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A Rare 2001 Vintage
The 2001 vintage is revealing itself as a rare one indeed. On the one hand it may be one of the smallest in history - and on the other hand one of the best, red wine especially.
It is therefore ironic that the industry will soon face shortages, while the problem of "unsellable stocks" is currently still an issue (the figure is conservatively estimated at 38 million litres).
Sharp decreases in yields occurred in certain regions, especially the Orange River, where the decrease of 30% (38 700 tons or 30 million litres) could be a crisis situation.
According to the latest harvest estimates by SAWIS, the total crop is "considerably lighter" than initially expected, with the total wine grape production 8,7% less than in 2000. The crop is estimated at 1 002 500 tons - the smallest since 1987 (969 241 tons). This boils down to 766,9 million litres, which is 83,1 million litres less than the January estimate.
The decrease appears to be mostly in white varieties, i.e. approximately 3,5% lower. Red varieties may increase by about 18%.
Stellenbosch and the Little Karoo still expect a bigger crop, but the Orange River, Robertson and Malmesbury show sharp decreases.
The decreases are ascribed mainly to cooler weather conditions especially in November and December, which resulted in smaller berry sizes. Juice recovery per ton will probably be less than in 2000, which may make the crop even lighter.
The Orange River experienced an unusually warm winter: which is when the dormant vineyards have to build up reserves - and this in due course resulted in diseases, causing a decrease of no less than 30% in the yield. The problem is related to growth arrestment phenomenon, where the vineyard suddenly stands still in early summer, after budding, and the fruit does not develop, as well as dieback of young vineyards when the first frost occurs.
Meanwhile producers, viticulturists and winemakers agree that the quality of the grapes is very good. No problems were experienced in pressing grapes at optimum degree of ripeness. The smaller berries have good quality imparting characteristics, such as bigger skin-juice ratio. Red wine grapes are colouring very well and the grape analyses were very favourable.
The total purchases of rebate and distilling wine for 2001 are estimated at 120,7 million litres - 1,5 million litres more than the January estimate. Sales of juice for non-alcoholic purposes remain unchanged at 114,2 million litres. Taking into account the increasing trend of domestic sales and exports, the 2001 sales of good wine are estimated at 550 million litres, compared to 526 million litres in 2000.
Judging from the above-mentioned estimates, the industry’s good wine supply should be reduced by approximately 46 million litres at the end of the year.
The trend for domestic sales of brandy amounted to 89,7 per cent for 2000. The trend for the three month period ending at the end of December 2000 amounted to 87,5 per cent.
Wine industry boosts economic growth - new study
South African wine exports over the past five years have grown beyond all expectations, while wine-related tourism has also flourished. This is reflected by a study commissioned by the South African Wine Industry Information and Systems (SAWIS) - the second of its kind.
Based on 1999 figures, the study found that the total turnover of the wine and associated alcohol-based beverages industry amounted to R7 369,8 million, of which R1 595,9 million was exported. This generated agricultural output valued at R1 435,9 million and added in value downstream to the value of R7 369,8 million, i e five times the initial value of the raw materials.
Exports performed spectacularly in 1997 - 1999, increasing by 29% in volume and 133% in value. Wine-based imports amounted to R500,6 million or about 8,6% of domestic sales. An estimated R3 471,5 million was generated indirectly through tourism in the winelands.
However, the industry has been under severe pressure due to the small increase in turnover in volume and steep increases in input costs not fully compensated for by final product price. With a decline of 5,7% in volume in wine and wine-based alcoholic beverages consumed domestically, the wine industry is under pressure to remain profitable and competitive.
Other salient points from the report are:
SA wine exports still rising
Exports of South African bottled wines for the 12 months to December 2000 were 13% higher than the previous year, with strongest growth occurring in the Netherlands, Germany and Scandinavia, said Su Birch, CEO of Wines of South Africa (WOSA).
Birch was commenting on the recently released statistics distributed by SA Wine Industry Information and Systems (SAWIS). Most encouraging, she said, was that these statistics showed the proportion of bottled wine exports to bulk exports was continuing to grow, with bottled wines now representing 66% of total exports. Sales of bottled reds were slightly higher than those of whites, and had increased 15% compared with 12% for whites. Varietals reflecting the highest growth over the period were Chardonnay and Pinotage.
Minister and KWV denounce budget
With the tax increase on certain liquor products being 5%, and that on wine 10%, it is obviously a matter of discrimination. Moreover, recent studies prove that moderate wine consumption is very healthy, commented Gerrit van Rensburg, Minister of Agriculture, Property Management and Works, on the budget speech:
"I am grateful for Minister Manuel admitting that South Africa’s agricultural competitors in the European Union enjoy tariff protection of 1 billion dollar per day. I am also grateful that the national budget makes provision for flood stricken areas, and for the infrastructure in rural areas, as well as the abolition of tax on lamp oil.
"However, it looks as though the sweet fruits have not been earmarked for agriculturists, the producers of food for our tables, but the small and sour fruits instead. The agricultural industry is grateful for the reduction of 42 cents per litre on diesel, but does not understand why it is so much less than for the fishing industry.
KWV chairman Lourens Jonker said it would be sensible not to increase excise on products of the vine. The wine industry is under pressure at the moment and brandy sales are declining.
The local wine industry is also at a disadvantage compared to wine industries elsewhere in the world who receive generous government aid. In South Africa the government has already abolished GEIS, and the wine industry is therefore at a disadvantage to the rest of the world. It is expected of local producers to participate in the government’s reconstruction programme, which is necessary and praiseworthy, but demands a lot of additional expense from producers. This lack of competitiveness causes South African liquor products to lose market share in the international arena.
The 10% increase in excise is considerably above inflation and will put the government in a situation where the law of diminishing returns applies. In the case of brandy in particular the the excise component is now so high that sales are decreasing.
"The government, who already makes more out of the wine industry than producers, is strangling the goose that lays the golden eggs, which will unfortunately also be detrimental to job creation. So far the wine industry has tried to protect, in the face of resistance, the 250 000 job opportunities. However, we are losing the battle."
SAWIT promotes marketing skills
In a move to advance local wine marketing skills, the South African Wine Industry Trust (SAWIT) in collaboration with the University of Cape Town's Graduate School of Business (GSB), has initiated two specialist courses. They will be presented by internationally acknowledged experts from Adelaide University's Wine Business Group, initiators of the world's first formal wine marketing programmes.
The courses - one covering wine marketing, branding and e-commerce, and the other on wine tourism and cellar tours - are aimed at promoting a stronger marketing focus among practitioners in the wine industry, said SAWIT general manager Marthinus Saunderson.
The two-day courses will be offered on May 2 and 3 and May 7and 8 at the GSB's Breakwater Campus for a fee of R3 000. The one-day course will be run on May 4 at a cost of R1 500.
In Memoriam - Piet Carinus
WynLand spreek sy medelye uit met die heengaan van Piet Carinus wat diep spore in die wynbedryf getrap het. Mnr Carinus was onder meer wingerd-, tabak- en vrugteboer en het verder ’n leiersrol in die gemeenskap gespeel waar hy sedert 1965 as LPR vir Stellenbosch tot die politiek toegetree het. In dié pos het hy hom veral vir die restourasie en behoud van die historiese Stellenbosch beywer. Hy het ook in verskeie direksies gedien en was veral lief vir sport. Hy laat sy vrou, Mattie, en twee seuns, Johan en Pietie, asook sy dogter, Lizette, en nege kleinkinders agter.
Erratum - Manie Rossouw In our February edition, Manie Rossouw, the former Diners Club Competition winner for his Eersterivier Sauvignon Blanc, mistakenly became Manie Booysen in a report on Bartho Eksteen's Sauvignon Tasting. We apologise for any inconvenience. |
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