Australian wine exports decline
The decline in exports to mainland China following the imposition of tariffs has affected overall exports; as did the cumulative effects of three consecutive lower vintages in 2018, 2019 and 2020 (meaning less wine was available for export).
Exports to the UK, however, are at their highest level in a decade: their value increased 23% in the past year to reach $ 472 million. Exports to Singapore, South Korea, Malaysia, Taiwan and Hong Kong have also increased.
Chinese tariffs hit Australia’s wine industry
Mainland China is an important market for Australia’s wine exports, remaining the largest market in value even after this year’s decline.
In 2020-2021, its value dropped 45% to $ 606 million; while in terms of volume it fell 57% to 52 million liters.
“Since the imposition of import tariffs, Australian wine exports to mainland China have fallen dramatically,”Wine Australia notes. “Total exports for quarters 3 and 4 in 2020-2021 were $ 13 million compared to $ 419 million in 2019-2020, before the imposition of tariffs.”
Outside of mainland China, however, it’s a more positive story. Excluding this market, exports actually increased 12% in value to $ 1.96 billion and 6% in volume to 643 million liters.
The UK is Australia’s largest market by volume and second by value.
“Export growth to the UK was much stronger in the first half of the year, due to strong growth in wine sales in the non-trade sector boosted by the COVD-19 related shutdown of the on -trade as well as some exporters are sending wine to the market ahead of Brexit. Exports to the UK increased 40% to $ 255 million in the first half of the year and 8% to $ 218 million in the Second half While growth in the second half was at a much slower pace, growth in the fourth quarter (up 10%) was stronger than that in the third quarter (up 6%).
The United States, meanwhile, is the second largest market by volume and third by value: although it was affected in 2020-21.
“Exports to the United States fell 7% in value to $ 400 million and 8% in volume to 127 million liters.
“Most of the decline in the value of exports occurred in the fourth quarter, down $ 31 million from the same quarter in 2019-2020. The decline is the result of several factors. First, there was a substantial increase in exports in the fourth quarter in 2019-2020, which reflected the surge in COVID-19-related non-trade sales in the United States when the non-trade sector was closed. This year, with the reopening of the on-trade and the return to more normal off-trade activity, there was a counter-oscillation. As a result, exports declined.
“Second, some exporters had less volume available for export and this was more visible in the fourth quarter as inventory levels were not able to support growth. “