. Energy News .

Yunnan Red, anyone? Chinese wine heads to Europe
by Staff Writers
Bordeaux (AFP) June 19, 2013

Wine war fears already slowing French exports to China
Bordeaux (AFP) June 18, 2013 - Chinese wine importers have already started putting orders from France and other European countries on hold over fears of a hike in tariffs being triggered as part of a broader EU-China trade dispute, say leading figures in the sector.

Industry insiders attending this week's Vinexpo exhibition in Bordeaux revealed that China's decision to launch an anti-dumping investigation into European wine has created a backdrop of uncertainty that has resulted in buyers sitting on their hands.

"The simple fact that the announcement of an investigation has triggered a wait-and-see attitude from our Chinese customers who prefer to postpone deliveries rather than take the risk of seeing them subject to additional duties when they arrive in two months time," said Georges Haushalter, the chairman of the CIVB Bordeaux wine trade body.

Bordeaux stands to be hit far harder than any other producer region in Europe in the event of China's anti-dumping probe leading to punitive duties on French exports to a fast-growing and potentially huge new market.

China is Bordeaux's biggest export market and takes around one in five of the bottles produced in the renowned area, where up to 55,000 jobs depend on the sector.

That has led to frustration at how the sector has become caught up in a trade spat in which China appears to be seeking to punish France for its high-profile support for a move by the EU to impose anti-dumping duties on Chinese solar panels.

"We would like not to be held hostage to those discussions but while we wait for them to be resolved there is already an impact on the market," said Bernard Farges, the president of a group representing a number of Bordeaux wine producers.

"We are already seeing a slowdown in sales, or an increase in orders being delayed, even though absolutely nothing has been concluded or decided," he said.

A major exporter of Bordeaux wines to China said some Chinese importers, many of whom are already sitting on significant stocks, were looking to cash in on the current uncertainty.

"There are 8,000 wine importers in China. Many of them have come from other market sectors and the market still needs to find a proper structure. The pipes are a bit blocked at the moment and some are trying to take advantage to push prices down," the merchant told AFP on condition of anonymity.

On a visit to Vinexpo earlier this week, French Trade Minister Nicole Bricq attempted to reassure winemakers that punitive Chinese duties remain a distant prospect.

"There is no trade war with China, there are global rules for trade and they have to be respected," she said. "China's anti-dumping investigation will take six to eight months, that gives us plenty of time to negotiate with them."

For years the Chinese have been buying up wine from Europe, but with domestic wine production predicted to overtake Australia and Chile by next year, Tiana Wu is hoping European drinkers are ready to be tempted by a glass of her "Yunnan Red".

"We produce one million cases per year. We're exploring the possibility of exporting," Wu told AFP at Vinexpo in Bordeaux, one of the world's largest wine and spirit fairs.

"Our wines have a unique taste, and we want to see if consumers here accept it or not," added Wu whose family runs a wine business, Yunnan Red, in China's southern Yunnan province.

Vinexpo chief Robert Beynat says China's growing domestic wine production has enabled it to steadily climb the ranks of wine producing countries.

"By next year we expect them to be number six, ahead of Australia, Chile and a lot of countries. We are very happy about that," he said.

"Why? Because the more a country produces, the more wine a country drinks, and the more it drinks, the more it imports. This is the story of America 50 years ago."

The big question for Chinese producers, however, is whether or not their wine -- and other potential alcoholic exports -- can please Western palates.

Following the Chinese acquisition of Bordeaux vineyards in recent years, the producers of French wine now include Chinese owners.

Zhang Jinshan, a tycoon who has been producing Goji berry-based alcohol for 30 years, acquired Chateau du Grand Moueys, a historic estate in Bordeaux's Entre-Deux-Mers region where he also plans to build a golf course and spa.

Exhibiting for the first time at Vinexpo, Zhang displayed his Bordeaux wine along with his Chinese alcohol, with an eye on exporting some of his 10-million-bottle production, and a clear game plan.

Outlining his game plan, he told AFP: "We bought the chateau. Now we will create a wine merchant business to buy other wines to sell in China, and then we will import Chinese wine into Europe."

But while Zhang said he found it fairly easy to adapt to winemaking, the language, culture and business practices in Europe presented a challenge, though he remains optimistic.

"We will adapt, we will understand them and we will work in harmony," he said.

Vinexpo research estimates that the number of potential wine drinkers in China could be between 200 and 250 million people.

But Beynat warned that that per capita consumption remained small -- 1.4 litres (2.4 pints) per person per year versus 12 litres per year for Americans, 52 litres for the French and 23 litres for Britons.

Nevertheless, a record number of Chinese wine professionals at Vinexpo was fresh confirmation of the rapidly developing nation's influence as both consumers and producers, he said.

"For exhibitors, there are more Chinese, mostly in the spirit industry. In 2011 we had two, this year we accepted 18," he said, adding that Vinexpo would even hold an event in Beijing in November 2014.

According to Vinexpo, we are all drinking more wine. Worldwide wine consumption hit 2.6 billion cases in 2011, a 2.83 percent increase over four years, and the fair's analysts predict it will increase 5.31 percent by 2016.

Between 2012 and 2016, it is expected that wine consumption in China will increase by 40 percent, making it the second most lucrative market after the United States.

Vinexpo runs until Thursday.


Related Links
Farming Today - Suppliers and Technology

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Get Our Free Newsletters
Space - Defense - Environment - Energy - Solar - Nuclear


Farmworkers feel the heat even when they leave the fields
Winston-Salem N.C (SPX) Jun 19, 2013
Hot weather may be the work environment for the 1.4 million farmworkers in the United States who harvest crops, but new research shows that these workers continue to experience excessive heat and humidity even after leaving the fields. Wake Forest Baptist Medical Center researchers conducted a study to evaluate the heat indexes in migrant farmworker housing and found that a majority of the ... read more

Lost medieval city found in Cambodia: report

SMOS maps record soil water before flood

Landsat Satellite Looks Back at El Paso, Forward to a New Mission

NASA Builds Sophisticated Earth-Observing Microwave Radiometer

TMC Design to integrate Non-GPS Based Positioning System at White Sands Missile Range

Proba-V tracking aircraft in flight from orbit

SSTL completes delivery of first four Galileo FOC satellite payloads

Russia Set to Launch Four GLONASS Satellites This Year

Whitebark Pine Trees: Is Their Future at Risk

Brazil's restive natives step protests over land rights

Brazilian official resigns over indigenous protests

Brazil police deployed to contain land feud

Novel Enzyme from Tiny Gribble Could Prove a Boon for Biofuels Research

Biofueled Airbus makes air show entrance

US forest management policy must evolve to meet bioenergy targets

Black locust showing promise for biomass potential

Qatar comes to rescue of Germany's Solarworld

Talesun Solar Awarded UL 1000V Module Certification

Future looks bright for carbon nanotube solar cells

KYOCERA to Supply and Construct 30 MW of Solar Power at Agricultural Facilities Across Japan

Mongolia confronts smog with launch of first wind farm

New certified small wind turbine announced for US market

Britain rolls out offshore wind power investment stimulation plan

Prysmian Group To Showcase At 2013 RenewableUK Offshore Wind In Manchester

Report: Alpha Australian coal project is 'stranded'

Germany's top court hears case against giant coal mine

Glencore Xstrata cancels coal export terminal plans

Proposed U.S. Northwest coal export project scrapped

US lashes China, Russia for human trafficking

China arrests man who planned Tiananmen protest: wife

Activist says China pressured New York University

China activist revives concern on US academic freedom

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement