Industry to extract 25% of vines
By
MARTIN FREETH
in Wellington
More than a quarter of the grape vines commercially grown in New Zealand will be pulled up in the wine industry's response to a Government plan to end the present grape glut Nearly 230 growers applied to the Ministry of Agriculture by last Friday for a subsidy of $6175 a hectare of vines extracted.
The applications cover 1623 ha and the Government assistance is expected to cost about $lO million.
The Ministry received 31 applications, covering 134 ha, in the Blenheim area.
The vine pull-up will be greater in three other grape-growing areas. Applications from the Hastings area cover 596 ha, from the Gisborne area
496 ha, and from the Auckland area 388 ha. Under the Government plan, announced in December, the subsidies will be paid only if the grapes now ready for harvest on the vines are not picked and if the vines are pulled up by the end of February. The Ministry’s assistant director (economics), Mr John Askwith, said twothirds of the applicants were wine companies with their own grapegrowing properties or growers with regular arrangements to supply a wine-making company. The plan allows subsidies to be paid on a maximum of 1600 ha. Mr Askwith said 23ha registered would not attract the subsidy and the Ministry would remove those from the applications of the largest wine companies.
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Press, 24 January 1986, Page 2
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231Industry to extract 25% of vines Press, 24 January 1986, Page 2
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