With global financial markets still in turmoil, and confusion over the depth and severity of the recession hitting most countries, there's been a cautious note sounded by New Zealand Winegrowers over next year's harvest.

In its final newsletter to members for the 2008 year, Winegrowers warned growers and vineyard owners to consider the “right balance between supply and demand for our wines”.

In what appears to be a thinly disguised encouragement to get the pruning shears to work, New Zealand Winegrowers says: Going into 2009, it is clear the major issue for grapegrowers and winemakers will be to ensure we have the right balance between supply and demand for our wines. 

“On the supply side this is literally in the hands of growers and vineyard owners as they make their thinning decisions in coming weeks. On the demand side, wineries individually and collectively are working hard in markets to continue to grow demand for our wines.”

The newsletter also quotes New Zealand Winegrowers chair Stuart Smith's comments made during his speech at the recent Air New Zealand Wine Awards dinner: “We had our largest ever vintage (2008) - an unprecedented 285,000 tonnes, most of which is to be sold in markets dominated by recessionary gloom.”

The warning from the national body representing the New Zealand wine industry echoes a recent warning to New Zealand from specialist agribusiness lender Rabobank that “maintaining a precious imbalance between global supply and demand is vital for maximising the long-term profitability” of the industry. 

The Global Focus report: 'New Zealand wine supply – testing new limits - said it is important that industry players take a conservative, measured approach to vineyard expansion and wine production over the coming years to ensure supply does not exceed global demand.

“Having demand exceed supply is the strongest position a wine producer can hope to enjoy,” the report said. “Rushing to change this imbalance and match supply with demand will ultimately place downward pressure on prices.”

(Click HERE to read more on that report).

Meanwhile, a major industry seminar jointly hosted by Wine Marlborough and New Zealand Winegrowers was to be held in Marlborough on December 18.

Its focus was on “issues around yield management and the state of the industry”.

New Zealand Winegrowers' newsletter says the seminar was a follow-up to the June 13 meeting held after the completion of the 2008 vintage and was to include the latest update on progress with the sale of the 2008 vintage.

Winegrowers was late last year asking for “a very strong attendance at this important industry gathering”.