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SA wine exports predicted to grow by 13%

South African wine exports reached 313 million litres in 2015 and are projected to grow by a further 13% in the next decade.

Alan Winde, MEC of Economic Opportunities, says the latest Bureau for Food and Agricultural Policy baseline provided a snapshot of the country’s wine industry.

The 2016 BFAP baseline was released last week.

“Wine exports are up from 122 million litres in 2000 to 313 million litres last year. We are exporting to markets across the world. The bulk of our exports are destined for the European Union and the United Kingdom. Exports to key markets in the rest of Africa, the United States of America and China are growing.

“As part of our Project Khulisa growth strategy, we have set ourselves of the goal of boosting wine exports to strategic markets and the latest trends are excellent indicators.”

According to the report, the South African wine industry includes 100 000 hectares, and is comprised of 3300 producers. It supports employment for close on 300 000 residents, directly and indirectly.

“The South African wine industry has formulated the Wine Industry Strategic Exercise which sets clear goals for the sector. This includes increasing jobs to 375 000 by 2025 and growing the value of wine tourism from R6 billion to R15 million.”

MEC Winde said transforming the wine industry was a vital part of the WISE plan.

The importance of negotiating smart trade agreements was also highlighted in the BFAP report. It was found that removing tariffs in key markets would be a key contributor to increased wine exports.

The industry is also focused on shifting export product from bulk to packaged, and on boosting value through a focus on quality and targeted marketing drives.

Now in its twelfth year, the BFAP baseline offers insight into key trends in areas including production, consumption, trade, food prices and jobs in the agriculture sector. The research provides medium and long-term projections for various industries in the South African agriculture sector.

Researchers from the Universities of Pretoria and Stellenbosch, as well as the Western Cape Department of Agriculture, collaborate to produce the report. The report, titled “Putting Plans into Action: Agriculture and Economic Growth”, provides an economic outlook for crops, animal and horticultural products. It details the jobs performance of the agriculture sector highlighting the biggest challenges to growth.

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