From Sigi Hiss
, at 08. October 2009 17:27
Chris Mercer – New Zealand Winegrowers has for the first time set a limit on the amount of wine grapes to be harvested, as the trade body attempts to prevent oversupply from cheapening the country’s wines on international markets.
Grape growers and wineries should not pick more than eight tonnes per hectare in the 2010 harvest, New Zealand Winegrowers has warned. Industry leaders believe a grape surplus in New Zealand threatens to result in a surplus of wine on international markets, which could reduce the country’s reputation for quality.
David Cox, Europe director for New Zealand Winegrowers (NZWG), told just-drinks today (5 October) that the recommended harvest limit “is part of a significant strategy to try and positively influence the process of getting demand back ahead of supply”.
He added: “We have a two-pronged arrangement whereby NZWG in New Zealand is talking actively with the growers and producers with the recommendation for yields and tonnage for the 2010 harvest, and the NZWG offices in the various international markets, such as my team, are tasked to do our best to help open up, seed and develop new markets.”
Cox and his team are today hosting a tasting in the Netherlands, following tastings in Germany and Sweden last week. Marketing activity in the UK and Ireland, more established markets, is also being stepped up, Cox said. The grape surplus in New Zealand has already begun to impact some wineries’ finances. New Zealand Wine Company recently reported a 37% drop in full-year profits, after being forced to clear “significant volumes of surplus bulk wine”.
Coupled with a surplus, the global economic downturn has also threatened to reduce demand in key export markets. Montana wines, owned by Pernod Ricard, saw sales slip 9% by volume and 13% in value for the 12 months to the end of June. However, NZWG reported last month that New Zealand had for the first time registered NZ$1bn (US$722m) in wine exports within a 12-month period. Cox said he was confident on the country’s ability to manage supplies. “We have the distinct benefit of having a very united industry in New Zealand and so the agreement and commitment from all concerned to get the demand & supply situation back into balance is excellent,” (...)
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