News

Region Specific Report - July 2012

July 10, 2012 - 09:57

Welcome and substantial winter rain has fallen over the last few weeks. The market is fairly stable at the moment, with most of the 2012 varietals ready for bottling or shipping. Now mid-year, all 2012 white varietals remain readily available, while reds seem to be in balance at this stage.

A decline in total exports occurred over the last three years. This was largely due to a stronger ZARand in 2010 and 2011, coupled with adverse economic conditions in the EU. This resulted in a sharp decline in packaged wine exports, while slight growth occurred in the domestic market. Resulting increase in bulk wine exports occurred in 2011, due to the slightly weaker ZARand, cheaper shipping on bulk wine, and high bottling costs in South Africa.
Note the bulk wine exports growth over the last five years of approx 50%, and 17% just over the last year. In 2008, the large surplus of red wine exports into African countries caused a disproportion in 2008.

The UK remains the largest consumer of packaged South African wines, despite volume decreases over the last four years, and especially over the last two years. Germany imports the most South African bulk wine, and in total exports Germany almost equals that of the UK. Sweden is still showing constant growth off a very small base, while USA bulk exports are very concentrated and limited to a small buyer-base.

Posted in: South Africa