Global surplus hits SA wine exports

RAY SMUTS EXPECTED DOUBLE digit growth of South African export wines did not materialise last year. Volumes were up a mere 5% compared to the 12% of 2004 - due to the global surplus of wine. The UK remains the largest importer of South African wine with a stake of 36%, or 102.4 litres of the more than 280 litres of natural wine sold there last year. Latest indicators, however, are that export volumes to the largest and second largest destinations, the UK and the Netherlands, have declined. Apart from the further strengthening of the rand which put a stronger brake on exports, Su Birch, CEO of Wines of South Africa, points to a country like Australia which is saddled with one million litres of surplus product. It’s not all doom and gloom, however, as continued growth is being experienced in the US, where exports are up by 30% in what is primarily a premium market. In Germany, things augur well, exports 34% up, Canada’s export sales have increased by 48% and Sweden has shown strong growth of 24%. Smaller volumes are exported to Africa (sales 26% up), the Middle East (sales up 27%) and the Far East (sales up 32%).