Wine makers are managing to reduce production in an attempt to rebalance the sector and stop money slipping through their fingers.New Zealand Winegrowers chairman Stuart Smith said falling profitability has become the most significant issue for the sector
Wine makers are managing to reduce production in an attempt to rebalance the sector and stop money slipping through their fingers.
New Zealand Winegrowers chairman Stuart Smith said falling profitability has become the most significant issue for the sector but grape growers must continue to carefully plan the size of their vintages for the industry, and therefore revenues, to fully recover.
“Times are tough in the industry and we must be very focused if we are to continue the progress of the past year," he said.
“For the next two years that focus must remain on rebalancing and recovery. From there, future growth must target enhanced value ahead of production capacity.”
Although the 2010 vintage was 7% down on 2009 – with that reduction being an important step in rebalancing the sectors’ supply-demand balance – the value of wine exports increased 5% to more than $1 billion in the year to June, with packaged wine exports lifting 14%.
Mr Smith said while the progress of the past year was positive, it was not enough to guarantee the future, which is in the hands of growers and wineries.
“As long as every step along the path continues to be guided by an unswerving commitment to quality, the industry can look to the future with confidence.”
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