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The nation's wine exports have jumped 19% to a record $904 million, and exporters say they should hit the industry's billion-dollar target this season, a year earlier than expected.
"The strong performance in the past year now makes it increasingly likely that annual New Zealand wine exports will reach $1 billion some time in calendar year 2009," New Zealand Winegrowers chief executive said Philip Gregan said.
The wine industry board first projected 2010 wine exports of $1 billion in 2005, when wine exports were valued at just $430m. Less than a decade earlier, wine was earning less export revenue than onions.
The latest export record was an increase of $143 million over the 2007 June year and $106 million above the value of wine exports for the 2008 year.
"Our success in 2008 is very satisfying and reflects our status as a globally competitive source of world class wines," Gregan said.
"Growth in the past year has been powered by strong sales in key markets, led by Australia, and increased availability of wines from vintage 2008."
There had also been a shot in the arm from the lower exchange rate for the New Zealand dollar.
The average value of wine exports was $9.15/litre in 2008, up from $9.04/litre in 2007.
Gregan said the coming year was shaping up as challenging for wine exporters.
"To date the economic downturn appears to have impacted wine exports only minimally. However, there is increased uncertainty about market performance in the year ahead which may yet impact on export growth."
Nevertheless, the result is an encouraging sign: in September 2008 wine was predicted to suffer along with other exports to the United States that has been hard hit by recession.
Back then Gregen said the downturn for the United States would affect the industry across the board, from the willingness of banks to lend for expansion and development in the industry, through to the number of overseas tourists coming to New Zealand.
Gregan says the 2009 harvest will focus on quality, not quantity, and winemakers will be controlling their yield.
