Wine exports continue overall decline, but positive signs are emerging in Australia

In the 2021–22 financial year, Australian wine exports declined by 10 per cent in volume to 625 million litres and the average value fell by 10 per cent to $3.33 per litre FOB1, leading to a 19 per cent decline in value to $2.08 billion2, according to Wine Australia’s latest Export Report. The significant reduction in exports to mainland China was the key driver behind the overall decline in exports. The on-going impact of the pandemic – including severe shipping delays and increased freight costs – and rising inflation, business costs and interest rates also made the trading environment unprecedentedly challenging for Australian exporters. On a positive, over the past few months, the Australian dollar has depreciated against the US dollar which assists in making Australian wine more price competitive, particularly in the United States (US) market. Despite the challenges, when excluding mainland China from the data, exports to the rest of the world increased by 5 per cent in value ...