China australian wine

Australian wines sold in China (pic: iStock)

The Government of South Australia has launched an export program worth AU$1.85 million aimed at supporting the local wine industry in its efforts to re-enter the Chinese market, which was previously importing AU$1.2 billion of Australian wine annually.

The Government of South Australia has launched an export program worth AU$1.85 million aimed at supporting the local wine industry in its efforts to re-enter the Chinese market, which was previously importing AU$1.2 billion of Australian wine annually.

This move comes after China’s decision to lift punitive tariffs of up to 218% on Australian wines in late March. The program, titled “China Re-Engagement Support Package,” is a collaborative effort involving the Government of South Australia, the Department for Trade and Investment and Primary Industries and Regions South Australia (PIRSA), and the South Australian Wine Industry Association (SAWIA).

The initiative will address changes in market conditions, entry strategies, and consumer trends in China, ensuring the South Australian wine sector is well-prepared for re-entry into the Chinese market.

The support program will offer five essential services to the wine industry in South Australia, including capacity building for exporters, promotional efforts in China, technical cooperation, among others, and will also seek a specialized wine export consultant in Shanghai to facilitate the development of South Australian wine exporters in China.

Concerning capacity building for exporters, the wine industry in South Australia will benefit from analyses of the latest market trends and regulatory consultations in China. The first round of capacity-building workshops was held in the producing regions in January and February 2024, offering wineries increased opportunities to engage with market experts, supported by an allocation of AU$100,000.

For two-way market activation and immersion support, AU$600,000 has been designated to assist the South Australian wine sector’s participation in key exhibitions such as China Food and Drinks Fair (CFDF), the China International Import Expo, and Vinexpo, incorporating business matching, masterclasses, exhibitions, market surveys, and understanding market trends. This project was launched at the spring session of China’s biggest wine and spirits fair CFDF in Chengdu last month.

In terms of technical cooperation, AU$250,000 will be dedicated to enhancing technological, scientific, and research exchanges between China and South Australia, delivering tangible benefits to both markets. This plan also includes bolstering technical cooperation between the South Australian Department of Primary Industries and the Shandong government in areas like viticulture, winemaking, agricultural technology, climate adaptation, non/low-alcohol wine technologies, traceability technologies, and sustainable development in the wine industry.

Additionally, the Australian government has earmarked AU$400,000 to hire a wine export advisor, who has extensive knowledge and contacts within the Chinese wine industry to support market activation projects.

Furthermore, AU$500,000 will be allocated for promotional activities in China, aiming to market premium South Australian wines and rebrand South Australia’s image in China, thereby enhancing the recognition of South Australian wines.

This support plan is expected to continue for more than two years, concluding in June 2026.

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