A $1.85 million support package for the South Australian wine industry will help it prepare to re-enter China, South Australian premier, Peter Malinauskas, announced following the news China had lifted its tariffs on Australian wine.
The China Re-Engagement Support Package was developed by the Department for Trade and Investment (DTI) in collaboration with the South Australian Wine Industry Association (SAWIA) and the Department of Primary Industries and Regions, South Australia (PIRSA).
Before the tariffs were introduced, China was South Australia’s largest wine export market (47.2 per cent), with exports valued at $946.5 million. For the year ending January 2024, South Australian wine exports to China were valued at $2.8 million, with a volume of 1.05 million litres.
The package will be rolled out over two years and has five components:
Two-way market activation and immersion - $600,000
To support two-way market activation and immersion, DTI and its partners will facilitate opportunities for South Australian wine exporters to attend key in-market industry events in China in 2024 and 2025, as well as coordinate trade familiarisation visits for leading Chinese wine importers to experience South Australia’s wine regions.
Promotional marketing and communication campaigns - $500,000
South Australia’s world-class wine offering will be promoted to trade and high-end consumers in China through multi-platform marketing and communication campaigns aligned to peak consumption periods including key trade events and celebrations.
Wine export advisor - $400,000
DTI will engage a Shanghai-based Wine Export Adviser to support market activation and immersion programs over the next two years with in-depth knowledge and connections within China’s wine sector.
Technical cooperation - $250,000
Both China and South Australia share a long history of technical, scientific and research exchange in the wine sector. Technical cooperation activities will be pursued to deepen this collaboration.
The package also includes support for increased mutually beneficial technical cooperation between PIRSA and the Shandong government which could include viticulture, winemaking, agricultural technology, climate adaptation, no/low alcohol wine technology, traceability, sustainability, and other fields.
Exporter capability building - $100,000
Market insight workshops will be delivered over the next two years to help build exporter capability and provide risk management advice.
In September 2023, the premier and a delegation of food, wine and agribusiness CEOs demonstrated strong interest from Chinese importers and industry to re-engage directly with South Australian wine exporters. This was reinforced at the recent Taste of South Australia events in China, attended by the Primary Industries minister, Clare Scriven.
“My visit to China in September was an important milestone in strengthening the relationship South Australia enjoys with the region, which continues to be our state’s top export destination for merchandise and is an important partner for our exporters, particularly our wine industry,” Malinauskas said.
With news in October that China was considering removing the tariffs, the state government and SAWIA ran a series of China Market Insights Workshops to almost 200 South Australian wine companies at four events held in Coonawarra, Barossa, Riverland, and the Adelaide Hills in late January and early February.
Scriven said, “These workshops covered topics including market conditions, change in consumers’ preferences, China wine industry preferences and distribution channels, cultural awareness and many others.”
The package website is here.
