Australian Value and Quality = Success
Australia’s grape prices are on the way up thanks to China’s interest in foreign wine and the lower Australian dollar. Agribusiness banking specialist Rabobank says grape prices have rebounded from 2011 which saw an all-time low. This is especially true for South Australian premium grape grower producing red wines who are enjoying the new positive market. In Rabobank’s latest Wine Quarterly report is states “Life has returned to Australian wine grape prices, with China driving much of the recovery in market conditions.” Premium cool temperate regions growing red grapes are experiencing the strongest growth. These include McLaren Vale, Barossa Valley, Coonawarra, Mornington Peninsula and Tasmania. Rabobank’s senior analyst Marc Soccio says “We are starting to see sentiment in the industry recover from a time when the national average wine grape price more than halved to $AUD413 per tonne.” According to Rabobank, Australia’s key indicator of the country’s market conditions, particularly for red grapes, is the performance of the Chinese wine industry.The import of Australian wines increased 41 percent in just six months to June 2016. The expectation is that this trend will continue in 2017.The demand for premium foreign wines from Chinese consumers has seen Australia’s grape production increase in 2016. Mr Soccico suggests maintaining supply levels will depend on the level of investment in the development of new vineyards.