Australian wine struggling to re-enter China market despite rise in sales after tarrifs lifted

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Australian Wine News

China Wine,Australia China Trade,Australian Beef

When China lifted tariffs on Australia's bottled wine exports, winemakers, connoisseurs and importers were excited, but now they face new challenges and changing consumer behaviour.

Beijing has promised to lift the ban on Australian rock lobster, and while that may be good news for the industry, not all products returning to China have enjoyed smooth sailing.While there had been worries about the damage the restrictions had done to Australia's position in the huge Chinese market, people started buying up again.

In the months following, Beijing put a raft of trade barriers on about $20 billion worth of Australian products.afterwards announced "Instead of having a purely pork-oriented diet, a lot of them are seeking out the higher protein beef products. "Right now, wine consumption is about one third of 2012," said Mr Boyce, speaking from one of Beijing's most prestigious restaurants where Penfolds held its 180th anniversary celebrations not long after the tariffs were lifted."Wine is an easy luxury to give up, it's a newly acquired luxury for many people, and it's quite expensive here, so if you're going to give anything up, that's what you're going to give up.

The stock market soared off the back of the announcement, seeing the biggest single-day gains since 2008 on the day before closing for the holidays at the beginning of the month.The rally continued when the markets reopened on Tuesday, although cooled quickly after expectations for more major stimulus were dashed during a morning press conference by the National Development and Reform Commission, the agency responsible for economic planning.

"The problem may come after holidays, when people can say, 'OK I have spent a lot of money' so by December, January, February … people will be more prone to save money.In response to the changing market, Australian products are also having to adapt.

 

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