The wine industry is stating that this year will be a reason to celebrate after long term losses, however, it has be accepted that things cannot become “excellent” in seconds.

NZ Winegrowers' Chief Executive, Philip Gregan said the grape harvest for the year 2010 decreased as compared to 2009, but that the exports of the crop elevated by almost 30%. It was informed that the total harvest accounted for 266,000 tones, which dropped 19,000 tones from last year. The results were in tune with the pre harvest forecast.

Growers and the wineries experienced a potential excise inclination, the Emissions Trading Scheme and a GST climb. It has been said that ETS will rise from the next month and the GST is expected to peak by October. Mr. Gregan said because of too many producers, the supply is surpassing the demand and this in turn pushed the domestic and the export prices down, in a plagued market.

Last year, the bulk export volumes elevated 27%, which accounted to 141 million liters of wine, as the producers lessened the prices for initiating the sales to the export markets in Australia and Britain.

Also, a 14% increase was witnessed by the bottled wine exports and this year’s exports were also projected to be similar.

He also informed, "Grape prices have fallen quite steeply. That's a direct result of the supply imbalance. We're concerned about profitability”.