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Australia's once dominant1 wine industry is facing its biggest challenge, as competition increases from lower-cost rivals and consumer tastes change. Producers are being encouraged to target exports to Asia to revive the industry.
Penfolds 1962 vintage Cabernet Shiraz (C), flanked (L and R) by 1991 vintage bottles of Penfolds Grange red wine in Sydney, Australia (File)
Last year, Australian wine exports fell by almost 10 percent, the first decrease in a decade. It was a sign that after a long boom, the country's vineyards are struggling under the weight of increased competition from lower-cost rivals in Chile, Argentina and South Africa and the changing tastes of international consumers.
A long drought also has brought higher irrigation costs, especially in the parched2 wine belt in southeast Australia. Relatively3 high wages also undermine Australia's international competitiveness at a time when prices for exported wine have fallen.
The average price per liter of Australian wine sold overseas is about 25 percent lower than it was a decade ago.
Sluggish4 demand in Great Britain, a key overseas market, is likely to force a fundamental restructuring of Australia's wine trade, although exports to the United States remain positive.
Wine trade experts think that sales to Asia could help Australian vineyards recover from the downturn.
Kym Anderson, an economist5 at the University of Adelaide, says that there are opportunities in both China and Japan.
"They certainly are growing markets but from a very low base, and Japan has been a steady growing but, of course, there is a recession going on there at the moment. But tastes are changing there and in China, too, the middle class is looking in particular for red wine, which Australia is good at producing," said Anderson.
In recent years, Australia's ability to sell vast amounts of relatively inexpensive wine to the U.S. and Britain made it the fourth-largest global exporter.
A worker harvests grapes in Mendoza, Argentina for one of local wineries (File)
Australia's success in producing and marketing6 low-cost varieties has been keenly watched and emulated7 by its rivals, especially in South America.
Now, some wine experts say Australia needs to promote its higher-end wines, and not rely on exporting its mass-market varieties, such as shiraz, which is losing favor in many markets.
Wine experts warn that Australia's wine industry may have to cut production by up to a fifth to stay afloat in an increasingly competitive international market.
1 dominant | |
adj.支配的,统治的;占优势的;显性的;n.主因,要素,主要的人(或物);显性基因 | |
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2 parched | |
adj.焦干的;极渴的;v.(使)焦干 | |
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3 relatively | |
adv.比较...地,相对地 | |
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4 sluggish | |
adj.懒惰的,迟钝的,无精打采的 | |
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5 economist | |
n.经济学家,经济专家,节俭的人 | |
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6 marketing | |
n.行销,在市场的买卖,买东西 | |
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7 emulated | |
v.与…竞争( emulate的过去式和过去分词 );努力赶上;计算机程序等仿真;模仿 | |
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