CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough

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CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
THE OFFICIAL MAGAZINE OF WINE MARLBOROUGH

                                                                  ISSUE NO. 288 / DECEMBER 2018

LABOUR                  CLIMATE               EARTHQUAKE                 CELLAR
& SKILLS                CHANGE                RECOVERY                   CHAMPS

Photo: Jim Tannock

            wine-marlborough.co.nz
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
KEEP NEW ZEALAND
STINK BUG FREE

                     Look for
                  black & white
                  banding on the
                    antennae

    Look for
 black & white
 banding on the
  sides of the
   abdomen

                                                               SCALE
                                      The brown marmorated stink bug is a pest that infects
                                      homes, ruins gardens, and stinks when crushed. It could
                                      also destroy our fruit and vegetable industries. It’s not in
                                      New Zealand yet, and we want to keep it that way. If you
                                      see one, don’t kill it. Catch it, take a photo, and call us.
                                      For more information: biosecurity.govt.nz/stinkbug

                                   PEST HOTLINE 0800 80 99 66
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
10

  this issue...                                                           27
REGULARS                                  FEATURES

3       Editorial                         16   Labour & Skills
                                               Marlborough is about to get

4       From the Board - Chair’s
        Report
                                               smart and connected in its
                                               approach to labour and skills
                                               shortages, with the launch

6       Tasman Crop Met Report
                                               of a programme to tap into
                                               insights and experiences from                          26
                                               schools, training organisations,

30      Industry Pioneer - Dr                  employers and government
                                               agencies.
        Rengasamy Balasubramaniam
                                          20 Earthquake Recovery
30      Generation Y-ine - Natalie
        Christensen
                                               Two years after the Kaikoura
                                               earthquake, Pernod Ricard’s
                                               Riverlands winery has been

32      Biosecurity Watch - Chilean
        Needle Grass
                                               transformed, with catwalks
                                               abolished, telemetric analysis
                                               installed, thicker stainless steel,
                                               deeper concrete and stouter
34      Industry News                          tanks with sacrificial fuses.

36                                        26 Cellar Door Competition
        ANZ Wine Happenings
                                               A great cellar door requires a                        30
                                               great team, says Forrest Wines’
                                               cellar door coordinator Rosie
                                               Broadbridge, following the
                                               company’s win at the Wine
                                               Marlborough Cellar Door of
                                               the Year awards. Cellar Door
                                               Personality of the Year went to
                                               Whitehaven’s Karen Marchant.
Cover:
Read about Dr Rengasamy
Balasubramaniam, winner of Wine
Marlborough’s 2018 Lifetime Achievement
Award, on page 12. Photo Jim Tannock.                                                Winepress December 2018 / 1
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
HML - the recipe for success.
                                                                Bud burst to pre-flowering (10-14 day interval)

                                                                                 First leaf                                                                                                   12 leaf, inflor.
                                                                                                 2-3 leaf
                                                        Prebud to               separated                                                                                   8-10 leaf          Well devel-
                   Growth stage                                                               shoots 2-4cm        4 leaf              6-7 leaf
                                                        budburst               from shoot                                                                                 single flower       oped, single
                                                                                                  long
                                                                                    tip                                                                                                        flower sep.

                           EL                               1-4                     7                9              11                 12-14               14-15              15-16                 17

     Product                    Rate / 100L

    HML Silco            425g powder / 540ml liquid                                              Silco            Silco                 Silco               Silco

     Sulphur                       label                                                        Sulphur          Sulphur              Sulphur             Sulphur            Sulphur

     Copper                        label                                                                         Copper                                   Copper

    Protector                     500ml                                                        Protector        Protector            Protector           Protector

      HML32                        1.25L
                                                                                               Seaweed                               Seaweed
    Nutrients                      label                                                                                                                                   Tr. elements
                                                                                              Magnesium                             Magnesium
  Lime Sulphur                    3.5-7%                see notes

                                                                       Pre-flowering to PBC (7-10 day interval)
                                                          14 leaf,
                                                                           16 leaf, beg.                      80% - 100%                                  Pea size           Pea size
                   Growth stage                         cap colour                            50% capfall                           Fruitset-Pea                                                   PBC
                                                                            flowering                           capfall                                    4mm                7mm
                                                          fading
                           EL                               18                     19             23              25-26                  27                  29                 31                  32

     Product                    Rate / 100L

    HML Silco            425g powder / 540ml liquid                    Silco                     Silco            Silco                 Silco               Silco              Silco               Silco

     Sulphur                       label                           Sulphur                      Sulphur          Sulphur              Sulphur             Sulphur            Sulphur             Sulphur

     Copper                        label

    Protector                     500ml                                                        Protector                             Protector                              Protector

      HML32                        1.25L                           HML32                                         HML32                                    HML32                                  HML32
                                                                                                                                     Seaweed                                Seaweed
    Nutrients                      label                           Seaweed                     Seaweed          Seaweed                                  Seaweed                                Seaweed
                                                                                                                                    Magnesium                              Magnesium

                                Post PBC to veraison (10-14 day interval)
                                                       Berries still
                   Growth stage                         hard and
                                                         green
                                                                                               Earwn         Veraison                            Henry Manufacturing
                                                                                                                                                 non-residual pesticides
                           EL                               33                    34            35             36

     Product                    Rate / 100L

    HML Silco            425g powder / 540ml liquid        Silco

     Sulphur                       label                 Sulphur               Sulphur

     Copper                        label                                       Copper

    Protector                     500ml                 Protector                                                                Disclaimer: Henry Manufacturing Limited has prepared this programme to
                                                                                                                                 assist grape growers using its products. Liability whether in tort (including
      HML32                        1.25L                                        HML32         HML32          HML32
                                                                                                                                 negligence), contract or otherwise, for any loss, crop injury or crop failure,
    Nutrients                      label                Seaweed                                                                  resulting from the application of this spray programme is excluded. Any
                                                                                                                                 user of this spray programme accepts this disclaimer.

1. Lime sulphur only needs to be applied if the previous           6. If the flowering period is longer than 7 days or is wet,            botrytis resilience and enhancement maturity. See notes on
season had high powdery mildew infection and/or erinose            apply Protector mix to maintain powdery mildew cover.                  website for accurate timings for white and red grapes.
mites.                                                             7. For a month after Fruitset EL27 (when plant is still                11. All HML products are alkaline. Take care when
2. Recover after rain.                                             susceptible to powdery mildew), cover at 7 day intervals (10           selecting copper and nutrient products to avoid tank mix
3. Applications of copper provides phomopsis and downy             day maximum) with HML32 mix alternating with Protector                 incompatibility and plant damage. Read the label of HML
mildew control. Note that further copper applications may          mix. If under pressure, use HML32 mix instead of Protector             products.
be required where the downy mildew pressure is high.               mix.                                                                   12. Magnesium sulphate is in most cases compatible
4. Early applications of HML Silco helps build plant strength      8. The HML32, sulphur and Silco mix prevents and eradicates            with the Protector, HML Silco and sulphur mix. Jar test
and crop resilience.                                               powdery mildew.                                                        recommended. Not compatible with HML32.

5. HML32 mix at EL18 and EL 25 are important applications          9. Where there is existing powdery mildew infection,                   13. If other trace element applications are required, an extra
that brackets flowering. Provides powdery mildew                   an alternative mix is HML32, copper and HML Potum                      application round will be required or alternatively drop
prevention and eradication control as well as botrytis             (potassium bicarbonate).                                               Protector out of the mix.
control.                                                           10. At EL35-36, the application of HML32 can provide

Contact Chris Henry on: chrishenry@actrix.co.nz or call 06 874 2921 or 027 294 1490 Visit us: www.henrymanufacturing.co.nz
The road to resilience. Without residues. Without toxicity. Without resistance issues.                                                                                                                   CDec18
  2 / Winepress December 2018
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
From the
General Manager:
Marcus Pickens
03 577 9299
                                                      Editor
marcus@wine-marlborough.co.nz
                                                      It’s been a little over two years since Marlborough wineries were shaken by the
                                                      magnitude 7.8 Kaikoura earthquake, which ripped the state highway in half,
Editor:
                                                      crumpled many tanks, and led companies to rethink their winery’s seismic safety.
Sophie Preece
027 308 4455                                          The industry didn’t cry over spilt wine, thankful instead that the quake struck
sophie@sophiepreece.co.nz                             just after midnight, so there was damage but not injury.
                                                            This month Winepress checks out Pernod Ricard’s Riverlands winery to see
Advertising:
                                                      what recovery looks like, with catwalks out and telemetric analysis in, so that
Harriet Wadworth
03 577 9299                                           the facility is safer and smarter, says Jamie Marfell on page 20. “We are working
harriet@wine-marlborough.co.nz                        towards a ground level winery.”
                                                            Rebuilding tank space is just part of the
                                                      post-quake journey, and researchers behind
Wine Marlborough Board:
Ben Ensor
                                                      a three-year study funded by the Ministry              “We are
ben.lisa@clear.net.nz                                 for Primary Industries’ Earthquake Relief
                                                      Fund have recognised transport logistics as            working
Callum Linklater
callum@csviticulture.co.nz
                                                      an “essential component” to strengthening
                                                      the resilience of the wine industry (see pg
                                                                                                            towards a
Jack Glover
                                                      23). “Transport issues are really going to be
                                                      one of the top areas to address,” they say.
                                                                                                           ground level
jack.glover@accolade-wines.co.nz
                                                            Planning ahead is also key to ensuring           winery.”
Nick Entwistle                                        Marlborough’s wine industry has enough
nick@wairauriverwines.co.nz                           labour and skills to sustain its growth. With          Jamie Marfell
                                                      85% of Marlborough’s employers flagging job
Simon Bishell
simon@caythorpe.nz
                                                      vacancies, and 80% saying they are difficult,
                                                      very difficult or impossible to fill, the market is already tight. Wine Marlborough
Stuart Dudley (Deputy Chair)                          advocacy manager Vance Kerslake, who has released results from a recruitment
stuartd@villamaria.co.nz                              survey, says the problem is hitting all industries in the region (pg 16). However,
                                                      a new cross-sector approach has potential to ensure Marlborough retains and
Tom Trolove (Chair)
                                                      trains people in this region, and attracts those from around the country and
tom.trolove@framingham.co.nz
                                                      abroad, he says. “Everyone from industry and training organisations, to council
Tracy Johnston                                        and government is keen to do something about it.”
Tracy@dayvinleigh.co.nz                                     On a lighter note, this edition celebrates the success of Forrest Wines,
                                                      which won the Wine Marlborough Cellar Door of the Year awards, and of Karen
Jamie Marfell
                                                      Marchant of Whitehaven, who won Personality of the Year. They and so many
Jamie.Marfell@pernod-ricard.com
                                                      other stellar cellar doors and smiling hosts will help showcase Marlborough this
Beth Forrest                                          summer.
Beth@forrest.co.nz                                          Have a wonderful Christmas, New Year and growing season.

                                                      SOPHIE PREECE
Printed by:
Blenheim Print Ltd
03 578 1322

Disclaimer: The views and articles that are
expressed and appear in Winepress are entirely
those of contributors and in no way reflect the
policy of the Marlborough Winegrowers. Any
advice given, implied or suggested should be
considered on its merits, and no responsibility can
be taken for problems arising from the use of such
information.

                                                                                                                   Winepress December 2018 / 3
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
Chair’s Report
Marlborough will be the world’s greatest
wine region
TOM TROLOVE

“If you don’t know where you’re going,    best contributions from
any road will take you there.” Lyrics     the board and team. We
from the song Any Road, by George         began by identifying
Harrison.                                 our customers (all Wine
                                          Marlborough members)
OVER THE past 10 years, Marlborough       and continued by detailing
wine has come through some                our consumers, partners,
incredible challenges, from oversupply    stakeholders and citizens.
and earthquakes, to record export         We then set a foundation
growth and world-class recognition.       by answering three key
     However, the global wine industry    questions:
does not sit still, and nor should Wine        • What is the value
Marlborough. We need to constantly               our organisation
evolve and change to meet the                    creates? (Purpose                                    Photo by Jim Tannock
demands and expectations of our                  and goals)
members. A new generation of wine              • Where do we play and how do       what we stand for and what we are
consumers expects our industry to be             we win? (Business model and       going to achieve.
there and be relevant to them, so we             strategy)                             With this direction set, it was then
must not be complacent.                        • What priorities do we focus       down to the tough task of fleshing out
     The board has recognised this,              on and how do we maintain         the detail - the roadmap that will make
and over the first six months of 2018,           momentum? (Measurement and        our GIC a reality.
it worked with the Wine Marlborough              culture)                              As a result, the Wine Marlborough
team to develop a three year Strategic    Over several days, the group was         team has built a work plan that
Plan that provides clarity and            challenged to identify and articulate    aligns all their efforts around six key
alignment on our purpose, goals,          the character, beliefs and purpose of    challenges:
business model and top priorities.        our organisation. This resulted in our   • Protect Marlborough’s wine brand
     At the heart of the Strategic Plan   ‘Purpose on a Page’ (see page 5) which      0 Directly address rogue behaviour
is the Greatest Imaginable Challenge      sets out who we are, why we exist,          0 Protect our members’ rights to
(GIC) - that ‘Marlborough will be the                                                    grow, produce, market and sell
world’s greatest wine region’. Every                                                     Marlborough wine
good strategy needs an audacious goal,         “We need to                            0 Ensure members’ views are heard
and this one is within our reach if the                                                  loud and clear
organisation, industry and region get           constantly                            0 Take a leadership role to resolve
on board.
     As George Harrison pointed out,            evolve and                               issues impacting on members
                                                                                   • Grow our member engagement
“if you don’t know where you’re going,
any road will take you there”. The
                                                 change to                            0 Our relationships with member
                                                                                         decision-makers allow us to
Strategic Plan is about pinpointing our          meet the                                influence change more easily
destination and following our road                                                    0 Showcase examples of great
map. To ensure we do both, the board          demands and                                collaboration by our members
worked with the Wine Marlborough
team and Jamie Fitzgerald, of Inspiring      expectations of                          0 Wine Marlborough team
                                                                                         and board live up to and are
Performance in Wellington, using
three focused workshops to get the
                                             our members.”                               measured against our character
                                                                                         statements

4 / Winepress December 2018
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
0 Collaborate with partners so
                                                                                       Marlborough is recognised as a
                                                                                       great place to work, live and play
                                                                                  • Generate sustainable funding
                                                                                    0 Events risks are understood,
                                                                                       and revenue is protected where
                                                                                       possible
                                                                                    0 Profit targets are set for activities
                                                                                    0 User pays activity opportunities
                                                                                       are assessed as part of the
                                                                                       strategy
                                                                                    0 We understand our future
                                                                                       funding options
                                                                                  • Achieve sector-wide clarity on
                                                                                    roles and responsibilities
                                                                                    0 We understand our purpose
                                                                                       and strategy and share that with
                                                                                       others
                                                                                    0 We know where our role crosses
                                                                                       over with other organisations
                                                                                       and when it does not we can
                                                                                       minimise our involvement or say
                                                                                       “no”
                                                                                    0 We carefully define our roles
                                                                                       and responsibilities to help with
                                                                                       clarity
                                                                                    0 Members understand our team’s
                                                                                       roles and responsibilities

                                                                                  Simply put, if we are not standing
                                                                                  up for our beliefs and tackling our
                                                                                  challenges, we are not working on
                                                                                  Wine Marlborough business.
                                                                                  The Wine Marlborough team has
                                                                                  collectively owned the strategy and the
                                                                                  challenges it poses, and I am excited by
                                                                                  the direction we are taking.
                                                                                       If you were at the recent
                                                                                  Marlborough Wine Show Long Lunch
                                                                                  - a celebration of the province’s wine,
                                                                                  people, and industry - you’ll have
  0 Our communication with                  0 Consistent and clear messages       seen the plan in action, at an event
    members is specific and relevant          are embedded in all of our          that supports and grows our member
    to that member’s need                     communications and website          engagement and showcases a great
• Relentlessly share the                    0 We celebrate and share on-brand     Marlborough winegrowing community.
  Marlborough wine story                      behaviour by members                That’s just a taste of what’s to come.
  0 The Wine Marlborough Ltd              • Create and sustain workforce
    story is clear and understood           availability                            Wine Marlborough’s Anual Report
    by customers, stakeholders and          0 Undertake forecasting and             is available online at www.wine-
    partners                                  research to inform our thinking       marlborough.co.nz
  0 The Marlborough wine story                and guide our work programmes
    (past, present and future) is clear     0 Grow Marlborough’s wine
    and understood by customers,              industry workforce by
    users/consumers, stakeholders,            influencing employers, educators,
    citizens                                  gatekeepers and governments

                                                                                                    Winepress December 2018 / 5
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
MET REPORT
    Unfortunately there was a mix up in last month’s Winepress and instead of        on 20 October 2018. The coolest
the October Met Report being included, the August Met Report was repeated. For       minimum temperature of 1.2°C was
that reason some of the October summary is included this month.                      recorded on 13 October 2018.
Table 1: Blenheim Weather Data – October 2018
                                                                                         In five of the six years 2013 to
                                                                                     2018, the October mean temperature
                             October October 2018 October     Period       October
                                                                                     has been well above average (2014
                              2018    compared      LTA       of LTA        2017
                                                                                     below average). However, in the 11
 		                                     to LTA
                                                                                     years 2002 to 2012, the mean October
 GDD’s for month -Max/Min¹    118.3      114%      103.7    (1996-2017)     121.1
                                                                                     temperature was never above
 GDD’s for month – Mean²      118.4      106%       111.5   (1996-2017)     126.1
 Growing Degree Days Total
                                                                                     average.
 Jul – Oct 18 – Max/Min       205.8      109%      188.0    (1996-2017)     228.7    Rainfall
 Jul - Oct 18 – Mean          252.5      105%      239.7    (1996-2017)     271.0
                                                                                         Blenheim recorded 33.8 mm
 Mean Maximum (°C)             19.0     +0.7°C      18.3    (1986-2017)      19.2
                                                                                     rain during October, 57% of the LTA.
 Mean Minimum (°C)              8.4    +0.6°C        7.8    (1986-2017)      8.6
 Mean Temp (°C)                13.7    +0.6°C        13.    (1986-2017)      13.9
                                                                                     However, total rainfall for the first 24
 Grass Frosts (
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
Table 2: Weekly weather data during October 2018                                   was warmer than average, it was
               Mean Max     Mean Min     Mean		             Rainfall   Sunshine    not until December 2017 that the
               (°C)         (°C)         (°C) Deviation     (mm)       (hours)     GDD line started to climb steeply
1st - 7th      18.4         10.1         14.3   (+1.2)      0.0        61.4        with the much warmer than average
8th - 14th     17.3         6.7          12.0   (-1.1)      6.0        57.3        temperatures. The GDD line at the
15th - 21st    20.5         8.1          14.3   (+1.2)      0.0        74.2        start of the 2018-19 growing season
22nd - 28th    20.7         8.8          14.7   (+1.6)      22.4       60.6        from September to November 2018
29th – 31st                                                                        has been very similar to the GDD line
(3 days)      16.8        8.6     12.7   (-0.4)             5.4        12.6
                                                                                   at the start of the 2017-18 season. The
1st – 31st    19.0        8.4     13.7 (+0.6)               33.8       266.1
                                                                                   mean temperatures in October 2017
October 2018 (+0.7)       (+0.6)			                         (57%)      (116%)
                                                                                   (13.9°C) and October 2018 (13.7°C)
October LTA
(1986 – 2017) 18.3        7.8     13.1		                    59.5       229.0       very close, and in November 2017
    LTA – Long Term Average                                                        (15.1°C) and November 2018 (15.1°C)
                                                                                   they were identical. Therefore the
Table 3: Blenheim Weather Data – November 2018                                     total GDD in both October and
                            November November 2018 November Period      November   November 2017 and 2018 were almost
                              2018     compared       LTA      of LTA     2017     the same. At the end of November
		                                      to LTA                                     2018 the GDD line in Figure 1 is only
GDD’s for:                                                                         slightly lower than the 2017 line. As is
Month - Max/Min¹              152.3      105%        145.1 (1996-2017)    153.8    normally the case, the 2018-19 GDD
Month – Mean²                 155.7      107%        145.9 (1996-2017)    154.9    line has shown the ups and downs
Growing Degree Days Total                                                          associated with warm and cool
Jul - Nov 18 – Max/Min        358.1      107%        333.1 (1996-2017) 382.5       weeks typical of spring temperatures
Jul - Nov 18 – Mean           408.2      106%        385.6 (1996-2017) 425.9       in Marlborough and New Zealand.
Mean Maximum (°C)              19.9        =          19.9 (1986-2017)     19.9    The 2013-14 season is the most recent
Mean Minimum (°C)              10.3     +0.9°C         9.4  (1986-2017)    10.3    year to have been fairly consistently
Mean Temp (°C)                 15.1     +0.4°C        14.7 (1986-2017)     15.1    warm from September to December.
Grass Frosts (
CLIMATE CHANGE CELLAR CHAMPS - Wine Marlborough
Table 4: Weekly weather data during November 2018                                Sunshine
                    Mean Max   Mean Min   Mean		           Rainfall   Sunshine    November 2018 recorded 219.4
                    (°C)       (°C)       (°C) Deviation   (mm)       (hours)sunshine hours, 92% of the long-
1st - 7th           20.8       8.8        14.8  (+0.1)     0.6        72.4   term average. Total sunshine for
8th - 14th          19.7       11.5       15.6  (+0.9)     13.8       58.2   the 11 months January to November
15th - 21st         20.7       9.0        14.8  (+0.1)     2.4        63.3
                                                                             2018 were 2289.6 hours; 102% of the
22nd - 28th         18.6       11.7       15.1 (+0.4)      45.8       13.4
                                                                             long-term average of 2244.7 hours.
29th – 30th
                                                                             I am sad to have to report that the
(2 days)        19.3        11.1        15.2     (+0.5)      0.0    12.1
1st – 30th      19.9        10.3        15.1     (+0.4)      62.6   219.4    Blenheim sunshine total of 219.4
Nov 2018        (=)         (+0.9)			                        (132%) (92%)    hours only ranked 14th in NZ for
Nov LTA                                                                      sunshine hours during November
(1986 – 2017) 19.9          9.4         14.7		               47.3   239.5    2018. New Plymouth was the
     LTA – Long Term Average                                                 sunniest town in November with
                                                                             254.4 hours sunshine.
                                                                                  Beyond all belief Invercargill
Figure 1: Normalized growing degree days for Blenheim: days above (+) or
                                                                             recorded 234.5 hours sunshine in
below (-) the long-term average (1990-2017) for the period 1 September to 31
                                                                             November, 15.1 hours more than
December
                                                                             Blenheim.
                                                                                  Blenheim recorded 20.8 hours
                                                                             more sunshine than Richmond in
                                                                             October and at the end of October
                                                                             Richmond was only 2.8 hours ahead
                                                                             of Blenheim for 2018. However,
                                                                             Richmond turned the tables in
                                                                             November and recorded 25.5 hours
                                                                             more sunshine than Blenheim. At
                                                                             the end of November Richmond
                                                                             was 28.3 hours ahead of Blenheim
                                                                             for 2018. It is unlikely that Blenheim
                                                                             will be able to overtake Richmond
                                                                             during December, so it looks like the
                                                                             sunshine crown will once again go to
                                                                             Richmond. However, it is safe to say
                                                                             that there is no fear of Invercargill
                                                                             recording a higher total than
 Figure 2: Blenheim shallow soil moisture (5-35 cm depth) under a mown grass Blenheim in 2018.
 surface with no irrigation
                                                                             Rainfall
                                                                                      Blenheim recorded 62.6 mm
                                                                                 rain during October, 132% of the
                                                                                 LTA. The November rainfall total
                                                                                 is the highest monthly total since
                                                                                 July, which recorded 71.6 mm. Total
                                                                                 rainfall for the 11 months January
                                                                                 to November 2018 was 756.0 mm,
                                                                                 128% of the long-term average of
                                                                                 589.5 mm. In contrast January to
                                                                                 November 2017 recorded 569.8
                                                                                 mm. In 2018 Blenheim exceeded its
                                                                                 annual average rainfall of 636 mm on

8 / Winepress December 2018
16 September. This was largely due to       soil moisture is very short lived,           Rainfall from January to March 2018
the very high February rainfall.            without further significant rainfall.        was 315.4 mm, 245% of the long-term
                                            This is demonstrated in Figure 2 with        average of 128.8 mm.
Soil Moisture
                                            the soil moisture line for January
     Shallow soil moisture (0 to 35         to March 2018 rapidly rising with                                               Rob Agnew
cm depth) at the Grovetown Park             a number of high rainfall events,                                   Plant & Food Research /
weather station on 1 November 2018          followed by a very quick drop in soil                           Marlborough Research Centre
was 26.5% (Figure 2). Low rainfall          moisture following the rain events.
from 1 to 24 November saw the
shallow soil moisture drop to 19%.
Following 44.4 mm rainfall from
                                                                                                                                                         Exclusive
the 24th to the 27th November 2018                                                                                                                     importers of
the shallow soil moisture quickly
jumped to 33.7% on 28 November.
A similar jump in soil moisture                                                                                                                       suspension and
                                                                                                                                                      liquid fertilisers
occurred from 10 to 14 November
                                                                                         Th e M e t Re p o r t wa s s p o n s o re d by
2016 with 68.6 mm rain. However, as
is always the case in the late spring
and summer, the boost to shallow                                                         Vi t i c u l t u r e S u p p l i e s S p e c i a l i s t s    0 80 0 855 2 55

Family Firm
Astrolabe in good hands
ASTROLABE WINES is now 100%                 middle daughter
Marlborough owned and operated, 22          Libby Levett,
years after Simon and Jane Waghorn          along with her
launched their label.                       husband Peter.
     “Our girls have grown up in the            Simon
wine industry. It is so exciting to have    continues as
them stepping up and committing to          winemaker,
our business,” says Jane, with two of       Jane as general
her daughters now invested in the           manager and
business. “I am enormously proud to         Arabella as
have a team of clever, hardworking          brand manager,
young women alongside me.”                  with Libby and
     Astrolabe began in 1996, when          Peter joining the
Simon decided it was time for a             ranks next year.
winemaking project that gave him full       Simon says he is
creative control. With the help of two      looking forward
friends, the couple started the labour      to gathering as a
of love, with their daughters growing       family “and the
up embedded in the business. “When          next generation
you create a business from scratch, it      picking up the
becomes intrinsically linked to your        leadership to take
values, your daily life and family,” says   us beyond what
Jane.                                       I have imagined.
     Now it has been purchased              I can then
outright by the Waghorns, their             concentrate on
youngest daughter Arabella, and             winemaking”.       Simon, Jane, Libby and Arabella, from left

                                                                                                                                      Winepress December 2018 / 9
Dynamic
Industry
Marlborough’s wine
industry remains nimble
and forward looking, says
new board member

SOPHIE PREECE

JAMIE MARFELL was six years
old when Montana planted its first
vineyards up the Brancott Valley
in 1973, within a stone’s throw of
his family’s Wrekin Rd sheep farm.
Seventeen years later he was a trainee
winemaker with Montana, helping            then we produced about 17,000               vine orientation and row spacing, and
produce casks of Blenheimer and            tonnes and 70% of it would have been        in some cases switching varieties to
Wohnsiedler for the South Island           Müller-Thurgau. Sauvignon Blanc             ensure the vines are suited to the soil
market.                                    was tiny - less than 1,000 tonnes,” he      and microclimate. Trunk disease is just
     These days Jamie is group             says. After two vintages he transferred     one of the challenges in vines that are
winemaker for Pernod Ricard                to the company’s Auckland winery,           up to 40 years old, and replanting is
Winemakers, having seen many               but continued to work vintages in           an opportunity to do things smarter.
iterations of the company, growth          Marlborough, enjoying the best of both      “Brancott Vineyard is a classic
phases of the region and a continued       worlds.                                     example - it’s all been east-west and
evolution of its wines and brands. He is        In 2002 he returned to his home        now its north-south, with closed up
also a new member of the Marlborough       town, where only “rats and mice” of         row spacing,” says Jamie. “When it
Winegrowers board, bringing 29             Müller-Thurgau and Muscat remained,         was planted, land was cheap and row
vintages of experience to the table. “I    and became chief winemaker for              spacing was based on the size of the
think it is as dynamic now as it has       the Stoneleigh brand, which he still        tractor. As machinery has become
been this whole journey,” he says of the   manages today. The evolution of             smaller, so has the row spacing, letting
industry. “It has continued to change,     that brand, with its addition of wild       us optimise the land.”
and people are changing with it.”          ferments, is indicative of the dynamic            Innovations continue in the
     Jamie had plenty of childhood         nature of the industry at large, he says.   winery as well, with the 2016 Kaikoura
experiences in the wine industry, at       He loves the Wild Valley range, which       earthquake (see pg20) opening
school in Fairhall with the kids of        has gleaned knowledge from research         opportunities for a future proofed
pioneering wine families, and at work      around Brancott Estate’s alternative        system. Damage to small barrels in the
in vineyards on college holidays. He       styles of Sauvignon, including the $80      earthquake led to a hiatus of trials and
went to Lincoln University to do a         Chosen Rows, but can offer the wine at      research. But with capacity now rebuilt
science degree, and jumped into the        a sub-$20 price, attracting a far broader   with better technology and tanks, “all
first year of its post-graduate wine and   consumer base.                              that stuff we love doing we are back
viticulture course. He and his flatmate         Meanwhile, the industry is             into”.
enjoyed wine and considered it a good      undergoing another growth phase,                  The region has travelled a huge
transition, he says. “And it was a bit     with plantings in areas far beyond          distance since the first vines went in
sexier than working on a sheep farm.”      those imagined in 1973. Pernod Ricard       within view of Jamie’s family farm, but
     He went straight from university      Winemakers’ own developments                is still at the beginning of its journey, he
to the role at Montana, where there        are on existing land, with a rolling        says. “That’s the exciting part of it - we’re
was plenty to learn on the job. “Back      replanting plan that includes switching     still going through an evolution.”

10 / Winepress December 2018
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            www.farmlands.co.nz/stimplex                                                      Winepress December 2018 / 11
Industry
Pioneer
A scientist for the growers
SOPHIE PREECE

DR RENGASAMY Balasubramaniam                meet the demands
(Bala) knows more than most about           of a growing
Marlborough vineyards, from soil            population.
biology and botrytis control to land              At the behest of
conversion and grower liaison.              his grandfather, the
His 32-year career in the science           “playful” teenager        Bala at Delegat’s Faultline wetland. Photo by Jim Tannock
and business of wine has included           was sent to a stricter,
developing VineFax and the Botrytis         more academic
Model, growing one of the country’s         school in the north of the country, with considered temperature, humidity
largest wine companies, and a               wooden beds, classes from 6.30am,              and phenology, to forecast risk levels.
steadfast dedication to the health          and no play to be had. Bala went on to         “There was nobody doing any work
of Marlborough’s vines and wine             do his Bachelor and Masters degrees,           on grape diseases,” he says. “Mike did
industry.                                   focusing on microbiology and plant             physiology and I did pathology.” In
     That career was seeded far from        pathology, and took up work in Sri             1997 he also founded VineFax, (now
the Wairau Plains, in the coconut and       Lanka, looking at tea and coconut              VineFacts, run by Rob Agnew), which
tea plantations of Sri Lanka. Bala lived    diseases, then later managing sales            gave growers a weekly update on
on one of his family’s coconut farms        and distribution of agrochemicals for          climatic conditions, disease risk and
in Chilaw, north of Colombo, until he       a Swiss company. Then in 1979, he              treatment options.
was four and a half, when he was sent       received a scholarship and came to                   It was an exciting time, because
to boarding school at Trinity College,      New Zealand to do his PhD at Lincoln           the science was of pragmatic use
Kandy. The school, in the highlands of      University.                                    to the industry, says Bala, who’d
Sri Lanka, was close to the tea estates           It was there that Bala met his           always chased applied research
of his grandfather, who had migrated        wife Joanne, who was also doing a              rather than blue sky. There was also
from India as a young man to work           doctorate. They married in 1985, and           a soil health programme, looking
on British tea plantations, and bought      a year later moved to Marlborough              at various mulches and impacts of
his own after the country gained its        for his new role as regional scientist         synthetic herbicide and fertiliser on
independence in 1948.                       at MAF. Back then, Bala and                    soil microbiology. “If you have a good
     Bala would visit his grandfather       Mike Trought, another stalwart of              healthy soil, the natural tendency is
on weekends and holidays, and a             Marlborough’s wine science scene,              for the vines to have better defence
love of farming - which began in the        focused largely on cherries, the crop          mechanisms,” he says.
coastal coconut fields - grew in the        of the moment. But the nascent wine                  Marlborough Winegrowers deputy
verdant highlands. “I had an affinity       industry was starting to spread across         chair Stuart Dudley, on presenting
with the land,” he says. He was never       the valley floors, and Bala knew the           the 2018 Wine Marlborough Lifetime
that interested in study at school - “I     growth would come with challenges. “I Achievement Award in October, said
just wanted to play” - but Bala clearly     saw a great opportunity for research at Bala was the go-to man for a large
recalls the moment, when he was             that time, especially in plant diseases,       number of people in the world of
around 13 years old, that he decided        which is my field. Grapes were                 viticulture, “and there was hardly
on a career in agriculture. Many of         becoming a monoculture and I said,             a viticulture seminar in those early
the children at the school had careers      ‘there will be a lot of problems coming, days, where Bala did not present
mapped out by their parents, and            let’s start working on it’.”                   vital information that was readily
would become lawyers and doctors,                 Bala dug into botrytis research          absorbed by the industry”. Stuart
says Bala. But he could see huge            and developed the Botrytis Infection           told the Marlborough Wine Awards
potential in better utilising the land to   Model, still in use today, which               audience that at forefront of all of his

12 / Winepress December 2018
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                                                                                                           Winepress December 2018 / 13
endeavours, Bala has been a scientist
for the growers, “providing them with
knowledge and skills to help them
flourish, and Marlborough to grow
as an internationally acclaimed wine
region”.
     In 2000, Bala stepped away from
what had become HortResearch and
joined the commercial sector through
Delegat, excited by Jim Delegat’s vision
for the future growth of the company.
That vision was for Oyster Bay to
become an international brand and the
company to become an international
entity. “He said we have to row our
own boat, set our own sail, and live
to our own plan,” says Bala, who
appreciated the challenge.
     He was tasked with increasing
grape supply through grower numbers,
and was proactive in tempting farmers
to convert their land to vineyard,
using a financial model that showed
them potential for vastly increased
profitability. Within five years he had
achieved the 10-year target of 1,000
                                             Bala, right, with Mike Trought
hectares of growers. He was also
buying up land for Delegat in that
time, “and we haven’t stopped”, says         on the race to the bottom in the market   moving forward and you don’t have
Bala, the grower business development        place, and turn it around and make it     time to reflect.”
manager of what is now one of the            a race to the top to sustain the growth        He’ll be doing a little more of
country’s biggest wine businesses. “As       and long term viability of a vibrant      that reflection this month, when he
a company we have grown and we               industry”.                                visits the former tea plantation of his
haven’t looked back. And it is all in             While satisfying the business        grandfather, which was claimed by
keeping in line with sales projections.”     aspect of his “DNA” through Delegat,      the Government in 1972 and is now a
     These days it is far more               Bala continued working for the            tourist resort. From the little boy who
challenging to maintain a good level         industry at large, as a member of the     walked amid the rows of Camellia
of grower hectares, with the bulk            New Zealand Society for Viticulture       sinensis, growing a passion for plants
wine market tempting many growers,           and Oenology (NZSVO) for 21 years         and productivity, to the scientist who
who can get the same price for higher        and president for 10 of them. In that     helped forge and protect Marlborough’s
yields. That comes with the risk of          time he was responsible for attracting    wine industry, it’s a journey worth
compromised quality, Bala says. “The         the 6th International Cool Climate        celebrating.
bulk wine market in Marlborough              Viticulture and Oenology conference
has grown from 3 to 4%, to in excess         to Christchurch in 2006. When he            Industry Legends
of 33% and that will keep growing.”          stepped down last year, Bala was made       Jane Hunter, Ivan Sutherland and
That makes buying fruit harder, and          a life member of the NZSVO.                 Mark Nobilo were announced as
depresses the price consumers are                 Bala told the Wine Awards              New Zealand Winegrowers Fellows
willing to pay for other wine. “Where        audience that he was one of the “back       for 2018 at the New Zealand Wine
super premium wines used to sell for         office guys”, and not at the forefront      of the Year Awards awards dinner.
$19 to $22 for Sauvignon Blanc, today        of taking Marlborough to the world.         Look out for their profiles in
that is commanding only about $15 or         But in the weeks since his win he           upcoming editions of Winepress,
$16 or less in supermarkets, because         has heard from many of the pioneers         as part of this new series on
there is a lot of wine available at lower    of the Marlborough wine industry,           Industry Pioneers.
prices.” Bala says it is important for the   helping him to cast his mind back to
industry as a whole to “put the brakes       his achievements. “In life you keep

14 / Winepress December 2018
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                                                                                Winepress December 2018 / 15
Skill
Seekers
Marlborough’s skills shortage
bites

SOPHIE PREECE                                                 Marlborough industries to work together to tackle labour and skills
                                                              shortage. Photo Richard Briggs

EIGHTY-FIVE percent of                        including forestry, aquaculture and           get worse, with employment set to
Marlborough’s employers have                  tourism, and drew responses from              grow by 2% across New Zealand by
permanent job vacancies, and 80%              55 employers, with a total of 3,757           2020, but by 3.4% in Marlborough
of them say they are difficult, very          employees, across a dozen industries.         (From MBIE short term employment
difficult or impossible to fill. Those are         Vance says one of the biggest            forecast 2017-2020). Vance says
some of the startling numbers in from         surprises for him was the number of           the challenge is a huge one for the
a cross sector recruitment survey sent        employers who said they simply could          wine industry and others, but there
out by Wine Marlborough earlier this          not fill roles, including 27% who said        is an appetite for a cross sector
year, says advocacy manager Vance             technical positions remained unfilled.        approach to better attract and retain
Kerslake. “Anecdotally, most people           “If your company needs one of those           staff. “Everyone from industry and
knew we had a shortage of labour and          that’s probably quite a key role,” says       training organisations, to council and
that it was difficult to recruit roles. But   Vance. Three quarters (76%) said one          government is keen to do something
I don’t think anyone really understood        of their two biggest challenges was not       about it.”
how big the problem was. Or that              getting applications from people with              To see the full survey results
it applies across the board, from             the right skills, while 40% had found         go to the news page at www.wine-
technical roles to labour.”                   people with the right skills, without the     marlborough.co.nz/
     The survey was sent to employers         right visa.
in a range of Marlborough industries,              The problem is only going to

 Smarter Skill Seeking
 The Marlborough District Council has launched its ninth            other employers who struggle to fill vacancies.
 regional Smart+Connected programme to address labour                     At the first meeting of the project’s establishment
 and skills shortages in the region. The initiative will draw       group, which included representatives from several
 on knowledge, insights and experience from people                  education and training organisations, as well as employers
 involved in labour and skills, including schools, training         and Immigration New Zealand representatives, Vance
 organisations, employers, and government agencies.                 released results from the recent recruitment survey
      Council strategic planning and economic development           (see main story). Eighty-five percent of Marlborough’s
 manager Neil Henry says it is about better understanding           employers have permanent job vacancies, and 80% of
 “who is doing what, what is working and what could                 them say they are difficult, very difficult or impossible to
 be improved”, when it comes to training, retaining and             fill, he told the group.
 attracting skills and labour in the region. “The process                 “That’s why I think the Smart + Connected approach
 should also identify opportunities for collaboration               is such a great opportunity,” he says. “We are all doing
 between the many parties involved in labour and skills in          something on our own, or think that we needed to do
 Marlborough.”                                                      something and not quite sure what it should be. Coming
      Smart+Connected (S+C) has been used by council for            together for collective impact means the whole can be
 the past five years to bring together nine industry and            more than the sum of its parts.” Business Lab’s Colin
 community groups to plan and deliver on co-designed                Bass, who facilitates the S+C programme, says the
 strategies. Wine Marlborough advocacy manager Vance                initiative will look to build on existing projects. “It is about
 Kerslake says using it to tackle labour and skills shortages       supercharging efforts and being innovative,” he says.
 is an exciting development for the wine industry, and for

16 / Winepress December 2018
Easter Trading
Chocolate, cruise ships, air shows and cellar doors

WINE MARLBOROUGH is urging                              stay or eat on Good Friday and Easter       applied for, as long as the special event
the wine industry to consider their                     Sunday. That’s good news for vineyard       is not Easter related, such as an Easter
Easter trading situation sooner                         restaurants, who can serve wine as          egg hunt, he says. “But the airshow is a
rather than later. In March 2017,                       long as people are eating. It’s also good   pretty good event to use, and a number
the Marlborough District Council                        news for guests on Radiance of the          of cellar doors and off-licence premises
adopted the government’s Easter                         Seas, a cruise ship that carries more       have used it in the past,” he says.
Sunday Shop Trading Policy, which                       than 2,000 people, which is scheduled            Good Friday is another story,
allows retailers to open on Easter                      to arrive in Picton at 9am on Sunday        and it is likely that the only on-
Sundays. However, the sale of                           April 21 and depart at 9pm. When it         licence special licences approved for
alcohol is governed by the Sale and                     comes to off-licence premises, such         Good Friday and Easter Sunday will
Supply of Alcohol Act 2012, which                       as cellar doors without restaurants,        be for the airshow itself, including
includes rules around the sale and                      Section 48 allows the sale of wine          wineries operating at that event. It’s
supply of alcohol on Good Friday and                    from premises on Easter Sunday if the       a complicated (Easter) business, says
Easter Sunday, and overpowers the                       wine is made on the premises or from        Mike. “Always check the conditions
new policy.                                             produce harvested from the land it’s        of your licence and if in doubt contact
     Mike Porter, who is secretary                      on. “This means that most cellar doors      council for advice”.
of the council’s district licensing                     are able to be open on Easter Sunday
committee, says Section 47 of the                       as of right,” says Mike.
act allows on-licence facilities to sell                     If that clause doesn’t match the
alcohol to people who are there to                      circumstances, a special licence can be

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                                                                                                                     Winepress December 2018 / 17
Climate
Change
Mitigation methods compared by
vineyard model
                                                                          Cyril Tissot in French vines
SOPHIE PREECE
                                                      optimum climate change scenario,               a comprehensive programme around
     Marlborough may be able to tap                   a pessimistic scenario, and middle             climate change. NZWRC development
into a cutting-edge prediction model                  ground between the two.                        manager Tracy Benge says that
that assesses adaptation strategies to                     There’s a wide range of adaptation        programme is intended to increase the
mitigate the impact of climate change                 strategies, from the short term                industry’s understanding of climate
on vineyards. French geographer and                   (including wine making techniques,             change, and to develop adaptation and
researcher Dr Cyril Tissot has created a              soil, canopy and harvest management,           mitigation tools. NIWA is modelling
model that simulates, in the short and                and pest and disease control), medium          climate change scenarios and
long term, the variance in phenology                  term (including root stock and site            predictions for New Zealand’s wine
and ripening timeframes in vineyards                  selection, pruning techniques and              regions, and the research centre will
due to climate change, taking into                    planting systems) and long term                analyse the impact of those predictions
account agronomic practices. “Climate                 (grape varieties and irrigation) being         on various aspects of viticulture,
change is one of the major challenges                 considered, he told the group. “We do          winemaking and production. A
facing the viticulture sector,” he told               not have one solution - we have many           dedicated NZWRC webpage has been
industry members at a seminar in                      solutions of adaptation.”                      set up to provide information on
Marlborough last month.                                    The model has been developed in           climate change studies and seminars,
     The research approach has two                    France, but the next stage of research         as well as the regional information
principle objectives, the first of which              will see a prototype taken to the United       from NIWA.
is to “simulate grapevine phenology                   Kingdom, Romania, Germany and                       The research centre also plans
and grape ripening under spatial and                  Spain, Cyril said. “The objective is to        to leverage other climate change
temporal environmental conditions                     compare adaptation strategies on a             programmes, such as the French
and constraints”. The second objective                more global stage.”                            adaptation model, Tracy says. “It’s a
is to “simulate viticultural practices                     Cyril is also interested in               case if not replicating but providing a
and adaptation strategies under                       collaborating with New Zealand grape           similar model in New Zealand.”
various constraints (environmental,                   growers to assess whether wine areas                Companies that would like to be
economical, socio-technical)”. The                    here could be integrated into the              involved, and provide data for the
model runs on a microscale (plot by                   model. The seminar was run by the              model, can contact Tracy at tracy@
plot) and a meso scale (for homogenous                New Zealand Winegrowers Research               nzwine.com.
wine growing regions), and offers an                  Centre (NZWRC), which is developing

                                         on
                                     els
                                    N s
                                h & ma
                             ug st
                         o ro hri r.
                      lb      C   ea
                    ar erry Y
              u r M M New
           lo     ry y
         al Ve app
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  ish en d a                                                                                    Engineering communities for over 80 years.
 W cli an

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                                                                                                                T 03 379 2734
                                                                                                          E solutions@babbage.co.nz

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18 / Winepress December 2018
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OENOBRANDS_AP Thiols_86x253 mm_2018_Sulkem_G_06.indd 1                              17/09/2018 11:16
Smart
    Tanks
    Earthquake damaged
    winery rebuilt safer
    and smarter
     SOPHIE PREECE

WHEN PERNOD Ricard Winemakers’              winery in a safer, more innovative           workshop on the Riverlands site, and
head office asked about the potential       way.”                                        by vintage Crown Sheetmetal had built
for injuries, in the November 2016               As well as being safer, the winery’s    the winery half a million litres worth
Kaikoura earthquake, the answer was         improved design and telemetry offers         of “beautiful tanks”, some of which
clear. “They said, ‘if it had been during   more speed and efficiency, helping           were finished just days before use, says
the day, would there have been injured      ensure juice is in ferment as soon as        Jamie. “Everything else has been built
employees?’ And we said ‘quite likely’,”    possible after harvest. “It’s still a work   subsequent to that.”
says Pernod Ricard group winemaker          in progress, but we are focused on a              The gleaming visible parts of the
Jamie Marfell.                              winery of the future,” he says.              operation - including new flow plates
     Two years on, the company’s                 Marlborough’s wine industry             and elevated hoses that rotate on a
vast Riverlands winery has been             was hit hard by the magnitude 7.8            wheel for easy use - tell just a fraction
transformed, with catwalks abolished,       Kaikoura earthquake, which struck            of the story, with up to 750mm of
telemetric analysis installed, thicker      just after midnight on November 14,          concrete and reinforcing beneath the
stainless steel, deeper concrete and        2016. The timing meant no winery             tanks, and cutting-edge technology
stouter tanks with sacrificial fuses.       staff in the region were injured, but        within them. The tanks’ stainless steel
“These are all smart tanks,” says Jamie.    the earthquake resulted in damage to         is far thicker and the seismic anchors
“We are working towards a ground            approximately 20% of Marlborough’s           are far better, says Jamie.
level winery.”                              tanks.                                            “We are still working on the finer
     Instead of vintage staff poised             Following the 2013 Seddon               details and developing the level of
above tanks to take measurements,           earthquake, Pernod Ricard’s damaged          precision we want in the winery, so
they now have pressure transducers          tanks had been repaired using a              that we have information on volumes
that measure volume and                     safer design, with bottoms cut off           and analysis at our fingertips. We
temperatures, as well as offering           and seismic bolts added. These tanks         are looking at the next layer of
automated systems for adding                withstood the most recent quake, but         technology.”
nitrogen. “It’s a new way of working        other damaged tanks needed to be
for us. It was a chance to rebuild the      replaced. T&D Construction built a

20 / Winepress December 2018
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                                                                                    Winepress December 2018 / 21
Insurance
update
Insurance industry shaken by
hurricanes, fires and earthquakes

NEW ZEALAND’S insurance                      materially increase their
landscape was transformed by the             exposure in those regions.”
2016 Kaikoura earthquake, says ICIB               The increase in
senior broker Daniel Szegota. “This          frequency and severity
was the catalyst for change with a           of local weather events
hardening market already on the              continues to challenge          Tank rebuild following Kaikoura earthquake. Photo Jim
horizon. Local insurers set about            the industry, while the         Tannock
reviewing their portfolios to return to      fire risk around expanded
profitability, reviewing their exposures     polystyrene (EPS) is also concerning          (non earthquake) premium increases
and imposing significant premium             insurers, following large fire losses         throughout the remainder of 2018,
increases - with mixed success - to          globally, says Dan. “EPS features             citing local losses in 2016 and the
high risk business and industries.” He       throughout the wine industry to               high cost of “global catastrophes” in
says local earthquake pricing has now        varying extents. The insurance market 2017. “Insurers that have remediated
stabilised with minimal increases,           in this sector is contracting and there       their portfolios may start to compete
“however the Natural Disaster Site           is a finite amount of capacity amongst        again on quality business.” However,
Excess structure and percentage basis        local and global insurers for risks           he says it is likely, based on previous
are here to stay for the foreseeable         where high levels of EPS are present.         cycles, that the upward premium
future”. In general, there is still little   This lack of capacity, and therefore          curve will not be sustained over a long
appetite for high hazard risks or            competition, is resulting in significant      period “with insured losses over the
growth, Dan says. “High natural              premium increases for these risks”.           next 6 months determining the actual
catastrophe zones remain under                    Dan says the insurance market            period of premium increases and/or
scrutiny with no insurer willing to          will continue to drive for nominal            underwriting controls”.

 Global matters - Dan Szegota looks at the bigger picture for insurers
 After a number of years of profitable underwriting results        Emergency Services Act 2017 replaced the Fire Service
 and benign claims that encouraged new capital into the            Commission with a new organisation, Fire and Emergency
 market and drove competition, market conditions took a            New Zealand (FENZ), bringing together 40 urban and rural
 major hit in 2017. Posting an estimated US$135 billion of         fire services. The increased funding requirements of the
 insured losses, much of it coming from Atlantic hurricanes,       new entity will continue to be met through the collection
 2017 rivals 2005 and 2011 as the largest insurance loss           of insurance levies. This initially resulted in a 40% increase
 year on record. As a result, it was clear that the insurance      in the levy charged on material damage policies covering
 market would end premium rate reductions, in the short            the peril of fire. Complex changes to the way the levy is
 term at least. There is clear upward movement in pricing,         calculated were proposed to commence from January 1
 however these increases have generally been restricted for        next year, having already been delayed from an initial
 all but the most difficult risks. Insurers and their reinsurers   date of July this year. Significant consultation between
 are still focused on areas with high natural catastrophe          the government and insurance industry representatives
 risk, and, naturally, this includes New Zealand.                  over challenges in interpretation and implementation
                                                                   of the changes proposed by the legislation has resulted
 Fire & Emergency Levy Update                                      in a revocation order. This has further delayed the
       Fire service levies collected through contracts of          implementation date to July 1 2019.
 fire insurance was subject to significant change from 1                Daniel Szegota is a senior broker at ICIB Ltd
 July 2017. The Government’s introduction of the Fire and

22 / Winepress December 2018
Trucking on
Transport logistics integral to wine
industry post-quake review
TRANSPORT LOGISTICS are an                 Nick. “Yes,
“essential component” to strengthening     those things
the resilience of the wine industry, say   are still very
researchers behind a three-year study      important but
funded by the Ministry for Primary         it’s clear after
Industries’ Earthquake Relief Fund.        hearing from the
The outcomes of the study, to be           QuayConnect
released in 2020, include identifying      members of our advisory group and           impact of the earthquake and looking
key vulnerabilities faced by the           within the workshops that transport         at the wine industry’s responses in
industry and better understanding          issues are really going to be one of the    the aftermath. Joanna says individual
risks and opportunities to build           top areas to address.”                      companies can start to become more
resilience along the entire value chain,         Following the November 2016           self-reliant and prepare for a major
from vineyard and winery operations        Kaikoura earthquake, QuayConnect            event. “Businesses have to think, if
to the market, both domestic and           ensured bulk wine reached Port              we’re down to one road, what do we
international, offshore and tourists.      Nelson and was shipped to its               need to have happen for our supply
     Lead researchers Nick Cradock-        international or domestic markets,          chain to keep functioning? Companies
Henry of Landcare Research,                while supplies like glass bottles made      are saying they need to work on
and Joanna Fountain of Lincoln             it back to Marlborough. Joanna says         strategies themselves to address these
University, say the input of transport     QuayConnect’s success in maintaining        risks because systemic change won’t
company QuayConnect highlighted            and increasing freight operations           happen quickly.” Nick says the project
the significance of transport issues.      immediately after the event “has been       team will provide recommendations
“We went into the study thinking,          really instructive to how wineries          by mid-2020, to help individual
for example, that there will be the        can plan ahead and change their             companies, industry groups, and local
need for structural fixes, such as         behaviours to be better prepared”.          and central government prepare for the
creating more robust storage facilities,         Following an initial scoping phase,   unexpected.
redesigning tanks, having better piping    the study is now working with industry
and building infrastructure within the     partners, wineries, and grape growers
winery to withstand shaking,” says         documenting and analysing the

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                                                                                                       Winepress December 2018 / 23
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