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Thursday 16 April 2020

Positive news for the Australian wine industry, but.....

The value of Australian wine exports continued to grow in the 12 months to March 31, 2020, but Wine Australia reports that the full impact of Covid-19 on exports is still to be felt.

Wine Australia Chief Executive Officer Andreas Clark said total export value increased by 3% over the previous 12 months to $2.87 billion with a record average value for bottled exports of $7.12 per litre free on board (FOB).

Over the same period, total export volume declined by 11% to 728 million litres (81 million case equivalents) as there is now less wine available due to lower vintages in 2018 and 2019.

Although not yet complete, it is clear that vintage 2020 is delivering exceptional quality fruit but yields are down so it is anticipated that inventories will continue to be depleted.

"Pleasingly, the average value of Australia’s unpackaged wine exports increased by 5% to $1.26 per litre – levels not seen since late 2005," Clark said.

"This reflects the continued demand for Australian wine even in a more competitive bulk wine market and this is flowing through to increased returns for grape growers in the critically important inland regions of the Riverland, Murray Valley and Riverina."

Clark warned that the Covid-19 pandemic would take a toll on exports, but due to the patterns traditionally seen in wine exports and with the situation evolving on a daily basis in major markets such as the United Kingdom and the United States of America it was too early to get an accurate picture.

"Sales data from the UK and USA suggests that while cafes and restaurants have closed and sales have been lost, it’s been offset by people buying more wine for at home consumption," he said.

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