PORTFOLIO COMMITTEE ON AGRICULTURE, FISHERIES & FORESTRY: OLD ASSEMBLY Ms Sharron Marco-Thyse Chairperson 17 SEPT 2010 Transformation in the Wine Industry

THE CREATION OF A TRANSFORMED WINE INDUSTRY THAT IS SUSTAINABLE AND VIBRANT, POPULATED BY AN EMPOWERED WORKER COMMUNITY THAT SHARES EQUITABLY IN THE GROWTH AND PROSPERITY OF THIS INDUSTRY. Sawit’s Vision

 Collective Industry leadership agreed on transformation process  (Transformation Conference 2003)  Facilitate 1 st big BBBEE deal of KWV   Wine Charter – 1. Process of developing the Charter  Steering committee  Higher targets than AgriBee  SA Wine Industry Council  Acceptance of Charter  To be responsible to monitor implementation of the charter objectives  Setting & Maintaining the Transformational Agenda for SA Wine Industry Key Milestones: 2003 – 2009

 Economic Development: Support to +20 BEE wineries  Social Development – Grants to numerous community initiatives/organisations  Education and Training for black leadership; technical skills  Marketing & Export Promotion of Black Wineries Key Milestones: 2003 – 2009

Where are we? Growth of Wineries Number of primary wine producers Number of wine cellars which crush grapes Producer cellars Producing wholesalers

Where are we? 2009/ (Jan-June) UK11182 Netherlands99101 Sweden Germany99150 Far East Canada Belgium95112 USA Denmark95 Total TOTAL PACKAGED WINE (Litres) EXPORT GROWTH TRENDS

 ownership (business & land) in wine industry still majority white  very few successful commercial black farmers  tenure security and on-farm housing for workers  Working conditions on farms (job shedding; increase in short-term contract labour) Where are we?

Underpinning Context and Legislation:  Land Reform Act not the expected change – less than 8% of 2014 target achieved  Global Recession  350 years of wine-making legacy  Growing rural population that is poor, low skilled and under- resourced. Where are we?

Future Priorities Track impact of Transformation  Monitoring tool for implementation and compliance  Collective reporting Advocate for Increase in Resource flow from Urban to Rural All stakeholders have political responsibility to place Wine Charter back on the agenda Call for establishment of the Wine Charter council.

Challenges: Transformation in the Wine Industry Look in - monitoring of key priorities, stimulating partnerships to facilitate change and transformation, and reflecting the impacts/challenges. Look out - provide strategic direction to the industry (needs, challenges, risks, strengths and opportunities). To assist the Industry to identify actions needed to facilitate its transformation agenda. Look ahead - towards creating shared goals supported by the setting of clear targets for the industry.

SAWIT ORGANISATIONAL STRATEGY: An Integrated Overview Our IMMEDIATE GOALS are: To engage and strengthen stakeholders i.t.o. transformation and a farmworker agenda Our IMMEDIATE GOALS are: To engage and strengthen stakeholders i.t.o. transformation and a farmworker agenda TASK THREE Wine Transformation Charter and Seminar Series W!ND TASK THREE Wine Transformation Charter and Seminar Series W!ND TASK TWO Baseline Studies and Status Quo analysis TASK TWO Baseline Studies and Status Quo analysis TASK ONE  Inform Reform  CHANCE  Bridging the Skills Gap  LEAD TASK ONE  Inform Reform  CHANCE  Bridging the Skills Gap  LEAD

Sharron Marco-Thyse Chairperson Cell: Charles Erasmus CEO Cell: Thank You