If a new report on the Marlborough wine region in New Zealand is anything to go by, wine production can generate around 20% of a wine region’s entire economic activity. This is the sort of critical information that supports assertions that the Australian wine industry plays a critical role in the maintenance of rural business, employment and infrastructure. Commissioned by New Zealand Winegrowers, this report by the New Zealand Institute of Economic Research (NZEIR) shows that for every $5 of economic activity in Marlborough, $1 can be attributed to the wine industry, which accounts for around 4000 full time equivalent jobs in the region. It also demonstrates that the economic benefits flow to the entire regional economy, generating additional employment outside the immediate wine industry. In Marlborough’s case, around 2500 people are employed directly by the wine industry, while another 1500 ancilliary jobs are also supported. So, according to the report, Marlborough’s wine industry, which employs around 18% of all people in the region, is responsible for almost NZ$1.3 billon in gross output. Furthermore, it also claims that for every dollar earned by vineyards or wineries, around $1.71 will be returned to Marlborough’s economy. Not such a bad investment! Nationally, the NZIER report shows the New Zealand wine industry contributes more than $3.5 billon in gross output to New Zealand’s economy.
