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May 30, 2022 View:

Australian wine in awkward situation with no one buying it

Since the deterioration of China-Australia economic and trade relations, Australian exports to China have been restricted due to quality problems and quarantine failures, Australian products have been in the embarrassing dilemma of no one buying them. Australian wine, for example, is a case in point.

Image from: Finance One Time

Australian wine exports to China hit a snag as multiple countries call for Australian wine purchases

Australian wine has lost 98 percent of its exports to China in just two months since China ruled that Australian wine was dumped and decided to impose a levy of up to 212 percent on Australian wine. After the hindrance of exporting to China, Australia is still undeterred, claiming that the Chinese market does not want Australian wine, but other countries do.

In the time that followed, Australia launched a campaign to buy Australian wine, and members of parliament from the United States, Germany, the United Kingdom, Italy and other countries even sent out videos on social media platforms calling on people to buy wine together. In addition, the official account of the U.S. government even personally promoted Australian wine, declaring that it would be used to entertain guests at the White House banquet.

No takers for Australian wine, vintners miss China market

Unfortunately, despite the online calls by parliamentarians from a dozen countries to buy wine together and the U.S. White House stepping in to speak out for Australian wine, the number of people who actually bought it, was very small. After losing most of the Chinese market, Australian wine merchants had to sell at low prices to protect themselves, and anxiously urged the Australian government to find a new buyer.

Looking for new buyers? Easier said than done, under the epidemic, the economies of many countries plummeted and the living standards of the people dropped significantly, under which even basic survival became a problem, not to mention the purchase of imported wine. To this day, there is still no country to take over Australian wine, and this has led many wine merchants to miss the days of selling wine to China.

According to a report by Australian Financial Insight on February 4, Australian wine is still in a state of price reduction because Australian wine has not been able to find a country that can replace China until now. Australian wine merchants, who have suffered large losses, also remembered the good of the Chinese market at this time.

Finding new buyers difficult to achieve, no advantage for Australian wines

Relevant data shows that under the influence of various aspects, the foreign export value of Australian wine fell by 75% in 2020, with a decline of about A$1.042 billion to China.

China has long been the largest export market for Australian wine, with China accounting for 39% of Australia"s foreign exports. And this means that Australia wants to find a replacement for the Chinese market, which is almost a difficult thing to accomplish.

It is worth mentioning that the reason why Australia has difficulty in finding an alternative market to China is not only related to the huge market share of China, but also to the shortcomings of Australian wines themselves. Australian wine has no advantages, and in the absence of any advantages, most European and American countries tend to buy wine from other countries.