Winemakers keen to get back to China
One of Australia’s oldest family-owned wine companies is ready to jump back into the once lucrative Chinese market after three years of punishing tariffs, but admits it’s just one part of a broader response needed to address the deep crisis facing growers and producers across Australia’s inland regions.
Angove Family Winemakers has deep roots in South Australia’s Riverland region, which accounts for more than a quarter of the nation’s annual grape crush, but has been among the hardest hit regions amid a growing glut of red wine.
The fifth-generation wine and spirits company, established in 1886 by Dr William Thomas Angove, previously sent about 10 per cent of its exports to China before Beijing slapped tariffs of up to 218 per cent on Australian wine at the end of 2020 as trade tensions between the two countries escalated.
A diversified export strategy, and a move from bulk wine trade towards organic, sustainable viticulture and premium McLaren Vale winemaking over the past 25 years have helped to shelter Angove from the devastating impact of the Chinese tariffs.
Last week, Beijing announced it was at last lifting the crippling tariffs on March 29, Good Friday.
The removal of tariffs should see China return to being the wine industry’s biggest export market.
Angove joint managing director Victoria Angove said the company was eager to resume trade in China, which represented a $1.2bn market for Australian exporters at its peak before the trade imposts.
Australian Grape & Wine is also seeking an $86m “recovery and resilience program” as part of its prebudget submission to the federal government. It wants $30m allocated to vineyard owners, $36m towards an export support program, and $20m in a domestic marketing campaign.