New Zealand: Grape tonnage spells trouble for wine growers
on 01/02/11 at 2:54 pmIndustry
A bumper grape harvest this year could drive more wine companies into the hands of receivers, says a Deloitte partner already involved in a number of receiverships in the industry.
Rabobank senior analyst in food and agribusiness research Marc Soccio last week warned 2011 output could be as large as 300,000 tonnes. That would be a 13 per cent increase on last year’s harvest.
In December, New Zealand Winegrowers chief executive Philip Gregan said a harvest larger than 300,000 tonnes would return the industry to the situation that followed the 2008 vintage, when a 285,000 tonne crop resulted in a 27-million litre oversupply – eroding wine, land and grape prices.
At the same time, the onset of the global financial crisis only deepened a dire situation.