Shiraz stars in wine export boom

ABARES' agricultural commodities report estimates that export volumes in the 2013-14 financial year will be 5pc higher, with the world wine price expected to rise 2pc.

Australian wine exports were valued at $1.82 billion in 2012-13, with this likely to rise to $1.96b by the end of the 2013-14 financial year.

China's growing thirst for Australian wine is driving the rise in exports, with ever-increasing volumes of locally produced wine shipped to the world's most populous nation.

In 2012-13, Australian wine worth $215 million was exported to China, but in just 12 months this figure is expected to reach $248m.

This rise will help offset exports to the United States, which continue to fall in value. In 2012-13, exports to the US were worth $464m, but by the end of the 2013-14 financial year this is predicted to drop to $448m.

ABARES has predicted that wine production will rise 2pc to 1.73m tonnes in 2013-14, with this production level likely to be maintained in 2014-15.

ABARES says that as with any forecast, these estimates assume growers will encounter favourable seasonal conditions, but abnormal weather conditions or severe weather events can quickly eliminate any production growth, as in 2011 when heavy rains caused flooding and widespread disease outbreaks.

But it also points to good fruit-set stemming from the previous growing season and a small increase in bearing areas when predicting the production growth.

The report lists the 2013-14 bearing vineyard area at 147,356 hectares, with this area set to slightly increase in 2014-15 to 148,286ha.

Red varieties are expected to maintain their dominance of vineyard area, with 61pc of Australia's total bearing area planted to red grapes. In 2014-15, it is expected that red varieties will cover about 91,000ha and yield about 927,800t.

Australia's most popular varieties are expected to maintain their high volumes of production. Production of Cabernet Sauvignon and Merlot is likely to remain the same, but Shiraz, the most popular variety, is likely to rise by 9pc in 2013-14.