Wine adds body to NZ economy

Wine exports have grown by an average 24 per cent a year over the past 20 years. Photo / Greg Bowker

The wine industry contributes more than $1.5 billion to New Zealand's GDP and supports 16,500 full-time jobs.

These are some of the facts and figures in a new report written for New Zealand Winegrowers by economic consultancy NZIER.

Winegrowers chairman Stuart Smith said the wine industry had been transformed in the past two decades, and the body had commissioned the study to better understand future challenges and opportunities.

The NZIER report says the number of wineries in New Zealand grew from fewer than 250 in 1996 to 600 last year.

It says our wine exports have grown at an average of 24 per cent each year for the past 20 years, compared with 5.9 per cent growth for all export goods.

New Zealand's wine exports are worth $900 million a year, our 12th largest export item.

The industry plays a pivotal role in some of New Zealand's regions such as Marlborough, where it accounts for 20 per cent of the local economy and supports 4000 jobs.

Marlborough contains half the country's grape growers and produces three-quarters of our wine exports.

In Hawkes Bay, wine accounts for 2 per cent of the region's GDP and supports 1600 jobs. Hawkes Bay produces 12 per cent of the nation's wine exports.

It is also estimated that the industry generates 225,000 wine-related tourist visits to this country each year.

NZIER says the economic downturn may create two effects among consumers of New Zealand wine.

While some may turn to cheaper, low-quality wine from other markets, others may switch away from expensive wines such as French champagne to New Zealand methode champenoise, for example.