Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Wine industry well placed for big challenges

17 December 2003


New Zealand wine industry well placed for big challenges


New Zealand wine producers face big challenges in the next few years as the industry becomes characterised by a doubling of export volumes combined with static consumption and worldwide oversupply.

The industry is, however, well placed to capitalise on future trends towards premium and super-premium quality wine with its Pinot Noir and Sauvignon Blanc varieties, according to the latest MAF 2003 Situation and Outlook for New Zealand's Agriculture and Forestry (SONZAF).

The SONZAF report says that by the year 2006/07 it is expected that 20,000 hectares will be under producing grape vines - that's up from 15,400 in 2003.

The report says considerable investment in processing capacity and market development will be needed over the next four years to handle the increase in production.

Export volumes are forecast to increase by over 160-percent in the years to 2006/7 reaching 60-million litres. In the medium term, New Zealand FOB wine prices will continue to face pressure from international markets, though much will depend on exchange rate movements.

Contract prices are expected to fall slightly in the medium term as production volumes increase and export prices fall.

The SONZAF report says in a global market characterised by static consumption and oversupply, the challenge for New Zealand producers will be to maintain both their wine's reputation for quality and the high prices they currently receive.

The UK is New Zealand's largest market but competition from other New World wine producers has allowed UK importers to reduce prices for New Zealand wines. This is likely to be the first sign that global competition is a real threat to New Zealand exporters in their premium-priced markets.

The report says the way the industry works together to generically brand its wine along with the "clean-green" image will be an important aspect of its ability to compete successfully.

It says the industry's future will be determined by how successful it is in investments in marketing, branding and promotional strategies.

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>