Serbian wines, with an average export price of 1.7 dollars per liter, are significantly cheaper than the wines of the world’s main exporters, such as France and Italy, whose drinks are almost five and two times more expensive, respectively. Serbia is more competitive compared to Australia and Chile, while its wines are more expensive than Spanish ones. Although Serbian wines are more than half cheaper than the world average, their prices are rising faster, which is more a consequence of inflation than an increase in quality, according to experts from the magazine “Business and Finance”.
The world wine market is dominated by five countries: Italy, Spain, France, Chile and Australia, which together account for about 70% of international exports. These countries dictate the quality, traffic conditions and the average export price, which increases annually by around 2.4%. Last year, the average export price of wine on the world market was 3.6 dollars per liter, partly due to inflation, as stated by professors Branislav Vlahović and Vuk Radojević from the Faculty of Agriculture in Novi Sad.
Export of our wine: Russia is the main customer
Serbian wine is exported mainly to five countries: Russia, Bosnia and Herzegovina, Montenegro, Croatia and China, with Russia as the largest market. On the Russian market, the average export price of Serbian wine is only 1.2 dollars per liter, while the price of the beverage from Russia that is imported to Serbia is 1.8 dollars per liter. Bosnia and Herzegovina is the second largest export market, where the average export price of the Serbian product is 1.6 dollars per liter, while the price of the beverage imported from Bosnia and Herzegovina is 2.3 dollars per liter.
About 1.2 million liters of wine are exported to Montenegro annually, with an average export price of $2.8 per liter, while the average import price of Montenegrin wines is $2.6 per liter. Croatia is the fourth largest market with about 730,000 liters of annual export, while the average export price is 1.7 dollars per liter. The least amount of exports is to China, with about 380,000 liters per year, but at the highest average price of 3.8 dollars per liter, while the price of imported wines from China is 4.1 dollars per liter.
France is the leader in the price of its products with an average price of 7.9 dollars per liter. Italy follows, with an average price of 3.6 dollars per liter. This is at the level of the world average, it should be noted. Australian drinks are cheaper at $2.50 per litre. In comparison, Chilean drinks have an average price of $2.2 per liter. Spanish wines are the cheapest among the leading exporters with an average price of 1.5 dollars per liter, primarily due to the large share of this bulk beverage in their exports.
The production costs are substantial
Wine production involves high input costs, and many producers operate with relatively small margins. Price competitiveness is determined by many factors, including production costs, labor, tax policy and financial incentives. A lower price may attract a larger number of buyers, but if the result is lower quality, it may threaten the profitability of exports.
Serbian wines rank 35th in the world with a share of 0.09% in international exports. At the same time, their participation in the European market is slightly higher at 0.13%. The price of Serbian products is growing faster than the world average, which is more a consequence of inflation than an increase in quality.
Source: 24 Seven
Source: boljazemlja.com
