Good weather great news for winegrowers

29 September 2014

MEDIA RELEASE

Good weather great news for winegrowers

Warmer than usual weather in Marlborough and Hawke’s Bay this year has resulted in some vineyards seeing record profits.

These are the findings of the 2014 Viticulture Monitoring Report, released today by the Ministry for Primary Industries (MPI) and the New Zealand Winegrowers Association.

Based on interviews with contract grape growers and wineries in the two regions, the report is positive news for the wine industry as a whole, says MPI’s Director of Sector Policy, Jarred Mair.

“The wine industry is a significant contributor to New Zealand’s economy and it’s pleasing to see vineyards reporting increases in price paid per tonne and profits before tax.”

New Zealand Winegrowers Chief Executive, Philip Gregan, says this report is encouraging news for the industry.

“The Marlborough model shows a 25 percent increase in profit before tax for the 2013/14 year, and in Hawke’s Bay there’s an impressive 139 percent increase.

“Growers are emerging from some difficult years and they realise there is a fine line between supply and demand, but overall they’re optimistic about their business, with good demand for New Zealand wine.”

MPI has conducted a viticulture monitoring programme since 2004 – although this year is the first time it has collaborated on the report with the New Zealand Winegrowers Association.

“This partnership is a positive example of government working with industry to better understand what’s going on at ground level,” says Mr Mair.

MPI also partnered with the wine industry when it invested in the New Zealand Winegrowers-led Lifestyle Wines programme under the Primary Growth Partnership (PGP). The programme aims to position New Zealand as number one in the world for premium lifestyle wines.

“MPI is committed to continuing to work together with the wine industry,” says Mr Mair.

ENDS

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