For anyone who fancies a glass or two of wine – red for medicinal purposes only of course – there’s good news. Rabobank’s newly released Wine Quarterly Q3 2023 report says we’re “swimming in wine”.
There’s an oversupply because of the Chinese tariffs, which is bad news for producers, but good news for consumers.
The report says that even an early removal of the Chinese anti-dumping tariffs would not be enough to prevent the industry facing several years of oversupply.
Improving trade relations between the two countries and the removal of Chinese tariffs on our barley suggests the five-year tariffs placed on Australian wine in March 2021 may be removed early.
However, the Rabobank report says, even in a “best case scenario”, with tariffs removed this year and Chinese consumption of Australian wine recovering quickly, this would “not be a panacea” with Australia’s wine industry still facing at least two years to work through its current wine surplus.
This oversupply is keeping prices of many quality Australian red wines at reduced levels.
So large is the current oversupply, says RaboResearch associate analyst Pia Piggott, that Australia has the equivalent of 859 olympic swimming pools worth of wine in storage.
“That’s over two billion litres of wine, or over 2.8 million bottles of the wine,” she said.
What have you noticed about wine prices? Do you think they’re one of the few bright spots given big cost-of-living increases?
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