direction received by the Registrar from the Presiding Member of the Geographical Indications Committee

acting under Section 40Z of the AWBC Act 1980.

GI Area Boundaries:

WOOROLOO TOPOGRAPHIC MAP

Scale 1:100,000

Sheet 2134

Edition 1 1977


Published by authority of the Minister for National Development

Produced and distributed by the Division of National Mapping

© Commonwealth of Australia 1979

PERTH TOPOGRAPHIC MAP

Scale 1:100,000

Sheet 2034

Edition 1

Produced by the Division of National Mapping

under the direction of the Minister for National Resources

Printed by the Royal Australian Survey Corps, 1977.

GI Textual Description:

The Geographical Indication "Swan Valley" is located within the “Swan District” region, within the State of Western Australia,

Australia.

The beginning point of the boundary is situated on Map Wooroloo (Sheet 2134) at grid reference MK074866, being where the

railway line crosses Ellen Brook, then proceeds easterly along grid line 866 to its intersection with grid line 100 at grid refer-

ence MK100866, then proceeds southerly along grid line 100 to it intersects the Swan River at grid reference MK100837, then

proceeds north easterly along the Swan River to its intersection with grid line 110 at grid reference MK110843, then proceeds

southerly along grid line 110 to its intersection with the 100 metre contour line at grid reference MK110834, then proceeds

generally southerly along the 100 metre contour line to its intersection with grid line 743 at grid reference MK112743, then pro-

ceeds westerly along grid line 743 to its intersection with Toodyay Road at grid reference MK0877743, then proceeds south

westerly along Toodyay Road to its intersection with railway line at grid reference MK079738, then proceeds westerly along

grid line 738 to its intersection with the Swan River at grid reference MK062738, then proceeds generally south westerly along

the Swan River to the edge of the map at grid reference MK054735; On to Map Perth (Sheet 2034) at grid reference

MK054735, then proceeds south westerly along the Swan River to grid line 014 at grid reference MK014705, then proceeds

northerly along grid line 014 to its intersection with Benara Road and an unmarked vehicular track at grid reference

MK014728, then proceeds northerly along the unnamed vehicular track to its termination at grid reference MK014732, then

proceeds north easterly in a straight line to the intersection of Marshall Road and an unnamed vehicular track at grid reference

MK027750, then proceeds east of northerly in a straight line to its intersection with Gnangara Road at grid reference

MK046816, then proceeds northerly in a straight line to the unnamed creek on the edge of map at grid reference MK053832;

On to Map Wooroloo (Sheet 2134) at grid reference MK053832 on Ellen Brook, then proceeds generally easterly and then

northerly along Ellen Brook to its intersection with the railway line at grid reference MK074866, which is the descriptor starting

point.


APPENDIXC

CITY OF SWAN

WARD Boundaries

Publica�on Date: 4th April 2012

©Copyright 2012. Swan Valley & Regional Winemakers Associa�on

Produced by:

Swan Valley and Regional Winemakers Associa�on

www.swanvalleywinemakers.com.au

P.O Box 2130

Midland WA 6936

Bella Ridge Wines

Black Swan Winery

Carilley Estate

Caversham House

Entopia Wines

Edgecombe Brothers Winery

Faber Vineyard

Fig Tree Estate Wines

Fish Tail Wines

Garbin Estate Wines

Harris Organic Wines

Heafod Glen Winery

Houghton Wine Company

Jane Brook Estate Wines

Jarrah Ridge Wines

John Kosovich Wines

Lamont Wines

Lancaster Wines

Lilac Hill Wines

Li�le River Wines

Mandoon Estate

Neilson Estate Wines

Oakover Wines

Olive Farm Wines

Pandemonium Wines

Paul Con� Wines

Pinelli Wines

Riverbank Estate

Si�ella Wines

Talijancich Wines

Upper Reach Winery

Windshaker Ridge

Windy Creek Estate

John Griffiths: President

Email: [email protected]

Phone: 0417 095 820

Execu�ve Officer

Email: [email protected]

Phone: 0430 622 130

Members of the Swan Valley and Regional Winemakers Associa�on are:

swan valley vision 2012

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