The 2023 Wine Quarterly Report from agribusiness institution Rabobank shows an emerging trend downwards for the price of Australian wines. And it doesn't look like changing any time soon.
In the past two years, Australian wine exports to China have dropped by a third due to tariffs. This, paired with a strong growing season, means there’s a hell of a lot of Australian wine in storage at the moment: 2 billion litres, or 2.8 billion bottles, to be exact.
While this is great news for Aussie drinkers who want to get their hands on a nice bottle for less, it’s predicted that wine producers could face the consequences over the next five years. Rabobank forecast that vineyards will be forced to close or sell in this time, reducing acreage in Australia.
Even though there is a chance that China will remove the tariffs in the coming years, wine consumption in that part of the world has majorly declined, forcing Australian wine producers to get crafty with selling their wine to other buyers, like the Philippines, Thailand and Vietnam.
Well, somebody’s got to help deplete the excess supply – get around local producers by purchasing their drops.