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Government Stalls on Export Legislation

AWEC eagerly awaits ratification into legislation by the Federal Government of the industry’s overwhelming desire to legislate for an export levy to pay for the industry’s steadily increasing export marketing activities. Export Overview European Union. Australian wine exports to the UK continue to grow strongly in both volume and value. Average unit values were up 5% and 1% for red and white respectively, with increases in the twelve months to the end of November 1996 of 39.5% to 71.4 million litres, at an average value of $3.47 per litre. For the first time ever, bottled red wine exports to the UK have surpassed $100 million, increasing by 39% to $100.3 million, out of a total sales of $248 million. Bottled white wine sales to the UK have reacted strongly to the record 1996 vintage, increasing by 41% to $114.7 million. Sweden’s affair with Australian wine could be waning, given a considerable recent slump in sales. A 19% decline in volume and a 2% decline in value of red plus a 14% decline in the value of white wine exports suggests that Australian suppliers are paying less interest to this market, which only pays an average of $2,71 per litre against the global average for Australian exports of $3.73. Ireland has rapidly become the sixth largest export market for Australian wine, now surpassing 4 million litres. In the twelve months ending November 1996 exports increased by 24.1% to 4.1 million litres, worth $16.9 million. Again, it’s red wine leading the way with increases of 44%, ahead of white at 23%. Germany is regarded by many in the industry as the next major European market for Australian wine, so it is clear that with declining sales of only 106,000 litres of exports in November 1996, causing exports for the past twelve months to be 6% behind those of the previous year, urgent attention needs to be paid to this gigantic and established wine market. However average unit values have increased in the German market by 35% to $4.32 per litre, now one of the highest in unit value terms for Australian wine in the world. North America. The US, Australia’s second most important export market, continues to blaze away, with an increase in volume of exports of 33.9% in the year ending November 1996, realising a dramatic 47.1% increase in value. The US is clearly potentially the leading market for premium Australian wine, paying an average of $5.06 per litre. By comparison, the UK pays an average of $3.47 per litre. Leading the US growth is bottled red wine, the recipient of most of the high-grade publicity for Australian wine in that market. Bottled red exports have increased by 69% to $52 million, while white wine exports are only increasing by 27%, to $42 million. Oceania and Asia. In our own region, New Zealand continues to increase its consumption of Australian wine, at 8% by volume and 22% by value (red wine again leading the charge), while the various Asian markets are developing at a pace only marginally short of ballistic. Sales to Thailand are increasing by 76% per annum, to Singapore by 42%, to Hong Kong by 43%, to Indonesia by 86%, to Malaysia by 101% and to the Philippines by 76%. Never before have Australian winemakers had so many reasons to pray for a good red wine vintage as they are doing right now for 1997.

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