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Drop in Aussie wine production could be a good thing

Chairman of the Vinexpo exhibition, Xavier de Eizaguirre, has said that a predicted 15 percent drop in Australia's wine production over the coming years could be a good thing for the industry.

An International Wine and Spirit study, commissioned by Vinexpo, found that Australia's wine production is expected to decline over the next five years, compared to the last five, with Australia taking the second biggest hit out of the top 10 wine producing countries, behind Italy.

According to news.com.au, de Eizaguirre said the industry isn't struggling so much as it's adjusting to the huge growth is experienced in recent years.

"Australia for two decades has showed incredible growth around the world but is plateauing now and there's an adjustment on the production side which is totally normal," he said.

"It doesn't mean Australia is in trouble in terms of exporting, it just means there's a correction after years and years of spectacular growth."

While it didn't consider export forecasts, the study did find that Australian exports declined 13.3 percent between 2007 and 2011, only (of the to 10 wine producers only Germany and Portugal fared worse) and also that the value of our wine exports fell 20.9 percent to $1.89 billion.

The UK's growing interest in Italian and Spanish drops is considered to be part of the problem.

Despite these findings, the outlook isn't grim, according to de Eizaguirre, who says Australian wine makers will start moving towards boutique labels, in turn creating a more sustainable and profitable sector.

"It will take a while for the Australian industry to adjust to the new trends but it will translate into less volume, better qualities and higher prices," he told news.com.au.

The International Wine and Spirit study also revealed that Chinese consumption of imported still wines jumped by more than 550 percent by volume in the five years to 2011.

China's thirst for top quality wines, particularly red wines, is a big opportunity for Australian wine makers with exports to that market jumping from $21 million a year in 2005-06 to more than $200 million a year.

Some of Australia's top family owned wine producers, including Taylors Wine, De Bortoli and Tyrell's are travelling to China this September on behalf of Australia's First Families of Wine, with the aim of promoting Australian wines and the family values behind them.


 

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