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SA's wine revenue increases to $2.11 billion - industry goes from strength to strength

Friday 16 December 2016

South Australia’s wine revenue has made exceptional gains during the past 12 months - generating almost $2.11 billion in revenue for the State, up almost $330 million on the previous year.


Recent results from the State Government’s Wine Scorecard shows positive performance across the wine value chain with the strongest results in the value of overseas wine exports, which grew by 10 per cent to $1.34 billion.

The strong results reflect continued demand and growth in China and Hong Kong, which overtook the United Kingdom as the State’s biggest wine export market for the first time.

With expanding Asian markets and market consolidation arising from Free Trade Agreements with China - as well as China Southern now flying directly into Adelaide - South Australia’s wine industry is well-positioned for growth.

Quotes attributable to Minister for Agriculture, Food and Fisheries Leon Bignell

South Australia is indisputably Australia’s wine State - we produce almost 80 per cent of Australia’s premium wine from some of the oldest vines in the world.

We’re working hard to secure and increase South Australia’s premium status of world-class wine in key markets and build the economy, and these results prove we're on track.

With such strong prices per litre in China and Hong Kong we want to make sure we give our industry the best opportunity to maximise demand and realise increased value for their products.

The State Government has an economic priority for Exporting Premium Food and Wine to the World and have a number of programs in place to boost awareness of the State’s premium products, including the introduction of the $1.8 million South Australian Wine Industry Development Scheme.

We’ve also got the prestigious accolade of being a Great Wine Capital, which sets us apart from other states and strengthens our global reputation as a producer of some of the best wines in the world.

Quotes attributable to President of the South Australian Wine Industry Association Jeremy Blanks

The increased revenue generated by the South Australian wine industry over the past 12 months is a significant achievement for South Australia’s wine regions, businesses and the people who work in them.

South Australia generates 69% of Australia’s total wine exports across affordable and high priced wines, both warm and cool climates and commercial and boutique brands, providing diversity of style and character in every category. Our wine is exported to over 100 countries.

Consistent with the State Government priority for exporting premium food and wine to the world, South Australia produces a higher proportion of flagship and premium wine than the other Australian state.

Consequently, South Australia also dominates the representation of wine regions that have the strongest domestic and international market awareness and quality reputations, including Barossa, McLaren Vale and Coonawarra.

Quotes attributable to Founder of Hentley Farm Keith Hentschke

It’s an exciting time to be an exporter of fine wine as the demand is strong and growing rapidly at the moment, and we’re seeing interest not only from Asia but across the world.

We are on track to nearly double our wine exports to China in the past year, and it’s coming from various channels, regions and price points.

Our participation in trade missions, including the Hong Kong mission in October this year, has assisted our brand presence and visibility, resulting in a myriad of trade and consumer contacts.

Background

The Wine Scorecard is produced by Primary Industries and Regions SA (PIRSA) and measures the commercial value of the industry using value chain analyses. South Australia has some of the oldest vines in the world, thanks to rigorous biosecurity measures that have kept the state free of phylloxera, which has ravaged vines in many wine nations.

Key results for wine in 2015-16:

  • Gross wine revenue increased by $329 million to $2.11 billion.
  • The value of wine exports increased by $119 million to $1.34 billion.
  • The average price per litre of exported wine increased from $2.53 to $2.83.

http://pir.sa.gov.au/premium_food_and_wine

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Media Contacts

Kate Husband - Communications Manager, Primary Industries
Email: Kate.Husband@sa.gov.au
Phone: 0423 296 579

Celia Brissenden - Communications Manager, Regional Development
Email: celia.brissenden@sa.gov.au


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