Wine boss asks banks to be patient

BY MICHAEL BERRY

New Zealand Winegrowers chairman Stuart Smith wants banks and investors to be patient as the wine industry recovers.

Mr Smith opened the 16th annual Romeo Bragato wine conference at Marlborough Lines Stadium 2000 in Blenheim this morning.

It was a strange and tough time for the industry, Mr Smith said.

"In normal times, I would be standing here proclaiming the great successes of the past year," he said.

The industry was still able to celebrate, surpassing exports of more than $1 billion, achieving 20 per cent plus export volume growth, lifting pinot noir exports to more than $100 million for the first time, winning two successful commodity levy votes in 12 months, and producing a very high-quality vintage, he said.

"But as we all know, these are not normal times – far from it."

The industry needed patience and understanding from investors as it strived for profitability by rebalancing supply and demand, he said.

"It is vital also to remember that in this testing time, we are all in this together.

"I don't mean just growers and wineries, but I mean the wider industry, from nurseries to glass suppliers, from banks to the Government."

Banks had been vital to the growth of the industry, providing much of the capital that enabled it to become a $1b export business, he said.

"Successful grape growing and winemaking is a business requiring patience. It also requires patient capital – capital that accepts the risks of agriculturally based businesses.

"Now is the time for investors to show patience with our industry, because there is no doubt our sector will recover."

The target yield for 2011 was the same as this year: 265,000 tonnes of grapes, he said.

Running until Saturday, the conference is being held at Marlborough Lines Stadium 2000, with some sessions at the Marlborough Convention Centre.

Many wine experts, growers and marketers are in town to share and hear research and insights into the industry.

National industry organisations will hold meetings during the conference.

The Wine Institute of New Zealand and the New Zealand Grape Growers' Council will hold their annual meetings today, and Organic Winegrowers New Zealand's will hold theirs tomorrow.

The national Viticulturist of the Year and Silver Secateurs competitions are on Saturday.

On Saturday night, at the Bragato Dinner at the stadium, the winners of the Bragato Wine Awards will be announced.

Romeo Bragato was an Italian-educated viticulturist and winemaker who wrote the first report on New Zealand's suitability for viticulture in 1895.

His 1906 book, Viticulture in New Zealand, identified grape varieties to plant and in what regions, as well as detailing best vineyard layout.

The report lay forgotten for more than 60 years, but was picked up by Kiwi wine pioneers in the 1970s and early 1980s and forms the basis of modern New Zealand viticulture.

- The Marlborough Express