STRONG NZ DOLLAR THREATENS EXPORTS.
A strong dollar has New Zealand exporters worrying about the continued success of their brands, particularly in the U.S. which consumes about 25% of New Zealand wine. Many local publications report that winegrowers are already feeling the pain which could endure long-term if the New Zealand dollar stays at “the extreme levels.”
"The short term impact of the dollar at US74 cents is reduced profitability for exporters to the USA. A number of wineries have already contacted us about this, and it is clear some are experiencing real financial pain," said Winegrowers chief Philip Gregan to scoop.com.
Industry officials say they are keeping an eye on the problem with the hopes it will not continue long-term.
"If the dollar stays at current levels for any period of time, this will inevitably lead to reduced investment in market development, and growth will not meet our forecast targets," he said.
"The short term impact of the dollar at US74 cents is reduced profitability for exporters to the USA. A number of wineries have already contacted us about this, and it is clear some are experiencing real financial pain," said Winegrowers chief Philip Gregan to scoop.com.
Industry officials say they are keeping an eye on the problem with the hopes it will not continue long-term.
"If the dollar stays at current levels for any period of time, this will inevitably lead to reduced investment in market development, and growth will not meet our forecast targets," he said.
posted at 12:11 PM
<< Home