China trade deal lifts wine exports to $1b

LOWER tariffs have helped boost the value of Australian wine exports to China to $1 billion in a year — the first time exports to a single country have hit that level.

Wine Australia says the value of wine exports to China, including Hong Kong and Macau, surged to $1.04 billion in the year to March.

That tally is up 51 per cent on the same period a year earlier.

The industry umbrella group said exports to China grew as wine tariffs fell again in January, in line with the China-Australia Free Trade Agreement.

Those tariffs will be removed completely next January, giving Australian wine producers an advantage over French, Italian and Spanish suppliers.

“Pleasingly there was very strong growth [in China] at all price points,” Wine Australia chief Andreas Clark said.

Wine imported in China was “increasingly consumed by middle-class drinkers and seen as suitable for consumption at informal gatherings and while relaxing at home”, Mr Clark said.

The group’s figures show total exports grew 16 per cent in the year to March, to $2.65 billion, the highest in 10 years.

After China, the second biggest market by value was the US, although exports to that market fell 7 per cent to $439 million. Britain, Canada and New Zealand were the next biggest.

The value of both bottled wine and bulk wine exports increased.

Mr Clark said the high quality of Australian wine and low harvests in the northern hemisphere were driving the demand for wine exported in bulk containers.