Canada 3rd largest market is a surprise
THE price of Australian wine fell for the fifth year last financial year, even though a record 738 million litres were exported.
The average price per litre slumped 9 per cent to $3.80 compared with $4.16 the previous year, according to the Wine Export Approval Report.
Global competition and tough trading conditions continued to eat into the price.
Bulk wine shipments dominated the export growth, accounting for 87 per cent of the growth in volume.
A total of 190 million litres of bulk wine was exported - an increase of 54 per cent over the previous year. Bulk wine now represents a quarter of all exported wine.
The popularity of red wine bulk exports fell marginally, from 64 per cent to 60 per cent.
However, white wine bulk shipments rose by 5 per cent to 40 per cent.
More cheaper wines were exported. Bulk shipments of wine priced below $2.50 a litre increased by 49 per cent to 233 million litres.
In contrast, shipments of wine in the $5 to $7.49 per litre bracket fell by 6 per cent to 111 million litres.
Bottled wine continued to hold its 70 per cent market share with 517 million litres exported during the year.
However, the growth of bottled wine fell from 13 per cent to 2 per cent but the hardest hit was bottled red with the growth falling from 14 per cent last year to 1 per cent this year. White bottled wine, however, grew by 16 per cent in the year.
Britain maintained its No1 export position with the shipment of 269 million litres worth about $960 million this year.
Exports to the US, the second biggest market, increased by 15 per cent to 214 million litres and were worth $902 million.
Canada remained Australia's third biggest market, with wine exports increasing by 16 per cent to reach 51 million litres worth $249 million.
China and Sweden's love for Australian reds continued to dominate the market.
In China, an expanding middle class, rising incomes, a growing interest in Western lifestyles and the health benefits of red wine contributed to the increase of wine exports to the country.
A total of 13 million litres worth $21 million was shipped to China, while 15 million litres worth $50 million were exported to Sweden.
