Global wine shortfall the NZ vintner’s luck
Bad weather which has hit wine production in Europe and South America will probably not result in higher prices in local stores, but it may offer New Zealand exporters opportunities.
Richard Sherriff of Regional Wines in Wellington said it would depend on where the shortfall occurred.
‘‘If it’s Burgundy, it could mean the wine is an exceptional one, which often happens when there’s a grape shortage.’’
The International Organisation of Vine and Wine (OIV) has reported world wine output will fall an overall 5 per cent.
Some regions are worse-hit than others, for example France (down 12 per cent), Argentina (35 per cent, Chile (21 per cent) and South Africa (19 per cent).
On the other hand, the New Zealand vintage this year has soared by 34 per cent, and Australia’s has risen by 5 per cent.
The reduced production is one of the lowest since 2000, the Parisbased organisation said.
But the wine division of EU farm federation Copa & Cogeca pointed out that the quality of European harvests ‘‘was good across the board’’.
Sherriff said Argentina, Chile and South Africa tended to sell at the low end of the market, and if there was a shortage of these wines, New Zealand producers would fill the gap.
New Zealand Winegrowers chief executive Philip Gregan said there might be opportunities for exporters, depending on where the shortfall occurred.
‘‘We sell in a particular part of the market. If the shortfall is at the low end of the market, then no, but higher, yes,’’ Gregan said.
For example, New Zealand wines sold in the United Kingdom are chasing hard on the heels of French wines for volume and value.
New Zealand wine exports are now valued at $1.56 billion, up 13 per cent in the past year. Gregan predicted the 2016 vintage would see the industry on track to achieve its goal of $2b worth of wine exports by 2020.