Big profits elude small wineries
Relevant offers
New Zealand's wine industry will face greater consolidation as smaller vintners struggle to make decent profits.
A new report released by Deloitte and New Zealand Winegrowers has found small growers with turnover between $1 million and $5m registered a lowly pre-tax return of 1.4 percent. However, the 2007 benchmarking survey found wineries in the $5m to $10m range had an 8.2 percent return, the $10m-$20m gained 18 percent and wineries with a revenue of more than $20m had a 24 percent return.
The report found the smaller wineries were struggling to cope with exchange rates, compliance costs and excise levies.
Christchurch-based Deloitte corporate finance partner Paul Munro said larger wineries continued to show the advantage of size and economies of scale.
- © Fairfax NZ News
Sponsored links
NZ's best farm land 'already sold off'
'Mondayising' could cost $200m
ANZ, Westpac can bank on their brand
Action launched over Feltex statement
Riots as Greece approves austerity
Stocks down despite Greek news
Suppression ends for SCF accused
Fonterra recalls butter after metal found
Dollar up on Greek debt package
One dead after SH1 crash near Wellington
Driver charged over Allan Hubbard crash
Police find woman's body in Manawatu
Adele's the big winner at Grammys
Proteas expect fiery series against Black Caps
Boxer Richard Tutaki enters guilty plea
Toxic soil fears five years before residents told
Pat Lam still mum on Piri Weepu's Blues role
Qantas grounding 'good for brand'
Seriously ill man found on beach
NZ's best farm land 'already sold off'
Dotcom accused van der Kolk 'flabbergasted'
One dead after SH1 crash near Wellington
Adele's the big winner at Grammys
Body found in Sydney tree identified
Police find woman's body in Manawatu
Woman crushed, friend watched 'helplessly'
Houston died in bathtub - coroner
Do you think a milk price war will erupt?
Related story: Another shot fired in milk price battle



