FED: Wine exports forecast to increase by 11.5 per cent

AAP General News (Australia)
12-15-1998
FED: Wine exports forecast to increase by 11.5 per cent

(EDS: EMBARGOED TO 1200 AEDT TUESDAY DECEMBER 15)

CANBERRA, Dec 15 AAP - Australias wine industry is barrelling along in contrast to most
Australian farm commodities with exports expected to increase 11.5 per cent in value in
1998/99.

The Australian Bureau of Agricultural and Resource Economics (ABARE) today predicted wine
exports would be worth $906 million this financial year, up 11.5 per cent on the $813 million
from exports last year.

Wine exports are predicted to grow 7.6 per cent from 194 million litres last year to 208
million litres this year.

Winegrape production in Australia is expected to increase 4.5 per cent to 994,000 tonnes
with multipurpose winegrapes the only type expected to experience a fall in production (of
about 2.5 per cent).

White wine grape production is forecast to increase 5.5 per cent to 419,000 tonnes but
ABARE warned about demand for the product.

"Demand for white winegrapes is expected to rise but at a slower rate than production,
resulting in a further lowering of the white winegrape prices in 1998/99," ABARE said.

Demand for red winegrapes continued to grow strongly, with production forecast to increase
7.4 per cent in 1998/99 to 376,000 tonnes.

The bearing area of winegrape vines is forecast to increase by more than nine per cent in
1998/99, an increase of 28 per cent in two years.

AAP msl/mfh/rsm/br

KEYWORD: ABARE WINE

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