THE falling Australian dollar and the removal of trade barriers with key Asian nations could buoy the fortunes of local winemakers in 2015, according to SA Wine Industry Association chief executive Brian Smedley.
However, he said the rising cost of production could jeopardise many wineries' ability to take advantage of export opportunities.
"The opportunities that arise from the Free Trade Agreement with China for bottled and bulk wine - in terms of the reduction or diminishing of any of the barriers for trade - will be a positive for winemakers," he said.
Brian said the FTA with China, coupled with the falling dollar, would provide the opportunity for companies not exporting to consider doing so.
"During the GFC, many people retreated to the domestic market," he said. "The $A being where it was has been a major disincentive for a lot of people to export.
"It will make a big difference if the dollar continues its downward movement. I think the governor of the Reserve Bank has wanted it at 75 cents. If it truly came back to that level, and coupled with the reductions in our trade barrier tariffs, then that would be a significant opportunity for people to re-engage."
Jacinta Rose
Stock Journal's online editor.
Stock Journal's online editor.
