Increase in vineyard area leads to record grape harvest

Productive vineyard area has expanded in the past two years. Picture / Carolyn Robertson.

The grape harvest has hit a record 185,000 tonnes for 2006 due to the big increase in productive vineyard area in the past two years.

The harvest is expected to translate into 133 million litres of wine.

But industry group NZ Winegrowers was keen yesterday to play down any suggestion the record might fuel talk of a glut and drive wine prices down.

Chief executive Philip Gregan said: "Demand is strong and the vast majority of wineries we've spoken to in recent months have been running low on wine."

Supply could not meet demand in key export markets such as the United States, Britain and Australia. Also, higher volumes were needed to increase sales in new markets such as Ireland.

About 55 per cent of local wine production is sent to markets overseas and the yield is expected to help lift exports by 15 million litres to 75 million litres in the year to June 2007.

Some 130 million litres was expected to be sold in 2007, up from 110 million litres in the year to June 2006. The new record is 11 per cent higher than the previous high of 166,000 tonnes in 2004.

Last year's vintage dropped to 142,000 tonnes because of cool weather during the flowering period.

The growth to 185,000 tonnes reflects an 18 per cent rise in productive vineyard area since 2004.

Marlborough, the biggest grape-producing area, saw a 23 per cent production increase over 2004 to just under 113,500 tonnes.

The next biggest were Hawkes Bay, Gisborne and Nelson.

Reuters reports Australia will also have a big harvest this year while the American vintage is 20 per cent above forecast.