At least one area of value-adding exports are booming – premium wines.
Figures from Wine Australia showed the total value of Australian wine exports grew by three per cent to $2.91 billion in the 12 months to December 2019.
The good news is that exports of higher valued wines – those above $10 per litre free on board (FOB) – are doing best, reaching a record value of $1.1 billion.
Wine Australia Chief Executive Officer Andreas Clark said the average value of exported wine increased by 18 per cent to $3.91 per litre FOB, the highest level since 2006.
Clark said: “The volume of exports was down, with the decline heavily weighted towards lower price segments.
“Looking ahead into 2020, we anticipate that coronavirus will have an impact on sales, particularly to China.”
Bottled wine shipments increased by 7 per cent in value to $2.4 billion and decreased in volume by 5 per cent to 342 million litres. The average value of bottled wine rose to a calendar year record of $7.04 per litre.
Unpackaged wine exports decreased by 12 per cent in value to $488 million and decreased 18 per cent in volume to 395 million litres.
However even there the average price of unpackaged wine increased by 6 per cent to $1.24 per litre.
The top five destinations by value were:
# China (including Hong Kong and Macau) was up 12 per cent to $1.28 billion
# USA, down 1 per cent to $419 million
# UK, down 9 per cent to $352 million
# Canada, down 13 per cent to $183 million
# And Singapore, up 18 per cent to $105 million.
Exports to China (including Hong Kong and Macau) in the 12 months to December 2019 increased by 12 per cent in value to $1.28 billion, while volume declined 17 per cent in volume to 142 million litres.
During the year Australian exports to China moved ahead those of France.
Graphs: Wine Australia
Picture: Henschke/Hill of Grace
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