NEWS
AUSTRALIAN WINE EXPORTS TO CHINA CRASHED 96% IN THE PAST FOUR MONTHS
By Siulan Law Mathews DipWSET
29-4-2021
Credit: Johnny Bhalla/Unsplash
Australian wine exports to China crashed by more than 96 percent as a result of the hefty punitive tariffs imposed by China. According to latest figures from Wine Australia, exports to China for the December 2020 to March 2021 period reduced to a minimal AUD12 million (USD9.3 million) compared to AUD325 million for the same period a year ago.
For the whole 12-month period though, China remained the largest export market for Australian wine because of the large volume sold in the first few months of that period.
Total sales to mainland China for the 12 months ended 31 March were down 24 percent to AUD869 million. When Hong Kong and Macau were included, the sales were down 18 percent to AUD1.02 billion.
Source: Wine Australia
The China hit overshadowed solid gains in other markets. Exports to the United Kingdom were up 33 per cent to AUD461 million, while sales to the United States were up 4 percent to AUD432 million.
Wine Australia said overall, exports from Australia’s 2400 wine producers were down 4 percent to AUD2.77 billion for the 12 months ended 31 March.
Australia’s biggest wine group, Treasury Wine Estates, owner of the Penfolds brand which is very popular in China, is among the Australian producers who had the most to lose.
The company was hit with a tariff of 175.6 percent. It had previously been selling about AUD500 million a year of high-priced wine to China, a market which is not easy to replace.
China's Ministry of Commerce announced a preliminary ruling on 27 November, temporary anti-dumping duties ranging from 107.1% to 212.1% had been imposed on Australia wine imports since then.
China announced last month that the anti-dumping measures on Australian wine imports will last form for five years.
(the writer can be contacted at: info@thewinechronicle.com)
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