Wine industry thrives despite rising costs
Marlborough’s wine industry continues to grow, despite an increase of more than 31 per cent in running costs on 10 years ago.
Wine Marlborough general manager Marcus Pickens says input costs for the average vineyard in the region have risen 10 per cent in the last year alone.
Most recently, vineyard and winery owners have been challenged with the cost of rising wages.
"There is quite a lot of pressure with the average wage going up so sharply, so dramatically,’’ Pickens says.
‘‘The wine industry agrees that everyone needs to be remunerated fairly, of course, but they’ve had to reduce [some] costs to make sure they absorb this change.’’
With the ever-changing nature of the wine industry, the majority of operators in the region have adapted to meet costs, while still producing a world-class product.
Input costs for a vineyard include power, rates and product costs, but the majority relates to an increase in the cost of labour; people costs, Pickens says.
‘‘I think that has had a big impact right across the wine sector. [Those things] are just the same as any other business, but there’s been quite a bit of pressure on the industry to adjust to the new realities of the market.’’
Alongside increasing costs, there has simultaneously been an increase in industry support in the region, and markets remain strong, Pickens says.
‘‘It’s not just Wine Marlborough on its own trying to support the Marlborough wine community now; New Zealand Winegrowers has really stepped up its presence in Marlborough.
‘‘There’s been a real change at the Marlborough Research Centre with the new Bragato Research Institute (BRI); it seems like there are new people arriving every week.’’
The institute is establishing a purpose-built winery at the centre, where specialist staff will continue researching and monitoring wine growing and making in the region.
Staff at the centre collaborate with Wine Marlborough and Plant and Research, which continues to provide scientific resources to the industry.
‘‘It’s great for the membership that they can have dedicated, specialist research right here in Blenheim,’’ Pickens says.
‘‘Plant and Food has always been fantastic at supplying that well, but building a major winery out the back here, it’s such a huge investment and will bring a heap of expertise to the region.’’
The decision by New Zealand Winegrowers to build the facility in Marlborough is also a good indicator of its faith in the region’s growth, Pickens says.
‘‘BRI is for the benefit of the whole of New Zealand, but it says a lot that it is based in Marlborough; Marlborough in terms of volume of wine produced is eight times bigger than the next biggest region, and that just says it all.’’
With added research support, Pickens expects to see more experimentation with different varieties in Marlborough.
‘‘No one is going to neglect sauvignon blanc, but it means there are new options and avenues to explore.
‘‘Whatever Marlborough turns its hand to, we are going to be amongst the best in the world, and that’s exciting to be part of.’’