South Australian wine exports to China have surged to $558 million in the 12 months to October, with over 99 per cent of those sales occurring in the seven months since Chinese tariffs were lifted.
This marks a major rebound for the state’s wine industry, which had been severely impacted by trade restrictions.
Overall, wine exports from South Australia reached a record $1.7 billion during the period, a 38 per cent increase compared to the previous year. South Australian producers now account for two-thirds of Australia’s total wine exports, valued at $2.5 billion.
In addition to China, South Australia’s second-largest wine export market, Hong Kong, also saw impressive growth, with sales rising by more than 30 per cent to reach $237 million.
The turnaround in trade with China follows months of diplomatic efforts by the Federal Government, which worked to repair relations between Australia and China. Ministers Don Farrell and Penny Wong played key roles in normalising trade, culminating in the removal of tariffs on Australian wine in April.
Anticipating this change, the South Australian Government in March unveiled a proactive $1.85 million reengagement package to help local wine exporters capitalise on the opportunities in China.
“From a total cessation of wine exports to China, as a result of effort and dedication from wine producers and government alike, the return has been very pleasing,” said Trade and Investment Minister Joe Szakacs.
“Anticipating the lifting of tariffs, it was important to strike while the iron was hot, and that’s why we invested heavily into our reengagement package, supporting our exporters to get back into market as soon as possible.
“We’re seeing dividends of that, and in just seven months since tariffs were lifted our producers have sold more than half a billion dollars of wine to China.”
The initiative has supported exporters attending major trade shows and provided critical on-the-ground assistance from trade experts both domestically and abroad.
This week, the package facilitated the return of Chinese wine buyers to South Australia, where they engaged with representatives from over 70 wineries across eight regions.
“The removal of tariffs has opened up China as a valuable additional market in our export diversification strategy,” said Matthew Deller, CEO, Wirra Wirra Vineyards.
“For Wirra Wirra, it’s an opportunity to re-establish relationships and introduce McLaren Vale’s premium wines to a dynamic and growing audience.
“Chinese consumers are increasingly drawn to authenticity, quality, and sustainability—qualities at the heart of South Australian wine.”
In a broader sign of improving trade relations, the Australian and Chinese governments recently announced a schedule to resume imports of Australian Southern Rock Lobster. Exports of the prized seafood are expected to resume later this month, marking another milestone in the recovery of trade between the two nations.