New Zealand harvest 20% down on 2020 but quality across all regions is "exceptional"
New Zealand’s 2021 vintage is nearly a fifth smaller than the previous year’s crop, in line with earlier forecasts, but the quality is being hailed as “exceptional” across all the country’s wine growing regions.
A total of 370,000 tonnes of grapes were harvested, a 19% drop on last year. Those regions in the middle of the country including Wairarapa, Marlborough, Nelson, and North Canterbury saw the biggest declines in yield, down by 20% on 2020. However, there was considerable disparity across the country, with Central Otago the one region to see its crop increase, up by 21% on last year’s harvest.
“While the quality is exceptional, the overall smaller harvest means many of our wineries will face tough decisions over who they can supply in their key markets,” said New Zealand Winegrowers’ CEO Philip Gregan. “There is going to be some supply and demand tension because of this, with the shortfall in the crop equivalent to roughly seven million nine litre cases of New Zealand wine.”
He added it was encouraging that New Zealand continues to perform well in export markets, reflecting consumer demand for its wines. “Wines from vintage 2021 promise to be something special, but in some instances, the question may just be whether there is enough to go around.”
This year's smaller crop is being attributed to cooler weather in the spring and late frosts in some regions, and comes when the industry is facing soaring production costs, with ongoing labour shortages also piling on the pressure.
Given the difficulties of Covid-19 over the past year, New Zealand Wine Growers is opposed to a looming increase in wine taxes which would result in duty increasing on July 1st. A big worry concerning this increase is the impact it will have on the 300-odd smaller producers who only sell their wine in the domestic market.
“They have already been hit hard by the lack of international tourists post-Covid, surging production costs, and the difficulties being experienced in the hospitality sector. Adding to those stresses with yet another tax rise does not make sense right now,” said Gregan.