Aug 22, 2012
UK bulk wine imports a ‘serious threat’ to SA industryBack
China|South Africa|United Kingdom|Beverage Sectors|Jimmy Manyi|Stephan Hanival
© Reuse this
“We are led to believe that the UK retailers would like to import wine from South Africa in bulk as it is slightly cheaper and allows them to bottle it themselves adding value to the UK economy. Currently, we believe that 300 to 700 South African jobs have been lost through bottling plants closing down, pointing to significant risks for the wine industry stemming from this approach,” he said.
“We are also concerned that this approach might spread to other sectors of the economy, such as the fruit juice sector and South Africa’s other beverage sectors,” Hanival added.
In the 2011/12 period 52% of South Africa’s certified wine was exported in bulk compared to 35% in 2006, he said at a post-Cabinet briefing.
To reduce the impact of the bulk exports, Cabinet has taken the decision to embark on a wide range of interventions.
These include a process to develop a five-year industry strategy to assist in placing the industry on a sustainable growth trajectory, a programme to reduce the environmental costs of producing wine in South Africa and a consumer awareness programme to improve consumers’ understanding of holistic environmental indicators, Cabinet spokesperson Jimmy Manyi said.
Other steps include in-depth cross-sectoral research and analysis of the wine value chain, engagement with the wine and packaging industries to develop innovative, sustainable packaging solutions, as well as initiatives to assist the industry to accelerate export market diversification.
“We have to ensure that our wine export sector does not remain concentrated in the UK market, but start looking at other fast-growing markets such as China,” Hanival added.
Cabinet also announced a study on the possibility of bulk whisky imports from the UK.
Hanival stated that in 2011, South Africa imported about R1.7-billion worth of whisky from the UK, while at the same time exporting about R933-million worth of wine.
“There is a significant imbalance between these beverage imports and exports between South Africa and the UK and we believe that we would need to begin engagement with the UK government as well as retailers and whisky producers about the possibility of importing bulk whisky,” Hanival proposed.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
This month’s roundup includes details of TSX- and NYSE-listed Alderon Iron Ore’s power purchase and security agreement with Newfoundland and Labrador Hydro for the Kami iron-ore project, in western Labrador; US aluminium refiner and products manufacturer...
Creamer Media’s Electricity 2014 report provides insight into South Africa’s electricity generation, exploring the issues of State-owned power utility Eskom's generated power, coal supplies, electricity tariffs and demand-focused initiatives, as well as the...
This month’s report includes details of junior miner Papillon Resources’ mining permit for its flagship Fekola gold project, in Mali; the Waterberg Coal Company’s feasibility on the development of an opencast mine, in Limpopo, to produce ten-million tonnes a...
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...