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Wine exports to US rise as South Australians look for ways around China's tarriffs

China introduced tariffs on Australian wine in 2020. (ABC South East SA: Bec Whetham)

Winemakers in one of South Australia's largest wine-growing regions say the United States is firming as a positive international market, as Chinese government tariffs on local wine continue.  

China first introduced tariffs on Australian wine in 2020, leading to a severe oversupply of red wine stocks in the country. 

China's tariffs have led to a sharp drop in grape prices, particularly for red varieties, and fears many growers will either dump or leave fruit on the vine during this year's vintage. 

Diversifying export markets has been a priority for the industry since the tariffs were introduced, with Wine Australia introducing a program to help Australian labels crack the American market. 

Winemaker John Innes runs Ottelia Wines in SA's Coonawarra is a part of the program and said the US market was proving "surprising". 

About 60 per cent of Australian wine is exported each year. (Supplied:Coonawarra Vignerons)

"It sounds easy, but America is one of the most complex markets you could think of because basically each state is like exporting to a separate country," he said. 

"It's very complex and I have to say not for the faint-hearted. 

"We've already identified an importer, based in Florida, who will cover a large area of the US for us."

Mr Innes added US importers were looking for a wide variety of wines, after traditionally only being interested in red varietals such as shiraz and cabernet. 

Melinda and John Innes of Ottelia Wines say the US is a tough export market to crack for wine producers. (Supplied: Melissa Innes)

"The US market has really gone up [over] a year or two, particularly for the price bracket we'd call 'mid-to-high tier' Australian wine," he said. 

"There's still a long way to go and you need to take a deep breath when you go there, but it has lots of potential."

The SA government has announced it will co-fund 30 spots for SA wineries to enter the program. 

Overseas market 'challenge' for industry

According to SA government figures, wine exports from the state into the US rose by 43 per cent in 2022. 

South Australian Wine Industry Association president Kirsty Balnaves said it was a reflection of the hard work the industry has put in to crack the market. 

She said there was more work to do to enter other markets around the world. 

"The UK, although there's some challenges we're facing in the UK, and Singapore are also good markets," she said. 

Vintages are currently taking place across Australia, with the nation's oversupply of wine a worry for grape growers. (Landline: Tim Lee)

Ms Balnaves added India was also a priority for wine exporters, but tariffs and current alcohol trends provide a challenge. 

"There's some opportunities also opening up in India, although India has some tariffs which can be challenging."

"We have to bear in mind that 89 per cent of the alcohol consumed over there is spirits and beer, and wine is only one per cent. 

"But the consumer over there is maturing and there's a rising middle class, so there's a lot of opportunity over there." 

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