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Hawke’s Bay winegrowers: ‘We’re down but not out’

Author
Alka Prasad, NZ Herald,
Publish Date
Sat, 25 Feb 2023, 2:06pm
Devastation at Petane vineyard in Esk Valley. Photo / Supplied
Devastation at Petane vineyard in Esk Valley. Photo / Supplied

Hawke’s Bay winegrowers: ‘We’re down but not out’

Author
Alka Prasad, NZ Herald,
Publish Date
Sat, 25 Feb 2023, 2:06pm

鈥淐ovid is nothing. It looks like a nuclear bomb鈥檚 gone off. It鈥檚 just wiped out.鈥

That鈥檚 Hawke鈥檚 Bay chef Greg Miller, reflecting on the impact of Cyclone Gabrielle. Miller owns Valley d鈥橵ine Restaurant on Linden Estate Winery in the Esk Valley, and lives next door to the cellar.

Linden Estate is one of the wineries worst-hit by Gabrielle. Now, says Miller, 鈥渨e don鈥檛 know anything that鈥檚 going on. We haven鈥檛 seen any of our MPs down here talking to us.

鈥淚 just keep going because when I stopped, that鈥檚 when it hit me. It was huge.鈥

Hawke鈥檚 Bay produces 7.8 per cent of the country鈥檚 wine while the Gisborne area, also affected by the cyclone, accounts for 3.8 per cent according to NZ Wine鈥檚 2022 annual report.

NZ Winegrowers chief executive Philip Gregan says the devastating storm 鈥渙ccurred on the cusp of the busiest time of year for the industry鈥.

鈥淲e have a large number of vineyards in both regions that have not been as significantly impacted by Cyclone Gabrielle and these winegrowers are beginning to harvest their crop, with many producers still feeling positive and looking forward to a high-quality vintage,鈥 Gregan said in a statement yesterday.

The Marlborough region, which produces 80.6 per cent of the country鈥檚 wine, has been largely unaffected.

But where the storm did hit, it hit hard.

Silt damage

Petane Wines鈥 Philip Barber spent the week recovering around 12,000 bottles from silt built up around his cellar, which he says will set Petane back over a million dollars in wholesale trade.

Petane Wines is also in the Esk Valley and Barber works with Linden Estate, Sarosa, and 3 Fates Wines, all in Eskdale.

Barber says he got into the business to be involved with the winemaking process from planting to packaging, though that might have to change now.

鈥淚 didn鈥檛 have any insurance because I started so small and I didn鈥檛 realise how big I鈥檇 gotten,鈥 he says. 鈥淎nd then next thing you know, I鈥檝e got this massive flood coming through and my stock was at the brewery.鈥

The company鈥檚 鈥渓ittle bit of insurance鈥 won鈥檛 cover the cost of the devastation, says Barber, and the trauma from the floods stays with him every night as 鈥渟ome form of PTSD鈥.

Like Miller, Barber and his family found themselves trapped by the cyclone. 鈥淚 had to get on the roof at 4.30 in the morning with my wife and our two kids. And we watched this incredible crazy river racing past our property. It tore down all our sheds. All our tractors floated away.鈥

Petane founder Phil Barber. Photo / Supplied

Petane founder Phil Barber. Photo / Supplied

He says his beloved Kombi van, which used to sell wines at the local market on Sundays, floated 800 meters from his property.

鈥淚 found it in a ditch down by the church. I鈥檝e recovered that with a crane a few days ago. Just strangers helping me out in the process of digging all the silt out of the Kombi.

鈥淚t鈥檚 a classic. It was perfect.鈥

While everyone he knows is safe, says Barber, his brother from NZ Brewery 鈥渨as so close to being wiped out that they couldn鈥檛 get on the roof鈥.

Barber bought his Eskdale property in 2007. Now, he says, 鈥渢he vineyard is totally destroyed, completely wrecked鈥.

鈥淲e鈥檝e lost all the grapes so at least $100,000 straight away is gone.鈥

He spent his Friday completing the recovery, water blasting and chemically treating bottles in accordance with MPI standards. He says the recovery is 鈥渁ll free of charge鈥 thanks to the kindness of his community.

鈥淚t鈥檚 the last day of cleanup. I鈥檝e got some beers in the fridge,鈥 he says.

Now he is expecting an excise bill on the wine he is yet to sell as part of the recovery. 鈥淚 might get whacked with a massive bill 鈥 Even during Covid, excise customs increased.鈥

He says excise costs are determined by the consumers price index and track up with inflation.

The last excise increase was last June. According to NZ Wine, the tax on wine now adds up to $2.49 per bottle, charged to the winemaker before retail mark-ups.

鈥淚t鈥檚 a substantial hit,鈥 says Barber. 鈥淲henever you think you鈥檙e making money, you get hit with a huge bill. That鈥檚 the reality of it all.鈥

He says his plan now is to reduce production at Petane. 鈥淭he vineyard is destroyed 鈥 I don鈥檛 think I鈥檒l ever grow grapes again.

鈥淥ur plan was to get case numbers to 7000, 12-packs, then exporting in a couple of years.鈥

Now, he says, the business will be 鈥渕uch smaller鈥.

Linden Estate in Esk Valley. Photo / Supplied

Linden Estate in Esk Valley. Photo / Supplied

Higher prices

Barber says prices at Petane range from a $28 bottle of pinot gris to $68 for their top-of-the-range Sfumato Chardonnay. He says the starting price is likely to rise to $35 a bottle.

鈥淚t is a numbers game. If you want to do large volumes, you need a low price.鈥

In future, Barber says Petane Wines will follow a different model, as he plans to use the funds from his recovered bottles to buy grapes and slowly return to production.

鈥淭hey won鈥檛 be the grapes I grew, which is why I did this.

鈥淚 bought the land, planted the vines, looked after them. All the leaf plucking, making the wine, packaged and sold.

鈥淚鈥檓 still in shock when I was looking at this all happening. It felt like I was removed from the situation.鈥

NZ Wine鈥檚 Gregan says recovery funding announced by the Government 鈥渋s a good start鈥.

This week, Finance Minister Grant Robertson announced a $300 million cyclone relief fund, $50m of which will be for 鈥渋mmediate support to businesses and the primary sector affected by the weather events鈥.

However, the Herald reported that some Hawke鈥檚 Bay growers聽.

鈥淚f central government loses interest in us, we will all go under, it鈥檚 as simple as that,鈥 said local grower Malcolm Davie.

Davie said it was 鈥渋mpossible鈥 to determine the cost of the floods, but estimated it would be somewhere between $150,000 and $250,000 per hectare. 鈥淵ou don鈥檛 recover from that,鈥 he said.

鈥淭he necessity is for central government to help a critical industry in a critical province and do so immediately and with full commitment.鈥

He said the orchard, formerly a vineyard, would take about three to four years to recover, and longer to establish good production.

Devastation at Petane Wines in Esk Valley. Photo / Supplied

Devastation at Petane Wines in Esk Valley. Photo / Supplied

The cost of recovery

Miller saw Cyclone Gabrielle鈥檚 impact on Linden Estate unfold as it happened, as one of the first people on the ground to broadcast the event on Facebook.

鈥淚t was a huge night, not sleeping the first night, watching it all happen. And in the morning, I see caravan houses floating. It鈥檚 just crazy.鈥

Miller says rumours of lootings and the sound of gunshots rang out over the region this week. 鈥淭hey鈥檝e got power now, so all that will stop,鈥 he says.

His week has been big for the Eskdale community. He managed to set up a barbecue and gave away essential supplies at a community hub in Eskdale.

Hawke鈥檚 Bay winegrower Tony Bish has been in the industry since the 1980s.

鈥淚t鈥檚 a war zone here. It鈥檚 just unbelievable,鈥 he says.

鈥淚t鈥檚 a huge job. It鈥檚 gonna take years to get this region fixed again.鈥

Devastation at Petane vineyard in Esk Valley. Photo / Supplied

Devastation at Petane vineyard in Esk Valley. Photo / Supplied

Bish says two of his growers have been severely affected. 鈥淥ne has lost probably half his vineyards. The other one has had flood water right through his vineyard and lost his brand new house.鈥

He says the team is taking things 鈥渙ne step at a time, one foot in front of the other鈥.

鈥淭here鈥檚 a PTSD sort of thing going on.鈥

Bish says some people in Eskdale are still unaccounted for. 鈥淥ne of my growers lost a good friend. His ute went into a river where, where a bridge had been ... swept away that he couldn鈥檛 see because of the floodwater and they鈥檝e not found him or his vehicle.

鈥淭here鈥檚 definitely people unaccounted for, there鈥檚 no question about that. We all expect the number is going to rise.

鈥淭hey鈥檙e talking years to fix that road now. I think there鈥檚 six bridges gone and massive slopes. So it鈥檚 catastrophic. And there鈥檚 value of course. There鈥檚 so much stuff buried under mud.鈥

Bish says many hectares of land and tonnes of grapes have been destroyed. 鈥淭he whole of the valley is completely gone.鈥

He says that while some parts of the region are unaffected by cyclone damage, 鈥渢hey鈥檝e had way too much rain, which at this time of year is the last thing we want because we鈥檙e quite close to harvest.鈥

However, 鈥渁 good part of the Hawke鈥檚 Bay industry will be okay,鈥 Bish says.

Most vineyards are not insured, he says, so recovery costs will probably come out of growers鈥 pockets.

聽鈥淚 don鈥檛 know anyone that insures vineyards. So I think the damage to the industry and the grape industry will be in the tens, if not hundreds, of millions.

鈥淭he export industry鈥檚 going to take a hit,鈥 says Bish. But 鈥渨ith grapes we鈥檒l be down, but not out.鈥

While Hawke鈥檚 Bay grape production will fall, says Bish, 鈥渨e make some of the greatest wines in the country and in the world so we鈥檒l be here forever鈥.

鈥淭here鈥檒l be some areas that will not get replanted. You could imagine how those people now feel when they鈥檝e been completely destroyed. There鈥檒l be a certain amount of growers exiting from horticulture, I would suspect.鈥

To the rest of Aotearoa, he says: 鈥淛ust support Hawke鈥檚 Bay products, whether they鈥檙e wine or food products because what we need is cash flow.

鈥淲e need our businesses to keep running, so we just want everyone to get behind supporting Hawke鈥檚 Bay producers.鈥

He says the Red Cross is taking donations for the region, as is the Hawke鈥檚 Bay Winegrowers Charitable Trust.

This report was produced under the Public Interest Journalism initiative, funded by NZ on Air

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