China is a booming market for Australian wines as more and more Chinese are preferring it over wines from other countries. This means bigger business opportunities for wine makers. In a recent article for example, wine consigner Greg Cora welcomes this developments excitedly with plans of increasing the volume of his wines in China!
“China Thirsting for Premium Aust Wine”
“China cannot get enough of Australia’s premium wines, according to a specialist exporter.
Inland Trading Company principal Greg Corra, who is about to send his biggest wine consignment worth $US500,000 ($A487,000) to a supermarket chain in China, says although a difficult market, the hurdles were not insurmountable.
He said if it were not committed to other markets, he could sell every drop of Canberra’s Clonakilla premium wines to China.
An award-winning entrepreneur of Wamboin, Mr Corra was commenting on the latest industry analysis which says import tariffs are hold backing the potential of wine exports to China and Korea.
Australian Bureau of Agricultural and Resource Economics and Sciences executive director Kim Ritman said over the past decade Australian wine exports to China and South Korea had grown markedly, but faced stiff competition from Chile and New Zealand.
He said economic analysis showed removal of China’s import tariff could lead to a fall in the Chinese retail price for Australian wine by about 12 per cent for bottled wine and 17 per cent for bulk wine.
For South Korea, the fall would be closer to 13 per cent for both bottled and bulk wine.
Mr Ritman said the analysis commissioned by the Grape and Wine Research and Development Corporation reaffirmed the potential gains to the Australian wine industry of more liberalised trade.
Mr Corra said getting supplies was as important as the tariff hurdle.
”If we could source more premium wine we could sell it. We have allocations from producers which need to be spread across markets,” he said.
Mr Corra said many Australians believed there was a glut of wine, and often referred to a wine lake hanging over the domestic market.
A disastrous 2011 vintage meant some producers did not make any premium wine, and this year many producers were likely to be 30 per cent down on production at the premium end of the market.
”There is no wine lake. There is absolutely no wine lake at the moment. The telling factor is the way bulk wine prices are going up in this country, beyond what you would ever expect.”
He said a Canadian winery had sought wine from him three years ago to blend with other wine, which cost $250 a litre. ”I could not find a similar wine at $450 [these days]. Yes a lot is related to vintage, but a lot of it is also related to the fact Australia no longer has a wine lake as everyone would like to believe.”
This news article came from Sl.farmonline.com.au.
While the increase in demand for Australian wines is good for business, many fear that it can cause a decrease in the wine’s reputation and image.
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