More troubles ahead for Australian wine industry

The latest figures from the Australian Wine & Brandy Corporation show that wine exports dropped in value 15 percent in the year to September with the total volume exported falling by 13 percent to 698 million litres. Growth was shown in only two markets – Denmark and Hong Kong.

South Australian winemakers in particular, writes John Harvey from Adelaide, are concerned that the current financial crisis will impact heavily on companies who rely on the U.S. market where wine sales have fallen significantly.

On the other hand, some experts remind us that “wine is a top asset and should mature in taste and value throughout the current financial meltdown”. The falling Australian dollar should help exports but in a volatile situation there is no cause for celebration. On the domestic front, overall sales are down nearly 4 percent for the last year; premium brands dropped 10.3 percent in August, giving a 6.3 percent fall for the year. Retailers report normal customer counts in stores but the average expenditure is down.