During the middle of harvest season for South African vintners in March, business activity was ordered to stop by their Government to mitigate the spread of Covid-19. Alcohol production, national sales and tasting rooms were prohibited, followed by an export ban on April 16th, grinding the entire industry (except sanitizing alcohol) to a halt.
Vineyard in South Africa
Wines of South Africa
Wines of South Africa, the organization representing all exporting South African wine producers, has been actively lobbying to lift restrictions. Their efforts were successful when Minister Dr. Nkosazana Dlamini Zuma announced permission of packaged and bulk wine export activities, including procurement, transport, manufacturing and related services to resume starting May 1st.
Economic value
According to Wines of South Africa, wine is their nation’s second largest agricultural export, amounting to $500 million in foreign revenue annually. The wine industry contributes $2.6 billion USD to national GDP and creates 290,000 jobs annually.
This several-week ban has lasting implications: apart from estimated $53 million lost revenue, Wines of South Africa estimates at least 3 months but likely longer for an average order to be fulfilled, as the entire supply chain gradually resumes with continuing restrictions, strict safety protocols, and new rules to be followed.