Exports are essential for both Australian winemakers and the economy as a whole, providing the critical backbone that keeps the wine industry growing and thriving. With Britain forming the single biggest importer of Australian wine in the world, bringing in $376 million worth in 2015 alone, its exit from the European Union (EU) – or Brexit as it is referred to – could be a turning point for the wine industry in Australia.
If the reduction in trading tariffs that is predicted comes to pass, it will be all the more important for grape growers to protect their investment with crop insurance and ensure they can continue maximise on exports in the future.
It may soon become easier to export wine to the United Kingdom.
Brexit may make it easier to export Australian wine
The Winemakers’ Federation of Australia states that if and when the United Kingdom leaves the EU, it will no longer be subject to the Common Customs Tariff which determines the fees placed upon importing products. As a result, it will be free to establish its own trade agreements with other countries if it chooses to.
This means that it could potentially become cheaper for Britain to bring Australian wine across its borders. If this happens, the already colossal amount of wine that the British people consume is likely to only increase, and they will be come an even more crucial consumer base for the Australian wine industry.
This could be great news for winemakers and grape growers alike, who are in prime position to make the most of the trading opportunity and bring in an significant economic boost to the country. But for vineyard owners, the higher stakes may also mean higher risk.
Insurance is vital for winemakers to cash in
While many grape growers may choose to increase their crops to accommodate the higher demand, this does mean a larger number of assets that are vulnerable to threats such as frost, hail, and wildfires. It is therefore vital for growers to have the appropriate insurance policy to guard against the financial fallout of these issues, and ensure they can continue to profit.
At MGA Insurance brokers, we have a highly experienced team who can help you find the best protection for your crop. We will work with you to cover your crops throughout the season and support you in making the most of your yield.
For more information on the policies we offer, from farm insurance to business interruption cover, contact us at MGA Insurance brokers today.