‘China is a different market now’: Margaret River wine producers want export boost to return region’s standing

Producers in WA’s premier wine region say Federal Government grants would be a big help for smaller scale wineries eager to establish a presence in the newly-reopened China trade route. The Margaret River Wine Association joined the chorus of industry groups in celebrating last week’s removal of a crippling import tariff on Australian wine into China, a trading partner that represented 26 per cent of the region’s total bottled wine export value in 2019 before falling to zero in 2023. With a focus on premium produce and “value growth rather than volume growth”, MRWA chief executive Amanda Whiteland said the small but mighty region had been not been affected as badly as other export-dependent regions. She welcomed the tariff’s end nontheless and said re-entry to China would “undoubtedly interest some Margaret River wineries”. “However, it’s also recognised that China is a different market now, and it will take time and further government support to re-establish,” she said. “To regain our standing and make the best use of the opportunity provided by the re-opening of the Chinese market, we hope there will be Federal export support mechanisms, including the paused Export Market Development Grant available,” she said. She said it was unfortunate timing the grant was not taking new applications just as China had reopened. “Given how important that export funding is to us and at this time, when industry is really needing it, its disappointing that the funding is going to be unavailable,” she said. “There’s currently a review happening of that program and it’ll mean there’s at least a year where there won’t be a program as they refresh it.” She said the grants, geared to help small- to medium-sized businesses receive rebates for export costs, would help smaller-scale producers in the region enter a new market. Last week WA wine entrepreneur Peter Fogarty said it would be a “tough slog” for smaller producers to find a foothold in the Chinese market. Sandalford Wines chief executive Grant Brinklow said there was a “hell of a lot of hard work ahead” for the Australian wine industry in order to re-establish itself there. Australian producers have been unable to find markets on the same scale as China as an export market since the tariffs were introduced. There had been a particularly strong demand for red wine varietals such as Cabernet and Shiraz from the mainland. About 89 per cent of produce exported from Margaret River to China was red wine. Margaret River exported about 1.1 million litres of wine worth about $19m in 2023.