Australian wine exports hit 22-year low

Australian wine exports fell to their lowest level in 22 years in the last financial year, dropping 7 per cent to $2.3 billion as global wine drinking declined, according to Wine Australia data cited by ABC News.

The report said the amount of Australian wine sent overseas fell below 600 million litres for the first time since 2004. Exports to Australia’s three largest markets — China, the United States and the United Kingdom — all dropped.

China remains Australia’s biggest export market by value at $756 million, despite a 15 per cent drop in wine sent there, the report said. By volume, the United Kingdom remains the biggest market, followed by the United States, with Wine Australia saying exports to both countries were at their lowest level in 25 years.

Wine Australia said worldwide wine consumption fell to its lowest level since 1961, with consumers moderating alcohol intake, facing cost-of-living pressures and shifting towards alternative beverages. Paul Turale, general manager of market development at Wine Australia, said the supply chain was "feeling the pinch" because about 60 per cent of Australian wine is exported.

In Perth’s Swan Valley wine region, Faber Vineyard owner and winemaker John Griffiths said business was suffering. "It’s ridiculously tough," he said, adding that producers were trying to sell into a shrinking market and faced pressure from discounting.

The report said exports to Canada rose 20 per cent to $188 million after Canada’s tariff battle with the United States reduced the availability of US wine.