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- signs of a breakthrough with Government support
Its purpose is to direct the industry by integrating Vision 2020 into the government's "Agricultural Sector Strategy Plan" - thereby fully involving government as a partner in the strategic development of the wine industry - which has proven to be a serious hitch thus far. At the same time, recent developments relating to black economic empowerment, such as industry scorecards, as well as Nepad (New Economic Programme for African Development) initiatives, have to be incorporated. The government's 'buy-in' and involvement, of course, is vital, with the Vision2020 initiative picking up momentum following delays and drawn-out procedures in this unprecedented unifying action for a hitherto quite fragmented industry. The Vision 2020 study - originally commissioned at a cost of R1,5 million by Winetech - was already accepted at the beginning of 2001, but it took until November last year for a formal representative structure, namely the SAWB, to be founded as a Section 21 company by the various stakeholder groupings. The delay had to do mainly with getting the support from government, who in turn wanted to be sure that labour in the wine industry had been properly consulted and represented in the process. An SAWB chief executive officer, Johan van Rooyen, leading agricultural economist, has subsequently been appointed by the Board, comprising 20 members, five each of the four stakeholder groupings: wine farmers, labour, cellars and trade.
However, despite showing enthusiasm, this person - with strong government links - has not yet accepted the post. Jan Scannell, MD of Distell, is acting chairman in the interim. Meanwhile, the drafting of the WIT has followed a meeting by a delegation of the SAWB with the director-general of Agriculture, Ms Bongiwe Njobe, and top departmental officials in December. They discussed the following:
Dr Van Rooyen said in an interview with WineLand that Ms Njobe had indicated that government would like to participate in a plan focusing on the strategic transformation of the industry, along the lines of the "Agricultural Industry Strategy Plan" approved by President Thabo Mbeki, senior cabinet members and representatives of organised agriculture and the agricultural industry in November 2001. "Note was taken of Vision 2020 as a representative statement by the industry and the role of SAWB in this context. Similar initiatives are in progress in other agricultural industries e.g. the cotton industry." The WIP needs to indicate, in particular, how transformation would be conducted through socio-economic empowerment and human resources development in the wine industry. A core task team consisting of representatives of the four SAWB chambers was developed and wine industry experts outlined a process for the drafting of the WIP. This proposal was accepted by the SAWB Board at their meeting on March 5. "This plan should align Vision 2020 with the Agricultural Industry Strategy Plan, show a strategic agenda and plan for the wine industry in terms of participation and empowerment; competitiveness and profitability, as well as sustainable natural resources management considerations - thus, the core strategies of the Agricultural Sector Strategy Plan. From this, a WIP business plan with a 'score card', targets and time frames will be developed, with the following Mission: "To create a better life for all in the wine industry through collaboration and leadership." The SAWB Exco were to approve a final draft by early April, after a "round robin" consultation with SAWB Board members, following which it was to be submitted to the government. The WIP will also be the basis for a broader mobilization. One opportunity could be a Nedlac sector summit and a Wine Outlook Conference is planned, according to Van Rooyen. With regard to 'mobilisation' of the SAWB, its Exco was meanwhile finalising - in consultation with the management structures of the various business units, Wosa, Sawit, Sawis, Winetech and the SA Brandy Foundation - the SAWB management and organisational structure. The target date for implementation was April 2003. In this process, a priority is "rolling out" as an integral part of the WIP, two new business units, namely Human Resources Development and Socio-economic Empowerment. Sawit has been approached to fund the design phase of these two units. This Trust will also be requested to contribute to operational activities of these units specifically related to social capital development, training and economic empowerment of farm workers and farm worker communities to voice their concerns and participate in the various leadership functions of SAWB. Dr Van Rooyen also explained that statutory levies - which provide the financial backbone of important SAWB activities, i e those of Wosa, Sawis and Winetech - would in future be mobilised through the SAWB as recognised by the National Agricultural Marketing Council. Applications to amend the Sawis and Winetech levies have been accepted by NAMC and are now in progress. A possible target date for a Government decision is July 2003. An amendment in the export levy is also under consideration. WOSA will make a presentation to the SAWB Board early in June 2003. One of the cornerstones of the WIP will be the promotion of responsible alcohol use. In this context, the SAWB Board accepted in principle that the industry will contribute to the activities of the Association for Responsible Alcohol Use (Ara). Currently Ara is funded with R1 million by KWV (20%), CWSI (30%) and SAB (50%). However, broad-based support from the wine industry is now required and the introduction of a wine industry levy to support Ara is being considered. "The industry must accept responsibility for promoting responsible wine consumption and Ara must get support from all the players ... not just a few." It was also reported to the SAWB Board meeting that the SAWB had proposed a voluntary code of conduct to curb inappropriate practices with regard to the production and sale of cheap wine in South Africa. SAWIS will administer this process and all firms in the wine industry are requested to support this internal and voluntary regulatory mechanism. The SAWB attended a workshop in March where the findings of a study on such practices were discussed and the concept of a Code supported. Ultimately, in all these matters co-operation at all levels depends on mutual trust of each and everyone's motivations and commitment to common goals, said Dr Van Rooyen. - Cassie du Plessis |
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