Low freight rates promote SA exports

Ray Smuts THE NEW World - of which South Africa forms part - will produce 14% more wine than the present by the year 2006, growing from an output of 66 million hectolitres to an anticipated level of 75 million hectolitres, according to specialist agribusiness researchers Rabobank. As domestic demand in these countries is largely stable most of this additional wine will be destined for international markets. Rabobank research has also shown that with the decline in shipping tariffs it costs less to transport a South African wine to London than a wine from the South of France to the British capital, sending a clear message to this country’s producers.