The sector is stuck between a weak position in global markets and a rising climate regime hindering market accessWhile the Covid-19 crisis has delivered an unprecedented blow to the local wine industry, the sector faces a further existential threat: it is stuck between a weak position in global markets and a strengthening global climate regime, which is hindering its market access.
In a value chain controlled by large importers and retailers, SA producers have historically struggled for shelf space in European markets. Wine exported from SA is commonly used in blended varieties in Europe, creating a false perception of poor quality. The limited marketing budget of the local industry in this respect is unable to flip the scale in highly competitive markets.
Work to further increase the overall sustainability of production. The voluntary certification programme in SA, through the Integrated Production of Wine scheme, offers an opportunity for the local industry to reduce its carbon intensity. This is particularly the case for packaging, as a framework for such developments already exists.