Wine production in New Zealand is forecast to drop by 21% in 2024, falling 13% below the five-year average, as adverse climatic conditions take their toll on the industry. The forecasted decline is attributed to frost damage during the critical flowering period in Marlborough, one of the country’s primary wine-growing regions.
According to the International Organisation of Vine and Wine (OIV), New Zealand is expected to produce 2.8 million hectolitres of wine in 2024. The forecasted reduction is part of a broader global trend of decreased wine production due to various weather events and economic challenges. OIV’s global forecast, released late last month, indicates an overall decline of 2% in global wine production compared to 2023.
The report highlights significant production declines in Europe, where weather conditions have impacted yields across several countries. France has seen the largest drop in production, primarily due to difficult weather patterns throughout the year. Italy, although still recovering from last year’s low output, has regained its position as the world’s largest wine producer. Overall, most European nations reported below-average harvests, with Portugal and Hungary being the exceptions, where harvests were either average or above average.
In the United States, early forecasts indicate a return to average production levels for 2024, slightly lower than in 2023. In the Southern Hemisphere, wine production is also expected to remain subdued, primarily due to ongoing climatic challenges, marking the lowest global output in two decades.
In New Zealand, wine producer Delegat told shareholders last month that the 2024 harvest, although smaller, is expected to be of exceptional quality. The company attributed the lower volumes to cooler spring growing conditions across all three of its growing regions, underscoring the broader impact of climate variability on the country’s wine industry.
With reduced yields globally, the wine industry faces challenges in meeting demand, and producers will be monitoring the ongoing effects of weather patterns and market conditions into the year ahead.
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