The Strategic Plan 2020-2025 details where Wine Australia will invest to support each of the country’s 65 wine regions and the grape and wine businesses within these. (beveragedaily.com)
It has been developed to address the current dynamic environment with the COVID-19 pandemic as well as other new and emerging challenges. (beveragedaily.com)
The recent heat wave and wildfires in Victoria destroyed wineries and damaged a number of vineyards, with as much as 70 percent of the crop lost in some areas. So China puts the boot in and adds traffs. You may not know, but the Australian Wine export market was worth 2.8 billion Australian dollars (A$) a year in June 2007, having grown at 9%pa. Australian wine accounts for a very large imported wine market share in South Asian countries and is the second largest imported wine in India with a market share of 16%. Another blow to the Australian wine industry today, with China announcing that it will continue to pursue massive export tariffs.
Beijing had already alerted Chinese firms, when undertaking an enquiry into ‘anti-dumping’ abuses, to stop importing Australian wine.
There is a charge that Australian producers have sold wine for less than the cost of production, which hurts Chinese wine makers.
The wine shelf at Saltbox The Australian wine industry is one the world’s largest exporters of wine, with approximately 800 million out of the 1.2 to 1.3 billion litres produced annually exported to overseas markets.  The wine industry is a significant contributor to the Australian economy through production, employment, export and tourism.        There is a $3.5 billion domestic market for Australian wines, with Australians consuming approximately 500 million litres annually.  Norfolk Islanders are the second biggest per capita wine consumers in the world with 54 litres.  Only 16.6% of wine sold domestically is imported.  The consumer price index for wine in Australia since 1980 Vine cuttings from the Cape of Good Hope were brought to the penal colony of New South Wales by Governor Phillip on the First Fleet (1788).  An attempt at wine making from these first vines failed, but with perseverance, other settlers managed to successfully cultivate vines for winemaking , and Australian made wine was available for sale domestically by the 1820s.  In 1822 Gregory Blaxland became the first person to export Australian wine, and was the first winemaker to win an overseas award.  In 1830 vineyards were established in the Hunter Valley.  In 1833 James Busby returned from France and Spain with a serious selection of grape varieties including most classic French grapes and a good selection of grapes for fortified wine production.  Wine from the Adelaide Hills was sent to Queen Victoria in 1844, but there is no evidence that she placed an order as a result. (en.wikipedia.org)
Simon Birmingham says levies of over 200%, amid ‘dumping claims’, would cripple businesses, as the nation’s biggest winemaker went into a trading halt | Read the punishment list
Australia repeatedly rejected the charges, with the enquiry by China only set to end next year.
But preliminary results have led Beijing to levy tariffs of up to 200% this weekend, which will have a substantial effect on Australian companies in China.
The industry is focused on Chinese exports at 2.9 billion dollars per year and many suppliers say exports account for around 40% of their sector.
— CommSec (@CommSec) November 27, 2020
Treasury Wine Estates, which owns Penfolds and Wolf Blass, has already put a stop to the trade and this afternoon has announced the future of the business.
Agriculture Minister David Littleproud says China’s decision looks like something else and the government will continue to support the wine industry.
“The Australian Government would strongly protect the business, but we are highly worried about it and in recent remarks by China, it takes the view that this decision is based on this rather than on any wrongdoing by the wine industry.
How much is the Australian wine industry worth
Treasury Wine Estates, the owner of the Penfolds and Wolf Blass brands, is set to become one of the biggest losers in the China tariff spat because it makes up around 40 per cent of the annual $1.25 billion in Australian wine exports to China.
“The Minister of Trade and I have tried freely and continually to insure that the dialogue, and we will continue to do so.
“This is the best way to resolve any problem, but it must be done transparently and we will keep ensuring that we support the industry,” said Littleproud.
Continued critism towards Australian Government and Business who has become so depended on a Communist despot goverment
We brought this upon ourselves. Who the fk exports 40% of its exports to one country??? 40% of our exports go to China, it’s fkn insane, even land locked EU countries don’t have this kind of trade dependence on each other (it’s 25% max on average) #ausbiz #china https://t.co/UovDN8xMra
— Sam 🇦🇺 (@samstrades) November 27, 2020
‘Devastating blow’: Trade minister lashes out at China’s wine tariff hit – Sydney Morning Herald
- We’re a sovereign nation, we expect to be treated with the respect of a sovereign nation,” he said.
- China’s Ministry of Commerce on Friday issued the preliminary ruling after China’s drink industry accused Australian producers of dumping discounted wine into China, reducing the competitiveness of local producers.
- Australian Grape and Wine chief executive Tony Battaglene said that wine produced by companies that registered for China’s anti-dumping investigation would receive a tariff of between 107 per cent 167 per cent.
Cloud Over Australian Wine Imports Benefits Chile In China Market – Forbes
- A cloud over the future of imports of Australian wine by China is likely to benefit Chile, a long-time importer and consultant in mainland’s wine market said in an interview.
- “For the Australian wine industry, it’s an unprecedented challenge,” said Ian Ford, president of Shanghai-headquartered Nimbility, an American entrepreneur who has lived in China for more than two decades and been a part of the spirits industry’s growth here during that time.
- “From what we can tell, effectively all Australian importers have stopped shipping wines to China,” Ford said.
The Federal Trade Minister says he will “stand by” Australia’s wine industry – ABC News
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- Victoria may have ‘eliminated’ coronavirus, but the second wave’s effects linger
China to impose anti-dumping measures on Australian wine – Nikkei Asia
- Australia’s trade minister Simon Birmingham said the tariffs were unjustifiable and it was a distressing time for hundreds of wine producers because it “will render unviable for many businesses, their wine trade with China”.
- Importers bringing in Australian wine will need to pay deposits to China’s customs authority, which will be calculated based on different rates the authority has assigned to various companies, according to the statement.
Party over? China trade rift threatens Australian winemakers – Al Jazeera English
- Professor Steve Tsang, director of the SOAS China Institute at the University of London, said Australia’s ability to navigate its trading interests with China is being put to the ultimate test by its allegiance to longtime security ally Washington.
- Any embargo on Australian exports to China could be catastrophic.
- According to Jeffrey Wilson, research director of the Perth USAsia Centre at the University of Western Australia, the seven products that have been targeted employ hundreds of thousands and together represent about $15.9bn (21.9 billion Australian dollars) in exports to China.