“South African wine grape producers’ financial viability is looking up following a long downward cycle, however there is still a long road towards sustainability,” according to wine industry body Vinpro.
Although figures have improved, only one third of wine producers are still not profitable because of aging vineyards and limited new plantings which ultimately lead to lower production levels.
A survey released by the industry body states that wine producers made a profit of 28% last year – an increase of 13% compared to previous years. The survey also points out that the return on investment increased from less than 1% to 4.83% in the 2019 harvest year.
Vinpro’s agricultural economist Pierre-André Rabie said: “The wine industry is cyclical and the wheel is turning, in some areas just faster than others. Various areas, including the Little Karoo, Swartland and Olifants River regions, are still recovering from the drought.”