Grape harvest expected to drop

While the wine industry celebrates what is likely to be an excellent 2010 vintage, it knows all too well that business will not magically improve.

New Zealand Winegrowers yesterday announced an expected drop in grape harvest for this year, down 7 per cent to 266,000 tonnes, producing potentially "superb" quality.

Chief executive Philip Gregan said there had been a lot of rain at the beginning of the year, but March and April were superb.

"The good weather and yields being at average levels ... if there is ever a good recipe that should see some good wines [this is it]. This year's vintage quality should be excellent."

The average price per tonne, which would not be established for six weeks, was likely to be slightly above last year's $1700-$1750, he said.

"We expect the average price to come down but we've heard this won't be as low as what we had last year. Last year there was a big quantity of grapes left on the vine."

This year's yield of 8000 tonnes a hectare is similar to 2006-07 but is substantially down on the almost 10,000 tonnes a hectare of 2008. The figures represent 450 wineries covering 95 per cent of the industry's production.

Sauvignon blanc remains the cream of the crop and accounts for 66 per cent of this year's vintage, followed by chardonnay (10 per cent), pinot noir (9), pinot gris (5), merlot (3) and boutique (7).

"The focus for us in the next year is diversifying our effort away from our traditional markets. We're looking to grow in Asia, Europe and North America," Mr Gregan said.