The significant value the wine industry contributes to the Orange economy has been further highlighted with the success local producers are having exporting their product overseas, principally to China and Korea.
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Of course this success is only the tip of the iceberg. When the current tariffs on wines are lifted, in the next few years, the Orange industry will be on a level playing field with its international competitors including New Zealand and Chile.
Under The China Australia Free Trade Agreement (CHaFTA) tariffs of 14-20 per cent on Australian wines will be eliminated by January 1, 2019.
Potentially that will herald a dramatic growth in wine exports. According to the Department of Foreign Affairs and Trade that would be in line with similar moves by other countries. Chile has seen almost an 11-fold increase in imports to China since its free trade agreement was introduced in 2006.
China’s wine import market is worth more than $2 billion dollars.
Peter Mortimer, owner of Mortimer Wines, said the Orange region has not yet seen the impact of a growing premium wine market in China. As the Free Trade Agreement kicks in for bulk wine agents in China, the effect will be beneficial for boutique wine-producing regions like Orange.
According to Mr Mortimer the ChaFTA makes us competitive with traditional wine growing countries and regions including those icons from Australia who have already been successful in world markets.
China’s main demand from Orange is for high quality red wines. Minister for Trade, Tourism and Major Events Stuart Ayres (pictured left) said bottles priced more than $20 were seeing 48 per cent growth.
He said Orange is a testament to the “hard work and crafting expertise you can find in this part of the world”.
Philip Shaw Wines director Damian Shaw (pictured right) said help from the State Government, Austrade and Wine Australia was important for local wineries to develop an export trade.
As he said export development support is fundamental to the success of our region and our business and this means targeted activities like travelling to Hong Kong to exhibit wines in person is crucial.
It’s no surprise that local vignerons need expert assistance to break through the minefield of making major international trade deals.
David Fitzsimons
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
