A former employee of New Zealand's legendary Cloudy Bay in Marlborough has said he is "dismayed" with the region's production-line approach to winemaking.

Speaking at the annual Romeo Bragato wine conference last week, Ivan Sutherland said the country's wine industry problems will not go away if the current focus on production figures and sales turnover continues, Radio New Zealand reports.

Mr Sutherland, who now owns the Dog Point vineyard, said more of an "artisan approach" is needed to return grape production to equilibrium and pull New Zealand's wine trade out of the doldrums.

He suggested cutting 15 per cent of the sauvignon blanc crop and moving away from the "image-damaging" bulk market.

It follows disappointing results for Oyster Bay owner Delegat, which recently published a 99 per cent fall in profits for the last fiscal year.

"The New Zealand wine industry continues to forecast a supply imbalance for the foreseeable future," the company commented.