Industry leaders confident exports will remain steady

Central Otago's wine and fruit industries are not immune to recession, but industry leaders are confident the district can pull through tough times with hard work and common sense.

• Riding out the recession

Although some individual businesses have struggled in the past year, for a variety of reasons, fruitgrowers and wineries generally are staying afloat and have every chance of continuing to do so, according to industry spokesmen.

Central Otago Winegrowers Association president Nick Mills, of Rippon Vineyard, in Wanaka, said by continuing to focus on exporting product which had established the area's wine industry, growers should fare well in the future.

"If we knuckle down and concentrate on quality, which seems to be what's got us to where we are so far, there's every chance we can stay strong and move into the future with a positive outlook," he said.

Mr Mills said years of hard work had placed the district's winegrowers in a strong position.

"There are going to be some tough times ahead but fortunately, the people that have set up shop here to a large extent are in it for the long haul," he said.

Mr Mills said consolidation within the industry was likely, and although winegrowers should be able to maintain their business, growth would be limited in the near future.

"We'll grow slowly and within our means and not try to stick our necks out too far," he said.

New Zealand Winegrowers deputy chairman Steve Green agreed, and said because of the quality of Central Otago pinot noir, it was one of the strongest regional brands apart from Marlborough savignon blanc.

Mr Green, of Carrick Winery and Restaurant at Bannockburn, said Central Otago's traditional export markets in the UK, Canada, the United States, and Australia were still doing very well and New Zealanders were continuing to support local wine.

"People are still treating wine as an affordable luxury. Some of the markets are becoming more difficult in terms of pricing as people go for lower priced wine, but having said that, both New Zealand's export sales and Central Otago's export sales are doing very well," he said.

Mr Green said if the quality of Central Otago's wine continued, as looked likely with this year's vintage, markets would be receptive.

Stone and pipfruit growers within the district are also staying calm with respect to the economic climate.

Pipfruit New Zealand chief executive Peter Beaven said Central Otago fruitgrowers had positioned themselves in a strong position for export markets.

Mr Beaven, of Hastings, said most of the district's pipfruit was grown under the Apple Futures project, which aimed to reduce or eliminate sprays and chemicals used on crops.

"There's growing demand from Europe for safe fruit and that's what Apple Futures is all about. Central Otago growers are in a good position to achieve that, and it's adding value to the fruit sold in key markets," he said.

Mr Beaven said this year's fruit season had started positively for both Central Otago growers and others in the country, as high-quality fruit was selling well in Asia and Europe.

Summerfruit New Zealand chairman Gary Bennetts, of Roxburgh, said local fruitgrowers were holding on as they had not lost returns on crops, and hoped costs would not increase.

"Generally the season's been pretty excellent in terms of harvest and quality of fruit.

"The labour situation greatly improved this year which meant growers could harvest on time, for the fruit to be at its best quality, in turn generating top returns," he said.

Mr Bennetts said in the past few years Central Otago's fruit industry had experienced a "bit of a shake-out" which meant remaining growers were serious about it and committed to its continued success.