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June 29, 2009
Aggressive Crop Thinning Keeps New Zealand Harvest Equal to 2008
by Mary-Colleen Tinney

Photos by Mary-Colleen Tinney

At 285,000 tonnes (approximately 314,159 U.S. tons), the 2009 New Zealand harvest equaled but did not exceed the record-setting 2008 harvest, according to figures released last week by New Zealand Winegrowers.

"We'd hoped it would be a bit smaller," admitted New Zealand Winegrowers chief executive Philip Gregan. "We thought it might be down a bit. That didn't eventuate because of an increase of 2,000 hectares that came into production. We certainly don't need any more grapevines planted. We have plenty of supply at the moment, and it's clear that we have more than enough [production]."

New Zealand grape growers had to aggressively manage crop size to maintain production levels equal to 2008. It is estimated that thousands of tonnes of grapes were dropped early in the season or simply left unharvested.

"There was a huge amount of thinning that went on," said Gregan. "In terms of oversupply, the first thing to do is limit the intake of grapes into wineries. In all, 61 percent of wineries had a supply that was the same as last year or smaller," compared to 80 percent of wineries increasing production in 2008. "The message about taking in only as many grapes as the winery can sell is getting through."

REGIONAL PRODUCTION

New Zealand's largest wine-producing region, Marlborough, had a production of 192,128 tonnes (211,784 tons), down 1 percent from 2008. Marlborough represents 68 percent of all New Zealand production. The slight drop, despite a large increase in plantings, was only accomplished after significant crop reductions by wineries and growers.

"It was our mission to have no bigger than the 2008 crush," said Marcus Pickens, marketing manager for trade association Wine Marlborough. Marlborough wineries collectively agreed to decrease production to avoid the second record-setting vintage in as many years. Pickens indicated that researchers estimated the Marlborough crop could be as much as 47 percent higher than long-term average.

"It was pretty clear to the wineries that taking in more than they could sell wasn't a good proposition," said Pickens. "It was a cultural change and evolution in the industry for growers. It probably was not easy for everyone to swallow. But once it was explained that if everyone works together, there's a very prosperous future for us, a majority welcomed it. The interaction has been one of the leading examples of everyone coming on board and helping the industry. It shows the commitment to really position ourselves where we need to be."

Marlborough wineries and growers are concerned with oversupplying the market and devaluing their brand. "There's been a run of larger vintages and that's always been welcomed because the market's been there for it. But we've reached capacity on that at the moment," said Pickens. "We don't want to flood the market before they are ready to take it. It's not an outcome we desire.
"To continue our success, it's really all about the premium positioning," continued Pickens. "With more volume coming on we've stretched that structure a bit. We've got to sell a majority at the top end. The future for that looks quite bright, but we're in a holding pattern."

Harvest in the smaller, southern region of Central Otago was reduced significantly. The region pulled in 6,218 tonnes (6,854 tons), down 35 percent from 2008's record harvest. "We were obviously down on last year, which was massive, so that's okay," said Nick Mills, president of the Central Otago Winegrowers Association. "For some, the frost was pretty hard work at the start. But that's a part of growing down here."

Growers in Central Otago thinned the crop significantly in order to manage size and increase quality. "Judicious bunching is part of the task down here in Central Otago because we're growing in such a marginal climate," said Mills. "It was a pretty cold summer so we didn't get the alcohols across the region, but that's never a bad thing."

Elsewhere in the country, the second-largest growing region, Hawke's Bay (which accounts for 15 percent of total production), was up 20 percent to 40,985 tonnes (45,178 tons). However, this is a return to normal levels after a severely frost-reduced 2008 vintage.
The Gisborne district, which represents 8 percent of total production in New Zealand, was down 3 percent to 23,093 tonnes (25,455 tons).

Record production levels were reached in Wairarapa, which was up 8 percent to 4,421 tonnes (4,873 tons). "We had superb flowering and fruit set, a bit of much-needed rain in February, then an ideal long, warm summer with a great finish and a long autumn," said Rachel Fletcher of Wines from Martinborough.

Fletcher emphasized, however, that the region's large harvest is unlikely to create an oversupply situation. "We're pretty boutique in the scheme of things, about 1.5 percent of the total New Zealand crop. We've always focused on quality rather than quantity. Our wineries aren't picking everything; they are picking the best quality. That's something that this region's always been focused on. So, it was great to have two strong vintages in the row and shows that this region can sustain existing national and international demand."

In other larger growing regions, Nelson also had a record vintage, increasing 11 percent to 7,740 tonnes (8,531 tons), while Waipara dropped 16 percent to 5,227 tonnes (5,761 tons) and Auckland grew 1 percent to 1,615 tonnes (1,780 tons).

VINTAGE BY VARIETY


Sauvignon Blanc is New Zealand's leading variety, rising by 8,000 tonnes to a total of 177,647 tonnes (195,822 tons) harvested. The variety, which is largely responsible for New Zealand's international reputation, is also steadily dominating the country's production. In 2005, Sauvignon Blanc accounted for 45 percent of the New Zealand harvest. By 2009, that share had risen to 63 percent of total production, five times more than any other variety.

The Marlborough region accounts for 57 percent of total Sauvignon Blanc production. "Sauvignon Blanc was slightly up," said Pickens. "We had quite a few more hectares coming on. You can see there's been a lot of intervention there to keep that number similar to last year."

Chardonnay is the second-ranked variety in New Zealand, accounting for 12 percent of total production. Chardonnay harvest was up 5 percent to 34,393 tonnes (37,911 tons), largely due to the return to normal production in Hawke's Bay. Chardonnay production in Marlborough was reduced, however, after growers thinned crops after facing heavy disease pressure from unfavorable weather early in the season.

Pinot Noir is the third-largest variety by production, but is becoming increasingly important in New Zealand's international profile. Disease pressure and crop management in Marlborough and Central Otago reduced the overall harvest of Pinot Noir to 27,547 tonnes (30,365 tons), a 16 percent reduction from 2008. Looking only at table wine production, Pinot Noir was down 27 percent.

Merlot, buoyed by improved production in Hawkes Bay, is the fourth-largest variety at 11,723 tonnes (12,922 tons) harvested, an increase of 15 percent over last year. Pinot Gris closely followed in production, bringing in 11,401 tonnes (12,567 tons), a decrease of 8 percent from 2008.

Riesling production was down 26 percent to 6,316 tonnes (6,962 tons). Gregan indicated that the reduction "has to do with a lot of work in the vineyards. People were surprised by the crop last year and managed it [downward] this year."

Varietal production varied by winery size. Sauvignon Blanc is a larger focus at medium-sized wineries, as the varietal represents 68 percent of crush, compared to about 60 percent for both small and large wineries. Pinot Noir production is largest at small wineries, where the variety accounts for 17 percent of production. Comparatively, Pinot Noir is 9 percent of production at medium-sized wineries and 8 percent at large wineries.

Chardonnay production is somewhat more important at large wineries, where the variety accounts for 16 percent of production while other varieties account for just 6 to 8 percent of production.

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