Wine leaders, makers urge Victorians to buy local in face of China tariffs

Wine industry leaders and producers are urging Victorians to buy local after China’s shock tariffs attack on Australian wine.

Wine industry leaders and producers have implored Victorians to visit vineyards and stock up on local drops, to help them survive a nearly $200 million economic blow from China.

China’s shock tariffs attack on Australian wine could also see wine destined for export flooding the local market and causing harmful price wars, they said.

But Victorians could show their support for the industry and buoy Australian winemakers by choosing local bottles over imported at every opportunity and spending their holidays visiting wineries, eating in their restaurants and buying wine to take home, Australian Grape and Wine chief Tony Battaglene said.

“We all need to think about buying local as much as we can at the moment … get out and travel to the regions and stock up,” he said.

Dave Whyte from Buller wines in Rutherglen with wine that has been returned from being exported to China. Picture: Simon Dallinger

He told the Herald Sun while Victoria would not be hit as hard as South Australia by China’s sky-high tariffs, it remained “very exposed”.

The Chinese Ministry of Commerce (MOFCOM) recently imposed preliminary anti-dumping tariffs on Australian bottled wine imports, ranging from 107 per cent to 212 per cent, effectively closing the market to Australian wine producers.

More than a third of Australian wine, worth $1.07 billion, was exported to China in 2019-20 making it the top trading partner for winemakers.

And the latest state government data shows Victoria exports $404 million worth of wine overseas, 47 per cent of which is sold in China.

China is also the state’s highest value market for horticulture, taking $566 million worth of Australian product.

Mr Battaglene said exporters to China would not be the only winemakers hurt by the exorbitant tariffs, with a potential glut of wine flooding the Australian market as a result.

Buller Wine’s David Whyte says Victorians can help by visiting and buying at regional cellar doors. Picture: Simon Dallinger

“There’s also the problem of all the extra product produced around Australia, having to be sold somewhere.

“That will put price and supply pressure on Victorians, even if they’re not directly exporting into China, so it’s got broad implications.

“Unfortunately, no one is going to be insulated from this … I hope that we won’t be getting into discounting and we’ll be able to maintain our prices because we need to maintain as much profitability as we can,” he said.

David Whyte from Rutherglen’s Buller Wines said it was inevitable Victorian winemakers would feel “some pain”.

“All we can do is encourage everyone to buy Victorian,” he said “The best anyone can do to help out is to visit the wine regions.”

Moorabool Valley winery owner, Scott Austin, said it would take time for winemakers to build profitable new export markets to replace China.

But the owner of Austin’s Wines and past president of the Geelong Wine Association said while “the China situation” presented challenges, new opportunities would arise.

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