EXCEPTIONAL growth in demand for Australian fine wine saw the total value of exports grow by 3 per cent to $2.91 billion in the 12 months to December 2019.
Exports of higher valued wines – those above $10 per litre free on board (FOB) – reached a record value of $1.1 billion, according to Wine Australia’s export report.
But the decline was strongest for exports below $2.50 per litre FOB, with value falling by 17 per cent to $463 million.
Wine Australia chief executive officer Andreas Clark said the sector had focused on growing exports at higher price points and the results reflected the success of the sector’s strategy.
“Australian wine companies have been very active in our export markets and the value of exports has now increased for six consecutive years,” he said.
The total value of exports in 2019 was the second highest for a calendar year and value is approaching levels from before the Global Financial Crisis.
The average value of exported wine increased by 18 per cent to $3.91 per litre FOB, the highest level since 2006.
“The volume of exports was down, with the decline heavily weighted towards lower price segments,” Mr Clark said.
“The lower vintages in 2018 and 2019, together with lower inventory levels, meant that there was less wine available for export in 2019,” he said.
“Looking ahead into 2020, we anticipate that coronavirus will have an impact on sales, particularly to China, but at this stage it is difficult to predict the degree of that impact.”
In the year ended December 2019, Australia exported wine to 120 markets with Asia the growth centre for exports.
Exports to northeast Asia increased by 11 per cent to $1.37 billion and those to southeast Asia increased by 17 per cent to $200 million.
The Middle East also saw growth, up 4 per cent to $34 million.
While the total value of wine imported by China has declined, Australia has consolidated its position as the number one imported country of origin ahead of France.
Australia’s export value to China continued growing in 2019 while the value of French imports continued the decline that began in 2018.
Australia now holds a 35 per cent value share of total wine imports compared to France with 29 per cent.
Chile is number one by volume but third in value with a 14 per cent share.
More than half of Chile’s exports to China are unpackaged, compared to 15 per cent of Australia’s exports.
