South Africans can expect to pay up to 11% more for their wine. The wine harvest is down by 15% as a result of the drought in the Western Cape.
The lower crop will result in fewer volumes and is expected to have an effect on employment figures.
But it’s not all bad news as producers adapted and despite fewer grapes, the quality of wine for the 2018 harvest is expected to be exceptional.
The 2017 was labelled as one of the toughest production seasons in many decades.
Areas such as the Olifants River region in the northern parts of the Western Cape, only had 20% of its usual water allocation making production near impossible.
The drought however accelerates structural change in the industry like business model changes and a new focus on innovation.
VINPRO Managing Director, Rico Basson, says 2017 was one of the toughest production seasons in many decades. “When the water source was cut back we had to deal with far less and I think our producers and viticulturists were world class in still getting a sizable crop at a fantastic quality out there. I think we learned to do more with less water, I think the lessons of this season we’ll take forward in terms of a lot of decision we make.”
South African wines can hold its own against the best in the world and getting better prices for wines is a priority.
Research into new technology, especially in water management and innovative practices continues.
Winetech’s Gerard Martin says:”I think it’s important that the industry is adapting, is agile, is really looking at innovative ways of how we can use this technology for survival and to be sustainable over time, I think producers are taking ownership of this problem.”
The industry is expected to shrink by 10% in the next five years. But fewer vineyards and smaller volumes could result in even greater quality and an increase in value.
