Just as news of Australia’s small 2007 vintage was being wired around the world, this country’s wine exports began to show an increase in the average price of bottled wine. For the year ending May 2007, volume increased by 10% to 798 million litres, while value grew by 7% to A$2.97 billion, both record levels. The fall in average price of 3% to A$3.73 was the smallest decline in average price since the year ending October 2003. At the end of May, the US had come within a whisker of taking the UK’s mantle as Australia’s major wine export market by value. While the UK market remains relatively static by value, the US increased by 9.1% over the last 12 months. While Canada imported 4.2% less wine by volume during the year, its value to Australia increased as a market by 3.9%. Conversely, exports to Germany increased by 6.8% by volume, but fell 12.4% by value. Clearly, Australia needs to work harder in this market, its only major market to show a dollar decline. The major growth market is China, whose volume growth of 92.3% and value growth of 129.8% result in a very encouraging growth in value per litre of 19.5%. Ireland continues to grow by volume and value by 31.7% and 31.1% respectively, while the Netherlands has become Australia’s seventh-largest export destination, with increases by volume of 37.8% and value by 33.3%. Singapore is today Australia’s twelfth-largest market by value, with a very solid 12-month increase in sales value of 15.6% and the second-largest increase in value per litre of 11.3%.
