The Malinauskas Government will provide a $1.85 million China Re-Engagement Support Package for South Australian wine exporters and grape growers.
The announcement follows China’s decision to remove all trade barriers on Australian wine, as a result of concerted efforts by both the State and Federal Governments to stabilise the trading relationship between the two nations.
The support package, to be rolled out over the next two years to June 2026, will provide South Australia’s wine sector with in-market insights and capability building to effectively re-engage with the China market in a risk-managed manner.
This support package will help to re-position South Australia as a market leader in China and support the broader stabilisation of the Australia-China trade and economic relationship.
In October 2020, prior to the start of tariffs, China was South Australia’s largest wine export market, with exports valued at $946.5 million, accounting for 47.2 per cent of South Australia’s wine exports globally.
For the year ending January 2024, wine exports to China were valued at $2.8 million, with a volume of 1.05 million litres.
The September visit to China by the Premier and a delegation of food, wine and agribusiness CEOs demonstrated strong interest from Chinese importers and industry to re-engage directly with South Australian wine exporters. This was reinforced at the recent Taste of South Australia events in China, attended by Minister for Primary Industries Clare Scriven.
The China Re-Engagement Support Package was developed by the Department for Trade and Investment (DTI) in collaboration with the South Australian Wine Industry Association (SAWIA) and the Department of Primary Industries and Regions, South Australia (PIRSA).
The $1.85 million support package comprises five key components:
- Two-way market activation and immersion - $600,000
- Promotional marketing and communication campaigns - $500,000
- Wine export advisor - $400,000
- Technical cooperation - $250,000
- Exporter Capability Building - $100,000
To support two-way market activation and immersion, DTI and its partners will facilitate opportunities for SA wine exporters to attend key in-market industry events in China in 2024 and 2025, as well as coordinate trade familiarisation visits for leading Chinese wine importers to experience South Australia’s wine regions.
South Australia’s world-class wine offering will be promoted to trade and high-end consumers in China through multi-platform marketing and communication campaigns aligned to peak consumption periods including key trade events and celebrations.
DTI will engage a Shanghai-based Wine Export Adviser to support market activation and immersion programs over the next two years with in-depth knowledge and connections within China’s wine sector.
Both China and South Australia share a long history of technical, scientific and research exchange in the wine sector. Technical cooperation activities will be pursued to deepen this collaboration.
Market insight workshops will be delivered over the next two years to help build exporter capability and provide risk management advice.
In preparation for the removal of the tariffs, the Government delivered China Market Insights Workshops to almost 200 South Australian wine industry businesses at four events held in Coonawarra, Barossa, Riverland and the Adelaide Hills in late January and early February.
Significant progress has been made at both state and federal levels to stabilise the relationship with China, with trade impediments already removed on a range of Australian products since May last year, including coal, cotton, timber, barley, and oaten hay.
The recent trip to China by Premier Peter Malinauskas and another by Minister for Primary Industries Clare Scriven MLC earlier this month attracted strong interest.
Prime Minister Anthony Albanese met with President Xi Jinping on his trip to China. Foreign Affairs Minister Penny Wong and Federal Trade and Tourism Minister Don Farrell have also been busy advocating for Australian producers on trips to Beijing.
In conjunction with discussions with the Premier, the Governor of South Australia, Her Excellency, the Honourable Frances Adamson AC, will travel to China in April to seize the momentum and help further the relationship.
Her Excellency worked in Hong Kong during the early years of China’s reform and opening, headed the Australian Commerce and Industry Office in Taipei and later served as Australia’s Ambassador to China.
Quotes
Attributable to Premier Peter Malinauskas
This is an exciting day for South Australia, and I am delighted to announce the $1.85 million China Re-Engagement Support Package for our important wine sector.
This support package will help prepare our wine markets to re-enter the China market, with opportunities to renew partnerships with Chinese industry and gain insights into China’s wine market and consumer trends.
My visit to China in September was an important milestone in strengthening the relationship South Australia enjoys with the region, which continues to be our state’s top export destination for merchandise and is an important partner for our exporters, particularly our wine industry.
Upon return from China, I sought to immediately enact plans for this support package, to ensure our producers are in the best possible position to capitalise following the removal of trade barriers.
I’m very pleased the Governor will soon travel to China to help capitalise on this opportunity. She, more than anyone in our state, has the expertise, relationships and understanding to further deepen our connections.
Attributable to Minister Clare Scriven
South Australians are rightly proud of our world-class wineries and grape producers. This additional support package to industry will importantly assist our growers as they navigate a strategic re-entry into the China market.
I am pleased that the State Government worked with SAWIA to deliver a series of workshops for the wine industry right across the state. These China Market Insights Workshops covered topics including market conditions, change in consumers’ preferences, China wine industry preferences and distribution channels, cultural awareness and many others.
The package also includes support for increased mutually beneficial technical cooperation between PIRSA and the Shandong Government which could include viticulture, winemaking, agricultural technology, climate adaptation, no/low alcohol wine technology, traceability, sustainability, and other fields.
Attributable to Minister Nick Champion
The Department for Trade and Investment has worked with PIRSA and the South Australian Wine Industry Association to develop this support package for South Australian wine exporters.
The $1.85 million will provide much-needed support to an industry that has been heavily impacted by tariffs, flooding, disease and global over-supply.
As our largest two-way trading partner, China remains an important market for our wine exporters who will continue their efforts to diversify their market representation.
Attributable to Inca Lee, Chief Executive, South Australian Wine Industry Association
The announcement by the Premier of the China Re-Engagement Support Package for South Australian wine exporters is warmly welcomed by industry. We also thank the Premier for his foresight in leading a delegation to China in late 2023 in support of the Australian Government’s ongoing efforts to strengthen Australia’s relationship with China.
These collective efforts will result in South Australian wine companies once again being able to share our wines with Chinese consumers.
South Australian wine has made a deep impression on the Chinese consumer who values quality premium products, and we know this sentiment has not been diminished by the pause in our trading relationship.
We will continue to work closely with the South Australian Government to ensure that activities delivered under this package strengthen opportunities for South Australian wine exporters in the Chinese market now and into the future.
