Wine growers in New Zealand may harvest at least 13 per cent more grapes than last year even after a call from an industry group to curb oversupply that's boosted sales of bulk wines and hurt profit margins.
The harvest may be significantly larger than last year's 266,000 metric tonnes,
Rabobank International said in a report yesterday. Output may be at least 300,000 tonnes, said Marc Soccio, a senior analyst in food and agribusiness research at Rabobank.
New Zealand Winegrowers last year advised growers to limit this year's vintage to 265,000 tonnes.
"While wine companies continue to temper production, growing conditions in the season to date have been largely conducive to high fruit yields," the report said.
A rise in bulk sales at reduced margins has hurt growers' profits, according to a report from Deloitte Touche Tohmatsu and New Zealand Winegrowers based on responses from producers that account for about 30 per cent of export sales.
- BLOOMBERG
