Is China losing its taste for Australian wine? Industry frets over demand
The lifting of trade tariffs by China led to a significant surge in Australian wine exports last year. However, uncertainty looms over whether this increased demand will persist once Chinese buyers have replenished their stocks, according to Wine Australia. Despite the rebound in exports to China, Australian wine shipments to other parts of the world continued to decline due to high inflation and growing concerns about the health impacts of alcohol consumption.
Australia, a major global wine exporter, faced severe challenges when China imposed tariffs in 2020, effectively blocking its most lucrative wine market. This embargo exacerbated the issues of oversupply and low grape prices, forcing many farmers to uproot their vineyards and leading major companies like Treasury Wines and Pernod Ricard to sell off assets. The tariffs were lifted on March 29 last year following improved political relations between Beijing and Canberra, resulting in a rapid recovery of Australian wine exports to China, reaching levels similar to those before the tariffs. However, the global market remains a challenging environment for Australian wine producers.
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The lifting of trade tariffs by China led to a significant surge in Australian wine exports last year. However, uncertainty looms over whether this increased demand will persist once Chinese buyers have replenished their stocks, according to Wine Australia. Despite the rebound in exports to China, Australian wine shipments to other parts of the world continued to decline due to high inflation and growing concerns about the health impacts of alcohol consumption.
Australia, a major global wine exporter, faced severe challenges when China imposed tariffs in 2020, effectively blocking its most lucrative wine market. This embargo exacerbated the issues of oversupply and low grape prices, forcing many farmers to uproot their vineyards and leading major companies like Treasury Wines and Pernod Ricard to sell off assets. The tariffs were lifted on March 29 last year following improved political relations between Beijing and Canberra, resulting in a rapid recovery of Australian wine exports to China, reaching levels similar to those before the tariffs. However, the global market remains a challenging environment for Australian wine producers.
via SCMP Full Text Feed
