Wine industry - overview

The wine industry is an important agricultural industry in both the primary production and high-quality value-added sectors. The significance of wine production in New Zealand is indicated by the following:

• Grapes for wine production are New Zealand’s largest horticultural crop, with 24,000 hectares (ha) in production in 2007. An increase is forecast to 30,000ha by 2010.
• The wine industry comprised 540 winemakers and over 800 independent grape growers in April 2007.  Total direct employment in the industry was over 10,000 workers, with many more employed in supplying the industry or selling its products.
• The wine industry is regionally concentrated in a number of areas including
  • West Auckland (Waitakere City Council)
  • Matakana (Rodney District Council)
  • Waiheke Island (Auckland City Council)
  • Gisborne (Gisborne District Council)
  • Hawkes Bay (Hastings District Council)
  • Wairarapa (Masterton District Council)
  • South Wairarapa District Council
  • Marlborough (Marlborough District Council)
  • Nelson (Tasman District Council)
  • Waipara (Hurunui District Council)
  • Canterbury (Waimakariri District Council)
  • Selwyn District Council
  • Christchurch City Council
  • Central Otago (Central Otago District Council)
  • Queenstown Lakes District Council. 
    The industry is a strong contributor to regional development and tourism in these areas.
• There is significant regional variation in the scale of wine industry activity.  For example, some regions are far more dependent on ancillary operations than others due to the marginal return per hectare of land. 
• New Zealand grape growers and winemakers are committed to sustainable production, with 60% of the total vineyard area coming within the industry’s Sustainable Winegrowing New Zealand programme as at 2007.  A national strategy is being developed to have the entire industry in sustainable production by 2012.
• The wine industry is export-focused and dedicated to quality production, with products generally selling in the top 15% price bracket on overseas markets.
• The wine industry is a significant contributor to the economy, with $1 billion worth of sales in 2006, projected to reach $1.5 billion by 2010.  It is currently the fifth most valuable New Zealand export to the European Union, the second most valuable export to the United Kingdom, and the seventh most valuable export to the United States.

Industry governance is provided at a national level by New Zealand Winegrowers. It is the national body that represents, promotes and researches the interests of the New Zealand grape and wine industry. It was established in 2002 as a joint initiative between the Wine Institute of New Zealand and the New Zealand Grape Growers Council Incorporated. All New Zealand growers and wineries are members of New Zealand Winegrowers through their parent organisations, the Wine Institute of New Zealand and the New Zealand Grape Growers Council.

The wine industry in New Zealand is characterised by a wide range of operational types.  Operations range from winegrowing only, ancillary cellar door facilities and boutique wine production, through to large-scale off-site wine production.  These operations are not mutually exclusive and can change over time.  Generally, winegrowers have to increase the scale of their activity in order to increase productivity.