RED wine prices set to plummet as Australia tries to compete with Spain and Austria
Growing tensions between Australia and China and a huge hike in trade tariffs mean the Aussie wine producers have no choice but to start looking to Europe to export the majority of their red wine stock, at a hugely discounted price. Wine Australia’s annual report showed that exports to China fell dramatically in 2020 after the tariffs were hiked up to more than 200 per cent last year. Now wine bosses are once again hoping to trade with the more traditional markets, but realise their prices will have to get a whole lot more competitive.
“We’ve got to try to re-attack those markets,” Ciatti Australia director and grape broker Matthew Tydeman said.
“But we now have to realise that we’re competing against Chile and Spain and Argentina for the price points, and those price points are a lot cheaper than what we’re seeing in Australia at the moment.”
This is bad news for wine producers in Oz, who will naturally see the value of their stock plummet, but good news for consumers, who will be able to buy a bottle of plonk at a much lower rate.
“Reds are going to be long and we will see the price soften, and we are already hearing prices are down from last year,” Mr Tydeman said.
“There seems to be a good demand for white grapes at the moment – Chardonnay, Sauvignon Blanc and Pinot Gris have been in good demand, and if anything they are short.”
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