New Zealand wine exports are staying strong despite a price fall in America

A State of the Wine Industry report predicts a surplus of California grapes and decreasing demand for wine will keep prices low for up to three years.

But New Zealand wine sales in the US have gone up eight per cent in the past year.

New Zealand Wine Growers Chief Executive Philip Gregan says our wine sells at a higher price point overseas.

He says people buy it because it's special - they don't go into a supermarket expecting to find a New Zealand wine for five dollars US.