Australian trade minister gives China update

Minister for Trade Don Farrell has assured Australian winemakers that negotiations are continuing with the Chinese government to remove prohibitive tariffs on wine exports.

Farrell addressed winemakers at the National Wine Show, telling them Chinese Commerce Minister Wang Wentao was a huge fan of Australian wine, with Farrell extending a personal invitation to the minister to visit the South Australian wine regions.

Tariffs on Australian barley are soon to be lifted and Farrell said he was confident he could negotiate a similar outcome for wine exports.

Chinese state media has also revealed Chinese wine importers had been visiting Australian wineries since the start of the year as they prepare for normal trade to resume.

As Australia awaits the resumption of wine exports to China, the winning wines at the National Wine Show are set to be highly sought after by international buyers.

“A win at the National Wine Show means increased sales and brand awareness for Australian winemakers,” National Wine Show chair Andy Gregory (above) said.

“Our catalogue represents a buyer’s guide to the best of the best Australian wines for domestic and international buyers, and we regularly hear from medal winners that they’ve sold out within days of a win.”

Victorian winery Yarra Yering’s Underhill Shiraz won the top award at the National Wine Show of Australia for the second time in four years. The Yarra Yering 2021 Underhill Shiraz was awarded the Prime Minister’s Trophy for 2023 Champion Wine of Show, following the 2018 Underhill Shiraz vintage taking out the top gong in the National Wine Show in 2019.

The Deep Woods chardonnay won the Len Evans Memorial White Wine of Show Trophy. The Margaret River vineyard also picked up the Sauvignon Blanc Trophy for its Deep Woods Estate 2022 Sauvignon Blanc.

Other notable wins included Bream Creek Vineyard’s 2019 ‘Old Vine’ Reserve Riesling, which won the Riesling Trophy, and Bleasdale Vineyards’ 2021 Second Innings Malbec, which took out the Red Varietal Trophy. Bleasdale also won the Shiraz Blends Trophy for its 2021 Broad-side Shiraz Cabernet Sauvignon Malbec.

Farrell urges India focus for winemakers

Farrell advised winemakers at the National Wine Show to consider the huge promise offered by India as an export market. The first Australia-India Joint Dialogue on Wine was held in New Delhi earlier this month.

Under the Australia-India Economic Cooperation and Trade Agreement (ECTA) Australia now has greater access to the Indian market of 1.4 billion people, and one of the world’s fastest growing major economies,” Farrell said.

“A serious window of opportunity has opened for our producers to move into an export market valued at over $24 billion in 2021, ahead many of our key competitors.

“It’s great that the Australian wine industry is taking the initiative to diversify, and get into this market early.”

India takes over from the US and China as global volume growth driver

According to comprehensive new data and forecasts from IWSR Drinks Market Analysis, global beverage alcohol is forecast to grow amid a challenging political and economic landscape and is projected to deliver over US$ 21.6 billion to the global economy by the end of 2023.

Future volume growth will be subdued, at +1% volume CAGR 2022-2027, and IWSR expects a shift away from the US and China as the key volume drivers for the global beverage alcohol industry. Instead, India, Mexico and Brazil stand out as the key volume growth markets over the next five years.

In fact, India and Mexico together accounted for over half of all volume growth in 2022. The US and China will, however, remain significant value drivers despite expected volume declines 2022-2027. Between 2022 and 2027, the US total beverage alcohol market will grow by US$ 12 billion, and China’s by US$ 41.7 billion.

Drinks industry eyes India as the next China

All the winners from the National Wine Show 2023

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