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A Technical Guide for Wine Producers
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Trellis Systems More Expensive
While the material cost for the establishment of trellis systems shows a moderate decrease in the 2001 production year, the material cost for the 2002 production year increases by approximately 10 % on average. The 1,8 metre and 2,4 metre pole lengths show a price increase of 10 and 14 % respectively. Other pole lengths, not as commonly used, show average price increases of between 3 and 7 %. Poles longer than 3 metres (used in exceptional instances only in the wine industry) show price increases of up to 15 %. This will affect table grape producers.
Summary Of Cost Of Various Trellis Systems
(Prices as on 1 February 2002. The cost of trellis systems along the Orange River may be higher due to transport cost
of material. Prices do not include VAT.)
The biggest increases occurred in the prices of steel wire, however, where cordon as well as foliage wire increased by 27 %. Although wire is sourced from local suppliers, 70 % of his company's input costs are linked to dollar prices, says Mr Vincent Scheepers, area manager (Western Cape) of Cape Gate. The biggest contributing factor to the price increases is the purchase of raw material. Cape Gate uses mainly scrap metal in their manufacturing process. Even local purchases of scrap metal are linked to the international steel price calculated in dollars. Mr Scheepers envisages a further price increase of approximately 10 % in 2002. Any further changes to international steel prices or in the Rand / Dollar exchange rate will also influence prices in future.
For the cost of the various trellis systems, see accompanying table. For any further enquiries or material lists of the various trellis systems, contact Johan Truter (021) 807 3043 or Paiter Botha (021) 807 3302 at VinPro (SA).
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