South Africa: wine producers in great difficulty because of the pandemic

Audio 02:18

By: Claire Bargelès Follow

From this Friday, South Africa is easing its confinement, which until then has been very strict. The country has 5,647 positive cases of coronavirus on its territory, and deplores 103 victims. From now on, certain companies will be able, under conditions, to resume their activities, a decision to loosen the economic noose which is closing more and more in South Africa. The Standard & Poor's agency also downgraded its rating for the country this week.

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The government is also re-authorizing exports of South African wine, while the country is the ninth largest producer in the world. This is very good news for the industry, which has suffered greatly in recent weeks from the various restrictions put in place.

Rob Armstrong runs a family farm near Cape Town. At the start of the year, he just finished harvesting his 12 hectare vineyard, Haut-Espoir. While sales of alcohol in the country are still prohibited, and exports have been impossible until today, the past few weeks have been very difficult for him: "  I have no more cash, more money coming in, everything is spent ! Between 50 and 60% of my production is sold locally, so the ban on sales in the country had huge consequences for my business. And then we were told that we could no longer export, which was my only possible inflow in the coming weeks. The constant changes in government over what is and is not allowed keeps me from getting organized, and I think that is the biggest problem.  "

After much hesitation, the government therefore finally authorized exports again. What give a little hope to the sector, even if local sales are themselves still prohibited, according to Maryna Carlow. She works for the organization WOSA (Wines Of South Africa) which represents the exporters:
“  Over the last five weeks, we can estimate that the losses on the total sales of wine have undoubtedly reached nearly 100 million euros. If the situation continues, it will probably be very hard for the smallest producers. We hope that sales can quickly resume their normal course.  "

But some customers may have had to turn to other suppliers in time. David Finlayson hopes to limit losses to his Edgebaston Wines vineyard. “  With my direct clients, this should be fine, because I have built a solid relationship with them for 15 or 20 years. But the problem is more with stores and retailers. If they can't find South African wines, they buy elsewhere.  "

Carolyn Martin, head of the Creation Wines vineyard, is now trying to develop new strategies while getting back to normal could take time. “  We know that we have at least six months ahead of us to overcome because we are not only based on wine sales, but also on tourist visits. And it will take time before visitors jump back into planes again. And then, when it comes to exports, many agents work with restaurants that are also affected by Covid-19 around the world.  "

The sector employs nearly 300,000 people indirectly. And wine production is in second place in the country's agricultural exports.

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