Bumper crop leaves sour taste

The New Zealand Winegrowers Association should have a rethink about labelling the 2006 grape harvest as a bumper crop because such a message could drive down global prices, a leading winemaker said yesterday.

Kim Crawford said since the association labelled this year's harvest the largest ever last week British and Canadian buyers had been demanding a price cut.

"We've had people contacting us saying there is obviously going to be a surplus, an oversupply, so can you make us a cheap wine," he said.

The result could be an erosion of the price winemakers could command for their labels.

"This is not what New Zealand wants. I don't think it [the message] was well presented by the grape growers," he said, adding that wine aficionados also associate a bumper year with lower quality wine.

Crawford said the average selling price for Kiwi wine in the UK market had declined during the past year from £6.23 ($16.64) to £5.68.

"There has been a natural downward progression as our volumes are going up," he said.

Association chief executive Philip Gregan said the statement also said the grape yield would be average or slightly below.

The expectation is for a vintage of between 165,000 and 185,000 tonnes of grapes; up from the record of 165,000 tonnes set in 2004.

"I think foreign agents and people overseas read into things what they want to," said Gregan, noting that even with hindsight the association would not change the statement.

Gregan has heard from only one other winemaker unhappy with the announcement out of 539 members.