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Australian wine farmer: Losing the Chinese market, 'I lost motivation'
Release time:
2024-08-08
On July 24th, the Sydney Morning Herald reported that next year will be the 40th anniversary
On July 24th, the Sydney Morning Herald reported that next year will be the 40th anniversary of Bellato's grape planting in the coastal region of New South Wales, but he is unlikely to celebrate. A month ago, he listed his two vineyards for sale. Like thousands of growers in Australia's major inland wine producing regions, he has struggled to maintain a balance of payments since China imposed high tariffs nearly two years ago. To be honest, I have lost the motivation to farm in the past two or three years, "said Berato." For me, this is no longer an enjoyable profession.
Judging from the number of other vineyards listed for sale, Bellato's peers also think the same way. They are all considering the consequences of being hit by Beijing's trade crackdown - almost overnight cutting off access to the AUD 1.2 billion market. The world's second-largest economy once accounted for 40% of Australia's wine exports. However, since November 2020, the wine sold to the Chinese has no market. The export volume plummeted by 628 million liters, exceeding the total consumption in the Australian domestic market (500 million liters). Enterprises in the industry will be closed in 2021, when the grape harvest will be Dafengshou (Salad of assorted fresh vegetables). In the past season, some growers could only let the grapes rot after harvesting because there were no buyers or places to store them. Growers can only weigh whether to persist for a few more years or choose to withdraw like Bellato did. Bartaglin, the head of the Australian Wine Association, said, "There may be a considerable number of people deciding to withdraw in 2023, and everyone engaged in exports is under pressure
The oversupply has lowered the price of commercial red grapes in Australia, and now the planting cost has exceeded the price paid by wine producers. The cost of planting one hectare of red grapes in Berato is 8000 Australian dollars, but he expects to only receive a return of four to five thousand Australian dollars per hectare. The outlook for next year seems even bleaker. The major winemaker told grape growers that next year's purchase volume will only be half of the normal value. Growers who have signed purchase contracts can barely cope, while others find it difficult to sustain. KPMG's head of wine consulting, Mabelson, said, "It is unlikely to improve in the short to medium term because the export market to China will not recover in the foreseeable future." China's tariffs are putting an end to the chapter for a generation of grape growers and vineyard owners in Australia, and leading to a lasting shift in the industry landscape. "The industry has begun to engage in more and more merger and integration activities.
