UK spends 19% less on Aussie wine

Published: 09 July, 2009

Exports of Australian wine to the UK fell by almost 19% in value terms in the past year, official figures have revealed.

Volumes were down 1%, meaning that although the UK still buys more wine than any of Australia's other export customers, it is paying less overall than the USA.

Exports to the UK came in at 265 million litres for the year to June, worth A$723.2 million. Sales in the UK worked out at A$2.72 a litre, compared to A$3.14 in the USA and A$4.79 in Canada.

In its year-end report, Wine Australia said: "In 2008-09, the volume of Australian wine exports increased 6% to 750 million litres. Value declined 10% to A$2.43 billion on the back of an average price decline of 15% to A$3.24 per litre.

"The Australian wine industry confronted a set of challenging trading conditions in 2008-09 that are ongoing, including the global financial crisis, exchange rate volatility, continuing intense competition from other suppliers, tightening margins, and supply and demand imbalances.

"Despite the trading conditions, volume was still the second highest on record for a financial year while the absolute value decline was lower than in 2007-08."

Printer friendly version