Australian Wine proves fruitful with $2.89bn in exports
Wine exported from Australia has bounced back from the lows felt in 2017 as lower volumes and higher values contribute to profits.
The Australian wine industry has added more weight to its reputation as a global influencer in the sector as profits of AU$2.89bn were announced. The announcement is a 7% increase on last years profits, as the industry grows globally, only Europe felt a decline in exported value.
The average price for litre went up to $6.79 in the 12 months preceeding September 2019, as exports see increased attention from China, Netherlands, Denmark, Belgium and South Korea. Export volumes saw a decline of 8% down to 774mn litres and unpacked wine felt a similar decline as values fell by 3% to AU$512mn and volumes fell by 10%. With all factors considered, Wine Australia have said the average value of unpacked wine has actually increased by 9% per litre FOB.
“The positive numbers also reflect that the average value of bottled wine to all but three of our top 20 destinations are in growth and nearly all the major global regions imported more Australian wine in the past year, with the exception of Europe, which declined by 3%.” Said Andreas Clarke, CEO of Wine Australia. He added, “Global Trade Atlas figures for the year ended August 2019 showed that overall wine imports declined by 11 per cent in value [AUD], with French wine being the biggest contributor to the decline. Australia’s long-term growth trend, coupled with France’s sudden decline, has led to Australia becoming the number one source for wine by value in China’s imported market for the first time.”
Wine Australia has spoken about the decreasing volumes adding to the value of wine coming out of Australia. The market supply could see pressures ease as the vintage from 2018 had a much larger yield than the previous year, as 2017 had the Australian Wine industry suffer a drought, leading to hugely reduced volume over the year.
The heat and rocky soil of Australia can make for the perfect environment for certain grapes. As rocky soil holds the heat from the sun to keep grapes warm through the night and ample space give opportunities for businesses to grow.