Winegrowers pulling out vineyards due to global oversupply of wine

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Hundreds of hectares of vineyards are being pulled out across the country as the industry reacts to a global oversupply of wine. The Winegrowers’ Association estimates about…

Hawke's Bay is New Zealand's oldest wine growing region. Photo / RNZ, Alexa Cook

Hundreds of hectares of vineyards are being pulled out across the country as the industry reacts to a global oversupply of wine.

The New Zealand Winegrowers’ Association estimates about 2000ha of grapes have been uprooted, so by 2027 the total planted area of vineyards would be down 3% to 42,357ha.

A combination of several years of large vintages and falling alcohol consumption had contributed to a reduced demand for wine that had seen a flurry of larger wine companies exiting the industry.

The worst-hit region in New Zealand was Gisborne, where Indevin Group had halted supply contracts with its growers.

Ed Massey from the New Zealand Winegrowers’ Association told RNZ that had resulted in 46% of the region’s vineyards being ripped out.

“From 1138 hectares down to 614. That’s a substantial change and we recognise the concern for growers and the wider community in that region.

“It’s tied to that general reduction in demand for sauvignon blanc from regions that have traditionally supplied Marlborough,” he said.

He said Hawke’s Bay had also lost 9% of its vineyards, while Nelson was down 7%.

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