Hugh Schuitemaker, Murray Pioneer
The Riverland’s State MP says returning to an “over-reliance” on exports to China is creating further risks for the local wine industry.
Recent ABS trade data revealed South Australia exported $855 million of wine to China in the year to March 2025 – a 200-fold increase on the previous year.
However, Chaffey MP Tim Whetstone said support to facilitate necessary changes within the state’s wine industry was still lacking.
“This really is an inadequate response for an industry that is still struggling,” Mr Whetstone said.
“While the Malinauskas Government is quick to claim credit for the rebound in wine exports to China, we are not hearing the full story.
“We are navigating a fragile recovery that continues to be hampered by government inaction, an over-reliance on a single market, and a lack of long-term strategy.
“We have seen no new policy put on the table and these numbers simply reflect a return to where we were in 2020.
“The government need to facilitate for structural adjustments into emerging opportunities.”
Mr Whetstone said economic challenges in the wine industry continued to put pressure on Riverland wine grape growers.
“The government’s $1.85 million attempt to fix the problem is a drop in the ocean for an industry that was decimated by years of trade disruption and our local growers and producers have borne the brunt of uncertainty,” he said.
“The opposition will continue to work with our producers to ensure that our wine industry is not only the largest exporter, but also resilient and innovative.
“I would remind both (Minister for Trade and Investment Joe) Szakacs and the SA Wine Industry Association that the Riverland’s commercial wine sector has historically been the industry’s engine room nationally and is now experiencing decimation with very low-value sales that fall well below the cost of production.
“Our growers are facing another vintage with an uncertain future ahead.”
South Australian Wine Industry Association chief executive Inca Lee said “continued investment to grow demand in China and other markets (is) needed to ensure the industry’s long-term success”.
“South Australia’s premium wines are once again capturing the attention of Chinese consumers, solidifying the state’s reputation for world-class winemaking excellence,” Ms Lee said.
“The results are strong.
“At a time when we are seeing a global decline in wine consumption and an unpredictable trading landscape, we acknowledge the Malinauskas Government’s commitment to rebuilding our exports into China, and supporting diversification efforts into other key export markets.”
Mr Szakacs said federal government efforts to “repair our trading relationships with China” had benefited South Australia.
“The rapid recovery of South Australia’s wine export industry has exceeded even the most optimistic predictions of a year ago when tariffs were removed,” Mr Szakacs said.
“The $855m in wine exports in the past year is an exceptional result. It’s just reward for the patience and resilience that producers demonstrated through a very challenging and uncertain period of trade disruption.
“South Australia has done the heavy lifting for Australian wine, increasing both our size and market share of exports. The Malinauskas Government has stood with local wine producers, and the thousands of people that they employ, during the tough times.
“We are backing efforts to diversify, and ensure that renewed opportunities in China are seized. Thanks to these efforts, South Australia has recovered 90 per cent of the all-time peak wine exports to China, in just one year.”
Mr Szakacs said “our government recognises that uncertainty in global markets remains, and remains ready to act to protect local jobs”.
This article appeared in Murray Pioneer, 28 May 2025.