NZ annual wine exports up 8% but profitability slows
The high kiwi dollar take a toll on profits as sales rise 10% to a record 242 million litres.
Hot Topic
EARNINGS
BUSINESSDESK: New Zealand Winegrowers, the industry body representing about 1000 growers and 700 wineries, says annual exports rose by 8% even as the high kiwi dollar reduced profits.
Exports rose to $1.12 billion in the 12 months ended June 30, NZ Winegrowers annual report says. Sales (export and domestic) increased 10% to a record 242 million litres. International wine sales have increased by 79 percent since 2007.
New Zealand's overall freight-on-board price per litre fell 7T to $6.58.
Wine is the country's eighth biggest export. Globally, New Zealand is the 10th largest exporter of wine by value and the 11th largest for volume. It is second, behind France in terms of the average price at which wine is sold.
"Profitability is a key concern," chairman Stuart Smith says. "Lower yields this year have restricted grower incomes, while for wineries the challenge will be to maintain shelf space and grow key development markets in a time of tight supply.
"Returns have also been impacted by the high New Zealand dollar and domestic tax increases."
Bottled wine continues to make up the bulk of wine exports, with package shipments accounting for about $1 billion of export earnings.
Australia remains the largest overseas market, with exports across the Tasman totalling $380 million. Exports to Britain were $284 million, while the US market continued to "perform strongly" on $250 million.
"The UK imports a greater volume of New Zealand wine than Australia but the value is lower due to the weak pound and large proportion of bulk wine exports," Mr Smith says.
"Bulk wine has now become the norm for popular premium wine imports for all counties into the UK."
Exports to Canada lifted 20% to $70 million, while China rose 50% to $25 million.
Hannah Lynch
Tue, 21 Aug 2012
Tue, 21 Aug 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZ annual wine exports up 8% but profitability slows
23121