The price of Australian wine grapes is soaring due to growing demand for red wine in China and other Far East countries, experts said.
Australian wine grapes have suffered price cuts over the past 10 years and reached a new low in 2011, before remaining low in recent years, said analysts Rabobank.
But prices for Australian red grape wines, particularly those from cool or temperate climate regions, are growing in the wake of big demand from China.
Imports of Australian wine into China were up a staggering 40 per cent in the first half of 2016.
Chinese drinkers, who have only recently gained a liking for European alcoholic drinks, are also snapping up red wine from Spain, Portugal, Chile and France to satisfy demand.
Wine prices are also being hiked due to poor grape harvests in some growing regions.
Chile’s 2016 wine grape crop was 20 per cent lower than last year, while Argentina’s harvest was 30 per cent down.
Wine production has also fallen by up to 11 per cent across Europe’s biggest wine producing countries France, Spain and Italy.