• Glass bottle manufacturer Orora predicts FY 2025 will be see volume growth for exports to China.
    Glass bottle manufacturer Orora predicts FY 2025 will be see volume growth for exports to China.
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China's removal of the tariffs imposed on Australian wines has positive implications for the packaging industry, although it may take some time to see benefits for glass bottle, closure and label suppliers.

The federal government has welcomed China’s decision to remove the heavy tariffs it imposed on the Australian wine industry in November 2020. In its 28 March announcement, the Chinese Ministry of Commerce said the situation in China’s wine market had changed so the “anti-dumping and anti-subsidy tariff” was no longer necessary.

China’s impost on the wine industry at the end of 2020 followed sanctions on seafood, sugar, coal, copper, timber and barley, as the relationship between the two countries floundered.

The label printing industry has welcomed the move. The wine label sector is one of the more lucrative areas for the industry, with vineyards often requesting elaborate embellishments, especially for the Chinese market where Australian wine is viewed as a premium product. Losing 100 million labels overnight was a blow to the industry, but gaining at least some of them back, whilst it won’t be overnight, has sent label printers popping the corks in expectation.

Glass bottle manufacturer Orora has predicted no immediate benefit to its glass business for FY2024, but is predicting FY2025 will see volume growth for exports to China.

However, China's market is quite different since the Covid pandemic. A slowing economy, and more inward-looking political landscape, mean that a return to previous import/export figures may be unlikely.

Food & Drink Business

Western Australian producer, Brownes Dairy, has been put up for sale according to the Australian Financial Review (AFR), as one of its biggest lenders, China Mengniu Dairy, calls in its $200 million loan. A reduced demand for milk in China and the current positioning of the global market could be driving the decision.

The Central Coast is about to receive a boost to its local food and beverage manufacturing industry, with construction starting on the $17.14 million Food Manufacturing Innovation Hub, funded by the federal government’s National Reconstruction Fund (NFR).

The Australian Industry Group (Ai Group) says Australia is at a “critical crossroads” when it comes to R&D and decades of rhetoric have not delivered material change.