South Africa Business

Question 1

The South African wine industry has many different intiatives designed to promote quality, sustainability and so on…

For each, briefly describe each.

1. Integrated Production of Wine (IPW)
2. Biodiversity and Wine Initiative (BWI) –> WWF-SA Conservation Champion Programme
3. Integrity and Sustainability
4. Sustainable Wine South Africa
5. Wine and Agricultural Ethical Trade Association (WIETA)
6. Fairtrade

Answer 1

IPW sustainable farming incl. water usage, biodiversity protection, covers 95% of growers; independently audited

Biodiversity and Wine Initiative (BWI) being replaced by WWF-SA Conservation Champion Programme recognises producers for energy efficiency, water stewardship etc.

Integrity and Sustainability certifies sustainable use of chemicals, water mngt, natural predators

Sustainable Wine South Africa link between above bodies

Wine and Agricultural Ethical Trade Association (WIETA) ethical trade for workers rights, covers 60% of production

Fairtrade related to above, accounts of 2/3 of global Fairtrade wine sales

Question 2

Domestic consumption per capita remains low in ZA, why is that and what formats have worked well given this backdrop?

Answer 2

Low p/c incomes → value packaging e.g. 1L

Question 3

Why is reducing bulk wine as a % of production a priority for the industry?

Answer 3

Low value means growers struggling to be financially sustainable

Need to create jobs in finishing and packaging industries

Question 4

Describe the growth in exports in ZA and which markets are the most important.

Answer 4

Significant growth in export volumes

Exports from 20 countries –> 135 countries

UK was majority of market 25 yrs ago - remains important but now only 25%

Germany, US, China and other Africa are other key mkts driven by high vol wine