China’s decision to review its tariffs on Australian wine is being welcomed by local producers.
Sam Vogel from Provenance Wines says the effective export ban has led to a massive oversupply of product that’s been forcing down the price of wine.
“What happens in the domestic market is that it’s a race to the bottom, that makes it hard for all producers,” he said.
“No matter whether you’re selling like we do at a $35 price point, to $60 price point, or somebody who’s selling from a $10-25 price point, the more quality wine that gets sold for less, the less winemakers make.”
China’s tariffs of 212 per cent on Australian wine have been in place since November 2020, and effectively halted exports to the country overnight and leaving producers with no market for their product.
“I don’t think storage’s have ever been so full,” Mr Vogel said.
“There’s so much bulk wine around and China is really the perfect market for it.
“It will allow a lot of the lower quality wine, medium quality wine to find a home again.”
