BUSINESS MAVERICK 168: Days of wine by the barrel are drying up for South Africa’s farmers and vinters

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In the past five years, the local wine industry has shrunk by 10%. This is almost expected, because the global wine industry has lost 2.5 million hectares of grape vineyards since the 1990s.

Negative growth in real prices for wine grapes over the past decade;Sustainability of primary wine producers, who have been under severe pressure for many years;Old age of vineyards and resultant low yields; andThe laundry list of reasons for this decline is long but it all comes as part of a global trend that has posted a loss of 2.5 million hectares of vineyards over 20 years.

This decline comes after a period of rapid growth, with the political transition, new access into export markets and a quality revolution in South Africa. “If you are a grape farmer, you can imagine what has happened to the price of your tractor, chemicals, fuel, labour – all of those things have gone up.”

“[The industry] is going backwards and the main reason for that is financial sustainability. We don’t have any government support,” she said.“For some who sell wine at more than R100 a bottle, [business] is bigger than what it was five years ago – those are the ones that employ the most people, that bring in the most tourists, who have the biggest economic impact,” Vink said.

 

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