Wine and grapes China is importing the fruits of the Western Cape’s vineyards.
SECTOR INSIGHT Nearly 50 000 people work in the province’s table grape sector. • A Cape wine farm is selling exclusively to China. • KWV has been sold to a global company.
hinese consumers love the grapes of the Western Cape, whether they are presented to them in bunches or in bottles. Alterations to importation regulations are set to massively boost table grape sales to China, and wine farmers are selling ever-increasingly volumes to that country.
Table grapes South Africa’s table grape producers and exporters had something to cheer about in 2016. Because China has changed its cold-treatment protocol, South Africa can now increase its exports to that country to R2.5-billion within five years. In 2015, 10 600 tons of table grapes were sold into China but the figure could not be increased because of the cold-treatment protocol relating to the South Africa product, which affected quality, market share and price. The Chinese market for table grapes has been growing at 30% since 2000 and stands at about $600-million. WESTERN CAPE BUSINESS 2017
The South African Table Grape Industry Partnership (SATI) is a partnership whose board membership represents every growing region. The industry’s contribution to the national GDP is estimated at more than R3-billion. The table grape industry provided over 46 000 direct jobs to the Western Cape during the 2015/16 harvest. The Western Cape is responsible for 65% of total production volumes in table grapes. There is also a significant contribution to downstream production income – R3.2-billion to other product-input providers, R720-million to packaging material suppliers and R250-million to logistics suppliers. On farms with black ownership, income of R183-million was generated in 2014/15. Key industry figures for the annual national harvest: • More than 85 000 jobs