"Export volumes have shown solid growth, with the United States and the United Kingdom remaining Australia s major export markets; however, prices per litre have remained constant, with bulk wine showing the greatest impact on total average price per litre," De Palma said. De Palma, who is also a Director of the Australian Wine and Brandy Corporation, pointed at intense competition as to blame in driving down both wine and grape prices. In ABARE s March Australian Commodities report the average unit export price is forecast to be around A$3.
61 a litre in 2006-07, with a projected drop to A$3 a litre by 2011-12. In 2006, nearly 80 per cent of Australian wine exports were sold for less than A$5 a litre, an increase of 15 percent in this lower price category since 2000. With 60 percent of Australian sales to export markets, industry will need to continue to invest in research and development to identify and embrace new technologies and market opportunities and improve productivity.
Inland Trading Co Australia Managing Director Greg Corra told the conference that Australian wine has not been promoted enough in emerging markets including China, South Korea and Taiwan, compared to the United States and United Kingdom. "The wine equalisation tax has inadvertently increased incentive for wine producers to sell a greater amount on the domestic market or to earn less and maintain an export market," Corra said. "The cost of regulations, particularly testing and labelling is also contributing to the increase in export costs and places small producers at a disadvantage.
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