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Australian wine exports jump 13% by value

Published:  18 April, 2016

According to Wine Australia's Export Report in the last 12 months to March 2016, the value of Australian wine exports jumped 13% to AUD$2.1 billion, it biggest increase since 1999, and volume increase by 3%.

Wine Australia's chief executive officer, Andreas Clark, said: "It is very pleasing to see the increasing demand for premium Australian wines, particularly in Asia."

The largest value increases were for wines priced at $15.00-$19.99 per litre segment increased 56% by value and for wines priced $50.00-$99.00 per litre segment,  value of wines exported grew 46%. Total value growth for wines priced over $10 per litre grew 32% to a value of $5491,879,196.

"Wines with an FOB of $50 per litre or higher now make up a third of all exports over $10 per litre for the first time," said Clark.

Andreas ClarkAndreas ClarkAndreas Clark, chief exectuive officer of Wine Australia

The increase in bottled wine exports was a primary driver in the value growth of Australian wine exports overall, which jumped 16% to $1.7 billion the highest value in five years. The average value of bottled exports hit $5.29 per litre, which was a rise of 9%. Even wine exports above the $200 per litre price point increased 10% to a value of $31 million.

Primarily the country is benefiting from a weaker currency compared to five years ago, making Australian wine imports more attractive globally, the positive impacts that free trade agreements (FTA) are having is getting realised and is helping to drive an increase demand from Asia.

Australia currently has FTAs with Japan, South Korea and China. In Japan exports increased 19% to $45 million, with the value of wine exported above $10 per litre increasing 34%. Exports to South Korea increased 51% and hit the highest annual value since December 2008. The China-Australia Free Trade Agreement only passed in December 2015 and has yet to have a major impact on exports, but regardless exports still rose 64% to $397 million. Hong Kong imports of Australian wine hit $129 million, making China the largest market for Australian wine exports.