As New Zealand prepares for its 2024 wine harvest, expectations are high for exceptional quality tempered by significantly reduced yields.
The backdrop to this year’s vintage is a tale of resilience and anticipation following the aftermath of Cyclone Gabrielle in February 2023.
Weathering the Storm
Cyclone Gabrielle left a profound impact on New Zealand’s wine industry, causing an estimated NZ$13.5 billion in damage and resulting in the loss of approximately 20,000 tonnes of grapes. While the 2023 harvest saw some recovery, the long-term effects on vineyards and infrastructure have persisted, influencing the upcoming harvest.
Optimism Amidst Challenges
Despite these setbacks, there is a palpable sense of anticipation among New Zealand wine producers heading into the 2024 harvest. Philip Gregan, CEO of New Zealand Winegrowers, notes, "Producers have a real sense of anticipation this year." This optimism is bolstered by favorable weather conditions attributed to the El Niño phenomenon.
Ideal Growing Conditions
"El Niño traditionally delivers lots of warmth and sunshine in our wine-growing regions, and it has certainly been the case this season," explains Gregan. This weather pattern has created near-ideal conditions for grape ripening, characterized by low disease pressure and excellent grape quality. "All reports suggest that we are heading towards another quality vintage," he adds.
Yield Expectations
While the quality is expected to be exceptional, Gregan cautions that the overall yield for 2024 will be significantly lower compared to previous years. "Nationally, we expect the 2024 harvest to be down on the last two years," he states. An impending pre-vintage survey of wineries is expected to confirm these anecdotal reports of a lighter crop.
Economic Impact and Market Dynamics
The New Zealand wine industry plays a crucial role in the country’s economy, with exports accounting for about 90% of its production. Despite challenges in recent years—from the impacts of Covid-19 and labor shortages to natural disasters like Cyclone Gabrielle—the industry has shown resilience. In 2023, although grape volume decreased by 6%, the value of New Zealand wine surged by 23%, reflecting higher pricing strategies by producers.
Global Reach and Trade Relations
New Zealand’s three largest export markets for wine—the US, UK, and Australia—remain pivotal in its export strategy. The elimination of tariffs on most exports under the free trade agreement between New Zealand and the UK further underscores the strategic importance of these markets.
Looking Ahead
As New Zealand’s winegrowers gear up for the 2024 harvest, the industry stands at a crossroads of challenges and opportunities. While grappling with reduced yields, the emphasis remains on maintaining high standards of quality and reinforcing its global reputation for premium wines.
Stay tuned as the story of New Zealand’s 2024 wine harvest unfolds, promising a testament to resilience, innovation, and the pursuit of excellence in viticulture.
Source: The Drinks Business