High Dollar Worrying Wine Exporters

24 April 2007

High Dollar Worrying Wine Exporters

New Zealand winemakers have joined the chorus of complaints about the impact on exporters of the soaring value of the New Zealand dollar.

Commenting on the issue New Zealand Winegrowers' CEO Philip Gregan said "Our exports have grown strongly in the past year, but there is no doubt the high value of the dollar is causing problems, particularly for exporters to the USA."

"The short term impact of the dollar at US74 cents is reduced profitability for exporters to the USA. A number of wineries have already contacted us about this, and it is clear some are experiencing real financial pain."

"However, even more worrying than the short term issues are the possible long term effects. Our exporters generally take a medium to long term view of market development, and can overlook the short term ups and downs of currency movements. But, if the dollar stays at current levels for any period of time, this will inevitably lead to reduced investment in market development, and growth will not meet our forecast targets."

"We will be keeping a close eye on movements because it is vital that this is a short term issue and doesn't mutate into a problem that undermines New Zealand's export growth in the long term," said Mr Gregan.

ENDS

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