Wine harvest could affect prices Rural groups seek flexibility
A BUMPER 2018 wine harvest will support export volumes and value, but the down side could be pressure to drop prices.
Another consideration is the present flaring trade tensions in the UK, Europe, US and China, where demand for New Zealand’s relative luxury status wine could soften, from any fallout from the tensions, ASB senior rural economist Nathan Penny said.
The 2018 grape harvest ‘‘jumped’’ on 2017’s level. The national harvest was up 6%, or 23,000 tonnes to 419,000 tonnes and a 4% increase in yield accounted for most of the harvest lift, Mr Penny said.
‘‘The larger harvest will support export volume and value growth this year,’’ he said.
For the year to May 2018, export values rose 3.3% compared with the year earlier, mainly due to higher export volumes. Prices lifted just a touch, he said.
‘‘However, we expect this year’s larger harvest to put some downward pressure on prices,’’ he said, citing the global trade tensions.
Regionally, the Waipara Valley has bounced back from last year’s difficulties and the harvest was up by more than 33%.
The Central Otago Winegrowers Association said last week the tonnage for the district was up by about 15%, rising from its usual 8000 to 10,000 tonnes to 11,500 tonnes.
Mr Penny said in addition, harvests increased by more than 20% in Hawke’s Bay and Wairarapa. Of the main wine regions, only Gisborne had its harvest dip, down by 20%. Marlborough posted a modest 4% increase.
For the week ending July 13, Mr Penny said the ASB commodity price index rose 0.4% in New Zealand dollar terms, but it was the kiwi’s weakening against its US counterpart which provided the gain for the week.
Mr Penny said all the major index components posted falls during that week. Forestry and fruit posted the largest falls, both dipping 1.1%, while dairy and sheepbeef prices posted more modest declines of 0.5% apiece. AUCKLAND: Both rural lobby group Federated Farmers and Horticulture New Zealand, which represents commercial vegetable, fruit and berry fruit growers, have asked the Government for flexibility in the Zero Carbon Bill, the Government’s proposal for sharp emissions reductions by 2050.
The Government received 14,000 submissions on its plans for a new Zero Carbon Bill during a sixweek consultation that closed this week.
In its submission on the Bill, Federated Farmers said the best option of the three put forward in the ‘‘Our Climate Your Say’’ discussion paper was the ‘‘two baskets’’ approach that focused on reductions in longlived greenhouse gas emissions, such as carbon dioxide and nitrous oxide, while stabilising shortlived emissions such as methane, according to a state ment by the farmer lobby group
The group warned that moves to significantly reduce emissions and meet the nation’s Paris Agreement commitments should not be at the expense of New Zealanders’ economic and social wellbeing.
‘‘We need that clear road map to a low netemissions economy and a longterm plan of action that endures political cycles,’’ Feds climate change spokesman Andrew Hoggard said. ‘‘But New Zealand should not lock itself into an inflexible approach that disadvantages us more than other nations.’’
Separately, Horticulture New Zealand supports the concept of the Bill, ‘‘provided there are viable alternative production systems and technology developed within that timeframe’’, the group said about its own submission to the environment ministry.
‘‘Horticulture is concerned about the impacts of the various ‘net zero’ options on emissions prices and on GDP, jobs, incomes, and the health of New Zealanders,’’ Horticulture New Zealand chief executive Mike Chapman said.
Growers in the horticulture industry are mostly small to mediumsized businesses, with a few larger corporates in some sectors. Therefore, changes in costs can have a dramatic effect on the ability of these businesses to remain profitable and to continue to offer job opportunities to New Zealanders.’’ — BusinessDesk
❛ The larger harvest will support export volume and value growth this year