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Grapes for winemaking are grown from Northland to Otago spanning a distance of 1,600 kilometres, with each winegrowing region possessing a distinct microclimate or terroir. The northern hemisphere equivalent to our growing strip is Bordeaux in France down to southern Spain.
Marlborough is the dominant winegrowing region with about 60 percent of the 34,600 hectares planted in vines. It is the home of the grape varietal Sauvignon Blanc, which has firmly placed New Zealand on the world wine map. Hawke's Bay is well known for its red wines, with the country's largest plantings of Merlot, Syrah and Cabernet Sauvignon grapes. Other regions of note include Auckland, Gisborne, Wairarapa, Nelson, Canterbury/Waipara and Central Otago.
There are almost 700 wineries in New Zealand, ranging from small boutique wineries to large company owned businesses. Around 50 percent of wine grapes are grown under contract for wineries by independent growers, with the rest grown by wineries themselves.
The wine industry has seen dramatic growth in export receipts over recent years achieving the milestone of $1 billion in annual sales in July 2009. The United Kingdom and Australia are the main export markets by volume, accounting for almost 60 percent of sales. Other markets include the USA, Canada, Netherlands, Ireland and a rising star, China. A period of grape oversupply in New Zealand followed the 2008 vintage. However, the industry is working hard to achieve supply and demand equilibrium.
The domestic market currently absorbs about one third of New Zealand wine production, at just under 60 million litres.
The main areas of research in the grape and wine sector include the quality characteristics of Pinot Noir and Sauvignon Blanc grapes and wines and the ongoing development of sustainable production systems.
MPI conducts an annual assessment of the wine and grape sector's performance and forecasts those trends most likely to affect the sector in the medium term. This assessment is published in Situation and Outlook for New Zealand Agriculture and Forestry (SONZAF) reports.
MPI's farm monitoring programme models the production and financial status of a typical vineyard in both the Marlborough and Hawke's Bay regions. The Horticulture Monitoring Report for Viticulture also discusses sector trends and issues. Community-led innovation, collaboration, and sustainability are the themes of a report, Sustainable Farming Fund: Ten Years of Grassroots Action, released in October 2010 to mark 10 years of the Ministry of Agriculture and Forestry's Sustainable Farming Fund.
The main organisations representing the New Zealand wine and grape sector include: