Australia has already exported over $86 million worth of quality wine to China in just one month since the removal of duties on bottled wine.
The tariffs, which went as high as 218.4%, were initially imposed in March 2021 for five years, coupled with other trade barriers on Australian goods.
South Australian Wine Exports Race Out of the Gate
South Australian wine producers exported almost $80 million of wine to China in the first month since duties were removed. A staggering result, reflecting 92.1% of Australia’s total wine exports to China since March.
Minister for Trade and Tourism, Don Farrell, announced recently that, “More than 350 Australian wine producers and businesses have re-established exports to mainland China since duties were removed.”
“The re-entry of Australian wine into the Chinese market benefits both Australian producers and Chinese consumers,” he noted.
Government Working Group and Support on the Ground
In the wake of three years worth of trade disruptions, natural disasters and global reduction in demand the Australian Government established the Viticulture and Wine Sector Working Group. The working group aims to support the diversification of wine export markets, developing a nationally coordinated approach and advising on options to support the industry.
In response to feedback to the Working Group, a $3.5 million Grape and Wine Sector Long-term Viability Support Package has recently been announced. The package will support the long-term viability of the grape and wine industry and respond to the oversupply of red wine.
“I know how hard the past few years have been for wine producers across the country, so to see the successful return of this export market is fantastic for the future of the wine sector,” said Minister for Agriculture, Fisheries and Forestry, Murray Watt.
“But we also know there are some in the industry who are doing it tough who don’t export to China, and that’s why today we have announced this new package to support the long-term sustainability of the sector.”
The Wine Tourism and Cellar Door Grant Program has also been extended for another year. The program allows wine and cider businesses funding to help attract visitors to Australian wine regions and promote agri-tourism.
Under the program, wine producers can apply for grants of up to $100,000 on eligible cellar door sales made during the previous financial year.
“These are initiatives that industry has been consistently calling for through the working group consultations, and we are delivering on them,” said Minister Watt.
Chinese Premier Revives Wine Export Hope at Penfolds Magill
In a recent visit to Australia, Chinese Premier Li Qiang made a historic visit to Penfolds Magill Estate in Adelaide. A move that has heralded hope for Australia’s wine export market.
A LinkedIn post from Treasury Wine Estates (TWE) celebrated the visit, where Premier Li Quiang was joined by TWE CEO Tim Ford and Penfolds Managing Director, Tom King.
Premier Li’s delegation met with Australian winemakers and senior government officials, including Foreign Affairs Minister, Senator Penny Wong, Minister for Trade and Tourism, Senator Don Farrell, Minister for Agriculture, Senator Murray Watt, and South Australian Premier, Peter Malinauskas.
The group enjoyed a historic tour of Magill Estate led by Penfolds Chief Winemaker, Peter Gago, raising hope that the Australian-China wine trade would bounce back to $1 billion.
Sources: Minister for Agriculture, Fisheries and Forestry, Vino Joy News, Treasury Wine Estates LinkedIn