Through the 1990’s the wine industry in Hawkes Bay went through major expansion. By 1995 1600 hectares had been established and by 2003 the area had more than doubled to 3700 hectares. By 2006 it is estimated that a total of 4600 hectares of grape vines will be established within Hawkes Bay.

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This highlights the reality that most New Zealand farmers are not especially concerned with the capital value of their land (other than as equity for borrowing), or by low returns relative to the capital tied up in their land. Farmer’s attitudes are influenced by the more immediate fact that in recent years, after an extended rural depression, farming operations have generally achieved strong cash flows and become significantly profitable.

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As is the case with pastoral property, the value of Hawkes Bay orchard and horticultural quality land in general, is directly influenced by relevant commodity prices. In Hawkes Bay this generally means export apple prices

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Rural land prices are of primary importance to any potential buyer and especially to rural bank managers, however lifestyle values (a loose term commonly used in New Zealand and the real estate industry, to recognize the monitory value of recreational and life quality aspects of rural property) which are commonly associated with rural properties of all sizes, are frequently a complicating factor.

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Much of New Zealand’s and in particular Hawkes Bay’s coastal farmland is under intense scrutiny for it’s lifestyle subdivision potential, there being a ready and highly profitable market for small to medium sized coastal blocks with close ocean views, especially those with beach frontage.

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The value of an individual property is to a large extent determined by soil type, tree varieties, ages, condition, water and infrastructure; all being the factors which influence both production levels and crop values. Irrespective of these factors however, all things being equal, an orchard located within the Heretaunga plains between Hastings City and the coast line of Hawkes Bay (as an obvious example) is likely to be significantly more valuable than a similar property on the west side of Hastings, where the risk of hail storms and acute late spring frost are significantly higher.

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Hill country farmers in Hawkes Bay traditionally gear their farming operations around the possibility of a summer pasture growth deficit by being prepared, if necessary, to sell a proportion of their lambs or cattle as “store” stock i.e., sale for fattening on other properties, and by growing summer stock feed crops as part of a cycle of pasture renewal.

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The following very brief description and comment on the Hawke’s Bay wine industry is made with the admission that the information given and opinions offered are of necessity, very generalised. There are bound to be exceptions to most facts or opinion offered and perhaps even inaccuracies. Comment and constructive criticism on this article will always be appreciated.

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The Hawke’s Bay District differs from other broad growing areas within New Zealand through the variation in micro climates and soil types within which wine grapes are grown and arguably, the wider range of premium quality wines that might be produced.

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