Australian wine exports increase, as selling prices rise

Not only is the world buying more Australian wine, it’s prepared to pay higher prices. Who are the top tipplers?

A NSW vineyard. Picture: Destination NSW

The world continues to lap up Australian wine in record volumes, with the value of exports increasing by 7 per cent in value to $2.89 billion for the 12 months to September.

Crucially it is at the higher prices that Australian wine is selling overseas, with the average value of bottled exports reaching a record $6.79 per litre.

There has also been a further growth in exports, particularly above $10 per litre free on board (FOB), to the US.

Wine Australia said other positive milestones included the value of exports over $10 per litre reaching the $1 billion mark for the first time, continued growth in exports to China and encouraging growth in exports to the Netherlands, United Arab Emirates, Denmark, South Korea and Belgium.

Export volumes decreased 8 per cent to 774 million litres (86 million 9-litre case equivalents). However the climb in export value and the decline in volume meant the average value increased 16 per cent to $3.74 per litre, the highest level since 2008.

Australian wine exports for the year to September 2019

Wine Australia chief executive Andreas Clark said the growth in value reflected a strong underlying story with growth in all price segments above $5 per litre, with wine shipped at an average value of $10 per litre and above reaching record levels for both value and volume.

Mr Clark said while the value of unpackaged wine exported declined slightly, by 3 per cent to $512 million, the volume had decreased 10 per cent, which meant that the average value increased by 9 per cent to $1.22 per litre FOB, the highest level since early 2009.

“The positive numbers also reflect that the average value of bottled wine to all but three of our top 20 destinations are in growth and nearly all the major global regions imported more Australian wine in the past year, with the exception of Europe, which declined by 3 per cent,” he said.

In terms of export sales growth in other regions Northeast Asia grew 17 per cent to $1.34 billion, North America was up 0.1 per cent to $625 million, Southeast Asia rose 5 per cent to $179 million, Oceania was up 1 per cent to $106 million, and the Middle East grew by 16 per cent to $35 million.

Asia continued to be a key export market.

Australian wine exports to China (including Hong Kong and Macau) reached a record value of $1.25 billion, an increase of 18 per cent, with average value increasing by 40 per cent to $8.42 per litre FOB, Mr Clark said.

Exports to the United Kingdom declined by 4 per cent in value to $365 million and 2 per cent in volume to 233 million litres (26 million 9-litre case equivalents).

The economy in the UK remains soft as a result of uncertainty around Brexit but Australia remains number one in the UK off-trade market, as it has been for 20 years, with sales growing by 0.2 per cent in value to £1.2 billion in the year ended June 2019, according to industry statistics.