Chinese delegates have toured Western Australia’s wine regions for the first time since crippling trade tariffs imposed four years ago were lifted.
Several wineries in WA have resumed exports to China since the tariffs were lifted in April.
Producers hope the tour will lay the foundation for new trade relationships between Australian wine exporters and Chinese buyers.
Some producers are cautiously approaching new business with China after suffering significant losses when tariffs of up to 220 per cent were imposed in 2020.
Some producers have already started up trade with Chinese customers again. (ABC News: Kate Forrester )
Billion-dollar market
The Chinese wine export market was worth around $1.1 billion to Australia’s wine industry before tariffs were imposed in 2020.
The market crashed almost overnight after the announcement.
Rockcliffe Winery owner Steve Hall was operating a wine import company from Shanghai when the tariffs were first imposed.
Steve Hall says the relationship with buyers requires an element of trust. (ABC News: Georgia Hargreaves)
Dr Hall said now the tariffs had been lifted, he would approach the Chinese export market with “caution” and take a different approach.
“To be a little bit cynical, you don’t really know if it’s going to happen again,” he said.
“I would certainly resume [selling to China] yes, but I’m not going to do it the way I did it before.”
Showcasing the region
Howard Park Wines co-owner Richard Burch said China was known for importing Australian wines of all tiers, but this tour was designed to promote the premium wines WA was known for.
“We’re not known for making huge quantities of wine compared to some of the other states,” he said.
“But we’re certainly known for making some of the more premium wines.”
Wine Lane Trading Company representative Christian Zhang was one of the 11 wine buyers on the tour.
Mr Zhang said there was a demand in China for Australian wine, but it would take time for consumer appetites to return to pre-COVID levels.
“I think Australian wine will [return to China] but it will be different to three or five years ago,” he said.
“For consumers in China, the palette has also changed — more and more consumers are enjoying white wine.”
Christian Zhang is a buyer from Wine Lane Trading Company in China. (ABC News: Kate Forrester)
A valuable experience
Owner and managing director of Plantagenet Wines and chairman of the Great Southern Wine Producers Association, Tom Wisdom, said having buyers spend time in the regions was crucial.
“One of the biggest things about selling wine is providing samples and talking about the wines, and that’s hard to do when your buyer is in a far-flung country,” he said.
“But if they’re with you in the region, they can taste all the wines and talk to you if they’re a decision maker.
“It may not be that long before we see some tangible uplift in our export numbers.”
Tom Wisdom says it is important for exporters to assess the risk of doing business with China. (Supplied: Jenny Feast)
Plantagenet Wines just sent its third shipment of wine to China since the tariffs were lifted.
The wine tour initiative was a collaboration between the Great Southern Development Commission, the South West Development Commission and industry partners from Wines of Western Australia, the Great Southern Wine Producers Association and the Margaret River Wine Association.
A total of $50,000 of state government funding was budgeted for the trade mission but the final cost of the delegation is yet to be determined.
