Profitability in New Zealand’s Marlborough wine region falls by 13%
The profitability of New Zealand’s Marlborough wine region before tax has fallen by 13% on the back of rising costs, according to the latest figures by Wines of New Zealand.
The Marlborough Model 2019 Viticulture Benchmarking – an annual report based on data taken from 50 growers in Marlborough – showed that the profit before tax of the model had fallen 13% to $8,700 per hectare in the year to June 2019, compared to $10,000 the previous year, or$11,600 in 2017, even though it had been an average vintage in terms of volume and the price for fruit had remained stable.
The report, which is produced by government body the Ministry for Primary Industries and New Zealand Winegrowers, said one factor behind this was the rising costs of labour.
Meanwhile global demand for New Zealand wine is at an all-time high, with total export value to importers and distributors reaching a record NZ$1.83bn, according to New Zealand Winegrowers.