New Zealand`s wine industry faces a grape harvest increased by one-third in 2006 to a record high, raising fears of oversupply that have since proven misplaced..
Wine exports show no sign of slowing and have risen 18% in value on the previous year to June, reaching a new high of NZ$500 million (250 million Euros, $ 315 million). New Zealand now exports more than half its entire wine production.
Sales to the United Kingdom, the country’s largest wine market, rose by 4% in the year to June, while sales to the United States showed a healthier 11% increase. The US now buys one quarter of New Zealand’s wine exports. Sales to Australia, the third largest market, grew by 35%.
New Zealand is becoming increasingly dependant on Sauvignon Blanc for export revenue. The variety, whose quality appears excellent in 2006, now accounts for 72 out of every 100 bottles sold offshore. While the market for Sauvignon Blanc remains remarkably buoyant, with exports growing by 18%, local winemakers are keen to gain recognition for their other wine styles. Pinot Noir has overtaken Chardonnay as the second most exported variety with an impressive surge of 55% on last year’s figures. Despite a decline in fashion on the local market Merlot and Cabernet-Merlot blends enjoyed export growth of 26%.
The steadily declining value of the New Zealand dollar has made exporters cautiously optimistic. Exports are projected to reach NZ$700 million (350 million Euros, $ 475 million) next year and NZ$1 billion (500 million Euros, $ 635 million) by 2010. That growth in export will be needed to sell the harvest from a vineyard area that is expected to increase by 2,000 hectares (5,000 acres) a year to reach a total of 30,000 hectares (75,000 acres) by 2010.
Wine exports show no sign of slowing and have risen 18% in value on the previous year to June, reaching a new high of NZ$500 million (250 million Euros, $ 315 million). New Zealand now exports more than half its entire wine production. 
