MIL-OSI Australia: South Australia benefits from wine exports to China

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Source: Minister for Trade

In just one month since duties were removed on bottled wine, Australia has exported over $86 million of quality wine to China.

The majority of Australian wine exports to China are from South Australia.

South Australian wine producers have exported almost $80 million of wine to China in the first month since duties were removed (92.1 per cent of Australia’s total wine exports to China).

This is a great outcome for our wine producers, after three years of trade disruptions, along with natural disasters and global reductions in demand.

To address this, we have supported the diversification of wine export markets and Federal, State and Territory Agriculture Ministers recently established the Viticulture and Wine Sector Working Group, to develop a nationally coordinated approach and provide advice on options to support the industry.

The Working Group has consulted widely across the sector and the government has wasted no time in responding to the feedback it has received.

Today the Albanese Government has announced a $3.5 million Grape and Wine Sector Long-term Viability Support Package to support the long-term viability of the grape and wine industry to respond to the oversupply of red wine.

The package will fund a range of activities which aim to build demand and new markets for wine both domestically and internationally, provide better data for growers to make decisions and diversify into alternative products, and investigate competition and regulatory issues.

The Albanese Government has also announced that it will extend support for wine producers to grow domestic sales and promote agritourism by supporting the Wine Tourism and Cellar Door Grant Program for another year.

This allows wine and cider businesses to share $10 million in funding to help attract visitors to Australian wine regions and promote agri-tourism.

Under the program, wine producers can apply for grants of up to $100,000 on eligible cellar door sales made during the previous financial year.

These announcements come on top of $2 million surge support for affected Australian agricultural exporters to re-establish commercial connections in China and continue to diversify into other markets.

Quotes attributable to Minister for Trade and Tourism, Don Farrell:

“More than 350 Australian wine producers and businesses have re-established exports to mainland China since duties were removed.”

“The re-entry of Australian wine into the Chinese market benefits both Australian producers and Chinese consumers.”

“The Albanese Government is working with industry to support the re-entry of our world-class Australian wine to the Chinese market, and to continue to diversify their markets.”

Quotes attributable to Minister for Agriculture, Fisheries and Forestry, Murray Watt:

“I know how hard the past few years have been for wine producers across the country, so to see the successful return of this export market is fantastic for the future of the wine sector.

“But we also know there are some in the industry who are doing it tough who don’t export to China, and that’s why today we have announced this new package to support the long-term sustainability of the sector.

“Through this new funding we will start the important work on a national vineyard register, promote Australian wine domestically, and put people in overseas markets like Japan and China to build trade relationships.

“These are initiatives that industry has been consistently calling for through the working group consultations, and we are delivering on them.”