Economic Yields

Photo by Richard Briggs

THE IMPORTANCE of wine to Marlborough’s economy dwarfs that of dairy in Southland, pipfruit in Hawke’s Bay and kiwifruit in the Bay of Plenty, according to a new report. The New Zealand Institute of Economic Research (NZIER) has revealed that 18% of all Marlborough’s economic activity in 2020, a total of $571 million, can be attributed to the wine industry, with one in every four jobs directly and indirectly related to wine.

“Back in 2000, wine contributed $119m to the regional economy, with its contribution burgeoning by 380% in the two decades since.”

In comparison, dairy is responsible for 16% of the Southland economy, while apples and pipfruit make up 8% of Hawke’s Bay’s economy, and kiwifruit just 7% of Bay of Plenty's. “This report demonstrates the many ways the wine industry drives the Marlborough economy and is a fantastic information set for us to share with our community and stakeholders,” says Wine Marlborough general manager Marcus Pickens.” Back in 2000, wine contributed $119m to the regional economy, with its contribution burgeoning by 380% in the two decades since, says Marcus. “I think most of us know that wine is the lifeblood of this region, and has transformed Marlborough. But it’s still heartening to see the numbers, and to quantify just how vital it really is.”

NZIER says the wine industry accounts for 2,750 jobs in the region and another 3,338 jobs are indirectly supported by the industry, far greater than any other sector investigated. In terms of wages, $171m from both grape growing and wine production ends up in Marlborough households’ pockets, resulting in more than 14% of total household income in the region last year.

Marcus says the report results are a reminder of how important it is that the wine industry successfully responds to challenges like Covid-19, the labour shortages faced by industry heading into vintage 2021, and the risk of a shortfall in labour for winter grape pruning.

Marlborough Mayor John Leggett says he is impressed at how much the wine industry provides to the Marlborough economy, when compared with other major industries in other regions. He says having independent research providing the figures gives credence to “what we have been saying, what the industry has been saying about development and how things have been going in recent years. It gives it real credibility. It’s a job well done.”