The state government will provide a $1.85 million China Re-Engagement Support Package for SA wine exporters and grape growers.
The support package, to be rolled out over the next two years to June 2026, will provide SA'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 SA 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 SA's largest wine export market, with exports valued at $946.5 million, accounting for 47.2 per cent of SA's wine exports globally.
For the year ending January 2024, wine exports to China were valued at $2.8m, 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 SA wine exporters. This was reinforced at the recent Taste of SA events in China, attended by Primary Industries Minister Clare Scriven.
The China Re-Engagement Support Package was developed by the Department for Trade and Investment (DTI) in collaboration with the SA Wine Industry Association (SAWIA) and PIRSA.
The $1.85m 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; and
- 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 SA's wine regions.
SA'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 SA 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 SA 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 Primary Industries Minister Clare Scriven 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 SA Frances Adamson 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.
SAWIA chief executive Inca Lee said the announcement was 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," she said.
"These collective efforts will result in SA wine companies once again being able to share our wines with Chinese consumers.
"We will continue to work closely with the state 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."
