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VinPro(SA) Bulletin

New programme increases effective management among industry leaders

In its capacity as service organisation for the South African wine producer, VinPro is determined to add value to its producers' businesses through involvement in and co-ordination of training and development in the industry.

As a result of the huge demand for training of directors and cellars managers of co-operative cellars in the wine industry, VinPro consulted with various industry leaders and developed a programme to address this need. The programme will be offered on an ongoing basis to familiarise new directors and hone the skills of existing directors.

The programme is offered in conjunction with PricewaterhouseCoopers, La Vita Nuova and the Stellenbosch Management School. La Vita Nuova specialises in corporate training and capacity building and has been actively involved in training at various undertakings in the wine industry for some time now.

The programme is offered over two days and includes the following subjects inter alia:

Day 1 is facilitated by La Vita Nuova and PricewaterhouseCoopers:

  • Effective corporate management
  • Role and responsibilities of directors
  • Leadership on a board
  • Qualities of world class directors
  • The "learning board"
  • Accountability and performance
  • The management of change
  • The application of practical financial aids for directors:
  • Interpreting the financial statements of a wine co-operative
  • Financial reporting requirements for a co-operative
  • Functioning of pools / compensation policy
  • Cost and cost price calculation as an aid to determining wine prices
  • Advantages and disadvantages of different business structures (co-operative vs company)
Day 2 is facilitated by the US Management School.

  • The business of wine (Dr Stephanus Loubser)
    • Environment trends
    • International and national working trends
    • The marketing of wine
    • Strategic alternatives for the South African wine industry
  • Economic realities (Prof André Roux)
    • Economic principles and relationships on micro and macro level, with specific reference to the wine industry
  • Management of change (Mr K Serfontein)
    • Globalisation and the necessity to change
    • The value chain. Where people fit into the value creation process
    • The impact of technology on management
    • Management of change
    Part of the programme will be offered on an interactive basis. The idea is for the entire board with their cellar managers (and other senior cellar personnel as seen fit by the cellar in question) to attend the programme. Certificates will be awarded for attendance of the programme, and the eventual goal is to ensure that each cellar director and senior manager in the industry will be in possession of such a certificate.

    The first programme was offered at the Goudini Spa on 9 and 10 October, with lots of positive feedback. Another programme has been scheduled for early November.

    Contact Paiter Botha at VinPro, tel. 021 - 807 3302 or cell. 082 806 0429, to make arrangements for individual strategic sessions with La Vita Nuova.

    In offering this programme, VinPro attempts to add significant value to effective management, which is essential for survival in the highly competitive contemporary business world.

    VinPro (SA) Consultation Services restructure

    VinPro (SA) Advisory Board approved the restructuring of Consultation Services in August this year, to become effective in January 2001. This will furthermore entail the repositioning of the service with regard to the wine industry. The object is to offer wine producers a more efficient service in future, while ensuring that the latest technology and knowledge are applied.

    The single most important reason for the restructuring is undoubtedly the fact that Consultation Services simply cannot meet the growing demand for experienced and trained viticulturists any longer. Due to the cost implication of appointing more and more viticulturists, it has become logical for industry bodies or groups to employ viticulturists according to their own specific requirements.

    In future VinPro (SA) Consultation Services will therefore consist of a team of senior and experienced viticultural consultants who will be stationed in the various districts. The teams will be complemented by an agricultural economist. These regional viticultural consultants will be available, inter alia, to:

    • Provide support and train junior viticulturists
    • Act as the intermediary between technology generators and producers
    • Give industry input (technology transfer projects, research priorities, information days, etcetera) to everyone's benefit
    • Provide viticultural consultation as requested
    It was pointed out at the recent information sessions in the regions by KWV chairman, Lourens Jonker, that this approach is more market related and will make the VinPro consultants available to the industry on a broader base, in the interest of the wine producer.

    CONTACT DETAILS OF REGIONAL VITICULTURAL CONSULTANTS
    Manager Francois Viljoen
    (023) 626 3017 083 309 7627
    Stellenbosch / Paarl
    Johan Pienaar
    (021) 887 0014 083 309 7637
    Wellington / Swartland Dricus van der Westhuizen
    (021) 887 0014 083 309 7625
    Worcester Schalk du Toit
    (023) 347 2795 083 303 0530
    Robertson / Little Karoo
    Briaan Stipp
    (023) 626 3017 083 455 5196
    Olifants River
    Jeff Joubert
    (027) 213 3689 083 455 5190
    Orange River
    Dirk Malan
    (054) 461 2299 082 495 7999
    Agricultural economist
    Johan Truter
    (021) 807 3043 082 806 0428

    An overview of the Australian
    wine industry (Part I)

    This article, the first in a series of two, gives a short overview of the structure of the Australian wine industry. Reference is also made to Australia's cultivar composition and planting trends.

    In 1999 there were 321 cellars pressing 50 tons of grapes or more in Australia. Of these, 10 pressed more than 20 000 tons. Four wineries still control approximately 80% of the wine market, while 10% is controlled by approximately 10 smaller wineries. The remaining 10% is represented by a myriad small wine producers who market their own wine. Almost half of all grapes pressed in Australia in 1999 were pressed in South Australia, making this the biggest wine grape producing region in Australia.

    The main source of funding for the industry is generated by two levies, a so-called levy on wine grapes imposed on farm level, and a so-called wine levy imposed on cellar level. The central government has committed itself to funding the industry to the equivalent of a minimum of 50% of this levy. A further levy is applicable to wine exports. Direct subsidies for the wine industry no longer exist in any form.

    In Australia the producer is represented on national level by the Wine Growers' Council of Australia, which in turn consists of three member organisations representing the interests of the producers of three regions. The wine cellars are represented on national level by the Winemakers' Federation of Australia. On state level the above organisations are funded by means of membership fees, and state governments only make funds available to the wine industry in exceptional cases.

    Area planted to vines, cultivar composition and plantings

    The total area planted to vines amounted to 122 915 hectares during the 1999 harvest, which is 25% more than in 1998. Of the total surface planted to vines 22,5% were non-bearing.

    The total area of grapes established in the course of the 1999 season amounted to 16 048 hectares, with the South Australian plantings once again representing the biggest percentage, namely 47%.

    In 1999 red cultivars represented 55% of the total hectares planted, and white cultivars 45%. It is the first time in the history of the Australian wine industry that the percentage of red cultivars exceeds the percentage of white cultivars.

    Altogether 13 546 hectares of red cultivars were established in 1999, with Shiraz representing the most (5 534 hectares) and Cabernet Sauvignon second most (4 315 hectares). Plantings of white cultivars amounted to 2 502 hectares, with Chardonnay (633 hectares) the most and Semillon (375 hectares) second most.

  • Wynboer is incorporated in WineLand, magazine of the SA wine producers.

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