AUSTRALIAN wine exports have rallied despite taking a big hit from Chinese tariffs imposed last year.
Australian wine exports declined by 4 per cent in value to $2.77 billion in the 12 months to March 2021, compared with the previous corresponding period, according to Wine Australia’s latest export report released this week.
Export volume declined by 1 per cent to 724 million litres (80 million nine-litre case equivalents) while the average price per litre for wine exports declined by 3 per cent to $3.82 free on board.
Wine Australia chief executive Andreas Clark said the decline in exports was due principally to a steep fall in volume to mainland China as well as the cumulative effects of three consecutive lower vintages in Australia leading to less volume available to export.
“Notwithstanding the impact of China’s tariffs, we were still looking at a potential downturn in exports over this period, simply due to the supply situation,” Mr Clark said.
Mr Clark said exports to China for the December 2020 to March 2021 period were just $12 million compared to $325 million in the comparable period a year ago.
China’s Ministry of Commerce announced the final determinations of two investigations on March 26, accusing the Australian wine industry of dumping, subsidisation and injuring the Chinese domestic wine industry.
China imposed anti-dumping tariffs of between 116.2 per cent and 218.4 per cent (varying by company) for five years.
“As the tariffs apply to product in bottles under two litres, the decline in exports to China was mainly in bottled exports,” Mr Clark said.
“This, along with increased unpackaged shipments to other markets such as the UK, resulted in a drop in the share of bottled exports in the export mix, from 46 per cent of total volume in the 12 months ended March 2020 to 41 per cent in the same period in 2021.
“This led to the decline in the overall average value of exports.”
Mr Clark said more positive had been significant growth in exports to Europe (including the UK), which was up 23 per cent to $710 million, the highest value in a decade.
“There was also growth to North America, up 5 per cent to $628 million, and Oceania, up 7 per cent to $112 million.”
Mr Clark said if exports to mainland China were excluded for the past 12 months there had been positive growth in export value with a 10 per cent growth to $1.9 billion and 8 per cent in volume to 646 million litres (71.8 million cases).
Wine destinations
The top five markets by value
Mainland China, down 24 per cent to $869 million
UK, up 33 per cent to $461 million
US, up 4 per cent to $432 million
Canada, up 9 per cent to $195 million
Hong Kong, up 55 per cent to $148 million
The top five markets by volume
UK, up 21 per cent to 264 million litres
US, down 1 per cent to 135 million litres
Mainland China, down 40 per cent to 78 million litres
Canada, up 4 per cent to 54 million litres
Germany, up 22 per cent to 36 million litres
