An economic analysis of the wine industry in Marlborough : Report to the Marlborough Winemakers

Abstract

The rapid growth of the wine industry in Marlborough since the early 1970s raises a number of important economic questions. The increase in grape production and wine making has been accompanied by a structural shift on the Wairau Plains, away from pastoral agriculture. This trend appears likely to continue for the foreseeable future. In light of the important tradeoffs which must be made as a regional economy develops, it is imperative to understand the importance of key industries as sources of employment and generators of income and government revenue. This study contributes an understanding of the importance of grapes and wine locally, by quantifying the direct economic impact of the industry to Marlborough's regional economy. In addition, the links between the wine industry and other industries in the Marlborough region are explored through the use of a regional input-output model.