Viticulture

This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 vineyard monitoring programme. The full Horticulture and Arable Monitoring Report 2008 will be available in September 2008.

Key points

  • The Marlborough vineyard achieved a remarkable 37 percent increase in yield for 2007/08 following an excellent growing season. In contrast the Hawkes Bay vineyard recorded a significant drop in yield due mainly to widespread frost events in October 2007.
  • The Marlborough vineyard net cash income for 2007/08 rose 54 percent on the back of a substantial jump in yields, a lift in price paid per tonne for Sauvignon Blanc and a small expansion in the vineyard’s producing area. Hawkes Bay vineyard revenue dropped as a direct result of tonnage being down due to the frosts.
  • Vineyard working expenses increased by 29 percent on a producing hectare basis in 2007/08 on the Marlborough vineyard with an increase of 13 percent recorded for the Hawkes Bay vineyard. The main cost increases were in labour, weed and pest control and those costs linked directly or indirectly to fuel and electricity which include items such as contract machine work, frost protection and irrigation control. Growers are forecasting further cost increases in 2008/09 although indicate some cost control by limiting expenditure on repairs and maintenance.
  • The ability of Marlborough Sauvignon Blanc to continue captivating international markets has ensured yet another profitable result for Marlborough growers. The Hawkes Bay vineyard is more challenged in its underlying profitability and through strategic changes to its grape variety mix is seeking incremental improvements.

Table 1: Key parameters, financial results and forecast for the vineyard models

Marlborough viticulture model budget and expenditure

Table 2: Marlborough viticulture model budget

Table 3: Marlborough viticulture model expenditure

Marlborough viticulture model production and income details

Table 4: Marlborough vineyard model production and income details for 2007/08

Table 5: Marlborough vineyard model forecast production and income details for 2008/09

Marlborough viticulture model profitability trends

Figure 1: Marlborough viticulture model profitability trends

Figure 1: Marlborough viticulture model profitability trends

Hawkes Bay viticulture model budget and expenditure

Table 6: Hawkes Bay viticulture model budget

Table 7: Hawkes Bay viticulture model expenditure

Hawkes Bay viticulture model production and income details

Table 8: Hawkes Bay vineyard model production and income details for 2007/08

Table 9: Hawkes Bay vineyard model forecast production and income details for 2008/09

Hawkes Bay viticulture model profitability trends

Figure 2: Marlborough viticulture model profitability trends

Figure 2: Marlborough viticulture model profitability trends

Information about the models

The two model vineyards represent the predominant grape-growing regions of Marlborough and Hawkes Bay. These two regions currently account for up to 80 percent of the grape harvest in New Zealand. The models are primarily owner-operated businesses where the main source of income is derived from grape growing. Smaller lifestyle properties and larger corporate businesses are excluded from the survey.

The aim of the model is to typify an average vineyard for the region. Budget figures are averaged from the contributing vineyards and adjusted to represent real vineyards. Income figures include off-vineyard income, new borrowing, and other cash income. Expenditure figures include vineyard production costs, costs of management, debt, leasing, drawings, development and capital purchases.

Financial data in the viticulture models relates to a year end of 30 June.

Marlborough viticulture model

The Marlborough model draws on data from 18 vineyards that are mostly located in the Wairau Valley, while three are situated in the Awatere Valley. Sauvignon Blanc is the dominant grape variety in the model vineyard, followed by Pinot Noir, Chardonnay and Pinot Gris.

Hawkes Bay viticulture model

The Hawkes Bay model is based on data from 15 vineyards that are spread from the coast to the Gimblett Gravels. Merlot is the dominant grape variety, followed by Chardonnay and Sauvignon Blanc. The vineyard includes young plantings of Syrah that are coming into production. New plantings of Sauvignon Blanc and Pinot Gris are scheduled for winter 2008.

For more information on these models contact: nick.dalgety@maf.govt.nz

Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720

Web: www.maf.govt.nz

ISSN 1178-2765 (Online)

© Crown copyright - Ministry of Agriculture and Forestry 2008

The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.

 

Contact for Enquiries

Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
Contact this person

 
Display a printer friendly version of this page Print friendly




Biosecurity New Zealand Web Site

New Zealand Fast Forward