A Colliers International report has found Chinese thirst for
Australian wine has tripled since 2013/14, with the total value of wine exports
expected to reach $595 million in 2016/17.
China continues to be the key growth market for wine exports, after
the more established markets in the US and UK which are still the largest
importers of Australian wine.
Colliers International Rural & Agribusiness Research and
Forecast Report (March 2018) shows wine is Australia’s fourth-largest
agricultural commodity with a total export value of $2.64 billion, and a
significant 12 per cent increase on last year. Large-scale commercial vineyards
have seen their values nearly double in the past two years as wine continues to
The increased profitability of citrus enterprises, coupled with the
lack of buying opportunities for purchasers has spiked demand for mature citrus
orchards, with some notable transactions showing nearly 100 per cent increase
in values in less than three years.
Colliers International Head of Rural and Agribusiness Rawdon Briggs
and National Director Transaction Services Tim Altschwager agreed there was a
“strong appetite for investment in Australian agriculture from farmers and
agribusinesses, as well as investors.”
“We haven’t seen this level of activity in 10 years – some
properties have seen nearly 100 inquries in recent weeks,” Mr Briggs said.
Mr Altschwager said this was off the back of record crop yields and
“For instance, the values of large-scale commercial vineyards have
nearly doubled in the past two years,” Mr Altschwager said.
Additionaly, Mr Briggs said the price of Wagyu boxed beef being sold
to China was still increasing in price year on year. “With the rate of rise now
slowing we still see this as a major investment driver in high value beef
assets in NSW particularly close to export processing capacity,” Mr Briggs
Colliers International research manager Helen Swanson said there
were four key trends occurring in the current commodity market.
“The top trend is the consolidation of entities within major
Agribusiness sectors, resulting in improved productivity and cost efficiencies
being unlocked further with technology,” Ms Swanson said.
“The second is macro-eocnomic impacts, a falling AUD could be
expected to create a stronger export market for Australian agricultural
“Other trends include sale and lease-back agreements for succession
planning which are popular with families and co-orporations; along with greater
dependence and development of agricultural technology.”
The report also looked at other commodities such as the domestic
beef market, which continues to feel the pressure from increased pork and
chicken consumption as a result of reduced supermarket prices. However,
high-quality Wagyu continued to be in demand.
Australian beef exports ended the year in line with 2016 levels,
while export markets for 2018 are forecast to be challenging, as many key
competitors increase beef production, including the USA, Brazil and India.
Other commodity results include impressive sheep and wool prices,
with property values likely to increase further. At present, demand for
high-quality grazing assets is outstripping supply.