Value Australian exports to the UK decline while growth in China soars

By Jo Gilbert

Published: 19 July, 2017

A new report from Wine Australia shows that the value of Australian wine exports grew by $201 million (10%) in 2016–17 to $2.31 billion, underpinned by strong export growth to China and the US.

Wine Australia Export Report June 2017 released today demonstrated a strong international reach for Australia, which outperformed the world’s four larger exporters France, Italy, Spain and Chile, in its rate of export growth.

However, things weren’t so rosy in Europe and the UK.

The UK, which is Australia’s biggest export market by volume, saw the total value of exports decline 7% to $341 million.

While Australian wine exports to most regions recorded growth in 2016–17, Europe was the exception, which saw 1% decline to $568 million.

Oceania also fell by 1% to $87 million.

But while value to the UK fell overall, the country saw “very strong growth” in exports at the high-end of price points.

Exports at $10 per litre or more grew by 13% to $28 million.

Elliot Awin from wine importer Awin Barratt Siegel Wine Agencies said that Australia’s focus for the UK now is to focus on supporting the independent trade, where there is a “real resurgence in interest” for Australia across the pricing spectrum.

“Independent merchants are rotating ranges regularly with an eye to the new, modern Australia, preferring wines with a real story or point of difference; many will preference purchasing from winemakers with whom they’ve met. Whether it’s small batch single vineyard wines, traditional method sparkling wines or ‘alternative varietals’ from small producers, there is a growing thirst for these products. Winemakers pushing the boundaries away from tradition have also seen success,” he added.

Mainland China’s position as the number one destination for Australian wine exports by value was consolidated in 2016–17.

Exports grew by 44% in value to $607 million.

Exports to Greater China (mainland China, Hong Kong and Macau) also increased by 33% to $721 million helped by the implementation of the China–Australia Free Trade Agreement (ChAFTA) at the end of 2015 which provided impetus to an already strong market.

Australia’s top five export markets accounted for 74 per cent of the value of Australian exports:

• Mainland China – $607 million ▲44%

• US – $464 million ▲3%

• UK – $341 million ▼7%

• Canada – $186 million ▼5%

• Hong Kong – $114 million ▼8%

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