Cassegrain Wines' John Cassegrain is "devastated" the Chinese government has imposed tariffs on all Australian wine imports.
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The local wine grower and producer relies on the Chinese market for around 20 per cent of its business. Australia-wide, the market is worth over $1.2 billion a year.
The Chinese government announced tariffs of between 107 per cent and 200 per cent on Saturday, November 28.
Despite the obvious financial impacts, Mr Cassegrain said the business cannot afford to stand still.
"We hope the market returns but that might take several years," he said.
"So we are looking at other markets both export markets, but more importantly, expanding our domestic market.
"We are also undertaking some research into markets other than wine markets from our wine grapes.
"This includes a sparkling non-fermented 100 per cent natural grape juice. We are also looking at expanding into wine vinegar," he said.
Mr Cassegrain said the winery's seller door sales remained strong and the business was preparing for a busy Christmas trading period.
"But the Chinese market is very big to replace but we have to work hard to find alternative markets," he added.
Mr Cassegrain has called on the federal government to provide short-term financial assistance to growers and producers as the industry adjusts to the impacts of the tariffs.
"It is quite a significant impact to our business, to put in mildly," Mr Cassegrain said.
"We actually have a container that arrived in China a few weeks ago that our customer has been trying to get through customs.
"They (Chinese customs) are asking for paperwork that is not generally required.
"It is almost like a delaying tactic.
They (Chinese customs) are asking for paperwork that is not generally required. It is almost like a delaying tactic.
- John Cassegrain
"In addition, another container was ready to leave but that is now caught here in Australia.
"We have also had other orders that have been cancelled through China," he said.
China is the number one export destination for Australian wines representing about 40 per cent of the market.
Typically, the Chinese consume wines as a celebratory-type of beverage, including during the Chinese New Year which is in February.
Wine sales peak in China during the October, November and December period, Mr Cassegrain said.
"And that is the trade that is now being impacted," he added.
The well-known wine producer says the Australian wines will likely be replaced by imports from Spain or Chile.
Australian wines generally target the high end Chinese market.
Despite the harsh setback, Mr Cassegrain remain positive about the future.
"There were some warning signs that politics was going to be a problem with the Chinese market," he said.
"They have been, for the last few years, looking at developing other markets.
"However, we get the best price per litre as an industry in China. And the local Chinese market loves our wines.
"It appears the industry is being used as a political football. But as a country we need to stick to our principles."
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