Business
Australian winemakers continue to celebrate China's lifting of tariffs on their products, while facing challenges in their country.
China's Ministry of Commerce on March 28 announced that the country will lift anti-dumping and anti-subsidy tariffs on Australian wine from March 29 this year.
Stuart Hordern, chief winemaker of Brokenwood Wines, hopes that more of the wine he makes will be exported to China now that it has removed the tariffs placed on Australian wines.
"[The fact that] we do have access again is really welcomed news," said Hordern.
That's a sentiment that's shared across Australia's Hunter Valley Region, where signs of its prized commodity dot the landscape.
"We were more than happy. This was our biggest market that had been turned off and now it’s back on again," said Bruce Tyrrell, chairman of Tyrrell's Wines.
While the lifting of those tariffs earlier this year has been celebrated by Australia's government, many within the industry are a bit more cautious because Australia’s wine industry faces several significant challenges.
"It's not going to be a panacea for every ill that impacts the Australian wine industry," Said Hordern.
The challenges include an over-abundance of grapes, particularly for red wine. In some cases, it’s costing some people more money to make the wine than they receive when they sell it.
"Some wineries are saying we'll give you this amount, it is not a lot of money, but don't pick your grapes. We'll actually pay you to leave your grapes on the vine," said Tyrrell.
Experts say there has also been a downturn in global wine consumption, including in China, shrinking demand. But Tyrrell says the interest in China for Australian wines remains high.
Hordern believes that it needs to take some time to reestablish their business with purchasers to overcome the challenges.
"It now becomes an exercise in rebuilding those relationships with importers, with distributors, with restaurateurs, with bottle shops and getting, building those relationships back up," said Hordern.