Minimum pricing arrangements for grapes taken up by wineries in Australia arc briefly reviewed. A partial equilibrium model is developed to illustrate the implications of such arrangements for income transfers and dead-weight losses in both the grape and wine markets. An attempt is made to incorporate the contingencies of the long lead times associated with grape production and the possible occurrence of monopsonistic behaviour by wineries. The analysis is theoretical, so that, while directed specifically at the wine grape industry in Australia, much of it is relevant to other instances of minimum pricing for agricultural commodities.