AUS: Global glut hurting Oz wine prices, says study
The global over-supply of wine, not just in Australia, has been blamed for the low price of wine in the Australian market, according to a government report published today (25 October).
The Australian Bureau of Agricultural and Resource Economics (ABARE), a local government agency, said the country's wine market only had a minor influence on the sector on a global basis.
"Australian stocks are higher than the industry prefers, but reducing Australia's stocks will not lift prices to domestic producers unless global supply is also better matched to global demand," said Karen Schneider, acting executive director at the ABARE.
Schneider said that getting global supply and demand in balance would help prices in Australia improve. "This will happen as low prices encourage producers to reduce output and consumers potentially to drink more wine."
Earlier this month, data from the Australian wine industry showed that the value of the country's wine exports were down for the first time in 15 years.
Figures from the Australian Wine and Brandy Corporation showed that export revenues had dipped 0.6% to A$2.78bn (US$2.1bn) for the 12 months to 30 September.
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