Thousands of grapevines uprooted amid global oversupply of grapes

Burn-off piles are becoming more common across some of our most prestigious vineyards.

Thousands of hectares of grapevines have been torn out as our wine industry grapples with a global oversupply of grapes.

The country's largest wine producer, Indevine, has dramatically reduced its grape supply within the Gisborne region, citing economic pressures.

Winemaking conglomerate GisVin's general manager Hamish Jackson said it was depressing to see such vast land change.

"[It's] really tough to drive around here, I used to have a vineyard out there, all of it's gone now, the landscape around Gisborne changed completely," he said.

Jackson said around 63% of the grapes were coming out.

"We generally harvest 1340ha of grapes around here, with that being halved 660-something hectares being pulled out which is a significant amount of wine not going to be produced.

"For the local economy, it's going to be about $19.5 million loss of income to the growers, support services, the pruners, the harvesters, people applying sprays – just generally anything involved with the industry."

A few hundred kilometres down the road in Hawke's Bay, growers are battling the same fight.

Hawke's Bay grower Wim Barendsen has pulled out 7ha on his land.

"I'd estimate Hawke's Bay-wide is probably about a thousand hectares being pulled out," Barendsen said.

Some growers are looking to diversify the land to other crops, but options could be limited.

"I haven't got the consent to grow anything else, so grapes are the lowest water use plant per hectare. If I want to grow apples here, for example, I can only grow apples on half my land and have to leave the other half unirrigated," he said.

The issues have been building for some time, with rising production costs combined with export tariffs topped off by a changing culture towards consumption.

New Zealand Winegrowers brand general manager Charlotte Read said it was "a very tough time in the global wine market" and there were many factors at play.

"Kicked off by Covid, rising global inventory. We're a product of Mother Nature, when vintages are slightly larger, we are seeing softening of demand."

Lifestyle patterns were also changing, she said, with alcohol consumption on the decline globally.

However, Read said New Zealand was comparatively well placed as a "premium operator".

"We are only 1% of the world's wine and our proposition is well understood, distinctive, sustainable wines," she said.

"That's putting us in a very good position internationally."

A recent free trade deal with India could soon be a cause for celebration.

India's first and only Master of Wine Sonal Holland believed there were green shoots ahead for Kiwi growers.

"India consumes $55 billion worth of alcohol and it's a very big market. I think New Zealand most certainly represents a great opportunity within that repertoire," she said.

"I think there are some very exciting times ahead for New Zealand wines and I think the signing of the free trade agreement most certainly represents the three Cs which is a lot of clarity, a lot of certainty and growing confidence among both nations to do business with each other."

Holland added that Indians viewed New Zealand and its vines as "very favourable".

"We think of New Zealand as a place that's very exotic, very beautiful and the wines offer a great range of diversity, great taste and represents something premium.

"I think the free trade agreement is built for premium wines so it should work out very well."