Australian wine exports in the 12 months to the end of June increased 17% by value to AUD2.19bn (US$1.43bn), with China’s removal of tariffs in March leading to a surge in the last three months of the year, according to a report by trade association Wine Australia.
Rebuilding exports to China will take time, however, Wine Australia warned. In the 12-month period, there were 574 Australian wine exporters to China, up from 115 in the previous year. Yet this figure is substantially down on the over 2,000 companies exporting to China before the imposition of tariffs in late 2020.
The Chinese government imposed tariffs of more than 200% on Australian wine, citing anti-dumping and anti-subsidy investigations and leading to a dramatic slump in exports. In March this year, however, the tariffs were finally removed as China-Australian relations have gradually improved since a new Canberra government was elected in 2022.
In the latest financial year, exports of wine priced at AUD20 or more, the rough equivalent of CNY300 (US$41.35) per bottle retail, were the main driver of value growth to China, accounting for 84% of the rise, Wine Australia revealed. The top ten exporters by value to China accounted for a dominant 75% of the total value and 39% of overall volumes.
In a globally challenging environment, Australian wine exports to the rest of the world declined by 4% in value to AUD1.8bn, while volumes dropped 5% to 587m litres. This figure was the lowest volume exported internationally since the 2003/04 fiscal year two decades ago, the trade organisation noted.
“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures,” commented Wine Australia’s manager of marketing insights, Peter Bailey. “There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise.”
Australian still red wine exports to mainland China surged in the 12 months to the end of June. Total red wine volume climbed 3% to 330m litres, while value soared 27% to AUD1.5bn. Cabernet Sauvignon was a key driver, with a 41% value increase to AUD469m and a 12% volume growth to 70m litres. The US also contributed to the rise in Cabernet Sauvignon exports, Wine Australia noted.
The top five export markets for Australian wine in 2023/24 were China, the US, the UK, Hong Kong and Canada, respectively.
In other Antipodean wine news, Pernod Ricard began the sale of its Australian (Jacob’s Creek, Orlando and St Hugo) and New Zealand (Stoneleigh, Brancott Estate and Church Road) brands to investor consortium Australian Wine Holdco for an undisclosed sum earlier this month, along with Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain.
