Sauvignon grape prices hit all-time low
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Photo: Marlborough Express PRICE FALLS: Sauvignon blanc grape prices on the spot market have slid to an all-time low. |
"We know of someone only today getting $550 for surplus grapes," said Marlborough grape grower Blue Derry.
Mr Derry, who has two grape blocks totalling 20 hectares, said that if a grower did not have a contract with a winery it was a matter of accepting such a paltry price or going bust.
"Even at $1200 a tonne you are barely breaking even," he said.
Most people with a contract were receiving around $1200 to $1300 per tonne for savvy with a quality bonus attached that could be worth another $300 to $400.
He said one of his blocks was currently being harvested.
"The volume is there and the quality but in our contract with Constellation and Villa Maria we are restricted to 11 tonnes per hectare so they will just leave the rest."
He added that unusually his chardonnay this year was getting a better price than sauvignon blanc.
Wine Marlborough marketing manager Marcus Pickens said at the halfway point of vintage 2010, the consensus from Marlborough winemakers and growers was that "yields are down, below average, but fruit flavours are up".
Wairau Valley grower Peter Morice said his sauvignon blanc crop was down between 25 and 30 percent.
"This was mainly caused by pruning back to three canes in June last year, rather than four."
Mr Pickens said this was one of the steps many of the region's vineyard owners took to reduce yields and save on costs.
Cloudy Bay winemaker Nick Lane said fruit has benefited from hot March temperatures resulting in "nice flavour ripeness.