In a year that’s been described as ‘the perfect storm’ for New Zealand’s wine producers, the industry body, New Zealand Winegrowers, is still finding some positives.
 
Wine exports grew 5 per cent to $1.04 billion in the past year, says Winegrowers chair Stuart Smith.

With the world struggling under a global wine glut, New Zealand’s latest vintage came in 7 per cent down on the previous year to 266,000 tonnes, but this year the average value of bottled wine exports declined 11 per cent to $8.70 per litre.

On a positive note, exports of pinot noir from New Zealand exceeded $100 million for the first time, and membership of Sustainable Winegrowing NZ now covers 93 per cent of the producing area and 85 per cent of wine production.
 
Stuart Smith says our wine sector made significant progress in the past year, but winemakers and grape growers must continue to make market-led decisions for the industry to prosper. The most significant challenge currently facing growers and wineries is falling profitability.
 
“The smaller 2010 vintage was a vital step forward in addressing this issue as it will lead to an improved supply demand balance for the sector, a vital pre-condition for profitability to begin to flow into individual grape and wine businesses.”
 
However, Mr Smith said while the progress of the past year was very pleasing, it was not enough to guarantee the future.
 
“Times are tough in the industry and we must be very focused if we are to continue the progress of the past year.
 
For the next two years; that focus must remain on rebalancing and recovery. From there, future growth must target enhanced value ahead of production capacity,” Mr Smith.