Mail - Mountain Views Star Mail - 17th November 2020

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Mountain Views

Tuesday, 17 November, 2020

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Hotel creates a buzz

End of artistic era

Lest we forget

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A Star News Group Publication

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Nasty aftertaste Trade uncertainties and ongoing political tensions between Australia and China have seen some Yarra Valley winemakers’ exports put on hold as Chinese distributors are concerned shipments might not make it into the country. Yarra Glen winery Zonzo Estate were informed by their Chinese partners, they wouldn’t be having their monthly wine shipment for October sent as they couldn’t guarantee it would successfully make it into China as other export industries had been hurt by delays. Zonzo Estate’s shipment experienced repeated delays as they were initially told there wasn’t enough room on shipping containers. Then finally when their Chinese distributors performed a routine check of their shipment, word came through that they wouldn’t be taking the order. Zonzo Estate owner Rod Micallef explained how the situation unfolded. “While they were doing the inspection, the guy got a phone call and said, ‘look we’re not going to take it as there is a risk that if it’s sent to China it might have to come back’. “They haven’t cancelled the order yet, because they said they want to wait and see what the official word is because it’s all rumour at the moment. We’ve been paid and it’s just sitting there.” Despite the October shipment on hold and November’s shipment from Zonzo Estate likely to be impacted, Mr Micallef said the distributors hadn’t requested a refund, a testament to the relationship built internationally. “Distributors are nervous that if it gets all the way to China and it doesn’t get through customs that they’ll have to send it back, or it gets stuck there sitting in a hot container and spoils.” Mr Micallef said three or four other Yarra

Rod Micallef, owner of Zonzo Estate. Valley winemakers were in a similar position, which he described as “helpless”. “Obviously these situations are based on what governments decide ... We can’t really do much about it. Here in Australia we have

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“For us it just feels like it’s in the hands of the governments at the moment, we’re just waiting to see what happens. I’m not super stressed about the sale at the moment, because we have got a strong local market. It’s not like we absolutely depend on the China market. For us at the moment it’s new and it’s exciting. “We’re lucky that wine doesn’t have a real expiry date and we’ll have plenty of time to sell that stock through local markets if that sale doesn’t go through.” Wine Yarra Valley CEO Caroline Evans said she hopes to see a resolution soon. “From a regional perspective, we’re concerned about having heard there are distributors contacting some of our wineries letting them know they don’t think they’ll be able to clear wine from the port. “It’s a concern for our region, much like it is for other wine regions as China is by far and away our largest expert market. “We’re hoping that if there is an issue that it’s a short term problem and that we can return to sending wine to China again soon.” Speaking on ABC Radio Adelaide, Federal Minister for Trade, Simon Birmingham addressed Australia’s trade relations with China. “This year has seen a number of decisions and actions taken in China that have the regulatory risk for Australian businesses in trading with China. Decisions by businesses as to whether or not to sell goods and where to do business are always a balance between risk and reward, and unfortunately this year, as a result of some of the anti-dumping decisions, some of the regulatory decisions that are seeing longer processing times that are unacceptably long for live seafood products like lobster, have heightened the risk significantly in some of those quarters. Continued page 6

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