Hawke's Bay wineries digging in for 10 tough years

There is no question that the industry is facing some tough issues.Hamish Pringle,

Markham's Hawke's Bay Times in the wine industry are tough but the majority of Hawke's Bay wineries which took part in a national business confidence survey believe they will be trading profitably in 10 years time.

The overall consensus is a determination to "dig in" and meet the economic challenges which inevitably lie ahead, survey firm Markham's Hawke's Bay's Hamish Pringle said.

"There is no question that the industry is facing some tough issues and the short-term trading environment will mean there will be some who will have to exit the industry but the majority are digging in for the long term and are confident that profitability will come right."

The latest survey shows Hawke's Bay respondents following a national industry pattern of low levels of profitability confidence in the coming years (60 per cent of respondents). But there has been a significant jump in confidence for profitability in the longer term with 90 per cent expecting to be trading and turning a profit in 10 years.

Across the country, about 45 per cent of those surveyed believed 2010 had been more positive than they had initially anticipated during a survey in January last year.

Many Bay wineries had grown their brands through increased marketing efforts nationally and internationally, and had put in place plans to meet market demands and reduce stock levels.

Mr Pringle said the region's land values had remained stable and interest was beginning to increase, particularity from buyers looking for red varieties.

Paritua Vineyards, at Maraekakaho, has been sold, by receivers, to a New Zealand-based but Chinese-led company.