"Despite the challenges there were some highlights during the past 12 months, particularly in Asian markets," the government corporation AWBC said in its annual report, released yesterday.
Exports to Europe and North America declined by 17 % and 25 % respectively. But the Asian exports grew 8% with the value of shipments almost doubling those of Europe.
China with 32% increase in value to A$74 million rated as the number one growth market. Elimination of import duties propelled Hong Kong to reach the third spot in terms of growth; its imports went up 17% to A36 million. Japan with an increase of 4% was fifth in terms of value growth, according to a report.
Australia's total wine exports declined by 18 % to a total of A$2.5 billion in 2008. UK remained the largest market by both volume and value, importing a third of all exports at 261 million litres worth A$806 million.
What is disturbing to Aussies is that the sale of local wine is coming down and it is not due to the recession alone. The change in taste fashion is causing the drop too, according to the Executive Director of Wine Grape Growers' Australia, Mark McKenzie. Increasing penetration of the Sauvignon Blanc from the friendly neighbour, New Zealand is causing some anguish.
McKenzie feels the boom in Australian wine industry is over. "We had a decade-and-a-half of really almost unrestrained export growth and we've now seen over the last nine months or so going into negative growth in exports," he said. With the production base built during the last 15 years to cater to the continued export and local consumption growth, it is a time for industry to have a look at the structural position.
Big wine producers are apparently already cutting back on their grape purchases and this is a mater of concern for the growers.
Despite the poor performance, Australia's wine export in 2008 was still recorded as the fifth highest in value. |