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An inquiry into factors impacting on the competitiveness of the South African wine industry

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  • Esterhuizen, Dirk
  • van Rooyen, C.J.

Abstract

This article is aiming to provide a comprehensive and understandable statement about the competitiveness of the South African wine industry. A measurement of the competitive performance of the South African wine industry - the WINE COMPETITIVENESS INDEX (WCI) - indicates that South Africa's wines are internationally highly competitive with a sustainable and increasing positive trend over recent years. The wine industry in South Africa also shows positive trends in competitiveness in the long run and it should not lose its competitiveness status in the near future if its dynamic ability to continue to trade is sustained. An analyse of the key success factors that established competitive advantage and constraints that impacted negatively on competitiveness of the wine industry through the - WINE EXECUTIVE SURVEY (WES) - indicates that for the present intense competition in the market, the production of affordable high quality products, stringent regulatory standards in the industry, efficient supporting industries, and the availability of internationally competitive local suppliers of primary inputs are the major success factors to the competitiveness of this industry. The major factors that impact negatively on the competitive success of this industry are the strong Rand, fluctuations in the exchange rate, trust in the political support system, competence of personnel in the public sector, crime, South Africa's labour policy and the growth and size of the local market. These factors should be crafted into a Strategic Plan for the industry.

Suggested Citation

  • Esterhuizen, Dirk & van Rooyen, C.J., 2006. "An inquiry into factors impacting on the competitiveness of the South African wine industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(4), pages 1-19, December.
    • Handle: RePEc:ags:agreko:10138
    DOI: 10.22004/ag.econ.10138
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    References listed on IDEAS

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    1. Nicole Valentine & Gena Krasnik, 2000. "SADC Trade with the Rest of the World: Winning Export Sectors and Revealed Comparative Advantage Ratios," South African Journal of Economics, Economic Society of South Africa, vol. 68(2), pages 114-124, June.
    2. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
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    Cited by:

    1. Cervera Ferrer, Francesc J. & Compés López, Raúl, 2018. "The performance of Spanish wine exports in international markets," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    2. du Toit, Justin P. & Ortmann, Gerald F. & Ramroop, Shaun, 2009. "PR - Factors Influencing The Long-term Competitiveness Of Commercial Milk Producers In South Africa," 17th Congress, Illinois State University, USA, July 19-24, 2009 345520, International Farm Management Association.
    3. Lubinga, H. Moses & Ngqangweni, Simphiwe & Nyhodo, Bonani & Potelwa, X. Yolanda & van der Walt, Stephanie & Phaleng, Lucius & Ntshangase, Thandeka, 2017. "Geographical Indication (GI) in the wine industry: Does it matter?," NAMC Publications 262912, National Agricultural Marketing Council.
    4. Vanzetti, David & Nikolic, Aleksandra, 2011. "Potential Impacts of WTO Accession on the Agribusiness Sector in Bosnia and Herzegovina," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114611, European Association of Agricultural Economists.
    5. Babu, Suresh Chandra & Shishodia, Mahika, 2017. "Agribusiness competitiveness: Applying analytics, typology, and measurements to Africa," IFPRI discussion papers 1648, International Food Policy Research Institute (IFPRI).
    6. van Rooyen, C.J., 2008. "South African Wine Industry Benchmarking, 2008," Working Papers 108004, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.

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