SA wine producers to feel the heat | Fin24
 
  • Beyond May

    The Tory rivals jostling to be UK Prime Minister.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

  • Downsizing

    President Ramaphosa is set to merge two economic ministries, according to sources.

Loading...

SA wine producers to feel the heat

Aug 02 2013 15:56
Fin24
Cape Town - The global wine industry is worth $230bn a year and the potential yields for the South African industry have never been as great, nor the pitfalls as plenty, according to Linda Buckley, director of executive education at UCT’s Graduate School of Business (GSB).

Those in the wine industry will, therefore, need special management skills to survive tough economic times.

Reseach shows investors in the wine industry should be aware of two developing trends that could have a drastic impact on the future of wine.

The first is the emergence of China and India  as new important economies and their developing tastes for wine, according to the 2012 Global AgriVestment report.

In China the consumption of wine rose 65% between 2005 and 2008 and quadrupled between 1990 and 2013.

These opportunities will be tempered by the potential impact of global climate change, which will affect both the quality and viability of existing vineyards.

The first conference on wine and global warming took place in Spain in March 2006 and vintners from all over the world voiced their concerns.

South African wine producers are also likely to feel the heat of global warming and are additionally at risk from rising energy prices and over regulation.

The South African Wine Industry Insights Survey of 2012 found that the heavily regulated environment in which wine businesses operate in South Africa continues to be a challenge for the industry.

The upside of regulation, though, is that SA's wine industry is regarded as one of the leaders in promoting ethical trade in the industry.

“Focusing on the development of both new and existing markets is key to growing the local wine business in the foreseeable future,” said Buckley.

- Fin24


uct gsb  |  agribusiness  |  wine
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Trump’s administration has threatened to choke Huawei, hitting some of its biggest component makers. What are you most concerned about??

Previous results · Suggest a vote

Loading...