Trading Places – Part 1
It’s one of the toughest times for the New Zealand wine industry with production excesses and market dynamics creating risky and volatile trading conditions. Whilst most wine producing nations would consider it a bear market for selling wine, New Zealand is still bullish about its liquid assets and seems better placed than most for a strong recovery.
With New Zealand’s biggest trading partners being the UK, Australia, and the US, rampant currency fluctuations are creating serious fiscal pain for exporters. Added to the exchange rate woes, the 2011 harvest was an unexpected 328,000 tonnes with 23% more grapes being picked than the previous year. However Philip Gregan, Chief Executive Officer of New Zealand Winegrowers (NZW) still believes wineries can proceed with “cautious optimism”.
In the first of this two-part feature Misha Wilkinson reports on the biennial New Zealand Wine Exporters’ Forum held recently in Blenheim, Marlborough, and the predictions and opportunities that lay ahead for New Zealand wine.
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