Australian wine group McGuigan Simeon will decide next week whether to resume grape contracts with suppliers in Sunraysia and Riverland, according to local reports today (25 January).

The proposal to lift the suspensions announced last month was made at a meeting between growers' representatives and McGuigan's MD, Brian McGuigan. The plan will be put before the company's board of directors on Monday.

If the proposal is approved, it could lead to growers dropping their threat of legal action against the company. Earlier this month, two growers' associations - the Riverland Wine Grape Growers and the Murray Valley Winegrowers - said they were taking legal advice.

Late last year, McGuigan Simeon decided to suspend or not renew contracts due to excess supply in Australia's wine industry and a slump in domestic wine sales.