Uncategorised

WA wine exports to China slumps

Western Australia's wine industry is reassessing its focus on the China export market following a drop in both sales and volume.

According to ABC Rural, exports to China from WA in the 12 months to July 2014 were down 25 per cent by volume and 20 per cent in sales.

The value of exports slumped from $41.6 million to $33.4 million, according to national industry body Wine Australia.

The decline has come despite a considerable focus on growing the Chinese market, which increased exponentially from the early to mid-2000s until 2013.

During that period China became the largest importer of wine from WA.

Wine Industry Association of WA chief executive Larry Jorgensen said a change in Chinese domestic policy is a key factor.

"We think it's happening because of the austerity measures everyone has heard about that the Chinese government has implemented because of a bit of ostentatious behaviour in gift-giving on the part of government officials," Jorgensen said.

"That's had an effect to some extent and there's a possibility as well, I suppose, that other countries have taken some of the market share we were dealing in previously.

"I think people are re-assessing how much they put focus onto China and are starting to consider other markets."

The difficulties in China have not been uniform, with Margaret River producer Murray McHenry saying he has managed to keep his sales to China growing.

"Australian wineries, particularly boutique ones in Margaret River, have had to look offshore for quality markets and China, for us, is proving to be that," he said.

McHenry says the low quality of some of the wine initially sold to China has taken a toll.

"They were sending up wines under labels that no-one in Australia has ever heard of and they were just emptying their tanks of what was known as the 'wine glut' in Australia," he said.

"Australia's reputation was tarnished by these really bad wines that were sent there."

Margaret River Wine Association president Nigel Gallop is confident there is still a big future in Chinese exports for wines in the region.

"I think (the drop in exports) is an adjustment and I think we can grow again from here, as long as we get that message strongly out there that Margaret River is growing great, world-class wines," Gallop said.

"The more we get that message out there to China and the rest of the world, the better this industry is going to be."

Jorgensen said it was "inevitable" that sales to China will rebound.

 

Send this to a friend