Wine industry's efforts bear fruit

 Moves by the wine industry to rebalance supply and demand appear to have been successful, with the 2010 grape harvest 7% lower than 2009 nationally despite a vineyard area 2000ha larger.

The Otago harvest, however, was unchanged at about 6200 tonnes, a result Central Otago Winegrowers Association chairman Nick Mills said did not surprise him.

The size of this year's Otago harvest was rated by Mr Mills as small to medium, which he said balanced production coming from new vineyards.

Grape quality was "well balanced", between tannins, acid and flavour, while alcohol levels were low, he said.

"All in all, it is a vintage of huge potential."

New Zealand Winegrowers chief executive Philip Gregan said the national data showed growers and wineries had responded to two years of over-supply by reducing production.

But, the volume of wine exported continued to grow, increasing 27% in the past year.

The sector has endured a difficult few years, with several wineries going bankrupt, and recently the Commerce Commission cleared NZ Winegrowers of claims of collusion after it was alleged it had advised growers to limit their harvest to avoid adding to the over-supply of wine.

Mr Gregan said growers had planned for a smaller harvest, to address that supply imbalance.

Last autumn, 266,000 tonnes of grapes were harvested from 33,200ha, compared with 282,000 tonnes off 31,200ha in 2009.

This year's harvest was later than last year's, but settled weather in March and April, combined with lower yields, ensured fruit quality was high.

"Above all else, this confirms the industry's focus on, and commitment to, quality."

Seven of the 11 main grape-growing regions had smaller harvests, with the largest growing area, Marlborough, reporting a 5% drop, from 192,128 tonnes to 182,658 tonnes.

Hawkes Bay, the second-largest producer, was also down 5%, from 41,000 to 39,000 tonnes, while Gisborne was down 21%, from 18,316 to 23,100 tonnes.

Mr Gregan said the smaller harvest should not affect export volumes, as wineries would draw on existing inventory.