Wine industry growth strong
A new report reveals the extent of the Marlborough wine industry's growth, and the reduction of the region's traditional pastoral farming sector.
The Marlborough Regional Development Trust's Progress Marlborough economic development strategy report shows the district's winegrowing and horticulture industries boomed in the five years to 2006.
The wine industry generated $342 million in 2006, up more than a quarter from $264m in 2001.
During the same period, however, the amount of money generated by Marlborough's pastoral farming industry plummeted 40 percent from $120m to $73m.
The report provides analysis of the region's performance and possibilities for future growth and development.
It states that much of Marlborough's traditional beef and sheep farming sector converted to vineyards from 2001 to 2006, driven by drought, low or static world product prices, rising land prices, the high New Zealand dollar and diminished returns.
"Many pastoral units with well draining, flat land have taken the option of selling some or all of their unit for grape production."
The horticulture and winegrowing industries employed the equivalent of 4330 full-time jobs in 2006; 43 percent more than in 2001.
The pastoral industry employed 1040 in 2006; almost a quarter less than in 2001, with the closure of the Riverlands PPCS meat plant in 2002 having a major impact, the report said.
The number of businesses in both sectors increased during the period; from 715 in the wine industry in 2001 to 980 in 2006, and from 610 in the pastoral industry in 2001 to 730 in 2006.
Leasing and subdivision of larger farming properties for grape growing and lifestyle blocks contributed to this.
Grapevines have also replaced pipfruit, orchard fruit produce and vegetable production and processing.
As land has been converted into grapevines fruit growers had "effectively disappeared" and the horticulture sector had "effectively become the wine growing sector", the report said.
Land under grape cultivation has increased an estimated fourfold, from about 5000 hectares in the year 2000, to about 21,000 hectares in 2007. "This rate of increase sees no signs of abating. The average increase of vine plantings over the past decade is 2000 ha/annum. The 2008 year is no exception with a predicted increase planting of 2000 hectares," the report said.
Forestry also increased its contribution to the region's economy from 2001 to 2006, with its regional value growing from $76m in 2001 to $112m in 2006. Employment in the sector also grew by a fifth in this period. Despite experiencing low returns caused by the high Kiwi dollar, the industry was bolstered by an increased level of harvesting and processing of wood products.
Marlborough's other lifeblood industries aquaculture and seafood, aviation, and tourism also showed growth.
Marlborough's total GDP in 2006 was estimated to be $1.7 billion, up by more than a quarter since 2001.
Aquaculture and seafood increased 15 percent from $110m to $126m, aviation (including the Royal New Zealand Air Force aviation engineering and avionics at Woodbourne) increased more than a fifth from $96m to $118m, and tourism increased 11 percent from $75m to $83m.
Figures for the report were established by economic analysis, research and consultancy firm Business and Economic Research Limited.
The first Progress Marlborough Strategy was released in 2000, with subsequent editions in 2002 and 2004.