NZ wine records 23rd year of value growth

Exports of New Zealand wine have achieved their 23^rd consecutive year of growth by value and are now worth over NZ$1 billion.

As reported by trade body New Zealand Winegrowers in its 2018 Annual Report, the export value of New Zealand wine exports rose 2.5% in the year ending June 2018 to NZ$1.7bn, with the US accounting for NZ$500m worth.

This keeps the industry on track to hit its NZ$2bn target in 2020 the industry body went on to say.

The continued rise in value has been achieved at the same time as “muted” volume growth – in part due to smaller vintages – the report added.

John Clarke, chairman of NZ Winegrowers, said: “In the coming year we predict export growth will continue to be muted given that the 2018 vintage was smaller than we had hoped. The final outcome will also be affected heavily by the exchange rate, which is currently looking more favourable.”

Volume exports rose very slightly from 253m litres in 2017 to 255m litres.

The US is the biggest market for exports by value, the UK continues to be an important destination, the second export market in fact and one worth NZ$386m and while this is represents a slight decline versus the previous year whether this has anything to do with the impact of ‘Brexit’ is yet to be accurately determined.

Clarke continued: “The UK is the second biggest export market for New Zealand wine with $386 million in exports, and wineries will be watching closely over the next nine months to gauge the possible effects of ‘Brexit’ on international trade”.

The next biggest export markets by value are: Australia, Canada, the Netherlands and China, with the latter three seeing growth by volume and value though Australia witnessed small declines in both areas.

The full report can be read here.