Winegrowers in New Zealand are enjoying increased profitability, according to the Deloitte Vintage 2014 survey.
A Deloitte survey shows New Zealand wineries increased profitability again in 2014.
The survey divides producers into five categories according to size: those with turnover higher than $NZ20 million, those between $NZ10 million and $NZ 20 million, those between $NZ5 million and $NZ 10 million, $NZ 1.5 million to $NZ 5 million, and those below $NZ 1.5 million.
For the first time in seven years the survey found that all categories reported profitability before tax. It also reported that since 2010 there has been a general trend of growing profitability.
This run of good fortune comes despite concerns over the impact of oversupply, high levels of external debt, the financial crisis and the turbulent bulk market.
One of the biggest reasons for growing profitability is that kiwi winegrowers have managed to turn excess stock into revenue. The report says this factor will be especially important this year and beyond, following a bumper crop in 2014, where 445,000 tonnes of grapes were harvested.
Companies with turnover higher than $NZ20 million were the most profitable, with an average profit rate of 17.6 per cent recorded.
The report estimated the total value of the New Zealand wine industry to be around $NZ2 billion in 2014. Of this, $NZ1.36 billion came through exports.