Aug 22, 2012
UK bulk wine imports a ‘serious threat’ to SA industryBack
Africa|Industrial|Packaging|Africa|China|South Africa|United Kingdom|Beverage Sectors|Packaging|Environmental|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 (150 word limit)
Other Agriculture News
Agricultural and agroprocessing group Tongaat Hulett’s Mozambique-based sugar mill and sugar cane estates’ subsidiary Acucareira de Moçambique (Mafambisse) ran a nonprofit technical organisation the Southern African Institute of Welding (SAIW) training course for its...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse. Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm Fischer Consortium the contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...