Australian wine exports fall by 26%

Australian wine exports have fallen by 26% on the back of China tariffs, reduced vintages and international freight problems.

The Chinese tariff of 116% to 218% slapped on Australia wine in December 2020 has resulted in a 26% fall in wine exports for the year to March 2022. The tariff enacted after the Australian government spoke out about human rights abuse by the Chinese government against Uyghur Muslims in Xinjiang and demanded a thorough investigation into the source of Covid-19, both of which the Chinese government opposes.

At the same time Australia wine sales boomed in the UK and US because of restrictions on sales in restaurants due to Covid and focus on consumers buying wines through wine shops and supermarkets, where Australia had historically been strong. With restaurants back open now, in both of these key markets, sales have slipped down 2% in the UK and 4% in the US.

Shipping has also proved challenging as freight has slowed internationally following the Covid hibernation. This is even more disappointing as the 2021 Australian vintage was the largest in over 15 years.