calltoaction2_stayinformedEach year an industry wide survey (Production Plan – including both producer and private cellar members) is conducted by VinPro’s Agricultural Economic Service. The primary objective is to determine the production structure, cost drivers and profitability per each of the nine districts. All in an attempt to better understand the financial wellbeing of the producers. The first round of Production Plan meetings, which took place from the 10th of August till the 2nd of September was well received. A total of 25 meetings were held, with 241 producers in attendance across all the wine districts, engaging and sharing what is happening in their respective farming enterprises.

 

Profitability for the wine grape farmers has been a key consideration this year. Given the sustained pressure on wine grape farming, uprooting of grapevines has become a hot topic as more and more producers aim for diversification as a way of managing risk at farm level. With all these challenges, it is vital to ensure that producers are well equipped, and informed, with the necessary expertise in making informed decisions to stay afloat in their businesses. Collaboration is key in this regard, alone we can do so much, but together we can do the unthinkable (industry and government working together, ensuring market access, removing tariff barriers and policy implementations to ensure a favourable trade environment).

 

Despite these challenges, the wine industry has also experience some positive strides – domestic- and international market. A growing trend in the local wine consumption, with a 9% increase in 2015 versus 2014, owing to new entrants, mostly in the bag in the box segment, while events like WOSA’s Intrepid South African recent wine show & tasting, also point to growing international interest in SA wines. The shadow of low-priced wines, which has hung over South Africa is clearing up, with South Africa’s biggest market, the UK, showing an increase in value, according to latest figures – end of July showed that total exports to the UK have increased by 2% in value. – Funzani Sundani, VinPro

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