The South African wine industry is still reeling from the effects of the export ban with producers expecting to lose billions of rands.According to Maryna Calow, communications manager for Wines of South Africa (Wosa), the effect has been extremely negative even though exports were prohibited for just more than a month.
“We anticipate losses for our producers of up to R3 billion, which has further resulted in up to 18 000 job losses and possible closure of up to 80 wineries,” she said. The impact of the ban on particular markets still remains to be seen as the situation is ever changing, but what is clear is that South African producers lost some valuable shelf space that will be very difficult to regain.
“The situation is very f luid and one merely has to go with the flow,” said Calow. “So much is out of the hands of our producers, which causes a lot of frustration, not to mention cash-f low issues. Certainly, we are hoping that in our key markets we have retained our shelf space.”The outlook, however, is not encouraging.
“Shipping delays, as well as the fact that there is an over-supply of wine in Europe, is a real concern. This means that the European wine prices are most likely going to drop, making it an even more competitive market in which to sell wine. If we can’t get wine out of our country, it could have a knock-on effect if buyers can get it quicker from elsewhere at comparative price points.
”According to Calow, delays at the ports are a reality for producers.“Vessels are bypassing our ports. This is particularly the case at the Port of Cape Town. Producers are complaining that there are shipments that have been waiting for four weeks to be loaded.”She said for the most part, from a commercial perspective, international buyers and importers were seemingly sympathetic to wine exporters and the challenges they faced moving product around the world.
