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According to latest figures from Wine Australia, Australian wine exports plummeted by 30% by value in 2021 as Chinese tariffs wiped nearly $1 billion off the value of Australia’s exports to mainland China.

Overall wine exports fell by 30% to AUS$2.03 billion in the 12 months to December 2021, on volumes down 17% to 619 million Litres – the lowest levels in a 12 month period since 2004.

The falls were due to “unprecedentedly tough market conditions” notably the back of deposit tariffs imposed on bottled Australian wine imported to mainland China, Wine Australia said. Exports to China fell by a whopping 97% to AUS$29 million on volumes down 93%, to 6.4 million litres – a loss of nearly $1 billion in value and 90 million litres in volume, when compared to the 2020 calendar year where shipments were free from tariffs for most of the year.

However, Wine Australia also pointed to the continuing impact of the global freight crisis, and a “counter-swing” in some markets after COVID-19 related stockpiling in 2020, which had also had an effect.

Wine Australia general manager corporate affairs and regulation Rachel Triggs said the Australian wine export community was managing its way through “exceptionally challenging times”.

However, she noted that exports excluding mainland China had increased by 7% in value to $2 billion – the first time it had reached this figure since 2009 – with volumes down 6% to 613 million litres. Indeed there were increases to be seen across some Asian markets, with the value of exports increasing in Singapore (up 108 % to $166m), Hong Kong (up 45% to $191m), South Korea (up 74% to $47m), Taiwan (up 65 % to $31m) and Thailand (up 31 % to $28m).