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Home / Business / Companies / Agribusiness

Winegrowers boss criticised for sending 'wrong signals'

By Malcolm Burgess
NZ Herald·
4 Jun, 2007 05:00 PM2 mins to read

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KEY POINTS:

Winemaker Kim Crawford has slammed New Zealand Winegrowers chief executive Philip Gregan for comments he believes could hurt exporters already struggling to meet overseas demand and smarting from the high dollar.

Gregan last week issued a statement highlighting this year's bumper crop, but Crawford feared its emphasis on
a rise in production could fuel pressure from overseas buyers to reduce prices and supply more product.

Gregan said the estimated grape harvest was up 11 per cent on the previous year at 205,000 tonnes. He noted that many wineries would experience continuing supply constraints with exports up 31 per cent.

But Crawford said he thought overseas buyers would take the statement to mean New Zealand had "plenty of wine" when the major growth was in chardonnay - up 44 per cent - which he described as "almost insignificant in the mix".

Volumes of sauvignon blanc - one of the country's main export varietals - had grown only marginally and pinot noir - the second biggest export - had shrunk by 6 per cent.

"Sauvignon blanc's only just up and [in] pinot noir we got about half of what we were expecting. We're going to be very short on those two lines in the international markets."

Crawford said buyers might expect more product and demand prices come down as a result of the news.

"Our buyers overseas aren't going to like the fact that we're actually having to restrict them in a lot of cases."

He said Gregan had given out the "wrong signals" considering that the strength of the dollar meant many exporters would have to increase their prices in the export market.

Gregan did however acknowledge "there will be ongoing supply constraints" for savignon blanc.

"The sauvignon blanc crop was up just 6 per cent to 102,000 tonnes, meaning there will be on-going supply constraints with this variety given exports are up 36 per cent for the 10 months to the end of April," he said.

Pinot noir was down 6 per cent at 20,700 tonnes, despite an increased producing area.

Gregan reported that although 60 per cent of the vintage had come from Marlborough, the region was up only 7 per cent while Gisborne and Hawkes Bay lifted their production 44 per cent and 26 per cent respectively.

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