Chardonnay beats Shiraz for biggest drop in exports from Australian vineyards

Chardonnay has overtaken Shiraz as Australia's most exported grape for the first time in over 12 years.

Highlights: Chardonnay has overtaken Shiraz as Australia's top export wine variety for the first time since 2010Exports to China have fallen to $12 million, making it the 23rd market for Australian exporters2023 could be a tough year for winemakers with more wine produced globally than consumers drink

Peter Bailey, Wine Australia's Market Intelligence Manager, said the year had been another difficult year for wine exporters.

"We have had rising inflation, business costs and interest rates have all an impact on margins and the operating environment remains quite challenging,” he said.

Australian wine exports increased by just 1% to reach 623 million liters and fell 4% in value to $1.94 billion rs during the year ending December 31, 2022.

At this time last year, the UK was the top destination for Australian wine exports by volume and in value.

They remained the largest market by volume, but the United States is now the largest market by value.

Australian wine exports fell 4% in 2022, but the demand has increased in Canada.(Supplied: Wine Australia)

Mr Bailey said the decrease in shipments to the UK in the second half of 2022 had been greater than the increase overall value for other markets.

"The decline in value was primarily due to lower shipments to the UK and this decline was anticipated as the previous two years Australia had experienced high shipments due to Brexit delays,” Mr Bailey said.

"Then we saw a spike in demand in home commerce [bottle shop] during the COVID-19 pandemic, when many commerce businesses [restaurants/ bars] were closed."

There were increases in the value of exports to Thailand, Malaysia and Canada to offset declines in value to Singapore, Hong Kong and the United States.

"Exports to China have fallen to $12 million, making it the 23rd largest market for Australian exporters, so it's now a relatively small market."< /p>White wines beat out reds

Chardonnay is the most exported grape variety, up 11% from last year, followed by Shiraz, Cabernet Sauvignon and Pinto Gris /grigio.

Riverland, Riverina and Sunraysia winemakers concerned about prices down. (ABC Rural: Jemima Burt)