The primary objective is to determine the production structure, cost structure and profitability per district, so as to be able to determine the financial viability of primary producers on an industry level.
Financial as well as production information is collected and verified by Vinpro’s Agricultural Economic Services and processed through the Vinpro Production Plan Survey and Report system.
In 2019, the Vinpro Production Plan Survey was conducted for the 16th consecutive year in the wine industry. Findings show that although the average producer is still not generating a sustainable income, the industry is improving year on year after a long downward cycle. Although minimum recommended net farm income for sustainable wine grape cultivation – at R34 000/ha – is still well above the current industry average, this finding is encouraging and shows that the wheels have begun turning.
If sustained year-on-year improvement of the profitability of primary wine grape cultivation can continue for the immediate future, a structural recovery in the industry may be on the horizon. A situation where fortunes can shift in the next few years, boding well for both the South African wine industry and Brand South Africa.
Continuous improvement of the profitability of primary wine grape cultivation is essential and although we have improved year on year, the industry still has some way to go.