Grape harvest set to hit new heights

By IRENE CHAPPLE

New Zealand grape growers produced a record vintage during the past year and expect an even bigger crop of grapes for the year ahead.

The New Zealand Winegrowers annual report, released yesterday, shows a vintage of 166,000 tonnes, 40 per cent up from previous harvests.

Sales rose 15 per cent to $300 million while value was up 7 per cent on the previous year.

The glut contributed to pushing down prices but was still welcomed in light of the frost-troubled 2003 vintage, when a lack of grapes had constrained supply.

New Zealand Winegrowers chief executive Philip Gregan said next year the industry would probably produce a vintage of up to 190,000 tonnes, depending on weather.

He said a major issue was the tax rebate planned for Australian winegrowers from October.

About 20 per cent of exports goes to Australia and winegrowers expect the tax rebate to be implemented despite strident opposition from the New Zealand Government.