The end of the Chinese golden goose
A year ago, China increased its tax on wine import to up to 212%. This drastic increase has wiped almost a billion dollars from the Australian wine export with the industry bracing for more pain heading into the 2022 vintage.
As China is locking its unsustainable tax rate for the next 5 years, other parts of the world seem to open its doors to new wine producers.
Five new markets opening
With a terrible wine season due to poor weather, France, Italy and Spain, which represent 63% of world production had a deplorable harvest in 2021. In addition, Australia has signed new agreements with India and the United Kingdom which, by leaving the European Union, no longer benefits from commercial agreements to import wine European.
The Chinese market has certainly closed its doors, but the Europe, the United Kingdom and India, have their doors wide open.
To survive, a shift in target market is necessary for the Australian wine company.
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