New Zealand’s wine industry is looking beyond its biggest export market Australia as the ‘kiwi’ dollar’s unprecedented strength against its Australian counterpart dents export earnings from the island nation’s closest trading partner.
Australia sources more than half of its foreign wine from New Zealand. The popular Marlborough Sauvignon Blanc dominates around 70 per cent of Australia’s Sauvignon Blanc market. But as New Zealand’s buoyant economy outperforms its larger neighbour’s, the kiwi has climbed versus the Australian dollar, just as wine consumption in Australia plateaued.
Last year, New Zealand’s wine exports to Australia fell for the first time since 2003, easing 7.5 per cent to 252 million from 2013. In contrast, shipments to the US rose 13.6 per cent to 245million.
After more than doubling since 2007, exports to the US may overtake shipments to Australia this year if they continue to grow at their current pace, according to people in the industry.