KEY POINTS:
The fast growing wine industry is likely to hit an export of target of $1 billion this year, says New Zealand Winegrowers chief executive Philip Gregan.
Wine exports reached a record of $904 million in 2008 - a jump of 19 per cent on the previous year.
"The strong performance in the past year now makes it increasingly likely that annual New Zealand wine exports will reach $1 billion some time in calendar year 2009, one year earlier than previously forecast," Gregan said.
The average per litre value of exports was $9.15 in 2008, compared with $9.04 the previous year.
"I think we've got to say we've got to be hugely pleased with the performance over the past year. Clearly, there's some challenges in the economic situation going forward but we are producing world class wine for which there are good markets and growing markets globally."
Growth during the past year has been powered by strong sales in key markets, led by Australia, and the increased availability of wines from the 2008 vintage, he said.
Good weather and more land coming into production helped the 2008 harvest soar 39 per cent on the previous year to 285,000 tonnes.
"In addition in recent months we have also seen some benefit from the lower value of the New Zealand dollar against the USA dollar."
The coming year would be more challenging for wine exporters, Gregan said.
"To date, the economic downturn appears to have impacted wine exports only minimally," he said.
"However, there is increased uncertainty about market performance in the year ahead which may yet impact on export growth."
Not all of the 2008 harvest was expected to be sold during the year ending June 2009 but the sector was performing in line with export projections. The 2009 grape harvest starts in about three weeks and was not expected to be bigger than last year.
"What we're seeing in the industry at the moment is they were caught out by the size of the vintage last year, the grape growers and winemakers, so they're being very careful about their yield control this year with an absolute focus on quality and not allowing excessive yields in the industry."
Export volumes were forecast to rise from about 88 million litres in the year ending June 2008 to between about 160 million-165 million litres in the year ending June 2013.
GROWING INDUSTRY
* $904 million of exports in 2008, up 19 per cent.
* $1 billion export target brought forward to this year.
* Minimal impact so far from economic downturn.
