New Zealand wine in high demand despite labour and supply chain challenges

Published Nov 8, 2021

Tridge summary

New Zealand wine exports reached a value of $600 million in the September quarter, marking a 9% increase from the previous year, fueled by high international demand and a slight rise in price per litre. Despite this success, the industry faces challenges such as supply constraints, reduced harvest sizes, increased production costs, and the impact of Covid-19 on borders and supply chains. The shortage of skilled workers, exacerbated by border closures, is particularly concerning. The industry is implementing strategies to mitigate these challenges, including quarantine-free travel for workers and efforts to attract new labor. However, tourism-dependent businesses continue to struggle, and concerns over shipping reliability and costs persist.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The value of New Zealand wine exports hit $600 million in the September quarter, up 9 per cent on the same period last year, with no sign of slowing. New Zealand Winegrowers chief executive Philip Gregan said international demand was high, reflected in its price per litre, which was also up 4 per cent. The demand proved that New Zealand wine’s distinctive flavours, quality and sustainability credentials were resonating with global consumers, he said. The 2021 vintage was exceptional throughout the country’s wine regions, while the overall harvest was much smaller than hoped for, down 19 per cent on last year’s crop to 370,000 tonnes of grapes. The reduced supply was reflected in the decreased export volume for the year to date, which was down 3 per cent on last year. “Successfully managing the market impacts of the resulting supply constraints is a key focus for many in the New Zealand wine industry. Wineries are having to make tough decisions over who they can supply in their key ...

Source: Stuff NZ