Crush is Down and Exports are Up: What you need to know

Here is a brief update on two key reports recently released by Wine Australia:

Australian Winegrape Crush for 2024
Overall Crush Volume Down:
•	The Australian wine industry continues to rapidly reduce its production with the 2024 Australian crush weighing in at 1.43 million tonnes (mt).
•	This is nearly one fifth (18%) below the 10-year average of 1.73mt.  
•	2024 was a 9% increase from last year’s tiny crush of 1.31mt, the lowest in a generation.   

Rapid Shift Down in Red Production:
•	2024 crush of the three main red varieties from Riverland, Murray Darling and Riverina regions (collectively, Inland Commercial) is down significantly and rapidly reduced since the big crop of 2021:
•	Inland Commercial Shiraz:
	155,000t, which is down nearly half (48%) from the peak crush of 301,000t in 2021.
•	Inland Commercial Cabernet Sauvignon:
	80,000t, which is down by over half (51%) from the peak crush of 162,000t in 2021.
•	Inland Commercial Merlot:
	52,000t, which is down by over a third (35%) from the peak crush of 80,000t in 2021.
•	These massive reductions drove the total white grape crush (722,000 tonnes) to exceed the total red grape crush (705,000t) for the first time since 2014.

Please click here for the full report:  Wine Australia National Vintage Report 2024.

Australian Wine Exports to June 2024
Export Values Up:
•	Australian wine exports value increased by over one sixth (17%), to AUD$2.2 billion for the year to June 2024 following the removal of tariffs by China earlier this year in late March.
•	Export volumes remained static (0.2% decline) at 619 million litres, with significant volume reductions in markets outside China. 
•	Wine exports to other regions faced headwinds, with a 4% decline in value, indicating global conditions remain complex for Australian wine exporters.

China's Impact: 
•	Exports to China surged to AUD$400 million, driven by high-end wines priced at $20+ per litre.  
•	However, much of this growth is pipeline fill rather than end-consumer sales, the proportion of which is unknown.
•	Northeast Asia has overtaken Europe and North America as the top region by export value.

Please click here for the full report:  Wine Australia Export Report 12 months to June 2024.

If you have any questions in relation to Australian Bulk Wine, please be in touch with any of our team.

iris.li@austwine.net.au
jane.moularadellis@austwine.net.au
jim.moularadellis@austwine.net.au