Wine Link Australia’s Post

The South Australian Government will provide a $1.85 million China Re-Engagement Support Package for South Australian wine exporters and grape growers. 🍷🍇 The announcement follows China’s decision to remove all #trade barriers on Australian #wine, as a result of concerted efforts by both the state and federal governments to stabilise the trading relationship between the two nations. The support package will provide South Australia’s wine sector with in-market insights and capability building to effectively re-engage with the #China market in a risk-managed way. The China Re-engagement Support Package was developed by the Department for Trade and Investment in collaboration with the South Australian Wine Industry Association and the Department of Primary Industries and Regions. The support package comprises five key components: · Two-way market activation and immersion · Promotional marketing and communication campaigns · Wine export adviser · Technical cooperation · Exporter capability building Full story 👉 https://ow.ly/7qG650R757N Learn more about the support package 👉 https://ow.ly/NFxc50R758h #SouthAustralianWine #Export 📸 Image credit: South Australian Tourism Commission Marianne Duluk | Ann-Marie Battista | Hugh Waterman | Tim White | Anthony (Ant) Grundel | South Australian Wine Industry Association | Department of Primary Industries and Regions

Reflecting on the South Africa Wine Seminar a few days ago – Blend and Bond, held at the CTICC on 23 May 2024, the words of Daneel Rossouw, Head of Sales for Agriculture at Nedbank Commercial Banking, resonate even more profoundly: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…” This opening remark beautifully reflects the dual nature of the wine industry in South Africa. I am always impressed by the creativity and innovation in the sector, probably due to its diverse nature, which includes a long value chain requiring expertise from viticulture to design, tourism, and sales. The product itself – wine – is anything but simple, and the industry’s competitive spirit is recognised on the global stage. CEO Rico Basson, at the seminar, highlighted the significant transformation the industry has undergone since the 1990s. Marked by shifts in commercial strategies, community engagement, labour justice, and climate resilience, the industry stands as a compelling case study in adaptability in a rapidly changing world. Yet, the South African wine industry finds itself at a crossroads, facing both significant opportunities and formidable challenges. With a focus on inclusive governance, sustainability, and strategic market engagement, the industry aims to navigate these challenges and emerge stronger and more competitive on the global stage. For those who appreciate the finer things in life, it’s worth noting that wine prices are unlikely to decrease anytime soon. For lovers and collectors of wine, now might be the opportune time to invest. If you want to know more: https://lnkd.in/dF8YY6dj #SouthAfricaWine #BlendandBond #SAWineSummit2024

Wine Map of Ukraine June 2024 What are the predominant wine-growing regions in Ukraine? Where are they located? How many registered wineries are there in Ukraine and what are the dominant grape varieties for red and white wine? The project "Promotion of Ukrainian Wine Sector on EU Market" dealt with these questions, among others, and developed the Wine Map of Ukraine as part of its project activities. This map highlights the main wine production areas in the country. Due to climatic changes, the northern regions of Ukraine are becoming more attractive for viticulture. The growing capabilities of wine production are also reflected in the expanding community of craft winemakers in Ukraine. Wine Map of Ukraine was developed by the consortium of Eco Viva GmbH (main partner) and IAK Agrar Consulting GmbH within the international cooperation program “EU4Business: SME Recovery, Competitiveness and Internationalisation” (EU4Business: відновлення, конкурентоспроможність та інтернаціоналізація МСП | Facebook) that is co-financed by the European Union and the German Government and is implemented by the German federal company “Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH” (GIZ Ukraine | Kyiv | Facebook). The programme aims to support Ukraine’s economic resilience, recovery and growth, create better conditions for the development of Ukrainian small and medium-sized enterprises (SMEs) as well as support innovation and exports. Read more: www.eu4business.org.ua The content of this publication is the sole responsibility of Eco Viva GmbH and IAK Agrar Consulting GmbH and does not necessarily reflect the position of the European Union, the German Government, or GIZ. #eu4business #MovingForwardTogether #sme_support_EU_GIZ #cluster_support_EU_Germany_GIZ #city_support_EU_Germany_GIZ #BIOs_support_EU_Germany_GIZ

https://lnkd.in/d24znar2 Based on France’s population of 68 million, land mass of 552,000 km2 and more than 850,000 hectares of vineyards, we find that there is one hectare of vineyards per 80 persons, and that vineyards account for more than 1.5% of French land. Also, it seems kind of crazy that 1.5% of total land is devoted to just one agricultural product when thousands and thousands exit. But with both domestic and foreign demand falling, it should not be a surprise that France now plans to remove up to 100,000 hectares of vineyards, moving to more sustainable production levels. Initially, the government plans to spend EUR 120 million in funding the permanent removal of vineyards. They plan to spend up to EUR 4,000/ hectare of uprooted vines. The French stated that they plan to remove “medium- to low-quality red wines” that have struggled to find markets amid declining domestic consumption and export challenges. Maybe for the first time in its history that the country said that produce medium and low quality wines. And once again, taxpayers will fill the bill, just as they have done to support the EU’s oversized agricultural sector; but this time to ease the pressure of over production, a perfect example of governments meddling in the economy, with taxpayers ultimately covering poor decisions. Developed economies have access to much cheaper capital than poorer countries; but they can’t expect their growth to be fueled be exports indefinitely, as sooner or later the competition for other producers arises, or economies that run long-term trade deficits usually do not have enough foreign currency for luxury imports, as they too must have something to export in order to earn fx. Just a note: in Serbia, with its 6.7 million populace and a land mass of 88,500 km2, there is around 300 persons per one hectare of vineyards, which make up less than 0.25% of Serbian territory. 

Rico Basson, we need to put the dire situation of the grape grower highest on the priority list. Without the grape farmer there is no industry. No Black Owned Brands. No transformation. No jobs. No wines. No tourism. No environment awareness. No WIETA. No FAIRTRADE. Nothing. It is time that the grape growers who take the most risk in the primary supply chain become our focus and priority. Over the past 2 decades everything and anything enjoyed all types of attention whilst Net Farm Incomes remained on average less than 2% per annum. This cannot and should not continue. We need an industry task force as well. A task force by and for the grape producer. Let’s not delay this process. Let’s not wait till it is a crisis like with COVID…

Have you ever thought about the sheer value that wine contributes to the global economy and as an agricultural product what further value it delivers, its whole lot more than you may have possibly considered. Figures released by the EU show that wines contribution in over 132 Billion Euros in GDP to the EU, this is a staggering number but when balanced against the fact that 62% of the worlds wine production is based in Europe this only helps to further underscore wine economic value and importance. Sobering thought for the next time you pull a cork or crack a cap and have that first glass of wine.

The global wine industry is currently navigating a significant surplus, highlighted by instances like Australian grape-grower Tony Townsend destroying half of his vineyard due to the cost-ineffectiveness of production. This issue reflects a broader trend of production outstripping demand, even as global wine production reached a 60-year low in 2023. The mismatch is largely due to a combination of changing consumer preferences, such as a shift towards lower-alcohol or non-alcoholic beverages among younger generations, and economic pressures from the COVID-19 pandemic, trade tariffs, and rising input costs linked to global events and climate change. This situation is exacerbated in regions like Australia, where historical inventory levels remain high despite reduced production, and in Spain, where there's a specific oversupply of Rioja reds. Efforts like France's ethanol conversion scheme have had limited impact, highlighting the challenge of adapting to market changes in an industry characterized by long investment cycles. The current state of the wine industry calls for adaptive strategies to realign production with evolving consumer trends and economic conditions.

The maker of Penfolds Grange, Treasury Wine Estates, has noted an interim draft determination by the Chinese Ministry of Commerce that would reopen the China market to Australian wine exports. The determination outlines a proposed removal of the current tariffs which have crippled what was once a $1.2 billion export trade with China – reducing it to $10 million and hitting wine producers. Treasury said the determination was not final and could be revised by the ministry. Meanwhile Australian Grape & Wine Chief Executive Lee McLean said: "While we acknowledge this interim decision, we note that the final outcome is still pending. “As such, we remain cautiously optimistic about the forthcoming decision and will await [the] final determination.” #manufacturing #australianmanufacturing Wine Australia The Australian Wine Research Institute #ASX #wineindustry #foodandbeverage #foodandbeverageindustry

🇦🇺🍇🍷 Impact of current global economic conditions on Australian wine exports Given the current global economic conditions, the impact on Australian wine exports is subject to both challenges and potential opportunities: - Grape growers in Australia are facing a crisis with prices falling to 1970s levels, significantly below production costs, potentially affecting the supply of wine for export [1]. - Treasury Wine Estates (TWE) sees the anticipated lift of tariffs on Australian wine by China as a significant growth opportunity, especially for their luxury Penfolds brand, suggesting positive future prospects specific to the Chinese market [4]. - The global reduction in wine production by 7% in 2023, due to climatic adversities and shifting consumer preferences, might create opportunities for Australian wine in the global market to fill gaps left by traditional wine-producing countries facing lower yields [8]. - The UK's steep rise in alcohol duty, leading to a significant decrease in wine and spirit sales, poses a financial challenge for Australian wine exporters by potentially decreasing competitiveness in one of its traditional markets [28]. - Despite a global slowdown in the wine industry, with signs of weakness in Asia, Europe, and the US, opportunities exist to attract younger consumers and leverage fine wine consumption in luxury venues, which might benefit Australian wine producers who focus on storytelling and educating about their products [27]. The overall impact of current global economic conditions on Australian wine exports is a mix of significant challenges in production costs and market access, alongside opportunities for growth in certain markets like China and in attracting new consumer segments. 👉 For article sources and more insights: https://lnkd.in/dpbYn-TV #winery #winemaking #wineindustry #australia

Proud to showcase the best of Argentine beef at SIAL Shanghai 2024! Once again, the Argentine Beef Promotion Institute (IPCVA) made history by drawing thousands of visitors to our 1,150-square-meter pavilion, the largest in our institute's history. Our prominent presence featured individual stands for partner companies and a restaurant accommodating 200 diners. However, the true highlight was our grill, which captured attention on social media and attracted renowned Chinese influencers. They not only visited our booth but also had the pleasure of cooking and savoring the world's finest steaks. While this year's SIAL saw a slight decrease in general attendance compared to previous years, we noticed a much more specialized audience among participants, representing a valuable opportunity for our export sector. As for prices, they remained stable, reflecting levels from recent months. However, we observed a significant shift in the Chinese market, where demand remains subdued due to the economic impact of the pandemic and excess meat stock. In this context, we are excited to glimpse a new horizon of business for Argentine companies: grain-fed beef, a higher-value product that was previously dominated by Australia and the United States. With price increases in these countries, Chinese importers are turning their gaze towards Argentina as a more attractive option. As an example of this emerging business, the mixed 5-cut forequarter averaged around $5,500 per ton. This is just the beginning of an exciting new chapter for the Argentine beef industry in the international market. We continue to advance and solidify our reputation as producers of top-quality beef!