AUSSIE WINE EXPORTS TO CHINA DOWN 29% IN 2020, TO S'PORE DOWN 24%, TO JAPAN DOWN 23%
By Susan Lewis
Source: Wine Australia
Australian wine exports to Asia in 2020 showed some worrying signs, while poor performance in the Chinese market is well expected due to China's punitive tariffs, but it turned out exports to Singapore and Japan had seen very sharp declines as well.
According to Wine Australia’s latest export report released today, exports to mainland China declined by 14 percent to AUD1.01billion (USD769million) and volume drop by 29 percent in 2020, mostly due to the punitive tariffs slapped by China in November 2020. If Hong Kong and Macau are included, export value is down 10 percent and volume down 27 percent.
But exports to Singapore and Japan performed equally poor as that to China. Australian wine exports to Singapore in 2020 is down 24 percent in value, while to Japan is down 15 percent in value and 23 percent in volume.
Wine Australia had not shed any light on the poor performance in the Asian markets other than China in its export report today.
Despite the trade tension, mainland China remained Australia wines' top export market in 2020, export value more than doubled that of the second market United Kingdom at AUD456mn.
Overall, Australian wine exports decreased by 1 percent in value to AUD2.89bn, and increased by 0.5 percent in volume to 747mn litres.
Wine Australia Chief Executive Officer Andreas Clark said that despite the COVID-19 pandemic, exports hit a record year-on-year value of AUD3.1bn in the 12 months ended October 2020, before recording a steep decline in the final two months of the calendar year.
Source: Wine Australia
Clark said that there had been a sharp increase in exports from August to October, primarily to mainland China and the United Kingdom, while the decline in November and December was predominantly in exports to China.
Clark added that exports to mainland China were immediately down following the imposition of the punitive tariffs in November. It was expected that exports to China would remain low in coming months affecting total export numbers during 2021.
Clark said the decline in exports to China had been offset by growth in exports to Europe, up 22 per cent to AUD704mn – the highest value in a decade. There was also growth in North America, up 4 percent to AUD628mn, and Oceania, up 11 per cent to AUD115mn.
“Wine businesses are resilient and are already adapting to these changed market conditions, increasing their engagement in markets other than China, particularly the UK, USA, Canada and the domestic market,” said Clark.
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