‘Soc io-eco nomic impac t of wine export ban a grave concern’

The cessation of the transportation of wine for export purposes as part of amendments to the coronavirus disease (COVID-19) lockdown regulations, will put the livelihood and longterm future of the wine industry in grave danger.

This was according to Vinpro, responding to the announcement by the Minister of Transport Fikile Mbalula, in the second week of April, that the transportation of wine from cellars to ports was being banned. The decision followed the earlier exemption of the wine industry from the strict lockdown rules for a period of nine days.

“Post the implementation of this directive, concern was raised about the unintended consequences of allowing transportation of wines in the light of the fact that movement of alcohol remained prohibited. These include the criminality that has reared its ugly head in the form of burglaries and theft of alcohol from closed outlets,” Mbalula explained in a statement.

According to Wanda Augustyn, Vinpro communications manager, in addition to the economic crisis that the industry was currently experiencing, there was also a significant socio-economic element to the current situation.

“Wine farms in South Africa [stretch across] five provinces and there are 2 900 producers, 580 cellars and 40 000 agriworkers directly involved.

“We cannot afford to jeopardise this [industry]; it will have catastrophic consequences.”

She said that 40% of a wine farm’s expenses comprised of wages that represented the household income of workers and their dependants, which amounted to as many as 160 000 people.

“However, the industry is losing R200 million a week in exports. The same goes for the local market. No business can run without cash flow.”

Augustyn also pointed out that if the industry was unable to fulfill its contractual obligations with regard to export contracts, infinite damage would be done to the reputation of the South African wine industry.

“There are still countries where people are allowed to buy wine.

“If South Africa’s wines do not appear on shelves [in these foreign countries] because of the ban, it will simply be replaced with wines from other countries.

“These relationships have been built up over years, and the damage will be extremely devastating.” – Jeandré van der Walt

‘ RELATIONSHIPS HAVE BEEN BUILT UP OVER YEARS’