Australian wine exports to China jump back above | Australian Markets
Australian wine exports to mainland China have jumped back above $1 billion, one yr after onerous tariffs of as a lot as 200 per cent have been eliminated.
Exports to the Middle Kingdom grew $1.01b to $1.03b within the 12 months to the top of March, in accordance to recent figures from industry physique Wine Australia on Tuesday.
Just below 100 million litres of wine have been exported to China over the period as main native gamers, like Penfolds proprietor Treasury Wine Estates, resumed shipments.
China final March dropped a crippling tariff of more than 200 per cent on native wine producers 4 years earlier. It was launched alongside imposts on barley and coal in retaliation to questions from the Australian Government in regards to the origins of COVID-19.
Wine Australia stated general exports grew 41 per cent in worth to $2.64b and by 6 per cent in quantity to 647 million litres previously yr.
The group’s market insights supervisor Peter Bailey stated the increase in average worth was due to the elevated stage of premium wine shipments to mainland China.
“While the total value of shipments to mainland China is now at a similar level to the years immediately before tariffs on Australian bottled wine came into force, volume in the last 12 months is 23 per cent smaller than the five-year average between 2016 and 2020 and 44 per cent below the peak in 2018,” he stated.
“Additionally, the average value of packaged wine shipped to mainland China was $23 per litre, much higher than any other major export market.
“The lower volume and high average value demonstrate that mainland China is a premium market for Australian wine and will therefore not solve oversupply issues in Australia.”
But the US market is proving to be a problem, with wine exports to the nation declined $32m to $323m within the yr to March — the bottom stage because the early 2000s.
This was even earlier than US President Donald Trump slapped a 10 per cent tariff on all Australian imports, together with wine.
“The global wine market is facing considerable headwinds which are impacting on results for other markets,” Wine Australia stated.
“Escalating trade wars have the potential to increase prices, complicate supply chains, and rapidly change the competitive landscape in key wine markets in the near-term.”
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