Asian demand grows for Australian wine

    SYDNEY (AFP) — Asia had a thirst for Australian wine in 2008, with an industry report on Thursday naming China, Hong Kong and Japan among its top-five growth markets in an otherwise dismal year.

    Low-yield harvests and a strong Australian dollar placed enormous pressure on the country's winegrowers last year, driving down the value of exports for the first time in 15 years, said the government's Wine and Brandy Corporation.

    "Despite the challenges there were some highlights during the past 12 months, particularly in Asian markets," the corporation said in its annual report, released Thursday.

    While the value of exports to Europe and North America declined -- sinking 17 percent and 25 percent respectively -- Asian exports grew eight percent, with the value of shipments almost double that of Europe.

    China led the charge, with a 32 percent increase in value of imports to 74 million dollars (52.5 million US), making it Australia's number one growth market and the fifth largest market by value overall.

    Hong Kong ranked third among the top five growth markets for an Australian drop, following the removal of excise tax on wine, with exports up 17 percent and valued at 36 million dollars.

    Japan came in fifth for value growth, with a four percent increase to 50 million dollars.

    Australia's wine exports were worth a total 2.5 billion dollars in 2008, a slump of 17.9 percent. The United Kingdom was the largest market by both volume and value, taking 261 million litres worth 805.6 million dollars.