Some Central Otago grape growers would lose money this year but the district's wine industry would not suffer, industry leaders said yesterday.
There is concern some small-scale grape growers are unable to sell their 2009 crop because of a surplus 2008 vintage and conservatism among winemakers in the present economic climate.
New Zealand Winegrowers deputy chairman Steve Green, of Carrick Winery and Restaurant at Bannockburn, said some growers would probably not be able to sell their fruit this year.
"It's not a problem for the industry so much, but it will certainly impact on a few individuals."
Mr Green said 2008's bumper season meant less fruit was needed for wineries this year, and grape growers with short-term contracts were more likely to find a lack of demand for their fruit.
He said about one-third of all Central Otago grapes were grown to sell to wineries, rather than be processed by grape growers themselves.
Of the 30%-35% of grape growers selling crops, those with long-term contracts would be more secure, he said.
Mr Green said the situation was being compounded by grape buyers being more conservative in today's tough economy.
"Larger companies have not bought as much fruit this year as in 2008," he said.
Despite that, this year's crop was about 20% less than first predicted, which would go some way towards offsetting difficulty faced by some growers trying to sell grapes, he said.
"People have done a lot of fruit thinning and have reduced their yields. Central Otago produced about 11,000 tonnes last year and will probably produce about 8000 tonnes this year."
Mr Green said seasonal variation was all part of the wine industry, and to an extent, this year's situation was a "correction" in the district.
"We often get a see-saw effect and I expect next year everyone will be absolutely fine again. I'm confident this is a one-year correction in the industry and it's similar to what's happening in Marlborough and parts of the Hawkes Bay."
Comparatively, Central Otago was well insulated from seasonal fluctuations, as the district specialised in pinot noir, which aged well and could be sold years after its vintage, he said.
"We are not trying to sell the wine in its year of production. We've a time lag which works in our favour and compensates somewhat for seasonal variation."
