Published since 1986
JANUARY, 2021
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China pulls cork King Valley wineries urge locals to support region’s industry
MAKING HAY WHILE THE SUN SHINES: Results released by the Tractor and Machinery Association from their quarterly survey gauging dealer outlook on the current market for tractors and machinery, have demonstrated that the entire market sector is feeling confident with the way sales have been progressing. Underpinned by the current positive outlook from the agricultural industry bolstered by drought breaking rains and favourable weather conditions, farmers and contractors are looking to invest and over half of the machinery dealerships surveyed reported overall turnover as good to very good. BurderAgAttachments owner and general manager Adam Fendyk said there are plenty of opportunities in the region and is looking to employ staff to keep up with the current demand. Turn to page 2 for the story.
WINE consumers are being asked to support local wine producers next time they buy with a wine glut likely as a result of China effectively pricing Australian wines out of its offshore market. China will this week impose a 200 per cent tariff on Australian wine imports that haven’t passed through customers, effectively tripling the cost price for Chinese retailers. Of the region’s exporters, it’s expected to hit Brown Family Wine Group (BFWG) the hardest with China being their largest overseas export market. However, it’s what will happen on a national scale that could result in a wine glut with oversupply of products, challenging price structures and overall pressure on local vignerons’ operational capacities. King Valley Vignerons president Dean CleaveSmith said exporters who have a higher dependency on China will be trying to offload their wine into other markets including the Australian domestic market.
BY STEVE KELLY skelly@ nemedia.com.au
“It will create a whole ripple effect in distribution agreements, shelf agreements and pricing which is not welcomed by the industry,” Mr CleaveSmith said. This year has been the worst in recent history for the wine industry due to the pandemic and Mr CleaveSmith said this blow comes at a time that producers need the cash flow more than ever coming into the new vintage. “If local people can support producers in the North East and particularly the King Valley when they shop for wine, this would be much appreciated,” he said. Australian wine producers have tried to smooth out the boom and bust cycle as much as possible and have worked hard in elevating domestic wine to the premium quality product that it is, but the latest blow has frustrated many. ■ Continued page 8
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