Tuesday, 27 October 2009

The cause of my pessimism

My brother David is responsible for these pessimistic thoughts with a piece on his Glug wine website about the current state of that Australian industry. Now wine is, or at least should be, one of the great Australian success stories for nature’s gift of ample sunshine combined with plentiful land and sound technology enables the production of fruit dominated styles that consumers around the world find pleasant. But today the strengthening currency is pricing Australian wine out of export markets.
Against the Argentine peso we have appreciated 56% in the last year, against the Chilean peso 18%, the Euro by 25% and the US dollar and the yuan by around 32%. It will not be long before the Chinese are sending their cabernet for Australians to drink rather than it being the other way around.
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