New Zealand has edged closer to its $1 billion export target for 2012 following a recent surge in exports but its success has been met with caution.
While exports increased 24% by $194m to $992m in the past 12 months, Stuart Smith, the head of New Zealand Winegrowers, claimed it still has major hurdles to overcome.
‘Some unmistakeable warning signs emerged this year. Despite sales volumes benefitting from increased supplies from the 2008 vintage, those increased supplies also delivered increased competition and downward price pressure,’ he said.
‘Without doubt the situation was exacerbated by the global recession. As a result lower profits are the reality for many in the industry this year.”
Due to record crops in 2008 and 2009, New Zealand wine has been sold at prices as low as £3.99 in the UK. Smith warned ‘Continued effective management of supply is fundamental to our future success’.
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Written by Victoria Fay