The outlook looks bright for the rapidly expanding Otago wine
Wine is set to become the primary sector's sixth
billion-dollar export earner from 2012, with predictions
earnings will reach $1.3 billion.
Data released by the Ministry of Agriculture and Forestry
yesterday showed that by 2012 the value of wine exports would
almost double from 2008, nudging ahead of kiwifruit and
almost double wool, once one of our most valuable exports.
Maf's situation and outlook report on New Zealand agriculture
and forestry said this year's harvest was exceptionally big,
boosting export volumes by 30%, but generic growth would
increase export volumes by 50% by 2012.
New Zealand Winegrowers chief executive Philip Gregan said
the industry was on target to make $1 billion in exports by
2010, but the key was to remain market-led not
production-driven, a challenge given new plantings of 2000ha
The world still recognised New Zealand wine as high quality
and, as it represented less than 1% of world consumption, Mr
Gregan said New Zealand was able to target markets paying
more than $NZ11 a bottle.
Its reputation allowed exporters to trade on the
international reputations of Marlborough sauvignon blanc and
Central Otago pinot noir.
"Our position in the market must never disappoint the
consumer in terms of quality of offering," he said.
The Maf report reveals primary exports would continue to
underpin the economy.
Receipts from dairy exports were expected to hit $12 billion
next year, 40% more than two years ago, while beef exports
would grow from $1.5 billion to $2.26 billion by 2012.
The sheep industry was expected to break out of its depressed
state, despite sheep numbers falling 4% in the year to June
2007 and being expected to fall further.
As a result, the volume of export lamb was forecast to fall
11% between now and 2012 but export earnings to increase 25%.
Forestry would remain a key export earner with log and pulp
prices picked to rise more than 30% in the next five years
but returns for timber and panel would remain flat on the
back of weak building demand.
The net result would be that export dollars from the sector
would rise from $3.3 billion this year to $4.5 billion.
Returns from wool were expected to rise on the back of a 40%
increase in prices, with export receipts expected to increase
29% in the next five years to $795 million.