Australian wine exports suffered an 11 per cent decline in the year to September 30, triggered by Chinese tariffs, freight bottlenecks and changing consumer habits during the pandemic.
New figures from industry body Wine Australia reveal the continuing collapse of the lucrative market of mainland China after Beijing imposed 218 per cent tariffs on imported Australian wine over the past two years.
Australian wine exports to China plunged by 92 per cent in value to $21 million in the year ended on September 30.
And exports to north east Asia declined by 46 per cent in value to $321 million.
But despite these gloomy figures, Wine Australia believes the industry is experiencing “the tail end of the decline” in exports to mainland China.
Wine Australia manager, Market Insights Peter Bailey said that the results were mixed, with the increases recorded in some markets offset by declines in others.
“In this report, we’re seeing the tail end of the decline in exports to mainland China having an impact on the total export figures; this is expected to wash out of the figures by the end of 2022,” Bailey said.
“When mainland China is excluded from the data, wine exports to the rest of the world held steady in value, declining by 0.2 per cent to $1.99 billion and increasing by 1 per cent in volume to 622 million litres.”
Heavy tariffs imposed by Chinese authorities on Australian winemakers have hammered exports to the emerging superpower. They were imposed as part of sweeping trade sanctions by Beijing amid rising tensions with Canberra.
A rise in exports to other countries offset some of the declines in northeast Asia, Wine Australia said.
Shipments to Japan increased by 18 per cent and Taiwan saw a 13 per cent rise.
Exports to the US rose by 5 per cent in value to $412 million and 14 per cent in volume to 139 million litres, making it the largest export market for Australian producers by value.
Bailey said Australian wine makers should brace for more market turbulence. Consumer spending in vital markets may be impacted by rising inflation and interest rates.