China success just right drop for Australian wineries

SYDNEY - Australia's embattled wine makers have been given a mighty shot in the arm, coming away with a slew of awards at the 2014 China Wine & Spirits competition over the weekend, with local mainstays, Taylors Wines cementing their position in the highly competitive Chinese wine market.

Securing poll position at the prestigious China Wine and Spirits Awards in Hong Kong will see much need oxygen pumped into the Australian sector after a tough run with harvests and stiff global competition in the mid to premium wine ranges.

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Australian wineries took home a total of 446 medals, with New Zealand coming in second with 110 medals and Argentina, traditionally a strong performer in the booming Chinese market, managing only nine medals.

It is not the first time Taylors have been recognized at the China Wine and Spirits Awards. They have previously been awarded Australian Wine Producer of the Year in 2013, and Australian Wine of the Year for its 2010 Promised Land Shiraz Cabernet at the China Wine and Spirits Best Value Awards earlier this year.

At the China Wine Challenge in Shanghai, the 2013 Taylors Estate Merlot proved most popular, being awarded two Trophies as Best of Show and Best New World Red Wine, as well as a Gold Medal.

The dream of running a vineyard is often a short one, even in Australia's rich and diverse soil varietals. Unsustainable returns for the majority of businesses here is why recognition in China is so essential to the future of Australian winemakers.

The Grape Industry Board of South Australia last week revealed an alarming decline in the price paid for grapes of A$57 per ton average (17 percent) across all varieties.

South Australian wineries still injected A$127 million into regional incomes although there has been some market consolidation with the famous Riverland vineyard footprint dropping over 20 percent of vineyards, though remaining stable at just under 21,000ha.

Despite the challenges, Australia remains well-placed in China, second behind France, and is achieving the highest average value among the top 10 importing countries.