Date: 07/12/2004
Source: Western Cape Provincial Government
Title: Dowry: Wine Industry Ethical Trade Association AGM


Extracts from speech at the AGM, Wine Industry Ethical Trade Association by Cobus Dowry, Minister of Agriculture in the Western Cape

The South African agricultural sector is an important earner of foreign Exchange, namely R14.7 billion in 1999. Well over half of the country's agricultural exports originate from the Western Cape. The Western Cape's two most important export products (wine and fruit) form the backbone of the agricultural sector in the Western Cape.

South Africa is the world's sixth largest wine producer, accounting for 2.8% of global production. The Western Cape's favourable climatic and soil conditions make it home to most of South Africa's wineries, accounting for 90.5% of production.

The gross output value of wine-industry-related firms is R14.6 billion. In 2001, there were 4 390 primary wine producers and 388 cellars and increase of 15% over 1999. This included 67 cooperatives, 91 estates, 219 private wine cellars and 11 producing wholesalers. The area under vines is some 106 000 hectares. About 746 million litters of wine are produced annually from 314 million vines.

The South African wine industry is encouraging people from previously disadvantaged communities to emerge as wine farmers/makers. To this end, the Wine Industry Trust was established in 1999, with funding of R370 million over 10 years. One of its responsibilities is investment in "wine education" to facilitate entry into the industry. A number of Cape wine farmers have established joint ventures with their workers and we are already witnessing beautiful success stories.

Wine tourism has a big potential 43% of tourists to South Africa visit the wine lands. The wine industry indirectly contributes more than R3.5 billion annually to the tourism industry.

Agriculture and agricultural development can be defined as a process whereby people are empowered to drive and control economic and social development. When we talk about agricultural development we have to make it clear in no uncertain terms that any action, irrespective if its teaching, research or development, must be aimed to ensure that people living in rural areas will be able to take part in the development process, driving and controlling it, and by mobilising people and agricultural resources.

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