Published on Jul 21, 2019
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A report released this week shows the value of Australian wine exports grew an impressive 4 per cent to $2.86 billion in the last financial year.
China continued to drive growth and the United States of America (USA) also made a welcome return to growth.
About 800 million litres (89 million 9 litre case equivalents) were exported, a 6 per cent decrease on the previous year. The volume decline was driven by a decrease of 7 per cent in shipments of wine below an average value of $2.50 per litre free on board. This resulted in a 10 per cent increase in the overall average value of exported wine to $3.58 per litre, the highest level since 2009.
Wine Australia chief executive Andreas Clark said the growth in value and the declines in volume at that lower end of the price spectrum would be welcome news to the sector that has been focusing strongly on growing value rather than volume.
‘The strong growth in average value is positive for the wine sector and the broader economy as it lifts returns for wine businesses and flows through to regional economies through higher grape prices,” Mr Clark said.
The National Vintage Report 2019 released last week shows Australia’s average grape price has lifted for the fifth year in a row, reaching $664 per tonne, the highest level since 2008.
‘The turnaround in exports to the USA, which grew by 2 per cent in value to $432 million, is pleasing. Average value increasing 6 per cent to $2.83 per litre, the first growth in 2 years, rewards the efforts of the many exporters who are working actively in that market to change perceptions about Australian wines and communicate about the diversity and excellence of Australia’s offering.”
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