$874m of Australian wine sold in USA

Australian wine producers had their best year ever in 2003-04 with a bumper grape harvest eclipsing the previous 2002 record, according to figures released last week by the Australian Bureau of Statistics.

Overseas exports of Australian produced wine increased 13% on the previous year (584 million litres) with a total value of $2,494 million. However, the average price per litre fell 9% to $4.27 (down from $4.67 in 2002-03).

The United Kingdom was the main country of destination for exports of Australian wine, taking 225 million litres (38%), followed by the United States of America at 175 million litres (30%). Other major markets included Canada (33 million litres), Germany (28 million litres) and New Zealand (27 million litres). In terms of the value of exports, the US market was the most lucrative at $874 million while the UK was $849 million.

The record grape harvest of 2.015 million tonnes was over a third higher (35%) than the drought affected previous year and exceeded the 2002 previous high of 1.754 million tonnes.

The red grape crush benefited the most from the good seasonal conditions in 2003-04, with an increased crush of 38% (to 1.141 million tonnes). In comparison the white grape crush increased 35% (to 0.777 million tonnes).

The vintage grape crush reached a new record being well over a third higher (37%, up to 1.917 million tonnes) than the previous year and almost a fifth higher (19%) than the record set in 2002.

Winemakers increased beverage wine production by over a third (35%) to a record 1,401 million litres. Table wine inventories rose by almost a fifth (18%) to 1,698 million litres at 30 June 2004.

Domestic sales of wine maintained steady growth rising 4% on the previous year to 417 million litres.

Sales of white wine topped sales of red/rosé table wine again by well over a half (59%) of the domestic table wine market.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australian LNG to go to the USA

The Australian potential to supply liquefied natural gas (LNG) safely and reliably into Mexico and the west coast of North America was the focus of a recent visit by Federal Industry, Tourism and Resources Minister, Ian Macfarlane.

While in Mexico and California, Mr Macfarlane met with key government and industry contacts to further promote Australia’s long-standing record of competitively-priced, safe and reliable delivery of LNG to our overseas clients.

The US Department of Energy forecasts that natural gas consumption in the US will rise from 22 trillion cubic feet (Tcf) in 2003 to more than 30 Tcf per annum within the next 20 years, with LNG imports contributing nearly 6 Tcf.

Until now receiving terminals have been located on the east coast, but there is now a recognised need to build LNG receiving facilities on the west coast as well as opportunities to Australian companies.

The growing demand for natural gas on the Mexican west coast also opens up major opportunities for Australian exports, with two LNG terminals proposed for Baja California receiving key government approvals.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

New Methods to Monitor Sheep Generated Methane Gas

Research to reduce sheeps' production of methane - one of the most potent greenhouse gases - received a boost recently with the installation of new methane chambers at the Australian Commonwealth Scientific Industrial & Research Organisation (CSIRO)Livestock Industries'facilities in Perth, western Australia.

Shaped like cubicles, the see-through chambers enable researchers to accurately measure the continuous volume of methane produced by sheep over a 24-hour period.

They have been operating efficiently for more than four months in a trial to measure the response of sheep to products designed to reduce methane gas emissions.

Designed and developed by CSIRO Livestock Industries, the new chambers will be available for use for other research projects both within and outside CSIRO.

Livestock account for 12% of Australia's man-made greenhouse gases and similar levels in other countries.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australian Sharemarket Records Best Day

The Australian stock market has recorded its best day's gain in two years as a result of a resurgence in investors' confidence in both banking and resource stocks.

There is an expectation that the economy might slow over the coming year, but that the strength of these two sectors will deliver good returns.

The two year spike was also on the back of a bullish few days on the NYSE.

Banks and resources are being seen by analysts as ones that will improve over the year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Annual Inflation Rate Now 2.6%

The Australian Bureau of Statistics today announced that the Consumer Price Index (CPI) – the main measure of inflation - had risen 0.8% in the December quarter.

The increase is double that recorded in the September quarter, and compares to an anticipated rise of 0.6%.

Australia’s annual inflation rate now stands at 2.6%, the highest it has been since the September quarter of 2003. This is still within the Australian Reserve Bank's 2 to 3% target range.

With what could be generalised as “moderate” inflation, the Australian economy remains very strong and with the lowest unemployment rate in around 30 years.

For the final months of 2004, the Bureau of Statistics said the cost of living was pushed up by higher house purchase costs, petrol, cars, domestic travel, rent, fruit, beer and restaurant meals.

The CPI results have again raised expectations that official interest rates might be raised during 2005, to dampen the economy slightly.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Foreign Investment in Australian Real Estate

The latest issue of "Real Estate Update" issued by the Real Estate Institute of Australia carries an interesting lead article on foreign investment in Australian real estate. The article is reproduced below.

"Australian real estate continues to be the principal sector for foreign investment in Australia, according to the 2003-04 annual report of the Foreign Investment Review Board, released this month. Total foreign investment in real estate increased from $21.9 billion in 2002-03 to $28.7 billion in 2003-04.

In 2003-04 there were 114 approvals for foreign investment in commercial real estate valued at $10.43 billion.

There were 3945 approvals for foreign investment in residential real estate, with a total value of $18.31 billion. Of these 574 proposals were for "off the plan" purchases, valued at about $300 million, as well as 292 applications by developers for advance approval to sell property off the plan. There were 28 fewer approvals compared with the previous year, but the value rose by $ 3 billion to $9.1 billion.

The main location of proposed investment in Australian real estate is Queensland, which attracted 38.6% of total by value, compared with 23.7% in 2002-03. The value of investment in residential real estate was $7.28 billion.

Western Australia experienced a significant increase to 17.1% of total investment by value, up from 6.2% in 2002-03. The value of investment in residential real estate was $4.36 billion.

Foreign investment in NSW real estate fell to 27.1% of total by value, down from 39.6% in the previous year. The value of investment in residential real estate was $4.08 billion.

Foreign investment in residential real estate in other states / territories included: Victoria $1.32 billion, South Australia $0.1 billion, Tasmania $0.03 billion; ACT $0.07 billion and Northern Territory $0.01 billion.

Singaporeans were the most significant investors in Australian real estate, with approvals valued at $3.37 billion. Other investors were from the United Kingdom ($2.288 billion); United States ($1.629 billion); Malaysia ($1.065 billion); Japan ($906 million); Germany ($898 million); other European Union countries ($481 million) and China ($121 million)."

The Real Estate Institute of Australia can be contacted via www.reia.com.au

For further information on the this or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Fosters Beer Group Bids for Wine

In an endeavour to create the world's largest quality wine company, the Australlian Fosters beer group has bid to purchase fellow Australian company Southcorp wines, the producers of well know brands such as Penfolds, Lindemans, Wynns and Rosemount.

At this stage only an initial bid has been made, which Southcorp has described as inadequate and which, by the increase recorded on the same day by Southcorp's shares, stockholders also considered undervalued.

This will evolve into an interesting scenario. The outcome could cement the presence of Australian companies in the beer and wine markets world wide.

At present, Australian wines are some of the leading products in the US, UK and other markets and Fosters has one of the strongest positions in beer.

With the two companies merging, it would take their combined market sharein the US to #1 and the same in the UK.

For further information on the this or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Free Trade Agreement Up and Running

The USA / Australia Free Trade Agreement (FTA) came into force on January 1st. If over the last 17 days you have not given thought to how you should be capitalising on this agreement - you should start now.

Already a major promotion is underway in LA this week, promoting the opportunities that the FTA will give Californian businesses which can look at exporting to Australia.

The opportujnities are endless.

For further information on the Free Trade Agreement or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com