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Home / The Country

Listen: How the trade war is affecting China's wine market

The Country
7 Aug, 2019 01:15 AM2 mins to read

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Rabobank Australasian Horticulture and Wine Analyst Hayden Higgins. Photo / Supplied

Rabobank Australasian Horticulture and Wine Analyst Hayden Higgins. Photo / Supplied

When it comes to wine, New Zealand has had a good start to the year, according to Rabobank's Wine Quarterly Q3 2019.

The bank's senior wine and horticulture analyst Hayden Higgins, told The Country's Jamie Mackay there was a "consistent theme ... of incremental growth in volume and value in exports, particularly into some of our key markets".

One of those markets is China, which has been the fastest growing wine market in the world over the past decade.

Higgins said it was an "interesting time" in this dynamic market, especially with the current trade war with the US.

"This trade war is hard to unpack. It's changing every day, particularly at the moment things seem fairly fluid.

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China has seen a slow down in imported volumes over the last 12 months which has been driven by a combination of factors, such as a build up in imported and domestic wine inventory, a slow down in wine consumption and a devalued currency leading to a hike in wine prices.

"There's a lot of complexity there. We believe in the medium term it's still a very strong market ... but there is a lot happening in China, and it's a bit hard to pick what this next round of trade challenges will bring in China".

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Also in today's interview: Higgins takes a look at how Brexit has affected the New Zealand wine market.

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