Advertise with fastmoving.co.za
 
 

Producers dwindle but positive sentiment towards SA wine sees revenue increase.
Producers dwindle but positive sentiment towards SA wine sees revenue increase.

Value of wine exports up despite drought in Western Cape

ECONOMIC NEWS

By Bekezela Phakathi - Jan 28th, 09:41

The value of wine exports grew by 4% in 2018, despite a difficult season and a long-term trend of producers dwindling. 

The value of exports grew to R9,6bn, says industry association Wines of SA, despite a low-yielding harvest due to the regional drought.

Wine is one of SA’s largest agricultural exports, with nearly 100,000ha of vineyards, mostly in the Western Cape, accounting for 4% of world production. The industry contributes R36bn to GDP and employs nearly 290,000 people.

It has faced strong headwinds in recent years including the drought in the Western Cape and increasing production costs.

There are 25% fewer producers than a decade ago, according to wine producers body VinPro. It says the only way to ensure sustainability is for farmers to increase prices they receive for wine.

Vinpro previously reported that many wine-grape farmers were either leaving the industry, uprooting vines for more profitable crops or not replacing vineyards. The Bureau for Economic Research and the Bureau for Food and Agricultural Policy predict that at 85,000ha, the area under wine grapes will be about 10% smaller by 2022.

Value of exports

Wines of SA CEO Siobhan Thompson said: “We have proven that we are indeed producers of world-class, high-quality wines and deserve to have this reflected in our bottom line.”

The increase in the value of exports arose from Wines of SA’s strategy for an increased focus on packaged and bulk wine sales, she said. The value of packaged wine increased by 3% and that of bulk wine by 7%.

In SA’s focus export markets, Wines of SA noticed good growth on the value of packaged wine to China at 7%, while the US remained flat. The US market has always been stronger in terms of their procurement of more premium-priced wine.

In the European markets, which have seen very little value growth of packaged wine for a number of years, there was a notable value increase on all fronts, Wines of SA said.

Exports to other African countries increased with Kenya, Tanzania and Zambia showing strong growth as values of total exports grew by 73%, 35% and 33% respectively.
Business Live 

Related News

Meridian Holdings invests in Cape Wine Academy
14/06/2019 - 14:12
This year, the Cape Wine Academy celebrates 40 years of presenting their wine courses to industry and private enthusiasts. We are also pleased to announce that as of 1 July 2019, Meridian Holdings will be the sole shareholder of the Academy committed to investing in a bright future in wine education for all for South Africans.

Zimbabwe's farmers smell the tea and coffee
14/06/2019 - 09:50
Farmers in Zimbabwe’s Eastern Highlands are smelling the tea and coffee.

Trade body will have a bone to pick in poultry tarrif case
14/06/2019 - 09:30
Those with intimate knowledge of the tariff application say that ITAC's position is akin to a zero-sum game, where they may have to choose between exposing local poultry producers to cheap imports they cannot compete with, or raising consumer prices for poultry to impossibly high levels.

SA's first citrus shipment arrives in China
13/06/2019 - 15:39
The historic shipment of 5 200 tons of citrus in a breakbulk vessel has arrived at Shanghai Port in the People’s Republic of China.

Increase in sales reflect stronger second quarter
13/06/2019 - 10:41
Data from Statistics South Africa (StatsSA) showed that retail sales in April increased 2.4percent year-on-year - the strongest gain in retail trade in six months, providing further evidence that the economy began the second quarter on a firmer footing following the first quarter’s 3.2percent plunge.