Money Australian wine exports to China just smashed through the $1 billion mark
The Australian dollar remains under pressure
The Australian dollar remains pressured by ongoing concerns surrounding trade tensions between the US and China. The Australian dollar remains under pressure, hindered by persistent concerns that trade tensions between the United States and China could erupt into a full-blown trade war.
Australian wine exports to China have jumped a massive 51% over the last 12 months to create the country's first $1 billion market.
New figures released by Wine Australia today reveal that exports increased by 16% in value globally to $2.65 billion, over the year to March 2018, with China's thirst leading the way.
Wine Australia CEO Andreas Clark said that figure was the highest in a decade, while volumes also grew by 10% to 844 million litres.
Bottled wine exports increased by 15% to $2.15 billion, while the average value of bulk wine rose by 8% to $1.05 per litre. Both are the highest levels since 2009, when the GFC hit exports.
Sheep deaths spark live export ban call
An ethical fund has called for an end to live sheep exports but the WA farming industry says the business is too important to halt. Dr Palmer said unless regulators are on live export vessels to ensure compliance with animal welfare laws, it is impossible to ensure that regulations are met."In any case, no amount of regulation can make the marine transport of animals safe or humane, especially over such great distances," Dr Palmer said.
The higher growth in value over volume means the average value per litre of exports increased by 5% to $3.14 per litre.
There was substantial growth in higher value wines, with exports above $10 per litre making up around a third of total exports at $779 million.
Australia's ABC gold refinery gets accreditation from Shanghai Gold Exchange
Australia's ABC gold refinery, the refining division of Pallion Group, has received accreditation from the Shanghai Gold Exchange (SGE), the group said on Tuesday. All official gold sales within China must occur through the exchange, making it the primary gateway into the world's largest gold market worth over A$341 billion annually, Pallion said.ABC refinery is now one of the seven international companies which have received this accreditation. It is also Australia's only independent refinery accredited by both the London Bullion Market Association (LBMA) and the SGE.
Premium wines worth $20 per bottle or more experienced substantial growth of between 42% and 68%, with the $15-$19.99 price bracket the only one to experience a decline, at 18%.
Wines above $200 soared 42%.
Clark said that while the commercial end of the USA market was in decline, contributing to the drop in volume, there had been strong growth in the premium sectors.
The $30–49.99 segment increased in value by 25% to $5 million.
Overall, the US market was down 7% by value to $439 million.
However, Americans were drinking better, with sales at the $US8–11.99 per bottle doubling and $US20–24.99 bottle sales up 22%.
The Wine Australia boss said low Northern Hemisphere harvests helped drive demand for bulk container exports, with volumes up 10% to 462 million litres, and the total value of bulk wine exports rose 19% to $486 million.
"Every country in Australia’s top 10 bulk wine destinations recorded an increase in average value, especially Germany, the largest importer of wine in the world, where average values for bulk wine increased by 20% from $0.87 to $1.05 per litre," he said.
Aussie dollar inches higher as markets recover
The Australian dollar has risen following conciliatory remarks from the Chinese and US presidents that eased fears about a trade war between the two countries.At 0635 AEST on Wednesday, the local currency was worth 77.63 US cents, up from 77.36 US cents on Tuesday.
Falling tariffs as the China–Australia Free Trade Agreement kicks in helped in that market ahead of their total removal in January 2019. As a result, mainland China overtook the USA to become Australia’s second largest export market by volume, but more than double the US by value.
The $1.04 billion in total sales to China included Hong Kong and Macau.
The United Kingdom is Australia’s largest export destination by volume, up 8% to 241 million litres over the last year, and third by value at $373 million, a 9% increase.
Shiraz is the country's most popular export, jumping 16% over the past year to $609 million by value, well ahead of its nearest rival, cabernet sauvignon, which leapt 25% to $357 million.
Chardonnay is the only white grape among the top 5 varietal exports, coming fourth at $177 million.
Domestically, Australian wine sales in the off-trade retail market rose 3% in value to $3.5 billion in the 12 months to March 2018, with the $15–30 per bottle segment showing the largest growth.
Australia's wine industry was worth $5.6 billion in FY2017 - a rise of 8%, with 1.37 billion litres of wine produced, up 5%.
Here's an infographic on Australian wine exports over the last 12 months.
China invites overseas investors to propel local chip ambitions .
The country's industry ministry said on Wednesday that it welcomed foreign enterprises to invest in its top state-backed semiconductor fund, even as tensions simmer over tech transfers between China and the United States. China is looking to accelerate plans to develop its semiconductor market amid a fierce trade stand-off with the United States and a recent ban on U.S. sales, including of American chips, to ZTE Corp.China's National Integrated Circuit Investment Fund is now putting together a second fund to support the sector, a Ministry of Industry and Information Technology (MIIT) official said.
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