The World’s Wine Markets

The World’s Wine Markets

Globalization at Work

Edited by Kym Anderson

This absorbing book examines the period of massive structural adjustment taking place in the wine industry. For many centuries wine was very much a European product. While that is still the case today – three-quarters of world wine production, consumption and trade involve Europe and most of the rest involves just a handful of New World countries settled by Europeans – the importance of exports from non-European countries has risen dramatically over the past decade.

Chapter 14: New Zealand

Mia Mikic

Subjects: economics and finance, industrial economics, international economics


Mia Mikic ´ The wine industry of New Zealand is a small industry from the national economy’s perspective. Its contribution to GDP, total merchandise exports and employment is still under 1 per cent.1 However, this industry is a big achiever. Twenty years ago, less than 1 per cent of the industry’s production was exported; in 2001 exports accounted for 36 per cent of produced litres of wine. Reliance on imports also has increased dramatically: while in the late 1970s/early 1980s only 6 per cent of domestic consumption of wine originated from imports, in 2001 56 per cent of consumption was sourced from imports (Anderson and Norman, 2003). The focus of the industry has changed dramatically from being an importsubstituting industry to one where international trade, particularly exports, are increasingly important. The industry has become globally oriented, with the national market being seen as just an integrated part of the world market. Consequently, import competition is no longer seen as threatening. Since the number of wineries has steadily increased, competition is not only from imports but also between domestic companies, whose number quadrupled over the past two decades. None the less, the industry remains extremely concentrated as most of the new wineries are small or boutique-sized producers. The wine industry has had a multifunctional role in New Zealand. The growth of the industry has impacted on a number of relevant social and economic goals. The expansion of the wine industry has contributed significantly towards diversification of agriculture-based exports. Its expansion has affected...

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