2018, Volume 21, Paper 12
ISSN: 2209-6612

A Value Chain Perspective to Understand Exports of Wine from Australia to China

Josephine Watkins – Postgraduate student, Master of Global Food and Agribusiness, and Master of International Trade and Development, University of Adelaide.

Abstract

The supply of premium wine from Australia to China is currently strong and the political economy is favourable for Australian wine to be successful. There has been considerable growth in the value of Australian wine exports from Australia to China and, in fact, Australian wine has increased its market share to become the second largest importer of foreign wine into China, behind France. This paper explores current exports of wine from Australia to China by mapping the value chain and by identifying the profit drivers. This paper also assesses the performance of the value chain with a particular focus on in-country activities designed to penetrate the Chinese market. This analysis shows that the key constraints currently within the wine value chain are cross-cultural boundaries, local representation, a lack of commercial presence within China, and pricing.

Key words: agribusiness, China, exports, premium wine, value chain

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