SA govt dislikes the wine producers!

February 10, 2009

Well that’s the opinion of Don Tooth, chief executive of Anglo American’s Vergelegen Wine Estate in this article:

Last bastion

Government does not really like the wine industry. “In our industry we are still white, Afrikaans and really bad,” Tooth said - though he himself is not Afrikaans.

“The government regards us as the last bastion. The government regards Afrikanerdom as the wine industry.

Well that’s a really terrible perception but one that exists nonetheless - so how do we turn that around? I’m pretty sure if the government were to look upon Solms Delta as an example of reformation perhaps their attitude would change? Although maybe not all or enough estates have the same ideals as Solms and/or the will to change? And furthermore what changes are the government looking for if any?

Tooth believes that government subsidy is vital for the South African wine industry as a brand - and I agree - but it has to be directed to the right areas and target the right markets.

“The Australians have 2 600 wine producers, they believe that at least 2 000 of those would not be profitable if it were not for government subsidy.”

But can we count on our government for spending - it appears not:

“Tooth insists that the government has cut back spending and so local producers get just about zero subsidy in any of the areas.”

And if they were to spend money on our wine industry, would they target the soon to be largest wine-consuming country in the world - the USA?

Again, it appears not:

There was, he said, a decision taken by the board of Wines of South Africa, which is a combination of the government and the wine industry, that “we go back and concentrate on where we make our money in Europe, and that’s where we’ll go and spend it”.

Well, on the surface of it, that just doesn’t make sense to me - I cannot fathom why such a decision would be made?

I welcome WOSA and you the wine lover to comment on all of the above - there appear to be some major strategic problems in our wine industry and with the world of wine predicting/hoping that this could be our year to shine - they need to be addressed as soon as possible.

“2009 is South Africa’s big opportunity, but will they take the chance?” - Jamie Goode

Category Posted in SA Wine Industry, Views & Opinions