Wine update flags potential resumption of trade with China

Wine update flags potential resumption of trade with China

According the latest Ciatti market report Australian wine exporters are cautiously optimistic of a resumption of trade with China. This renewed outlook is based on the fact that China and Australia recommenced trading timber in May, an agreement, which is worth $600 million, therefore increasing the possibility that wine, might be next in line.

However, whilst positive communication between Australia and China continues, it’s imperative to appreciate that imports of wine into China from around the globe have decreased by 30.6% in volume to 76.19 million litres and decreased in value by 21% to USD354 million over the period of January-April 2023.

This decline can be attributed to several factors including overstock, cash liquidity issues and the overall reduced consumption of wine, which according to the International Organisation of Vine and Wine (OIV) equates for 260 million fewer bottles per annum since 2018. These statistics indicate that even if trade does resume Australia should not anticipate the same levels of sales previously enjoyed during the boom years from 2015 to 2020.


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