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OVERVIEW

Grapes and wine Exports are still strong despite the drought.

SECTOR INSIGHT Cape Town wineries have created their own label of origin. • Grape exports to China have been growing at 30%.

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outh African wine exports in 2016 earned a very healthy R9-billion, nearly 10% up on the previous year’s earnings. This increase notwithstanding, there are several areas where South Africa is looking to increase its exports, not least the BRICS countries, with China being a promising market for both wine and grapes. 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. The Chenin Blanc Association of SA believes that the US is a ripe market for its wines. Financial Mail reported in 2017 that South Africa’s 17 799ha of Chenin plantings is greater than the rest of the world combined, and many of the vines are old, which creates better quality. SA currently exports 11Ml/year into the US, a small fraction of the 920Ml/ WESTERN CAPE BUSINESS 2018

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year that that country imports. In a recent development, wineries in greater Cape Town now have their own regional identity. The likes of Groot and Klein Constantia, Buitenverwacthing, Diermersdal and Cape Point Vineyards will from now on carry the label “Wine of Origin Cape Town”, linking them to one of the best-known city brands in the world. The long-term drought afflicting the Western Cape is having an effect on the grape and wine industry. It has been estimated that a 5% lower vine production rate results in a R175-million loss to a farmer, with the broader value chain losing something like R525-million. There is a move to try to shift South Africa’s focus away from bulk wine sales, to bottled wines. The website beveragedaily.com quoted the managing director of Origin Wines stating that for every 10-million litres of additional wine bottled in South Africa in 2016, additional direct income of R200-million should accrue to the Cape Winelands.

Western Cape Business 2018  

The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has estab...

Western Cape Business 2018  

The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has estab...

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