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How China destroyed the Australian wine industry 
#Econgram_Oceania

Facts:
1) In 2020, Australia called for an investigation of the origin of Covid-19. China claimed that Canberra attempted to blame Beijing. Consequently, China imposed punitive trade measures.

2) One of them was a tariff* on Australian wine sold in quantities of less than two litres. That tariff could get to as high as 218%. As a result, from December 2020 to December 2021, wine exports to China dropped by 97%.

3) China has been the biggest importer of Australian wine, buying 40% of exports. Now, it is the 23rd largest.  

Analysis:
1) Around 95% of the Australian wine that Beijing was buying was red. Hence, the farmers expanded the acreage* of red grapes. Analysts estimate that roughly 50% of Riverland’s* red grapes will not be sold in 2023. 

2) Over 500 Riverland growers sell grapes to Accolade Wines. This company offered to pay farmers for switching from red grapes to white. Besides, since replanting is very costly, it suggested paying growers for putting vines into a dormant state and refraining from producing this year. However, the farmers claim that these measures would not cover the costs.

https://www.nytimes.com/2023/03/16/busin...ralia.html