“Some private collectors are even selling what they kept back to the market for cheaper prices,” he added. “People are still absorbing old products.”
Chinese premier set to visit Australia in June, lobster ban expected to be axed
Chinese premier set to visit Australia in June, lobster ban expected to be axed
A wine owner surnamed Zhang, who does not want to disclose his full name or that of his company due to the sensitive nature of the issue, also said that there is a need for Australian wine to return to China, but “the market situation now is just not good”.
Figures from Statista showed that China’s alcohol market ranked No 1 in the world in 2023, with annual revenue of US$336 billion. The United States and Japan placed second and third, respectively.
Given that operations are growing more difficult, Tam said that “those good old days” have gone.
He continued by noting that Chinese investors buy vineyards directly in Australia nowadays, dominating processing and supply chains, then sell the wine back in their home market at relatively low prices.
According to official figures released by Wine Australia on Tuesday, sales to mainland China increased by 21 per cent to A$13 million (US$8.55 million) in the 12 months to March 2024, due to a low base of comparison from the year prior.
“As the announcement by China’s Ministry of Commerce on the removal of the import duties imposed on Australian wine was made in late March, it has had little impact on the annual data in this report,” the Australian government statutory corporation said in the statement.
Chinese interests in crosshairs as Australia tightens foreign investment rules
Chinese interests in crosshairs as Australia tightens foreign investment rules
China was the largest market for Australian wine before 2020, with its total export value reaching A$1.1 billion in 2019.
Bilateral trade of this specific fine product was largely halted over the past few years as skyrocketed import tariffs pushed up costs.
China lifted tariffs of up to 218.4 per cent from March 29 amid warming ties between the countries, and Australia also discontinued its legal proceedings at the World Trade Organization regarding the trade sanction.
The tariffs were imposed after bilateral relations soured in 2020 following calls from the former administration of Scott Morrison for an international probe into the origin of the coronavirus, drawing Beijing’s ire.
Li Wei, chief executive of Australian wine exporter and producer Swan Wine Group, which owns the Auswan Creek vineyard in South Australia’s Barossa Valley, said that the Australian state’s government has rolled out a series of measures to support winemakers’ return to the Chinese market.
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Despite growing domestic and international acclaim, China wine industry still needs time to mature
Despite growing domestic and international acclaim, China wine industry still needs time to mature
“This is exactly the time to quicken the process of returning to China,” he added. “We’ll immediately send our products out if customers submit requests, and we’re about to build an inventory house in a Chinese tax-free zone.”
The Department for Trade and Investment of the South Australia government invited the state’s food, wine and beverage exporters to participate in the 2024 Taste of South Australia China Trade Mission in Guangzhou and Chengdu in March, and this provided them with an opportunity to showcase their products to Chinese customers.
South Australia’s governor, Frances Adamson, also visited China in late April to advance bilateral cooperation, and the accompanying delegation met representatives of the wine industry to exchange views and become apprised of the new situation in the Chinese market.
And in the state of New South Wales, wine producers and exporters are also being encouraged to participate in the NSW Going Global Export Programme, which takes place through this month, and then in a June roadshow that aims to reintroduce the state’s wine industry to Chinese importers and distributors now that tariffs have been lifted.
