The State Government has tipped in $500,000 to help WA’s wine industry get back into the game with major export partner China.
Wineries will use the funding to help rebuild relationships and supply networks following last month’s winding back of tariffs imposed on Australian wines by China in 2020.
WA wines and Margaret River vintages in particular face a possible race to get back into competition with the Chinese wine market that favours the region’s signature high-end wines.
Both Wines of WA chief Larry Jorgensen and Margaret River Wine Industry chief Amanda Whiteland cheered the news of the support confirmed by Premier Roger Cook and Regional Development Minister Don Punch in Margaret River on Friday.
Mr Cook said the funding added to the $6 million already invested in WA’s Wine Industry Export Growth Partnership.
“WA wine is some of the best in the world, and our products were renowned in the Chinese market prior to the introduction of tariffs,” he said.
“Supporting our premium wineries to re-enter the Chinese market is key to encouraging diversification, benefiting the WA economy in the long term.
“We will continue listening to industry to better understand the challenges and opportunities to help grow this important contributor to the State’s economy and the regions.”
Mr Jorgensen said WA producers were “dead keen to get in there” and secure up to $15 million in extra revenue for the sector.
But since the tariffs were axed, compliance regulations had ramped up in China which made the State Government backing crucial.
“People need to take a bit of time to get their heads around what’s needing to be done and also getting it ready for shipment,” he said.
“There are some challenges no doubt, but it’s a nice challenge to have, isn’t it? Getting your product to market as opposed to not being able to.”
WA was more insulated from the wine glut that troubled the Eastern States and the Barossa before the thaw in relations.
Ms Whiteland said the funding was invaluable for re-engaging with China as well as maximising domestic opportunities.
“Before the duties were imposed, mainland China was Margaret River wine’s most valuable export market, representing 26 per cent of the region’s bottled wine export value in 2019,” she said.
“As mainland China remains an important wine market, re-entry will undoubtedly interest some Margaret River wineries.
“However, it is also recognised that it is a different market now and will take time and resources to re-establish.”
Mr Punch saluted the wine industry for being “tremendously resilient” during the past four years.
“This is now a great opportunity to re-establish the links with China,” he said.
“We have good relationships with China in the wine sector.
“It’s a great opportunity to rekindle those, look at the premium quality hotel and restaurant sectors as well as the direct consumer markets.”
The funds would also support hosting Chinese trade delegations and attendance at major events including Vinexpo Asia in Hong Kong in May and ProWine in Shanghai in November.