Raise a glass: report says wine exports set for bumper year
Export earnings for wine are forecast to increase by nearly 10 per cent in the 2013-14 financial year, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has found.
The quarterly ABARES agricultural commodities report, released on Tuesday, also predicts a 6 per cent rise in beef and veal exports and a whopping 15 per cent boost to dairy earnings.
ABARES executive director Paul Morris said wine exports were susceptible to the state of the global economy, and the slowdown in developed countries had affected sales in recent years. Ten years ago China imported virtually no wine from Australia, but has since become the third-largest destination for exports.
"The growth in that market is going to be reflected in terms of those higher returns [for Australian producers]," Mr Morris said.
Exports to the US and Britain, the No.1 and No.2 markets for local wines respectively, are also expected to pick up.
ABARES predicts Australia's gross value of farm production will hit a record $49 billion in 2013-14, with better rainfall boosting crop yields, and global prices driving demand for some commodities.
It is the fourth straight year of stronger returns for the farm sector, after a difficult decade marked by drought and adverse seasonal conditions. By comparison, total farm production in 2009-10 was $39.7 billion, about $10 billion less than what ABARES expects this financial year.
The value of exports overall has dipped slightly to $37.2 billion, but historically that is not bad considering the record high of $38 billion achieved last year.
Mr Morris said the exchange rate also had a big impact, with the outlook for the Australian dollar revised down since ABARES' last report in June.
AAP
Frequently Asked Questions about this Article…
ABARES forecast that export earnings for Australian wine would grow by nearly 10% in the 2013–14 financial year, reflecting stronger overseas demand for local wine.
China has moved from importing virtually no Australian wine a decade ago to becoming the third-largest destination. ABARES says China’s growing appetite for Australian drops is a key driver of the rosier export outlook.
Yes. The ABARES report notes the US and Britain — currently the No.1 and No.2 markets for Australian wine — are also expected to pick up, supporting export growth alongside China.
ABARES predicts beef and veal exports will rise by about 6% and dairy earnings could increase by around 15% in 2013–14, alongside the stronger wine outlook.
ABARES expects Australia’s gross value of farm production to hit a record $49 billion in 2013–14, helped by better rainfall improving crop yields and stronger global prices for some commodities.
ABARES executive director Paul Morris warned wine exports are vulnerable to the state of the global economy — slowdowns in developed countries can hit sales — and that movements in the exchange rate also have a big impact on returns for producers.
The report describes the 2013–14 outlook as the fourth straight year of stronger returns for the farm sector after a difficult decade marked by drought and adverse seasonal conditions. By comparison, total farm production in 2009–10 was $39.7 billion, roughly $10 billion less than ABARES expects for 2013–14.
ABARES noted the value of exports overall dipped slightly to $37.2 billion in the latest figures, which is marginally below last year’s record high of $38 billion but still historically strong.
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