Wine exports up despite smaller harvest

Strong international demand for New Zealand wines has seen a four percent increase per litre since September last year. Photo / 123RF

RNZ

Demand for New Zealand wine has increased with exports reaching $599 million in the September quarter.

The nine per cent increase on the same period last year was despite a much smaller harvest; 370,000 tonnes of grapes were harvested during the 2021 vintage - down 19 per cent on the previous year's crop.

That smaller harvest led the export value to drop by three per cent in the year to June - the first decline in 26 years.

But New Zealand Winegrowers chief executive Philip Gregan said things were turning around.

"We know there is strong demand out there, but we weren't expecting this sort of lift in export value in this first quarter.

"It's all about strong demand for New Zealand wine, customers overseas love New Zealand wine, and they are buying more frequently and at higher prices than previously, so it's a really positive consumer-driven story."

The strong demand had also seen a four per cent increase per litre since September last year.

Gregan said growers were hopeful the crop would be bigger next year so they could take advantage of demand in markets like the US, the UK and Canada.

"We're very much in the hands of the weather, so far we've had a pretty benign spring, which is positive. Everybody has their fingers crossed that there are no more frosts and hopefully that will set us up for a significantly increased crop next year.

"But we are expecting over the course of next year that the overall value of wine exports will be down, simply because the shortfall of grapes is quite significant."

Gregan said strong international demand was helping growers who were still dealing with challenges in the domestic market.

"Wine businesses that sell predominantly through the on-premise and tourism sector continue to experience significant challenges.

"Domestically, restrictions on operations of hospitality businesses are a major stress point for wineries dependent on that sector. Cellar doors have been hit hard by the collapse in international tourist numbers, as well as the impact of current restrictions on regional travel."

He said more New Zealanders were visiting cellar doors but there were long, lean periods outside of the traditional Kiwi holiday period.

"The best thing that could happen for the sector would be for travel throughout the country to be freed up because that would encourage Aucklanders to travel to wine destinations that they clearly love."

- RNZ