Despite having experienced turbulent years in the global wine market, Australian exporters are making significant profits across Asia after Beijing rejected the Chinese market.
According to the latest figures, Wine Australia’s total volume decreased by 17% to 419 million liters, resulting in a 30% decrease in export value to A $ 2.03 billion (US $ 1.45 billion). Revealed.
Export reports reveal that exports to North American and European markets have stabilized or declined slightly. Earlier reports in April 2021 saw significant increases in the United Kingdom and Germany.
According to industry groups, the “unprecedented tough market conditions” for the last 12 months until December 2021 are bottlenecks and parts of the supply chain after customers stockpile wine during the 2020 COVID-19 outbreak. It was caused by problems such as “counter swing” in the market. ..
However, Wine Australia has accused the Chinese Communist Party (CCP) of the ongoing tariff war on Australia as having the greatest impact on exporters’ property.
From October 2020, exports to mainland China began to decline dramatically after Beijing imposed tariffs on Australian wine products ranging from 116 to 218 percent.
According to current figures, exports to China fell 93% to 6.4 million liters, a 97% drop in exports to A $ 29 million, a drop of nearly $ 1 billion to 90 million liters. Will be.
At the same time, exports have increased significantly in countries around mainland China, such as Singapore (up 108% to A $ 166 million), Hong Kong (up 45% to $ 191 million) and South Korea (up 74% to $ 47 million). Increase was recorded. , Taiwan (up 65% to $ 31 million), and Thailand (up 31% to $ 28 million).
“This is the first time since 2009 that exports excluding mainland China have reached $ 2 billion in a calendar year,” said Rachel Triggers, General Manager of General Affairs and Regulation for Wine Australia. Press release February 3rd.
“The pandemic is still disrupting trade, the global freight crisis continues to cause transportation delays and increased transportation costs, and while exports to many destinations are growing, trade to mainland China. It takes time to offset the loss of. “She said.
“This doesn’t happen overnight or within a year, but there are early signs that Australia’s wine sector is resilient and its efforts to expand and diversify its market are rewarding. I have.”
Since April 2020, Australia has survived an ongoing trade coercion campaign from the Chinese Communist Party after Foreign Minister Marise Payne called for an investigation into the origin of COVID-19. The move has led to sharp criticism from the Chinese ambassador to Canberra Chen Zinghe, warning of Australia’s potential actions towards trade relations with China.
The following month, the Chinese Communist Party implemented a series of bans, suspensions and regulatory hurdles on domestic exports of coal, wine, beef, barley, red shrimp, timber, lamb and cotton.
However, Finance Minister Josh Frydenberg revealed in September, despite a $ 5.4 billion decline in Australian exports for the year ending June 2021.
“Exports to other parts of the world have increased by $ 4.4 billion,” he told the Australian National University’s Crawford Leadership Forum.
Meanwhile, despite Beijing’s intention to cripple Australia’s trade, Chinese businesses and individuals avoid CCP economic coercion by importing goods through alternative markets and bringing them into China. There are reports that it is doing.
In May 2021, Chinese police found more than 569 kg of red shrimp during the attack, with an estimated value of US $ 19,300. Shells were found along with typical items preferred by smugglers such as handbags, jewelery, shark fins and smartphones.
In another example, Chinese police seized 100 boxes (weighing 1,274 kg) containing the famous Australian spiny lobster. According to the South China Morning Post, the street value of crustaceans was estimated at US $ 46,500.