NZ vineyards f it Americans’ bill
For Americans with a spare US$1 million to invest – or even US$1.5 billion – snapping up a parcel of New Zealand land to make wine is one way to make more money.
Asked where would be a good place to invest, Sarah Heller, a master of wine at US Heller Beverage Consultancy, told Bloomberg that New Zealand vineyards would be her pick.
New Zealand is still expected to offer options when climate change is forecast to hit established wine areas like California and Australia.
They are likely to see their winegrowing regions unable to cope with hotter temperatures and severe weather, growers will have to find cooler areas that have the right soil.
New Zealand fits the bill, Heller said, with cooler summers and vineyards close to the sea.
There was also plenty of potential for production of high-end wines as the industry turned its focus more to fine wines that could command a higher price than the bulk of exports.
‘‘In 30 to 50 years, both Australia and California may have limited sites available for the production of top cool-climate chardonnay, which is steadily gaining in popularity,’’ Heller said.
Land that was considered marginal would not face much competition from developers.
While many foreign investments in New Zealand land are restricted by law, overseas investors can buy up to 5 hectares of land for horticulture use without too much trouble.
That might not sound like much but the world’s dearest cool climate chardonnay, Montrachet, sells for as much as US$8000 a bottle and is produced on 0.68ha.
Rounding out the US$1m would be a few years’ farming and contract wine-making costs.