According to the National Australia Bank (NAB) Agribusiness, the Australian dollar is expected to settle at US$0.88 by the end of 2013 as the quality of Australia’s 2013 vintage is expected to be superior. These factors are good news for Australia which is the fourth largest exporter of wine in the world. Two thirds of the country’s production is shipped overseas. Expectations have been lifted that Australia’s wine grape glut will dissipate faster than thought as exports become more competitive – after global wine production has been recovering from oversupply since 2000. By 2016 global wine consumption is expected to grow by 5% and wine sales in China are forecasted to grow by 50% to overtake France as the 2nd biggest wine consuming country in the world. Supply levels in Australia are moving toward more balanced levels. Inventories are currently at 1.7 billion liters as compared to their high of 2.4 billion liters in 2006.
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