AUS: Dropping dollar has little effect on wine industry
AUS: Dropping dollar has little effect on wine industry
Jul 14, 2013 6(ABC) - The drop in the Australian dollar has done very little to reduce the woes of the wine industry.
In commodity markets, the exchange rate influences prices significantly, but that's not the case in the wine industry.
The Australian dollar has dropped to below 90 US cents, with expectations it could drop to the mid-80s.
Warrick Duthy, from Kilkinanoon Wines in South Australia's Clare Valley, says the dollar needs to stay at this level for six months to make any difference to trading conditions in the wine industry:
"Our distributors and the retailers in foreign countries aren't going to change their prices on a daily basis depending on exchange rates," he siad.
"They tend to fix their price and keep them there for six months.
"So if the value of the Australian dollar falls and stays there, we may well see our products repriced in the market place."
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