Terra Vitae Vineyards

2010 Annual Report and Notice of Meeting released

http://www.unlisted.co.nz/uPublic/un...cement_id=1780

2010 AGM presentations now available
The Company wishes to advise that the 2010 AGM presentations are now available for viewing on the Company’s web site at www.terravitae.co.nz

http://www.unlisted.co.nz/uPublic/un...cement_id=1810

Reasonable Shareholder Wine Offer. Worth the minimum parcel - Villa Maria have some goodies.

Annual Report and notice of meeting

http://www.unlisted.co.nz/uPublic/un...cement_id=1935

2012 Annual Report and Notice of Meeting released

http://www.unlisted.co.nz/uPublic/un...cement_id=2102

2013 Annual report and notice of meeting:

http://www.unlisted.co.nz/uPublic/un...cement_id=2274

Updated issuer profile:

http://www.unlisted.co.nz/uPublic/un...cement_id=2288

Record harvest announced.

2014 annual report released.

Positive annual harvest announcement yesterday, new irrigation dams paying off.

https://www.terravitae.co.nz/news/view/49

Market cap of $18.4 million. 82.3c per share of NTA and about ~40c a share at the moment. $55 million in property and plant. $22 Million in debt. $4.3 million in cash and receivables.

2% dividend yield last year.

Super cozy relationship with Villa Maria but that is not a bad thing. Alignment of interests.

Just love the low directors fees, total pool of $90k. Could show a few other micro-cap stocks on NZX what is reasonable. Also really enjoyable annual reports, nice to see reporting metrics that don't change every year so I can track long term performance.

Pros:
Reliable (low) dividend, conservative cash, sensible management, steady addition of vineyards

Cons:
Cyclical business, super competitive sector, reliance on Villa Maria which is privately held and a bit opaque, unlisted has limited liquidity and big swings in prices

Never bought an unlisted stock but definitely tempted at around 35c. Not held but on my watch list at these prices.

Probably scratching around for deep value by myself judging by the thread. Anyone holding?

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Originally Posted by Waikaka

Market cap of $18.4 million. 82.3c per share of NTA and about ~40c a share at the moment. $55 million in property and plant. $22 Million in debt. $4.3 million in cash and receivables.

2% dividend yield last year.

Super cozy relationship with Villa Maria but that is not a bad thing. Alignment of interests.

Just love the low directors fees, total pool of $90k. Could show a few other micro-cap stocks on NZX what is reasonable. Also really enjoyable annual reports, nice to see reporting metrics that don't change every year so I can track long term performance.

Pros:
Reliable (low) dividend, conservative cash, sensible management, steady addition of vineyards

Cons:
Cyclical business, super competitive sector, reliance on Villa Maria which is privately held and a bit opaque, unlisted has limited liquidity and big swings in prices

Never bought an unlisted stock but definitely tempted at around 35c. Not held but on my watch list at these prices.

Probably scratching around for deep value by myself judging by the thread. Anyone holding?

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Three agricultural/horticulture no, no's Climate, currency and nature( frosts etc ) !

Some comments:

1. NTA if you remove deferred tax and restate Vines to assessed market value rather than IFRS mandated depreciated cost is more like $1.20 per share.

2. Although harvest subject to growing season variability, average operating cash flow over the last four years comes in at 6.7 cents per share. The good 2020 harvest is unlikely to reduce this average on a rolling four year basis. Dividend levels are conservative relative to cashflow so profits are being partially used to expand / future proof the business and to reduce debt.

3. The construction of two irrigation dams in the last two years does provide greater protection against hot, dry years.

4. Although debt is relatively high, the fall in interest rates recently will reduce debt servicing costs further once existing interest rate hedging works off.

5. The recently announced development of another 60 ha of vineyard immediately adjacent to the Seddon vineyard will enhance economies of scale through the use of existing plant, staff and irrigation infrastructure.

Thanks Southern Lad all useful points.

I notice as well that they have invested heavily in wind frost protection as well as having secure water from the new dams will probably help with that at Keltern at least. Really nice to see a operation with steady growth, reinvesting back into the business and providing moderate dividends. I wish more NZ companies were thinking long term like this.

Adding neighboring properties by lease (like next to Seddon) and then having first right to purchase makes good sense for a patient producer.

Was looking into George Fistonich, seems like a solid reliable bloke and good to see he had a good fight with Brierley back in the day. Asset stripping and ripping up sensible conservative businesses has really hollowed out our economy, glad Villa Maria survived. Too many companies under the pressure of leveraged takeover artists don't invest in redevelopments, R&D, take on too much debt and have a short term outlook. Refreshing to see this is not the case at TVV.

https://www.nzherald.co.nz/wine/news...ectid=10618013

Plotted up tonnes grape production vs USD/NZD exchange rate even though they are only connected to that by proxy through Villa Maria. Never put a chart in a post before so testing quietly on this thread to see if it works.

Attachment 11715

I like that the wineries have a wide geographic spread. Probably provides some resilience to adverse weather events.

MyFarm earlier this year raised capital for the Awatere Valley LP - 127 ha of established vineyard, with 110 ha planted in Sauvignon Blanc.

https://www.myfarm.co.nz/awatere

Website indicates $16.5m of contributed capital has been raised by Awatere LP - not dissimilar to TVV's market cap. TVV has a larger planted producing vineyard at about 360 ha.

Given the close geographical proximity and supply contracts with Villa Maria, interesting to do a comparison on the investment fundamentals of the two entities. One of them is a clear winner in terms of entry price relative to underlying NTA and paying a sensible dividend level relative to underlying cash flow. Hard to believe Awatere LP pays a monthly cash distribution - somewhat unusal for a horticultural company producing once crop a year. Of course, it goes without saying DYOR.

Share price down from 46 to 37.5 cents per share today after someone dropped a parcel of 26,000 shares to the highest bidder. Shortly after a buy bid emerged at 40. Just goes to show the bargains that can be had from time to time on thinly traded stocks that don’t have a large following. Based on my observation (noting that a reasonable volume has traded at 46 cents over the last few weeks), a sell order at 44 cents would have stood a pretty good chance of being snapped up within the day. Given trade had to go through a non-on line broker, you wonder whether any advice was provided.

https://www.nzherald.co.nz/business/...NYMCX63AV37EM/

Will be interesting to see whether the possible introduction of new shareholders into Villa Maria has implications for Terra Vitae Vineyards. Is Villa Maria looking at a NZX listing or just looking for a new cornerstone (minority) shareholder?

Does Villa Maria need to continue to own 22% of TVV or does it need to own more (or all) of TVV? If Villa Maria lists on the NZX, does full ownership of TVV make more sense?

Not sure whether this post will be either valid or helpful.
Delegates were involved in the formation of Oyster Bay Vine yards,which was a separate company, of which I held shares.
There were always questions asked about the price Oyster Bay received for their grapes from Delegates.
Further there were questions asked about the value of Oyster Bay's land.
When Delegates moved to take full ownership there were a number of dissenting shareholders,including Peter Yealands.
Delegates ended up with Oyster Bay Vine yards.
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Thanks for that Percy.

Your post prompted me to refresh on the history of what happened to Oyster Bay Marlbrough Vineyards Ltd. In 2005 Peter Yealand's lobbed a takeover offer for 50.1% of Oyster Bay in at $4.50 and after much argy-bargy Yealand's sold out to Delegat's at $6.00 per share. Delegats needed to offer minorities the same price so made an offer to increase their shareholding to 50.1% also at $6.00 (despite the independent valuation range being between $3.96 and $4.57). Once Delegat's listed on the NZX, in 2010 they launched another takeover bid for 100% which included a scrip option and succeeded in acquiring 100% of Oyster Bay. Any shareholders who took and held the Delegat's scrip have done pretty well.

Yes Delegats story has been incredible.Jim Delegat was a man of vision.Seemed to have taken on too much at the time,but made it all work.
I went to an Oyster Bay agm in Blenheim held mid November.We did a tour of the vineyards.They were very concerned as a frost was expected.Had organised six helicopters and knew which parts of the vineyard they would try to protect/save.I have heard since the best protection is an overhead watering system.Jim Delegat also let on the English supermarkets played NZ wine sellers against each other.Only one crop a year,climate,disease and the fact they had to often store wine for a long time before it was sold, gave me cause for concern.I like stock turns and cash flow.So again I made the mistake of selling out.

If this is not relevant then I apologise but thought I would throw it into the wine discussion.

I am a shareholder of Invivo, they are not listed yet but I think it will be only a year or two away with the way they're going. Run by the founders Tim and Rob

They are responsible for Graham Nortons line of wine as well as Sarah Jessica Parker.
https://invivowines.com/

I bought in via equity crowd funding in 2015. At the time their 2015 yearly revenue was projected to be $Nz 5 m with their prior year revenue being from memory I think 3.6m.

I note having just received their annual report a few days ago their half year to september 2020 revenue is now $11.1m NZD

I think it likely we'll see an ipo in a couple of years. They along with Paz are the fastest growing companies shares I hold.

Looks as though it will succeed with such passionate people driving it.

Looks like Yealands / Marlborough Lines are selling some of their vineyards in Seddon to NZ Super Fund:

https://www.nzherald.co.nz/business/...AMDT32IHE7GWY/

Interesting to compare the sale value relative to the carrying value of TVV’s vineyards, which are predominantly in the Awatere Valley, near Seddon. NZ Herald article suggests $34m paid by NZ Super Fund for 187 ha which works out at $181,800 per ha. At June 2020, TVV had vineyard assets at a carrying value of $53.5m, which is $146,600 per each of the 365 ha owned. There will be no doubt differences in value based on grape variety, production levels, water supply, health of vines, etc. Also TVV has 57 ha in the Hawke’s Bay which aren’t directly comparable with Seddon vineyards.

There has been an increase in buying interest in TVV shares of late - last sale at 50 cents but buyers have bids in at 51 and 52. Not a lot of sellers around at present.

The sale of villa maria will be interesting with them having a major holding in TVV. TVV would go a lot better being aligned with another wine company in Marlborough. villa won’t let them yield, thus restricting return... also they need to flick on their Hb holdings, no money to be made up there!

Since the start of December 2020, there has been a relatively high volume of shares traded on Unlisted (561,700 shares which is 1.4% of the issued capital) and the share price has increased from 50 to 58 cents per share. Appears someone is serious about acquiring a stake, and with such a thinly traded stock this is pushing up the share price. Will be interesting to see where this all ends up.

The AFR today, subsequently reported by NZ Herald - see https://www.nzherald.co.nz/business/...6KPUDMMLFSHLQ/, contained speculation that 100% of Villa Maria may be for sale and suggested it may be worth $A200m.

Presumably the TVV share price increase over the last couple of months is related to this process. Will be interesting to see what implications any sale has for TVV and it’s shareholders.

Yields across the board are looking terrible, a good 20% down... this vintage won’t be a money spinner. Will be really interesting to see what happens with this one with the villa sale, they have a 21% stake according to companies office. Been a couple of investment companies sniffing round over the years as well.

An article by Brian Gaynor on the listed wine companies https://businessdesk.co.nz/article/o...can-you-invest

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Originally Posted by iceman

An article by Brian Gaynor on the listed wine companies https://businessdesk.co.nz/article/o...can-you-invest

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Sadly it's paywalled for me.

Can you please do us the executive summary?

Article canvassed overseas ownership of the NZ wine industry, recalled some earlier NZX listed wine companies that are now foreign owned and summarised the current NZX and USX wine industry listings. Talked up the success of Delegats as a NZ controlled listed wine company. Went on to discuss possible Villa Maria sale, asked the question as to why they didn’t list in NZ if they needed capital and concluded by asking if it were to be sold outright whether TVV would be part of any sale.

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Originally Posted by Southern Lad

Article canvassed overseas ownership of the NZ wine industry, recalled some earlier NZX listed wine companies that are now foreign owned and summarised the current NZX and USX wine industry listings. Talked up the success of Delegats as a NZ controlled listed wine company. Went on to discuss possible Villa Maria sale, asked the question as to why they didn’t list in NZ if they needed capital and concluded by asking if it were to be sold outright whether TVV would be part of any sale.

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Thanks SL for a good summary. Hadn't seen GTM's post.

Word on the street is its down to 2 buyers. Heart group (Graeme heart) and indevin. Indevin are desperately short of supply and need it to fill contractural obligations. Also bank wants it done by April... so it’s going to happen quick!

See Stuff article on the current Marlborough grape growing season, including comment from Matt Duggan on Villa Maria Awatere Valley yields and fruit condition:

https://www.stuff.co.nz/business/far...in-marlborough

“My vineyard in Awatere is actually sitting above target for Sauvignon Blanc, but below targets for everything else because all the things that flowered earlier were affected by the poor flowering in November,” Duggan said. “Everything is really clean this year. Everything has been well looked after. The fruit looks in really good condition,” Duggan said.

Yeh, the yields this vintage are well down.... worst than I thought...

USX Announcement today:

There have been media reports of a sales process in regard to Villa Maria Estate Limited. Terra Vitae Vineyards has no other knowledge of this. Villa Maria is the manager of Terra Vitae’s vineyards and the purchaser of its total grapes output under a long-term contract expiring not earlier than the end of 2059. Terra Vitae advises shareholders who may be concerned that any change in the control of Villa Maria, will not entitle Villa Maria to vary or terminate the contract, and Terra Vitae expects that it will be business as usual for the foreseeable future.
Any questions shareholders may have should be directed to: The Secretary, info@terravitae.co.nz

Bit of chat re scales buying villa.... it’s going to be interesting to see who takes it out!

https://www.stuff.co.nz/business/ind...res-to-be-sold

Wonder if that means TVV is on the block as well?

Say the grape supply agreement will get transferred with the sale. There will be an assignment clause

I figured they will still need the grapes so guessed that would roll over. I was thinking more along the lines that George Fistonich personally holds 1.26% of TVV and perhaps more importantly 21.89% is owned by Villa Maria Estate limited. While liquidity is limited on Unlisted at the last trading price of 55c that's a combined holding of just over $5 million. If I was a receiver I might be tempted to cash that in relatively quickly.

Yields are looking good this season… also indevin won’t impose yield caps… could be worth a look

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Originally Posted by Ricky-bobby

Yields are looking good this season

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Won’t the heavy rain this week in Marlborough during Sauvignon Blanc flowering season mean we’re in for another lower yield harvest? Or is the flowering season already finished?

In 2-3 weeks time we will have a true picture. The blocks I have looked around it looks massive. Now Not so sure if the Awatere looks as healthy as the wairau we’re most of the tv vineyards are…. Will check out next week

Thanks Ricky-bobby - look forward to your update in due course.

So have been out n about and to be honest it’s to early to tell. There’s a lot of variability out there. Also thinking about the wine sector as a whole I think purchasing Delegats shares would be a smarter play long term. They have got massive developments (1000’s of hectares) going in over the next few years. This will take 5-6 years to flow through, but when it does these guys will be massive! Quite a different approach to indevin which is growing by acquisition. Delegat’s are the gold standard in the industry as they make and hold very good GP in a sometimes saturated market.

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Originally Posted by Ricky-bobby

So have been out n about and to be honest it’s to early to tell. There’s a lot of variability out there. Also thinking about the wine sector as a whole I think purchasing Delegats shares would be a smarter play long term.

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Thanks for the on the ground reporting. Keep us in the loop if you learn anything more.

Delegats certainly has achieved massively since listing. Quite a different proposition to TVV as you are buying into an integrated grape grower, wine maker and marketer whereas TVV solely a contract grape grower who is under contractual control of VM, meaning that TVV effectively needs to do what’s best for VM. Question if Indevin/VM may list on the NZX in the future, in which case it probably makes sense for TVV to be absorbed.

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Originally Posted by Southern Lad

Thanks for the on the ground reporting. Keep us in the loop if you learn anything more.

Delegats certainly has achieved massively since listing. Quite a different proposition to TVV as you are buying into an integrated grape grower, wine maker and marketer whereas TVV solely a contract grape grower who is under contractual control of VM, meaning that TVV effectively needs to do what’s best for VM. Question if Indevin/VM may list on the NZX in the future, in which case it probably makes sense for TVV to be absorbed.

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That could be the same as when Delegats took over Oyster Bay.
At that time there were a number of Oyster Bay shareholders [including Peter Yealands and David Rankin] who thought Oyster Bay was sold too cheaply.
However contract growers do not have a lot of muscle when it comes to the crunch..

If its of interest the only wine company I have shares in which up till now has bought all its grpes from contract growers. Their growth and product demand is so high its completely outstripping their ability to supply especially their hungry (thirsty) customers especially in northern hemisphere, UK, ireland. To remedy this they tried to acquire a company that produces bulk wine that had large vineyard leases to get them easy access to more grape supply but sadly the deal fell through due to a finance partner withdrawing last minute so now it seems back to the drawing board and they’re planting out more hectares organically and relying on contract growers but have no doubt they’re watching like hawks for a fast and meaningful increase to hectares planted out.

at least its better to have more demand than you can supply rather than the alternative

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Originally Posted by Mr Slothbear

If its of interest the only wine company I have shares in which up till now has bought all its grpes from contract growers. Their growth and product demand is so high its completely outstripping their ability to supply especially their hungry (thirsty) customers especially in northern hemisphere, UK, ireland. To remedy this they tried to acquire a company that produces bulk wine that had large vineyard leases to get them easy access to more grape supply but sadly the deal fell through due to a finance partner withdrawing last minute so now it seems back to the drawing board and they’re planting out more hectares organically and relying on contract growers but have no doubt they’re watching like hawks for a fast and meaningful increase to hectares planted out.

at least its better to have more demand than you can supply rather than the alternative

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Are you talking about invivo? They are definitely a market driven business and do it very well! Unfortunately they have their winery just out of Auckland, which is to far away from the action and will be hard for them to generate efficiencies. The key to success in the Nz wine game is Marlborough Sauvignon Blanc. No other variety generates cashflow as quickly. The land prices for vineyards are getting so high that only wine companies can entertain a purchase. It’s now to rich for growers.

Re indevin listing, don’t know if this will happen. More likely to be bought out by Gallo….

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Originally Posted by Ricky-bobby

Are you talking about invivo? They are definitely a market driven business and do it very well! Unfortunately they have their winery just out of Auckland, which is to far away from the action and will be hard for them to generate efficiencies. The key to success in the Nz wine game is Marlborough Sauvignon Blanc. No other variety generates cashflow as quickly. The land prices for vineyards are getting so high that only wine companies can entertain a purchase. It’s now to rich for growers.

Re indevin listing, don’t know if this will happen. More likely to be bought out by Gallo….

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yes exactly invivo, amazing margin expansion this past year. Luckily with their sourcing from many different countries incl france, italy, nz, argentina it significantly decreases geo, weather risk etc…

their planned acquisition was for sav blanc leases in marlborough basically exactly as you describe but fell through

am very happy holder.

2 TVV trades today - 7,000 at 51 and 14,000 at 59. Prior trade was mid November at 49. Not big volumes but someone has confidence in TVV’s future prospects (or got sick of waiting for a seller with lower price expectations to turn up).

A couple of references to expectations on 2022 harvest volumes:

Villa Maria Email 11/3/22 - Vintage 2022 has begun

"Whilst this years’ vintage will come with its own unique set of triumphs and challenges, it’s looking to be a plentiful one with incredible grapes that have balanced natural acidity and intense flavours".

Winepress March 2022 Edition - Article Vintage 2022 - High hopes for replenished cellars by Sophie Preece

"Crop loads are looking relatively abundant throughout the region, but repeated February rain events exacerbated the existing threat of powdery mildew and added botrytis to the mix. Cool weather during the downpours mitigated the impact to some degree, but winemakers and viticulturists –keen to replenish empty cellars – are scanning the skies and weather reports, with fingers crossed for classic Marlborough conditions of warm dry days and cold nights."

"Although the coming vintage is expected to be challenging, the experience of operating harvest during Covid times in both 2020 and 2021 has strengthened the industry in its resilience to respond quickly and adapt during difficult times, says (New Zealand Winegrowers chief executive Philip Gregan). “Over the past two years, wineries and growers have proven that they can manage the threat of Covid well, continue to operate effectively, and adapt processes to ensure they protect workers and other New Zealanders. Our industry’s most important priority continues to be keeping our people and our communities safe during this uncertain time. We are looking forward to another harvest of excellent quality, and believe an optimistic approach and helping one another will get us through.”

Haven’t picked a lot is SB in Marlborough yet, but the first picks have gone well. Prob at least 10% up on estimate due to increased berry swelling. Flavours have arrived early allowing us to pick early. HB has been a battle with terrible wether, and yields a mixed bag.

Thanks for the on the ground report Ricky-Bobby

Terra Vitae announces record 2022 harvest result

The Board of Terra Vitae are pleased to advise that a record harvest of 5633 tonnes was achieved for the 2022 vintage. This is 20% higher than the previous record of 4693 tonnes in 2016. The 2022 harvest included a higher than budgeted first harvest of 190 tonnes for the new Middlemiss vineyard. A combination of favourable flowering conditions, the benefit of the improved irrigation systems and close management of the vines in a year of high disease pressure has had a large impact on this pleasing result. The additional harvest tonnage, together with an uplift in grape prices for 2022 will have a material positive effect on the final profit result for the year ending June 30.

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Originally Posted by Sideshow Bob

Terra Vitae announces record 2022 harvest result

The Board of Terra Vitae are pleased to advise that a record harvest of 5633 tonnes was achieved for the 2022 vintage. This is 20% higher than the previous record of 4693 tonnes in 2016. The 2022 harvest included a higher than budgeted first harvest of 190 tonnes for the new Middlemiss vineyard. A combination of favourable flowering conditions, the benefit of the improved irrigation systems and close management of the vines in a year of high disease pressure has had a large impact on this pleasing result. The additional harvest tonnage, together with an uplift in grape prices for 2022 will have a material positive effect on the final profit result for the year ending June 30.

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That sounds like a great announcement and gives optimism for the industry, one of the industries NZ needs to do well in our uncertain World.

Discl: don't hold nor follow this share

Security: Terra Vitae Vineyards Ord
On behalf of your Board of Directors I have pleasure in reporting on the financial results for the year ended June 30, 2022. With our largest ever harvest of 5,633 tonnes together with an uplift in prices, the company achieved a record total harvest value of $12,713,988.

The profit before tax was $4,037,775, with EBITDA at $7,985,757. This has been an exceptional result due to a combination of ideal weather conditions at critical times and much of our input costs being incurred before some hefty increases flowed through from suppliers in the new financial year.

A fully imputed dividend of two cents per share has been declared, with a payment date of Dec 9, 2022. The Annual Report and Notice of Meeting is due to be sent to shareholders in the second week of October.

TVV annual report released this week https://www.terravitae.co.nz/files/f...22%20Final.pdf

Im surprised it hasn’t received any media coverage as it’s an outstanding result.

in addition to the record harvest, great profit and increased dividend, TVV has revalued its vineyard assets up by a net $24.5m which has pushed up the disclosed NTA from 91 cents to $1.59 per share. Given the difficulty in selling the vineyards due to the Villa Maria arrangements, I’m not sure how shareholders unlock any of this increase. However, I assume rising vineyard values are a sign of increased economic returns to the industry, which overall must be good for TVV shareholders.

Dodged a bullet......

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Our thoughts are with the residents of Hawke’s Bay, including the viticulture teams who look after the Terra Vitae vineyards. We have managed to make contact with our vineyard manager and are relieved to advise that the team and their families are safe, although some are isolated and without essential services and have property damage. The Keltern and Twyford Gravels vineyards have escaped serious flooding, which many of the vineyards and orchards in the area did not. We will be assessing the impact of the extreme rainfall levels on the grapes in the Hawke’s Bay vineyards and a further market update will be made in due course.

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Luckier than most.....

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The Keltern vineyard has now been inspected and we are keeping a close eye on disease pressure as the significant rain events over the past two weeks, and in particular Cyclone Gabrielle this time last week, have caused so much damage in the region. Downy Mildew is present in some parts of the canopy but has largely been controlled. Botrytis will be our main watch from here until harvest. We expect to commence harvest within the next week. Twyford Gravel vineyard was not flooded and is in good shape at this stage.

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Terra Vitae announces 2023 harvest result

The Board of Terra Vitae are pleased to advise that a harvest of 5219 tonnes was achieved for the 2023 vintage. This is the second highest harvest in the company’s history, in what has been a very challenging season for our vineyard teams in both regions. The flooding in the Hawke’s Bay region hit many vineyards hard, however both our Keltern and Twyford Gravels vineyards escaped damage. Our viticulture team, through their good management and dedication, managed the high disease pressure well and achieved a total crop higher than in 2022. The 2023 harvest from the Middlemiss vineyard continued to exceed budget with a yield of 540 tonnes. The high harvest tonnage, together with an uplift in some grape prices for 2023, will have a material positive effect on the final profit result for the year ending June 30.

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Originally Posted by Sideshow Bob

Terra Vitae announces 2023 harvest result

The Board of Terra Vitae are pleased to advise that a harvest of 5219 tonnes was achieved for the 2023 vintage. This is the second highest harvest in the company’s history, in what has been a very challenging season for our vineyard teams in both regions. The flooding in the Hawke’s Bay region hit many vineyards hard, however both our Keltern and Twyford Gravels vineyards escaped damage. Our viticulture team, through their good management and dedication, managed the high disease pressure well and achieved a total crop higher than in 2022. The 2023 harvest from the Middlemiss vineyard continued to exceed budget with a yield of 540 tonnes. The high harvest tonnage, together with an uplift in some grape prices for 2023, will have a material positive effect on the final profit result for the year ending June 30.

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That is great to see. Our viti- and horticulture industries sure are having a tough year so good to see some of them doing well.

Wonder what (if any) knock-on effect this has for the grape growers. Poisonous cr*p leaching away in the groundwater doesn’t seem like a good omen. . .

https://www.stuff.co.nz/national/300...e-growing-area

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Originally Posted by GTM 3442

Wonder what (if any) knock-on effect this has for the grape growers. Poisonous cr*p leaching away in the groundwater doesn’t seem like a good omen. . .

https://www.stuff.co.nz/national/300...e-growing-area

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Yeh no impact. What he’s replacing the gravel with would be a better growing medium!

It was this sentence that took my attention:

"Some of this backfill material was later shown to have higher than permitted levels of lead, arsenic and zinc."

Hey team, just a heads up that a large wine company in marl has come out early with their grower pricing for the coming vintage. It’s a massive $500/tonne less than last year. Anticipating a large decrease across the industry for growers inc these guys…

Yields in Marlborough are looking terrible… hoping not as bad as vintage 2021…

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Originally Posted by Ricky-bobby

Yields in Marlborough are looking terrible… hoping not as bad as vintage 2021…

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Hi Ricky , Just wanted to clarify when you are talking about yields that is tonnes per hectare ?
If so will the pricing be rerated ? Referring to your previous post .......

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Originally Posted by stoploss

Hi Ricky , Just wanted to clarify when you are talking about yields that is tonnes per hectare ?
If so will the pricing be rerated ? Referring to your previous post .......

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Hey mate, yes talking tonnes per hectare. Some saying as much as 40% down compared to long term. No unfortunately no re-pricing as there is still a large wine glut. Long term this will def help balance things out tho.

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Originally Posted by Ricky-bobby

Yields in Marlborough are looking terrible… hoping not as bad as vintage 2021…

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See Stuff article on 2024 Marlborough grape crop:

Smaller crop and shorter Marlborough vintage predicted | Stuff

There is a good summary on pages 14 and 15 of the February edition of Winepress Magazine on the expected 2024 Marlborough grape harvest and wine market supply dynamics:

https://issuu.com/winepressmagazine/...ess_-_feb_2024

Yesterdays update:

The New Zealand wine industry is currently experiencing a softening in demand for New Zealand wine, and exports of Vintage 2023 wines from New Zealand are slower than usual. This has resulted in large volumes of Vintage 2023 wine remaining in New Zealand and a reduction in market price being paid for Vintage 2024 grapes. In addition, poor conditions for flowering are predicted to result in harvest yields that are lower than the long-term district average. While the final yield results will not be known until harvest, the latest crop forecasts received by the Company are indicating yields significantly lower than the Company’s long term average yields. The lower grape price and low yields will have an impact on TVV’s profitably this year. Harvest is about to commence in both regions and an update will be posted on the final yields once harvest is complete.

Ouch....!!

Further to the announcement on 28 February 2024, Harvest 2024 has now been completed and we can advise that the total yield was 4044 tonnes, some 20% below the budgeted tonnage. This reflects the results industry wide, which is reporting drops of 20%-30% in the Marlborough and Hawke’s Bay regions. The drop in yields is a result of the poor weather conditions during flowering, resulting in lighter and lower numbers of bunches.


The lower grape price previously signalled and low yields will have a significant impact on Terra Vitae’s financial result this year.


Alan O'Sullivan
Company Secretary