Australian wine exports surge to post-GFC highs

SOUTH Australia’s winemakers are outperforming all other states as our exports grow to 10 year record breaking levels

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THE state’s booming wine sector has delivered its best export earnings in a decade, as South Australia’s growing international reputation as a top producer pays dividends.

Annual figures released yesterday by peak body Wine Australia reveal SA wine exports earned $1.56 billion in the 12 months to December 2017 — its best global market results for 10 years.

The figures reinforce SA as Australia’s leading wine producer and exporter with close to 61 per cent of total international earnings.

The dollar figure is more than three times the next highest state, NSW, with $472 million, followed by Victoria at $460 million.

Wine is SA’s top export.

The record results reflect the world’s buoyant attitude about our wines, chief executive of the South Australian Wine Industry Association Brian Smedley said.

“All the indicators are encouraging, and there’s a great positivity about our wines,” Mr Smedley said.

The volume of SA wine drunk overseas has increased six per cent and the value returned has risen 19 per cent, which means our producers are getting more for their wine, Mr Smedley said.

“Our exports are returning more dollars to mums, dads and family businesses in regional SA,” he said.

The state figures, revealed exclusively to The Advertiser, are buried in the national Wine Australia Export Report that shows the country’s total wine exports hit their highest annual growth rate since 2004, jumping 15 per cent in value over the past 12 months.

Wine exports graphic for SA

The rest of the world now drinks 811 million litres of Australian wine and paid us $2.56 billion for the privilege, which is a post Global Financial Crisis high.

Within the report’s good news was an increase in dollar per litre value paid across most price segments, including bulk wine rising six per cent to $1.03/ litre while prices paid for bottled wine rose to a record average of $5.63.

Even stronger growth rates were registered for super premium wines dominated by high-end South Australian brands.

Wines valued above $200/litre earned more than $21 million than they did in 2016 – growth of 67 per cent.

The strong results showed the wine sector was in great health, Wine Australia Andreas Clark said from London, where Australia Day tastings in the United Kingdom begin this week.

“It shows we’re highly regarded for the quality of our wines across all price points,” Mr Clarke said.

“Australian food and wine has a good reputation and our wine especially is in a good position, and holds us in good stead for the future,” he said.

At the heart of the export boom, China has surged to register a growth rate of 63 per cent, earning $846 million, while there also have been significant increases in SA sales to Hong Kong, Japan, and Singapore.

Minor falls were registered in the traditionally strong UK and US markets, with a devaluing Pound and concerns over the impact of Britain’s exit from the European single market causing hiccups in the UK.

Brexit still had a long way to play out and one of Australia’s challenges in the next few years was to maintain current UK and European market access for our producers, Mr Clarke said.

China would continue to be strong, with all the fundamentals there looking good, he said.

The US was the next major challenge with Australian exporters needing to work hard there to capture better growth in the world’s largest wine drinking market.

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