1 February 2024

South Australian winemakers prepare for possible re-entry to China market

| Andrew McLaughlin
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Barossa Valley

Workshops for winemakers were held in the Barossa, Hahndorf, Coonawarra and Renmark wine regions. Photo: Barossa Wines.

As it appears increasingly likely China will review and hopefully relax its crippling tariffs on Australian wine in the next few months, the South Australian Government has held a series of workshops for winemakers to prepare them for a re-entry to the Chinese market.

The workshops were held in the Barossa, Hahndorf, Coonawarra and Renmark grape growing regions from 29 January to 1 February, and were designed to give winemakers the latest information on the China market, including topics such as economics, wine market conditions, market access and entry, legal considerations and cultural awareness.

The workshops were facilitated by the Department for Trade and Investment in partnership with the South Australian Wine Industry Association (SAWIA) and the Department of Primary Industries and Regions, South Australia (PIRSA).

In October 2020 just before the tariffs were levied, China was South Australia’s largest wine export market with annual exports valued at $946.5 million or 47.2 per cent of South Australia’s wine exports globally. By comparison, in the year ending November 2023, South Australian wine exports to China were just $2.7 million.

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Minister for Trade and Investment Nick Champion attended the workshop in the Barossa on 30 January to hear firsthand from winemakers how the government can help reposition South Australia as a market leader in China.

Mr Champion said the workshops provided important insights into the current market conditions with China, the industry’s largest export market.

“We are confident there will soon be greater opportunities for our world class wine producers to re-engage with the Chinese market and the (South Australian) Government is focussed on how we can help our local industry prepare to maximise these chances.

“We commend the efforts of the Federal Government for their advocacy and we know that South Australian wine remains highly regarded by Chinese consumers who value quality, premium products.

“The South Australian Government will continue to collaborate with its industry partners to deliver initiatives that support re-engagement, build capability and reposition our wine state as a market leader in China.”

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Following a relaxation on tariffs and trade restrictions on some Australian imports such as coal, cotton, timber and barley, and Prime Minister Anthony Albanese’s November 2023 visit to China and meeting with President Xi Jinping, Foreign Affairs Minister Penny Wong and Federal Trade and Tourism Minister Don Farrell have been advocating for Australian producers, in particular the wine industry.

Chief Executive of the South Australian Wine Industry Association Inca Lee said South Australian wine had made a deep impression on the Chinese consumer who valued quality products.

“We know this sentiment has not been diminished by the pause in our trading relationship,” she said.

“Whilst we await the process currently underway by China to review tariffs imposed on Australian wine, it is important for our industry to maintain its knowledge of the China wine market.

“These workshops provide a valuable opportunity to share the latest information to strengthen the position of South Australian growers, winemakers and wine exporters now and into the future.”

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