This is the advice from Peter Pentz, Communications Manager at Groote Post Vineyards who gave an overview of the wine industry in the country on the OFM Business Hour. Pentz got into everything from the opportunities i.e agritourism to the challenges i.e delays at SA’s ports and concerns around our geopolitical quagmire. Listen to the conversation below. 

What can you offer? 

Pentz says agritourism is one of the most powerful sub-industries in South Africa from a job creation perspective. “We’re not just primary producers, we have the potential to do more” says the Groote Post Communications Manager. 

He encourages farmers in central South Africa to start with what they have when it comes to agritourism by asking themselves “what can I offer people right now”. 

Some suggestions include: 

• Opening up a coffee shop on a farm; 
• Setting up an Airbnb;
• Creating farm tours;
• Setting up tasting rooms of your product etc.

Whatever it is, start with what you have he maintains - it doesn’t have to cost a fortune.

The state of the wine industry

Pentz says the industry appears to be in a good place at the moment following periods of ups and downs on the back of the Covid-19 pandemic and hard lockdown restrictions that prohibited alcohol consumption and sales at the height of the contagion in the country (and globally).

ALSO READ: Wine industry deeply concerned about its future

On a positive note, there is a growing interest in premium wines in South Africa. The vast majority of Groote Post’s customers are from the Western Cape and Gauteng provinces. Followed by a burgeoning interest in KwaZulu-Natal. The Central South African market on the other end is a bit more challenging says Pentz with consumers buying more directly from the establishment rather than retailers.

Delays at SA’s ports – ‘a big headache’

Pentz provided some insight into the impact that delays at South Africa’s ports have on the wine sector. He says it is the industry’s biggest headache with production material, machinery/equipment and containers of wine ending up sitting in the harbor for months-on-end and the end consumer, waiting on their ‘bottle of wine’. The longer it takes the costlier it becomes. Whilst he lauds the commitment of non-profit bodies like Vinpro that advocate for South African wine producers and the Western Cape Provincial Government, Pentz says things need to be streamlined at the country’s ports.

ALSO READ: #SAlockdown: Economic sustainability of wine industry remains weak-kneed

Background: Vinpro is a non-profit company which represents close to 2 600 South African wine producers, cellars and industry stakeholders. The organisation liaises closely with Government and industry role players on issues that have an impact on the profitability and sustainability of its members and the industry as a whole. It keeps its members and the broader industry informed of industry trends and technical expertise and renders specialised services ranging from soil science to viticulture, agricultural economics and transformation and development.

Well done to WC Government’s Department of Economic Development and Tourism has launched the Export Competitiveness Enhancement Programme (ECEP), which aims to support businesses that are export-ready or working towards #export readiness to meet international market requirements.

— Vinpro (@Vinpro_za) June 6, 2023

According to the Minerals Council of South Africa’s poorly run ports and freight rail lines may have cost the country R150 billion ($7.6 billion) in exports last year.

OFM Business Hour