Undervaluation of wine exports at the heart of struggles in industry
The industry needs policy clarity and a unified approach to compete with bigger players such as Australia
Addressing undervaluation, transformation and collective identity is key to driving the SA wine industry’s sustainability. In 1999, after 81 years under the KWV state co-operative as the proxy for SA Wine, producers at last experienced a world unfettered by state capture. While this was widely celebrated, the institutional vacuum brought about by the repurposing of KWV created its own set of problems. Gone were the days of price control, state-sanctioned monopolies, marketing boards and surplus alleviation. Instead, producers had to design sustainable business models to survive on their own. Furthermore, with the advent of democracy in the early 1990s, a rapidly growing community of SA wine producers, enthused by the novelty of market access, extended their brands and underpriced their wines on global markets. Spurred on by a bullish export market, increased demand and potential for higher fruit prices, certain areas such as the Swartland engaged in ambitious planting schemes. The e...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.