Grape growers warned to limit crops
Grape prices are expected to drop 10 per cent at the next harvest, says Nelson Winegrowers chairman Mike Brown.
He is advising Nelson grape growers to review their crop loadings to maintain quality rather than quantity, and to sustain prices.
Last week in Marlborough, growers were urged to limit their grape yields to their contract specifications or risk having the fruit left behind.
More than 450 people attended the behind-closed-doors meeting in Blenheim, which discussed what is happening in the market and predictions for the 2009 harvest.
Marlborough had a record vintage of 194,630 tonnes this year, and NZ Winegrowers chief executive Philip Gregan said the province did not want a massive harvest again.
Nelson's grape harvest increased 35 per cent to 7002 tonnes this year.
However, Mr Brown said Nelson did not have a culture of greed among its growers.
"The community here is a little bit tighter and relationships tighter, so growers tend to crop sensibly," he said.
"Some growers crop higher because of high demand but now wineries need to be super-quality-focused to ride out the difficult market, which means lower crops."
Nelson grape prices averaged $2350 a tonne last harvest, he said, and he expected this to fall 10 per cent.
The key to success was for growers to have good relationships with their wineries to have some security over the next few years, Mr Brown said.
It could be difficult for those who had played the spot market or who had not performed for their winery in some manner in quality or overcropping, he said.
Growers could reduce their crop after fruit set by shoot thinning, or taking off grape bunches six to eight weeks before harvest.
Mr Brown, who is winemaker and general manager at Waimea Estates, said it would be thinning pinot noir and pinot gris by 20 to 30 per cent and sauvignon blanc by 10 to 20 per cent.
He believed the oversupply problem would be temporary while the industry underwent a correction.
"It's a matter of demand catching up with supply again. So long as people do not go out planting vineyards, it will correct itself again and growers will see crop prices come up," he said.
It was good news for consumers, Mr Brown said. "It's pretty competitive now, not only with the amount of wine but with the recession as well people are price-sensitive.
"People are looking at BYO and dining at home, so having a range of options at cheaper price points is key to success."
People who had stopped going out to more expensive restaurants were prepared to spend a bit more on dining at home, so the dynamics had changed, he said.
"People are not drinking less, but they are dining out a bit less, and are more price-sensitive."
A Marlborough grower who declined to be named said he was worried about surplus wine affecting the market.