Duxton’s Agri Bits and Pieces – Vol. 425
Posted on: May 10th, 2019

 

Quote of the week

India has raised its import duty on wheat to 40 percent from 30 percent, the government said late on Friday, as the world’s No. 2 producer of the grain tries to support local farmers.

“Local wheat production is higher. The government is now trying to ensure prices remain above support levels. At 40 percent import duty, imports are not viable for flour mills. They have to buy local crops”

Harish Galipelli, Head of Commodities and Currencies at Inditrade Derivatives & Commodities in Mumbai.

The step comes as Prime Minister Narendra Modi’s party looks to contain rural discontent due to lower crop prices amid voting in a general election that began on April 11 and ends on May 19. Local wheat prices have fallen over 11% in 2019 due to ample supply from last year’s crop and forecasts of record output.

Source: Economic Times, 27 April 2019

 

 

 

 

 

Australia’s eleventh largest wine export market- United Arab Emirates

Australia’s wine exports have grown significantly to the United Arab Emirates (UAE) in the past 5 years, from $13.6 million in 2013 to $31.1 million in 2018. This represents a compound annual growth rate of 18 per cent per annum over the period. The UAE is now the eleventh biggest destination for Australian wine exports by value and if exports continue to grow at current rates, it will likely jump into the top 10 in the next 12 months.

Australia is the second biggest wine exporter to the UAE by value behind France. According to the Global Trade Atlas, France holds a 57 per cent value share of wine imports compared to Australia’s 12 per cent. Around half of the French exports to the UAE are sparkling wine (including Champagne).

Just over half of the Australian wine exported to the UAE in 2018 was priced at $10 or more per litre. It is also the fastest growing price point, with the value up 57 per cent compared to 2017. Red is the most popular wine style, with more than a three-quarter share of Australian exports.

Tourism is also having a profound impact on wine sales. Dubai has become a popular luxury holiday destination for international tourists. With 15.8 million international visitors in 2018, Dubai is the sixth most visited city in the world.

The number of international tourists to Dubai has grown by 5 per cent per annum over the past five years. Dubai aims to attract nearly 20 million visitors by 2020. As the number of international tourists continues grow, one could expect further growth in Australian wine exports.

Wine Australia, 16 April 2019

 

 

 

 

 

 

 

 

 

Looking to exploit our similarities to develop trade with Morocco

The tyranny of distance means Morocco is never likely to emerge as a major buyer of Australian agricultural produce. However, with a climate nearly identical to parts of southern Australia, with Mediterranean, winter active rainfall weather patterns and hot summers, Australian agricultural expertise could play a role in boosting Morocco’s productivity and foster trade links in areas such as ag-tech and irrigation.

In 2017, Australia opened an embassy in Morocco as an important regional hub for both North Africa and the Middle East. Australian officials see a bright future in providing ag expertise to Morocco in areas such as broadacre cropping techniques suited to agriculture in semi-arid zones and in water management.

In 2017, Australia exported $40 million worth of goods to Morocco and imported $57 million of products. On the import side of the ledger, fertiliser made up an important part of the purchases. Morocco holds 75 per cent of the world’s phosphate reserves and is an important exporter of the product.

Source: Farm Weekly, 30 April 2019

 

Chart of the week

 

The chart below shows the year on year change in white wine value, for the top 10 white wine markets globally. White wine in the Australian market has a flat growth rate, with growth in the higher price points above $15 per bottle outweighing the decline in the market below $15.

Source: Wine Australia

 

 

 

 

Joke of the week
 

 

 

 

 

 

 

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