Australian exports grow despite tensions with China

The value of Australian wine exports grew in the year to September 2020, including in its main market of China, despite trade tensions.
 

Australian export figures
Australian export figures

Trade disputes with China and a worldwide recession haven’t slowed the growth of Australian wine exports, according to a new report released today. While volume is down, value is the highest it’s been since 2007.

“Despite the unprecedented disruption that we’ve seen in markets around the world, Australian wine export volume has held reasonably steady and it is particularly pleasing to see both the overall value and the average value of exports growing during these challenging times,” said Andreas Clark, CEO of Wine Australia.

The Australian wine sector has seen growth in value in all five of its top export markets, with a 4% increase in overall value to A$2.998bn ($212bn) – an increase in value of A$3.89 per litre.

The volume of exports declined by 0.4% to 85.7m cases.

The growth in value was predominantly driven by exports to the UK and mainland China, with sales particularly strong in the last quarter. From July to September, value of wine exports increased by a whopping 23% compared to the same period in 2019.

“Throughout the Covid-19 pandemic, there have been clear trends for wine consumption emerging around the world,” said Mr Clark. “While premiumisation has continued, there has also been a resurgence in commercial wines, and this is evidence in the growth that we’ve seen in different price segments, where it was particularly strong at the low and high ends.”

The export success comes despite growing trade tensions between Australia and China; in August, China began a second investigation into imports of Australian wine, as part of an “anti-dumping” enquiry, according to the BBC. Australia denies that it is dumping wine.

China has also targeted Australian beef and barley – actions that are widely understood to be in retaliation for Australian calls for an enquiry into the origins of the coronavirus.

 

 

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