This will place wine firmly among New Zealand’s top-five traded goods on current figures, he says. But he warns in NZW’s 2014 annual report that the reputation New Zealand wine has built up over the years must be preserved.
For the year ending June 2014, wine exports rose 10% in volume and value; overseas sales earned a $1.33b.
The average value per litre remained steady at $7.11 for all wine and $8.32 for packaged wine; a solid performance given the deadweight of continued high currency levels.
Australia remains the leading export destination – 53 million litres or 28% of total export volumes.
But North America and Northern Europe are fastest-growing; the US grew 16% in the past 12 months and the hub markets of the Netherlands and Germany were up 33% and 52% respectively. China including Hong Kong have slowed considerably but the potential in these markets is undiminished, says Green.
In the domestic market the story is different: total sales hover around 90 million litres. New Zealand wine sales slipped about 6% as wineries prioritised export markets. The successful sales year left stocks needing replenishment and even greater demand forecast; in 2014 445,000 tonnes of grapes were harvested.
“The 2014 harvest may seem like a drop in the ocean compared to major producers, but it was a record for New Zealand and signals the drive for export growth in the year ahead” says Green.
Strong sales have made wine a star performer; wine exports now earn more foreign exchange for New Zealand than butter, finfish or kiwifruit, says Green.
The impetus of the 2014 vintage will likely take wine to about $1.5 billion in exports next year; current growth estimates are for exports to climb to $2 billion by the end of the decade.
NZW’s annual member survey shows that strong sales and forecast demand signals confidence among growers and wineries; 80% indicate a positive outlook for the year ahead. This reflects a lift in vineyard and infrastructure development in the past 12 months.
But Green cautions that investment counts for little without the premium reputation New Zealand wine has built up. He referred to recent food safety scares.
“The past 12 months have seen some challenges to brand New Zealand and hopefully some lessons learned.
“From the perspective of the wine industry, these challenges [show] that everyone who trades on our national reputation has an obligation to look after it.
