Issues and Trends
Wine exports continue to grow at a rapid pace. Exports for the 12 month period, March 1999 to March 2000, have grown to 17.9 million litres, worth $150.9 million (fob). This is a 10% increase in volume and a 27% increase in value compared to 1999. The average price per litre (fob) of wine for the 12 month period was $8.44. Exports now represent over 30% of the total volume of New Zealand wine sales. This is a dramatic change from a decade ago when export sales were 6.7% by volume and were valued at $11.6 million. Access issues for New Zealand wine in the European Union (EU), and new non-tariff barriers to be imposed in key markets, are of industry concern. Projections suggest wine exports will grow to $275 million by 2003, and to around $600 million by 2010.
Following the recent controversy over mislabelling and poor record keeping, the industry has moved to assure its identity, integrity and safety of wines by upgrading the Wine Export Certification System. It is proposing a new Wine Act to integrate and improve aspects of the existing Winemakers Act and Winemakers Levy Act, with new provisions regarding standard setting and enforcement. The Wine Institute is now seeking government support for the proposals as a matter of some priority. This was highlighted in a briefing paper presented by the Wine Institute to the new Government in April.
The industry continues to promote New Zealand wine as "The Riches of a Clean Green Land". This has helped to emphasise the quality and integrity of New Zealand wine, and reinforce the reputation of New Zealand for environmental purity in other food exports. Key initiatives over the past 12 months have included:
- Promulgation of a new Code of Practice for Winery Waste Management. The Wine Institute intends for this to become the standard national requirement for winery waste management.
- Further promotion of the Integrated Winegrape Production Scheme to ensure New Zealand vineyards are operated in an environmentally sound manner. Nearly 200 vineyards, representing in excess of 60% of the total area, are already participating in the scheme. The various industry bodies have recently agreed to encourage all vineyards in New Zealand to participate.
Excise tax continues to be an issue among winemakers and the industry and one they remain strongly opposed to. The current rate is $1.96/litre which puts the total industry bill at over $100ÿmillionÿpa. In 1996 major changes were made to the collection regime, which eased many winemakers concerns over collection procedures. The Wine Institute has asked government to promote certainty and predictability in future excise regimes, to be intellectually honest over the reason for excise existence, and to highlight the beneficial health consequences of responsible and moderate consumption of wine.
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