Aussie vineyards expecting better earnings as their hedges wind down

Sydney

THE Australian dollar has completed its third year of declines yet John Casella, whose family exports Yellow Tail wine around the world, is only now starting to fully savour its benefits.

Mr Casella expects improved earnings as unfavourable currency hedges wind down and his company can lock in the weaker exchange rate with new contracts. A survey by National Australia Bank showed exporters Down Under had about a third of their currency exposure protected by hedges in the third quarter and the contracts were more favourable than in the past, because they improved as the local dollar depreciated.