27 Apr 2011

No wine glut this year but prices still low

9:30 am on 27 April 2011

The wine industry says there will be no wine glut this year, but struggling growers will be hit by continuing low prices for grapes.

The chair of New Zealand Winegrowers, Stuart Smith, says the harvest is down slightly in Gisborne, Hawke's Bay and Otago but up in Marlborough, which produces 70% of the national crop.

Mr Smith believes the national target of 310,000 tonnes will be exceeded slightly, but not by enough to continue the gluts of the past two years.

At an estimated $1200 a tonne for sauvignon blanc, Mr Smith says, average prices paid to growers are likely to be lower than they were last year.