3.3 Wine
Production and Trade
The increase in production of wine grapes, and the increasing profile of New Zealand wines in some markets, has resulted in a dramatic increase in wine export earnings to a provisional $273 million in the year ended March 2003. A difficult season was experienced in the majority of wine growing regions during 2002/03 due to late spring frosts that decreased yields to 65,000 crushed tonnes, rather than the 130,000 previously forecast. Export volumes for the year end March 2003 were almost 20% up on the 2001/2002 season. The wine industry hopes to maintain this level for the next season, regardless of the much lower yield. This will be partly at the expense of stock levels.
Production of crushed grapes in 2008 is projected to be 162,000 tonnes. The increase in production is due to the expansion in vine planting in recent years, which is projected to continue over the medium term. The export volume of wine for the year ended March 2003 is estimated at 26 million litres, and is projected to almost triple to 65 million litres by year ending March 2008.
The UK is the largest market for New Zealand wine export and accounted for 47% by volume and 42% by value for the year ended March 2003. Other major destinations are North America (23% by volume) and Australia (17% by volume).
Prices
International wine commentators note increased competition in the global wine industry is resulting in falling world prices, highlighted by discounting in key markets. For the year ending March 2002 export prices for New Zealand wine increased to $10.70 per litre (/l). However forecasts for 2003 and 2004 show decreases in the average price per litre to $10.50/l and $10.00/l respectively. The major factors influencing this slight decline in prices are the strong value of the NZD and expanding production volumes.
Contact for further information:
Rachel Monk
Phone: (06) 870 6374
Email: rachel.monk@maf.govt.nz
