Vinpro Cost Guide 2025 / 2026

2025 / 2026

Vinpro Landbou-ekonomiese Dienste/ Vinpro Agricultural Economic Services 2025

Die Vinpro Landbou-ekonomie afdeling lewer ’n reeks van spesialisdienste pasgemaak tot individue se behoeftes. Kontak ons gerus vir ‘n persoonlike kwotasie.

The Vinpro Agricultural Economics department provides a range of specialist services tailored to individual needs. Feel free to contact us for a personalised quotation.

Diens / Service

Ad hoc konsultasies

Ad hoc consultations

Lewensvatbaarheidstudies

Feasibility assessments

Omsigtigheidsbepaling

Due diligence

Verveenvoudigde gelykbreekanalise

Simplified breakeven analysis

Huurbepalings

Rental calculation

Vestigingsberekeninge

Establishment calculations

Loopkoste berekeninge (meganisasie)

Running cost calculations (machinery)

Individuele besoek en fasilitering van Produksieplanverslae (bestuursinligting) Keldervlak insigte en konsultasie soos vanuit Produksieplan perspektief ’n Geheelplaasontleding deur deelname aan die Produksieplan opname

Individual consultation and facilitation of Production Plan reports (management information)

Wine Cellar level insights and consultation as from a Production Plan perspective

A whole farm analysis by participating in the Production Plan survey

VINPRO LANDBOU-EKONOMIESE DIENSTE BIED OOK DIE VOLGENDE AAN: VINPRO AGRICULTURAL ECONOMIC SERVICES ALSO OFFER THE FOLLOWING: ● Koördinering van finansiële studiegroepe / individuele verslae met geheelplaas-, bedryfstak- en blokvlakontledings. ● Ekonomiese en bedryfsverwante artikels en aanbiedings. ● Versameling en verspreiding van

● Coordination of financial study groups / individual reports with whole-farm, enterprise and block level analyses. ● Economic and industry-related articles and presentations. ● Collection and distribution of representative agricultural economic industry-related information

verteenwoordigende landbou ekonomiese bedryfsinligting.

tel: +27 (0)21 276 0429 | e-pos: info@vinpro.co.za | web: www.vinpro.co.za

VOORWOORD / FOREWORD

In the pursuit of a sustainable, efficient and participating wine grape producer community, Vinpro’s Agricultural Economic Services division is committed to providing effective and value-added economic services to all Vinpro members, as well as various role-players in the industry. A promising winter season spurred high expectations for the 2024 crop, but large amounts of rain in June and again in September resulted in flood damage and high disease pressure in several wine grape districts. Unforeseen increases in input costs, namely crop protection and repairs, put cash flow under immense pressure and the effect of delayed capital-intensive replacements is becoming more noticeable every year. With the industry producing the smallest wine grape crop in three decades this season, the onus was placed on wine grape prices to drive producers’ profitability upwards. Against this backdrop, study group surveys are collected annually across all 10 wine regions, processed and the results shared with the participants. Critical financial indicators, trends and efficiency measures are discussed within these study groups and serve as a starting point for operating in a truly optimal and informed manner. As a result of this initiative, industry average figures and the Vinpro Cost Guide are compiled, updated and distributed annually to provide additional support to producers and other role-players within the wine value chain.

In die strewe na ’n volhoubare, doeltref fende en deelnemende wynprodusentege meenskap, bly Vinpro Landbou-ekonomiese Dienste toegewyd tot ’n effektiewe en waar detoegevoegde ekonomiese dienslewering aan Vinpro se lede en verskeie rolspelers in die bedryf. ’n Belowende winterseisoen het gelei tot hoë verwagtinge vir die 2024-oes, maar groot hoeveelhede reën in Junie en weer in Sep tember het vloedskade en hoë siektedruk tot gevolg gehad in menige wyndruifstreke. Onvoorsiene stygings in insetkostes het kon tantvloei onder hewige druk geplaas en die effek van uitgestelde kapitaal-intensiewe ver vangings raak jaar op jaar meer merkbaar. Met die wynbedryf wat tydens hierdie sei soen die kleinste wyndruifoes in drie dekades opgelewer het, is die onus op wyndruifpryse geplaas om produsente se winsgewendheid in ’n opwaartse tendens te dryf. Teen hierdie agtergrond, word daar jaarliks studiegroepresultate regoor al 10 wyndis trikte ingesamel, verwerk en as sulks aan die deelnemers gedeel. Kritiese finansiële aan wysers, tendense en doeltreffendheidsmaat stawwe word binne hierdie studiegroepe bespreek en dien as vertrekpunt om werklik optimaal en ingelig te handel. As uitvloeisel van die aksie, word bedryfsgemiddelde syfers en die Vinpro Kostegids jaarliks op gedateer en beskikbaar gestel ter verdere ondersteuning aan produsente en ander rolspelers binne die wynwaardeketting.

SAMESTELLING / COMPOSITION Yolandi Botha Vinpro Landbou-ekonomiese Dienste / Vinpro Agricultural Economic Services Office: 021 276 0429 | Cell: 082 625 6605 yolandi@vinpro.co.za

VINPRO KOSTEGIDS / COST GUIDE • 1

WEES MEER INGELIG MEET BETER LAAT JOU ONDERNEMING PRESTEER

Gaan die nuwe seisoen met ’n doelgerigte plan vir jou besigheid in.

PRODUKSIEPLAN OPNAME Neem in 2025 aan die Vinpro-studiegroepe (Produksieplan) deel en kry betroubare bestuursinsigte oor jou besigheid. Meet jouself teenoor jou eie historiese prestasie, jou streek en die res van die bedryf om meer ingeligte besluite te maak en doeltreffendheid op te skerp. Deelname is gratis en ’n gebruikersvriendelike proses laat jou toe om met die minimum insette kragtige ontledings tot en met blokvlak te kry. Woon ’n inligtingsessie vanaf Julie 2025 in jou streek by, of kontak ons om betrokke te raak.

tel: +27 (0)21 276 0429 | e-pos: info@vinpro.co.za | web: www.vinpro.co.za

INHOUD / CONTENTS Voorwoord / Foreword .............................................................................................................. 1 Doel / Purpose ............................................................................................................................ 3 Wynbedryfoorsig / Wine Industry Overview ................................................................................................ 5 Koste van wyndruifproduksie (2024-oes) / Cost of wine grape production (2024 harvest) .......................................................... 13 Top produsente / Top producers ................................................................................................................ 28 Riglyninkomste (2024-oes) / Guideline income (2024 harvest) ................................................................................ 33 Oesversekering / Harvest Insurance ......................................................................................................... 37 Arbeidsriglyne / Labour guidelines .......................................................................................................... 40 Vestigingskoste / Establishment cost ......................................................................................................... 43 Koste van meganisasie / Cost of mechanisation .................................................................................................. 62 Vinpro kontakbesonderhede / Vinpro contact details ................................................................................................. 71

VRYWARING / INDEMNITY

Die samestellers van die Vinpro Kostegids het deurgaans te goeder trou opgetree. Enige besluit voortspruitend, of aksie gebaseer op die inligting soos vervat in die gids, word op eie risiko gedoen. Nie die samestellers of Vinpro kan verant woordelik gehou word vir enige finansiële verlies weens so ’n besluit of aksie nie, terwyl enige finansiële wins slegs tot die voordeel van die gebruiker daarvan is. Die hoofdoel van hierdie Kostegids is om spesifieke finan siële- en ekonomiese aanwysers in ’n eenvoudige formaat te verpak, wat as ’n bestuurshulpmiddel kan dien vir die opstel van begrotings deur wyndruifprodusente. Weens dramatiese prysskommelinge bly dit ’n voortdurende uit daging om sinvol en akkuraat te begroot, en kan hierdie gids as riglyn daarvoor aangewend word.

The Vinpro Cost Guide was compiled in good faith. Any decision taken as a result of, or actions based on information contained in the guide is solely at the user’s own risk. Neither the compilers nor Vinpro are accountable for any financial loss due to such decisions or actions, while any financial gain derived from it is solely to the benefit of the users thereof. The main purpose of this cost guide is to compile specific financial and economic indicators in a simple format, which serves as a management aid for wine grape producers in the preparation of budgets. Due to dramatic price fluctuations, compiling a meaningful and accurate budget remains an ongoing challenge, and this guide can be used in support of this endeavour.

DOEL / PURPOSE

BORGE / SPONSORS

’n Spesiale woord van dank aan ons borge wat die druk van hierdie Kostegids, asook die gratis verspreiding daarvan aan alle Vinpro-lede in die wynbedryf moontlik maak.

A special word of thanks to our sponsors without whom this Cost Guide could not have been published or distributed for free to all Vinpro members in the wine industry.

Absa • AECI • Agrimark • Claassen Stone • FNB • InteliGro • John Deere • Landbank Môreson Grondverskuiwers • Nedbank • Netafim • Standard Bank • Vititec

WYNBEDRYFOORSIG WINE INDUSTRY OVERVIEW

DIVISIONS: • Consultation Service • GEN-Z • Agricultural Economics • HR & Finance • Compliance & Operations VINPRO FAMILY

OUR MEMBERS • Primary Member (Wine Grape Producer, Wine Grape and Wine Producer, Wine Grape Processor) • Associated Member (Wine Industry Stakeholders) • Honorary Member (Vinpro Board Selected)

AFFILIATES: • FarmMS (75% shares) • Vititec (100% shares)

PRIMARY MEMBERS • Wine Grape Producer: Annually produces 5 tonnes of wine grapes for delivery to a wine processor. • Wine and -Grape Producer: A wine grape producer and also a wine processor. • Wine Processor: That utilises wine grapes for production of drinking and distilling wine and/or other alcoholic or non alcoholic products.

VALUES Integrity Client centred products & services Effective communication Adaptability Innovation Sustainability

VISION Growing Together

+27 21 2760429 | info@vinpro.co.za | www.vinpro.co.za

MAIN FOCUS TECHNICAL SERVICES • Technical consultation • Knowledge transfer • Industry services • Gathering of information • Soil science special projects • Training PRODUCTION PLAN • Regional benchmarking • Feasibility assessments • Farm rental calculation • Break even analysis • Establishment calculations • Wine cellar insights GEN-Z

WINE MS • Farm management • Bulk management

• Demonstration plots • Youth training support VITITEC • Plant improvement • Plant nursery

• Production management INVESTMENT PORTFOLIO STAKEHOLDER ENGAGEMENT

PURPOSE Our purpose is to convert technical knowledge into tangible solutions across every aspect of production, so that our clients/members can consistently produce better quality products of the vine- for profitable yields that ensure they can prosper.

Cecillia Street, Paarl, South Africa

Lutzville Valley

OLIFANTS RIVER

Citrusdal Mountain

Citrusdal Valley

Sutherland-Karoo

OLIFANTS RIVER 8 261 ha

Swartland

COASTAL REGION

WORCESTER 6 372 ha

SWARTLAND 11 585 ha

Ceres Plateau

Tulbagh

Darling

Worcester

Wellington

KLEIN KAROO 1 981 ha

BREEDEKLOOF 12 519 ha

BREEDE RIVER VALLEY

PAARL 13 879 ha

Cape Town

Robertson

Paarl

ROBERTSON 12 799 ha

Langeberg-Garcia

Stellenbosch

Franschhoek

CAPE TOWN 2 511 ha

STELLENBOSCH 11 653 ha

Swellendam

Overberg

Elgin

Lower Duivenhoks River

CAPE SOUTH COAST 2 671 ha

Walker Bay

CAPE SOUTH COAST

Cape Agulhas

Total winegrape hectares: 86 554 ha Total tonnes (estimate): 1 116 535

2024 SAWIS Statistical Districts

NORTHERN CAPE/REST

OF SA 2 313 ha

Hartswater Rietrivier FS

Grootdrink

Douglas

Central Drakensberg

Kakamas

Lions River

Groblershoop Prieska

Nieuwoudtville

Vredendal

Leipoldtville-Sandveld

Piekenierskloof

Kweekvallei Groenfontein Outeniqua Still Bay East

St Helena Bay Paardeberg

Plettenberg Bay

South Constantia Stanford Foothills

St Francis Bay

STATISTICAL DISTRICT: NORTHERN CAPE / REST OF SA WO REGION: Karoo Hoogland and rest of South Africa WO DISTRICT: Central Orange River, Sutherland-Karoo, Prince Albert, Douglas, Central Drakensberg and Lions River WO WARDS: St Francis Bay, Rietrivier FS, Hartswater, Prieska, Groblershoop, Grootdrink, Upington, Keimoes, Kakamas and Lanseria STATISTICAL DISTRICT: OLIFANTS RIVER WO REGION: Olifants River and Coastal Region WO DISTRICT: Citrusdal Valley, Citrusdal Mountain and Lutzville Valley WO WARDS: Nieuwoudtville, Koekenaap, Vredendal, Spruitdrift, Bamboes Bay, Lamberts Bay, Leipoldville-Sandveld, Piekenierskloof and Cederberg STATISTICAL DISTRICT: SWARTLAND WO REGION: Coastal Region WO DISTRICT: Swartland and Darling WO WARDS: Groenekloof, Malmesbury, Riebeekberg, Riebeeksrivier, Porseleinberg, Paardeberg, Paardeberg South, Piket-Bo-Berg and St Helena Bay

STATISTICAL DISTRICT: KLEIN KAROO WO REGION: Klein Karoo

Calitzdorp

WO DISTRICT: Prince Albert, Langeberg-Garcia and Calitzdorp WO WARDS: Koo Plateau, Montagu, Tradouw Highlands, Tradouw, Groenfontein, Cango Valley, Outeniqua, Upper Langkloof, Prince Albert Valley, Kweekvallei and Swartberg

KLEIN KAROO

STATISTICAL DISTRICT: PAARL WO REGION: Coastal Region

Plettenberg Bay

WO DISTRICT: Paarl, Franschhoek, Wellington and Tulbagh WO WARDS: Simonsberg-Paarl, Agter-Paarl, Voor-Paardeberg, Blouvlei, Bovlei, Groenberg, Mid-Berg Rivier and Limietberg STATISTICAL DISTRICT: ROBERTSON WO REGION: Breede River Valley WO DISTRICT: Robertson WO WARDS: Vinkrivier, Eilandia, Agterkliphoogte, Le Chasseur, Goree, Zandrivier, Hoopsrivier, Klaasvoogds, Goedemoed, McGregor, Boesmansrivier, Goudmyn, Ashton and Bonnievale STATISTICAL DISTRICT: STELLENBOSCH WO REGION: Coastal Region WO DISTRICT: Stellenbosch WO WARDS: Vlottenburg, Polkadraai Hills, Bottelary, Devon Valley, Papegaaiberg, Jonkershoek Valley, Simonsberg Stellenbosch and Banghoek

WO Wards WO Districts WO Regions

STATISTICAL DISTRICT: WORCESTER WO REGION: Breede River Valley

WO DISTRICT: Worcester and Ceres Plateau WO WARDS: Stettyn, Scherpenheuvel, Nuy, Hex River Valley, Keeromsberg, Rooikrans, Ceres and Moordkuil

Production per Statistical District and tonnes (estimated)

STATISTICAL DISTRICT: BREEDEKLOOF WO REGION: Breede River Valley WO DISTRICT: Breedekloof WO WARDS: Slanghoek and Goudini

Breedekloof: 223 466 tonnes Cape South Coast: 14 419 tonnes Cape Town: 19 878 tonnes Klein Karoo: 30 715 tonnes Northern Cape: 47 321 tonnes Olifants River: 156 793 tonnes Paarl: 112 582 tonnes Robertson: 186 776 tonnes Stellenbosch: 71 324 tonnes Swartland: 105 981 tonnes Worcester: 147 280 tonnes

STATISTICAL DISTRICT: CAPE SOUTH COAST WO REGION: Cape South Coast

WO DISTRICT: Overberg, Elgin, Walker Bay, Cape Agulhas, Swellendam, Lower Duiwenhoks River and Plettenberg Bay WO WARDS: Elandskloof, Kaaimansgat, Theewater, Bot River, Hemel-en-Aarde Valley, Upper Hemel-en-Aarde Valley, Hemel-en Aarde Ridge, Stanford Foothills, Springfontein Rim, Klein River, Sunday’s Glen, Napier, Elim, Greyton, Stormsvlei, Buffeljags, Malgas, Still Bay East and Herbertsdale STATISTICAL DISTRICT: CAPE TOWN WO REGION: Coastal Region WO DISTRICT: Cape Town WO WARDS: Hout Bay, Constantia, Durbanville and Philadelphia

Map compiled by: Heinrich Schloms SAWIS statistiekstreke Phone: 083 480 2686 / 021 276 0432 www.vinpro.co.za

SA WYNBEDRYF STATISTIEKE / SA WINE INDUSTRY STATISTICS 2024

Wingerdoppervlak in SA verbou (wyndruif kultivars) Area under vines (wine grape cultivars)

86 544 ha

Primêre wyndruiweprodusente (2023) Primary wine grape producers (2023)

2 350

Produserende kelders (2023) Producing cellars (2023)

522

Werkgeleenthede in die wynbedryf (2022) Employment opportunities in the wine industry (2022) Indiensneming op wynplase en in kelders (2022) Employment on wine farms and in cellars (2022) Totale aantal stokkies onder verbouing (vinifera variëteite) Total number of vines under cultivation (vinifera varieties)

270 364

85 962

259.1 m

Ton geoes (raming) Tons harvested (estimate)

1 116 575

Liters geoes (miljoen) (raming) Liters harvested (million) (estimate) Gebruik word vir die produksie van wyn Used for production of wine

885.4

86%

Liter wyn verbruik in die binnelandse mark (stil, gefortifiseerd en vonkel) Liters of wine consumed in domestic market (still, fortified and sparkling)

455.8 m

Liters uitgevoer (industriële wyn ingesluit) Liters exported (industrial wine included)

306.1 m

Totale SA wyn uitgevoer as % van wynproduksie (industriële wyn ingesluit) Total SA wine exported as % of wine production (industrial wine included)

40%

SA as % van die wêreld se wingerde (tafel- en wyndruiwe) SA as % of world vineyards (table and wine grapes)

1.7%

Posisie in die wêreld (oppervlakte onder wingerd) (tafel- en wyndruiwe) Size ranking in the world (area under vines) (table and wine grapes)

14

Posisie in die wêreld (volume geproduseer ) Ranking in the world (volume of wine produced) SA bydrae tot die wêreld se wynproduksie SA contribution to the world's wine production SA as % van die wêreld se uitvoerwyn SA contribution to world wine exports (%)

8

4.0%

3.5%

SA liter per capita wynverbruik (+15 jaar) (stil, gefortifiseerd en vonkel) (2023) SA litres per capita wine consumption (+15 years) (still, fortified and sparkling) (2023) Jaarlikse impak van die SA-wynbedryf op BBP = 0.9% (2022 Miljard ZAR) Annual impact of the SA wine industry on GDP = 0.9% (2022 Billion ZAR)

9.90

R 56

Primêre wynprodusente se inkomste (2023 Miljard ZAR) Primary wine producers income (2023 Billion ZAR)

R 7.1

Staatsinkomste van BTW en aksyns op wynbedryfprodukte (2023 Miljard ZAR) State income from VAT and excise on wine industry products (2023 Billion ZAR)

R 9.7

Met vergunning van Sawis / Courtesy of Sawis.

10 • VINPRO KOSTEGIDS / COST GUIDE

2025 REGISTRASIES NOU OOP

TEGNIESE WINGERDBOU BEGINSELS AANLYN KURSUS Vir die individu:

https://sawinelms.co.za

Die kursus in Tegniese wingerdbou beginsels vind op ’n aanlynleerplatform plaas. Die kursus is gemik op spanleiers, toesighouers of enigiemand wat hul wingerdboukennis wil uitbrei. Die fokus van die program is om wingerdbestuurders of spanleiers binne die 10 modules op te lei.

KOSTE: R5 000 Voltooi 10 modules oor ’n 12 maande periode

ONS LEERPROGRAM

• Snoei

• Bemesting • Oes van wyndruiwe

• Wingerdvestiging • Stokontwikkeling • Identifisering van siektes en plae

• Grondbestuur • Grondkunde • Lowerbestuur

• Besproeiing

Vinpro sertifikaat word uitgereik na elke module voltooi is.

Vir meer inligting of om te registreer, kontak: Hanno van Schalkwyk | Opleidings Koördineerder Tel +27 (0)21 276 0443 | Epos: hanno@vinpro.co.za

KOSTE VAN WYNDRUIFPRODUKSIE COST OF WINE GRAPE PRODUCTION

INLEIDING / INTRODUCTION

Vinpro se Landbou-ekonomiese Dienste afdeling het in 2024 ’n omvattende eko nomiese ontleding in al tien Suid-Afrikaanse wynstreke uitgevoer. Die projek word finan sieel ondersteun deur South Africa Wine, Absa, FNB, Standard Bank, Landbank en Nedbank, wat die verskaffing van ’n gratis finansiële bestuursontleding aan primêre wyndruifprodusente moontlik maak. Die oorhoofse doelwit van die projek is om ’n geheelplaas- finansiële ontleding van elke deelnemer se produksie-eenheid te doen en dit teenoor sy eie historiese prestasie en dié van die studiegroep en streeksgemid delde te vergelyk. Hierdie verslag bevat terugvoer oor die produksiestruktuur en wins gewendheid per bedryfsvertakking, asook gedetailleerde ontledings en vergelykings van die wyndruifvertakking, wat verskillende blokvlakdimensies insluit. Vir die 2024-opname het 270 produksie-een hede aan die studie deelgeneem, wat 24 494 ha (28% van die totale Suid-Afrikaanse op pervlak wat in 2023 met wyndruiwe aange plant is) verteenwoordig en 345 499 ton (31% van die totale Suid-Afrikaanse oes in 2024) geproduseer het, waarvan 62% wit- en 38% rooiwyndruiwe was. Rooiwyndruiwe se verteenwoordiging het met 5% toegeneem jaar op jaar, hoofsaaklik weens klimaatsfak tore in ’n aantal streke wat tydens 2023 die rooiwyndruifoes beïnvloed het. Van die totale tonnemaat is 75% gelewer aan produsente kelders en 64% meganies geoes (Figuur 1). Die totale oes, insluitend sap en konsentraat vir nie-alkoholiese doeleindes, asook wyn vir brandewyn en distilleerwyn, beloop 885.9 miljoen liter, bereken teen ’n gemiddelde verhaling van 793 liter per ton druiwe. Die ontleding is van toepassing op die totale wyndruifproduksie (draende, sowel as nie draende hektare) en die koste-ontleding tref geen onderskeid tussen die kosteverskille van kultivars of spesifieke blokke nie. Meeste deelnemers is gediversifiseer en verskil ten opsigte van die grootte van hul produksie eenhede van wyndruifvertakkings. Die ver slag verteenwoordig bedryfsgemiddelde syfers, wat bereken is deur die geweegde

In 2024, Vinpro’s Agricultural Economic Services division conducted a compre hensive economic analysis in all ten South African wine regions. The project is financially supported by South Africa Wine, Absa, FNB, Standard Bank, Land Bank and Nedbank, enabling the provision of a free-of-charge financial management analysis for primary wine grape producers. The overall objective of the project is to perform a whole-farm analysis of each participant’s production unit, and to compare it against the producer’s own historical performance as well as that of the study group and the regional average. This report provides feedback on the production structure and profitability per enterprise, as well as detailed analyses and comparisons of the wine grape enterprise, which includes different block level dimensions. For the 2024 survey, 270 production units participated in the study, representing 24 494 ha (28% of the total South African surface planted to wine grapes in 2023) and 345 499 tonnes (31% of the total South African crop in 2024). White wine grapes constituted 62% of these figures and red wine grapes 38%. The representation of red wine grapes increased by 5% year on year, mainly due to climatic factors influencing the red grape crop of various regions during 2023. Of the total tonnage, 75% was supplied to producer cellars and 64% was mechanically harvested (Figure 1). The total crop, including juice and concentrate for non-alcoholic purposes, as well as wine for brandy and distillation, amounted to 885.9 million litres, calculated at an average recovery of 793 litres per tonne of grapes. The analysis applies to the total wine grape cultivation (bearing, as well as non-bearing hectares) and the cost analysis makes no distinction between the cost differences of cultivars or specific blocks. Most participants are diversified and vary in terms of the size of the production units of their wine grape enterprises. The report represents industry average figures, calculated by using the weighted average of the participants and

14 • VINPRO KOSTEGIDS / COST GUIDE

Meganies gepars (2015 – 2024) / Mechanically harvested (2015 – 2024) Meganies gepars (2014 - 2023) / Mechanically harvested (2014 - 2023)

97%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

86% 89% 86% 88%

64%

49% 48%

%

28%

23%

Olifantsriv(i)er Worcester

Robertson Breedekloof

Klein Karoo Bedryf / Industry

Malmesbury

Paarl

Stellenbosch Orange riv(i)er

gemiddelde van die deelnemers te neem en ’n streekspesifieke gewig (gebaseer op SAWIS-hektare) daaraan te koppel, waarna ’n bedryfsgemiddelde syfer bereken word. Die Swartland-streek word afsonderlik geëva lueer, aangesien hierdie studiegroep ’n groot gedeelte wingerd as droëland (sonder be sproeiing) en/of met slegs aanvullende be sproeiing verbou. Gevolglik varieer opbreng ste, bruto inkomste en kontantuitgawes meer in hierdie streek, wat alternatiewe produksie-, koste- en kapitaalstrukture vereis. Figure 1: Percentage of total tonnes harvested mechanically per district. Figuur 1: Persentasie van die tonnemaat wat meganies per distrik geoes word.

applying a region-specific weight thereto (based on SAWIS hectares) to arrive at an industry-average figure. The Swartland region is evaluated separately, as this study group cultivates a large proportion of its vineyards as dry land (without irrigation) and/or with only supplementary irrigation. As a result, yields, gross income and cash expenditure show greater variation in this region, necessitating alternative production, cost and capital structures.

Verhoudingsbankdienste

Ons vier 100 jaar van baanbrekerwynmakers As `n jare lange borg van die Pinotage Assosiasie is Absa trots daarop om die visie en vakmanskap agter Suid-Afrikaanse Pinotage moontlik te maak.

Vind uit hoe ons jou storie kan bemagtig.

agribusiness@absa.co.za

B’s&V’s geld. Gem FDV/NCRCP7

VINPRO KOSTEGIDS / COST GUIDE • 15

DIE 2024-OES / THE 2024 HARVEST

“Uitstekende wintertoestande in die meeste wyndruifverbouingstreke het hoë verwag tinge vir die oes gewek,” sê Dr Etienne Ter blanche, Vinpro Konsultasiediensbestuurder. “Die belangrikste impak van die lentetoe stande was egter die langdurige nat gronde, wat ’n direkte uitwerking op wortelstelsels en toegang tot nodige plantreserwes gehad het. Die somer was merkbaar warmer en droër as die vorige jaar, wat verder tot die kompleksiteit van hierdie oes bygedra het. Een van die uitstaande aspekte van hierdie seisoen was die uitsonderlike sanitêre toe stand van die druiwe – ’n rariteit in reënerige oesseisoende.” Die 2024-druiwe-oes het 1 116 575 ton van 87 848 hektaar opgelewer, ’n afname van 5.6% teenoor die oes wat in 2023 ingepalm is. Die Noord-Kaap- en Klein Karoo-streek het groter oeste as die vorige jaar gepro duseer, die eersgenoemde vanaf ’n laer basis na groot verliese in 2023 en die Klein Karoo-streek wat stelselmatig herstel na die droogte. Opbrengste in die Olifantsrivier, Swartland, Robertson en Worcester was effe kleiner in lyn met die gemiddeld, terwyl Paarl, Stellenbosch en Breedekloof veel kleiner oeste opgelewer het. Die jaarlikse finansiële uitleg benodig om die 2024-oes voor te berei, sluit kontantuitgawes en voorsiening vir vervanging in, terwyl alle belasting, rente, ondernemersloon en ver pligtinge uitgesluit is (Figuur 2). In vergelyking met die 2023-oesjaar het die totale bedryfs gemiddelde produksiekoste, uitgesonder droëlandwingerde in die Swartland-streek, met 6.8% tot R75 828/ha toegeneem. Hier die verhoging is in lyn met die langtermyn gemiddelde verhoging van ongeveer 6.89%, maar met ’n effense versagting as gevolg van die finansiële/kontantvloeiposisie van talle produsente wat hul uitgawes vir een of meer jare op spesifieke items besnoei het.

“Excellent winter conditions in most of the wine grape cultivation regions raised high expectations for the crop,” says Dr Etienne Terblanche, Vinpro Consultation Services Manager. “The most important impact of the spring conditions was however the prolonged wet soils, which had a direct effect on root systems and access to the necessary plant reserves. The summer was noticeably hotter and drier than the previous year, further contributing to the complexity of this harvest. One of the outstanding aspects of this season was the exceptional sanitary condition of the grapes – a rarity in rainy harvest seasons.” The 2024 grape crop yielded 1 116 575 tonnes from 87 848 hectares, a decline of 5.6% from the crop realised in 2023. The Northern Cape and Klein Karoo regions produced bigger crops than the previous year, the former from a lower base after substantial losses in 2023, and the Klein Karoo region recovering gradually after the drought. Yields in the Olifants River, Swartland, Robertson and Worcester were somewhat lower in line with the average, while Paarl, Stellenbosch and Breedekloof produced much smaller crops.

The annual financial layout required in preparation for the 2024 vintage, included cash expenses and provision for renewal, while all taxes, interest, entrepreneurial remuneration and obligations were excluded (Figure 2). Compared to the 2023 vintage, the total industry-average production cost, with the exception of dryland vineyards in the Swartland region, increased by 6.8% to R75 828/ha. This increase is in line with the long-term average increase of approximately 6.89%, but mitigated slightly due to the financial/ cash-flow position of many producers who have cut back their expenses on specific items for one or more years. DIE KOSTE VAN WYNDRUIFPRODUKSIE / THE COST OF WINE GRAPE PRODUCTION

16 • VINPRO KOSTEGIDS / COST GUIDE

Totale produksiekoste / Total production costs Bedryf / Industry Totale produksiekoste / Total production cost Bedryf / Industry

75 828

70 974

0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000

67 407

58 444

18 098

55 882

17 495

51 788

16 884

48 423

47 513

44 390

41 635

14 833

14 207

13 165

11 361

10 959

10 344

9 691

57 730

53 478

50 524

43 611

41 675

38 623

37 062

36 554

34 047

31 944

Rand / ha

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Kontantuitgawes / Cash expenditure

Voorsiening vir vervanging / Provision for renewal

Totale produksiekoste / Total production cost

Figure 2: Total industry average production cost. Figuur 2: Totale bedryfsgemiddelde produksiekoste.

KONTANTUITGAWES / CASH EXPENDITURE

KONTANTUITGAWES Kontantuitgawes behels direkte koste, ar beid, algemene uitgawes en nie-kapitaal verwante uitgawes aan meganiese en vaste verbeterings. Tydens die 2024-oesjaar is ’n styging van 7.95% tot R57 730 per hektaar in totale kontantuitgawes waargeneem in vergelyking met 2023.

Cash expenditure comprises direct costs, labour, general expenses and non-capital related expenditure on mechanical and fixed improvements. During the 2024 vintage, an increase of 7.95% to R57 730 per hectare was observed in total cash expenditure, compared to 2023.

VINPRO KOSTEGIDS / COST GUIDE • 17

Direkte koste wat onder meer gewasbesker ming, onkruiddoder en bemesting behels, styg jaar op jaar met 10.7%. Gewasbesker minguitgawes toon die vernaamste bewe ging en styg met ’n gemiddeld van 19.5% vanaf 2023 (Figuur 3), tweeledig weens hewige siektedruktoestande in meeste streke ervaar, sowel as ’n drastiese toename in die prys van produkte wat toegedien word. Anorganiese bemestinguitgawes het vanjaar redelik gestabiliseer na die gewel dige prysstygings in 2022 en het ’n kleiner as verwagte toename van 4.4% jaar op jaar gerealiseer. ● Arbeidskoste (die grootste kostekompo nent tot die verbouing van wyndruiwe) styg jaar op jaar met 6.1% waarvan die grootste bydraer tot hierdie kostekatego rie, toesig en bestuurshulp, toegeneem het met 14.7% (met ’n toename van 3.3% in seisoens- en 5.2% in permanente ar beid) (Figuur 4). Die interpretasie van die kleiner as verwagte toename in perma nente en seisoenale arbeid is belangrik vir die volgende redes:

Direct costs, which include inter alia crop protection, herbicide and fertiliser, increased by 10.7% year on year. Crop protection ex penses show the most significant movement and increased by an average of 19.5% from 2023 (Figure 3), owing to both the intense disease pressure conditions experienced in most regions, and the drastic increase in prices of products applied. Inorganic fertiliser expenses largely stablised this year after enormous price increases in 2022 and a smaller than expected year-on-year in crease of 4.4% realised. ● Labour costs (the biggest cost compo nent in the cultivation of wine grapes) increased year on year by 6.1%. The biggest contributor to this cost category, supervision and managerial assistance, increased by 14.7% (with an increase of 3.3% in seasonal and 5.2% in permanent labour) (Figure 4). The interpretation of the smaller-than-expected increase in permanent and seasonal labour is important for the following reasons:

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18 • VINPRO KOSTEGIDS / COST GUIDE

Direkte koste / Direct cost Bedryf / Industry Direkte koste / Direct cost Bedryf / Industry

5 546

- 1 000 2 000 3 000 4 000 5 000 6 000

4 715

4 601

4 811

4 643

3 522

3 444

4 448

2 954

2 795

2 529

2 428

2 388

3 379

3 023

2 591

2 576

2 273

2 498

Rand / ha

2 061

1 877

1 739

1 663

1 343

1 233

1 088

929

1 026

957

925

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Bemesting (organies en anorganies) / Fertiliser (organic and inorganic)

Plaag- en siektebeheer / Crop protection

Onkruidbeheer / Herbicide control

Figure 3: Movement of direct cost - industry average. Figuur 3: Beweging van direkte koste - bedryfsgemiddeld.

● Wages correspond directly to the number of canopy actions applied and thus the size of the crop; ● The decline in the wine grape surface correlates with the many wine grape work opportunities that have been lost; and ● The degree of mechanisation, with a greater percentage of the crop harvested mechanically every year, has a direct influence on this cost component. Wine grapes are cultivated in a wide variety of production regions in South Africa, with variation in terms of topography, climate, cultivation practices and the corresponding production and cost structures. The biggest regional differences can be found in labour and direct costs. A flattening in expenditure on fuel and an above-average increase in mechanical repairs were observed in mechanical cost expenditure (Figure 5). The former can be attributed to substantial year-on-year production contractions in some of the most mechanised wine regions in 2024. The aforementioned increase in mechanical repairs relates to a limited cash-flow situation where critical capital replacement decisions have been put on the back burner for some time now. In terms of general expenditure, the most significant movement was a 6.7% year on-year increase in administration costs. Although a lower-than-expected increase

● Lone hou direk verband met die aantal loweraksies toegepas en die grootte van die oes; ● Die afname in die wyndruifoppervlak korreleer met baie wyndruifwerksgeleent hede wat verlore gegaan het; en ● Die mate van meganisering, met ’n groter persentasie van die oes wat jaar op jaar meganies afgehaal word, wat hierdie kostekomponent direk beïnvloed. Wyndruiwe word in ’n wye verskeidenheid produksiestreke in Suid-Afrika verbou, met variasie ten opsigte van topografie, klimaat, verbouingspraktyke en die ooreenstemmen de produksie- en kostestrukture. Die grootste streeksverskille in die kostestruktuur kom voor by arbeids- en direkte koste. ’n Uitplatting op die spandering op brand stof en ’n bogemiddelde styging in mega niese herstelwerk word waargeneem in die spandering van meganiese koste (Figuur 5). Eersgenoemde hou verband met wesenlike jaar-op-jaar produksie-inkrimpings by van die mees gemeganiseerde wynstreke in 2024. Die bogemiddelde styging in meganiese herstelwerk hou verband met ’n beperkte kontantvloeisituasie waar kritieke kapitaal vervangingsbesluite al vir ’n geruime tyd op die agtervoet geplaas is. Wat algemene uitgawes aanbetref, is die vernaamste beweging ’n 6.7% jaar-op-jaar toename in administrasiekoste. Alhoewel daar ’n laer as verwagte toename van 5% in elektrisiteit waargeneem word, kan

VINPRO KOSTEGIDS / COST GUIDE • 19

of 5% in electricity was observed, this phenomenon can be credited to the implementation of electricity-saving technologies or alternative power sources. The drastic increase in producer expenditure on non-capital related expenses on fixed improvements (37% year on year) is due to the repair of infrastructure damage caused by the heavy rains and floods that battered most wine regions during the second half of 2023 (Figure 6). The relative contribution of different cash expenditure items to total cash flow is set out in Figure 7.

hierdie verskynsel toegeskryf word aan die implementering van elektrisiteitsbesparende tegnologieë of alternatiewe kragbronne. Die drastiese toename in produsente se be steding aan nie-kapitaalverwante uitgawes op vaste verbeteringe (37% jaar op jaar) is weens die herstel van infrastruktuurskade veroorsaak deur die hewige aantal reën en vloede wat tydens die tweede helfte van 2023 die meerderheid wynstreke geteister het (Figuur 6). Die relatiewe bydrae van verskillende kon tantuitgawe-items tot totale kontantvloei word in Figuur 7 uiteengesit.

Arbeidskoste / Labour cost Bedryf / Industry Arbeidskoste / Labour cost Bedryf / Industry

10 000 12 000 14 000

11 538

10 973

9 998

9 324

9 321

9 054

9 051

9 026

8 778

7 860

6 596

- 2 000 4 000 6 000 8 000

6 385

6 342

5 264

4 806

4 336

4 093

3 686

3 342

3 219

Rand / ha

3 884

3 398

3 388

3 052

2 794

2 650

2 581

1 960

2 081

2 074 2017

2015

2016

2018

2019

2020

2021

2022

2023

2024

Permanente arbeid / Permanent labour

Seisoens- en kontrakarbeid / Seasonal- and contract labour

Toesig en bestuurshulp / Hired supervision

10036340 NB CB Landbou Weekblad (122x188) Afr

Figure 4: Movement of labour cost - industry average. Figuur 4: Beweging van arbeidskoste - bedryfsgemiddeld.

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Nedbank Bpk Reg No 1951/000009/06. Gelisensieerde finansiëlediens- en geregistreerde kredietverskaffer (NKRKV16). B&V’s geld.

20 • VINPRO KOSTEGIDS / COST GUIDE 10036340 NB CB Landbou Weekblad (122x188) Afr.indd 1

2024/04/09 14:48

Meganisasiekoste / Mechanisation cost Bedryf / Industry Meganisasiekoste / Mechanisation cost Bedryf / Industry

- 1 000 2 000 3 000 4 000 5 000 6 000

4 913

4825.87

4 264

3 796

3 478

3 428

4827.73

3 372

3 340

3 177

4 297

2 949

3731

2842 2922.659485 2823

2646

2592

2482

2478

Rand / ha

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Brandstof / Fuel

Herstel, onderdele & reparasies (los bates) / Repairs, parts & maintenance (moveable assets)

Figure 5: Movement of mechanisation cost - industry average. Figuur 5: Beweging van meganisasiekoste - bedryfsgemiddeld.

Algemene uitgawes en spandering op vaste verbeteringe / General expenditure and expenditure on fixed improvements Bedryf / Industry Algemene uitgawes en spandering op vaste verbeteringe / General expenditure and expenditure on fixed improvements Bedryf / Industry

4 525

4 309

4 285

4 500

3 895

3 524

3 301

3 500

3 034

3 006

2 796

2 601

2 498

2 439

2 366

2 326

2 500

1 928

2 544

1 809

1 775

1 763

1 810

1 664

1 541

1 651

2 017

1 844

1 500 Rand / ha

1 292

1 311

1 256

1 581

1 136

1 599

1 539

1 474

1 290

1 287

1 178

1 246

1 099

1 098

1 034 2015

500

2016

2017

2018

2019

2020

2021

2022

2023

2024

Elektrisiteit / Electricity

Waterbelasting / Water cost

Administrasie / Administration

Vaste verbeteringe (nie-kapitaalverwante) / Fixed improvements (non-capital)

Figure 6: Movement of general expenditure and non-capital related expenditure on fixed improvements - industry average. Figuur 6: Beweging van algemene uitgawes en nie-kapitaalverwante spandering op vaste verbeteringe - bedryfsgemiddeld.

Kontantuitgawes / Cash expenditure Bedryf / Industry Kontantuitgawes / Cash expenditure Bedryf / Industry

16%

16%

17%

17%

17%

17%

17%

17%

18%

18%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

18%

20%

20%

20%

19%

19%

20%

19%

19%

18%

%

39%

38%

39%

40%

40%

41%

42%

41%

42%

42%

22%

22%

21%

20%

19%

18%

18%

18%

18%

17%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Direkte koste / Direct cost

Arbeid / Labour

Meganisasie / Mechanisation

Vaste verbeteringe / Fixed improvements

Algemene uitgawes / General expenses

Figure 7: Percentage composition of annual cash expenditure - industry average. Figuur 7: Persentasie samestelling van jaarlikse kontantuitgawes - bedryfsgemiddeld.

VINPRO KOSTEGIDS / COST GUIDE • 21

VOORSIENING VIR VERVANGING / PROVISION FOR RENEWAL

Produksiekoste word nie net tot kontantuit gawes beperk nie, maar kapitaalitems moet ook mettertyd vervang word – ’n element wat as kritiek beskou word om sodoende die besigheid in stand te hou en langtermynvol houbaarheid te verseker. Hierdie implisiete koste word na verwys as voorsiening vir vervanging. Die totale voorsiening vir vervanging het in die 2024-oesjaar R18 098 per hektaar be loop; ’n gemiddelde styging van 7.5% per jaar sedert 2015. Onvolhoubare gemiddelde bruto inkomste vlakke beperk produsente om die nodige kapitaalvervanging te doen. ’n Verbetering in pryspunte oor die afgelope twee jaar het daartoe bygedra dat produsente blokke wat hulself al vir lank op die krukkelys bevind, nog in produksie kon hou, maar die verskyn sel van ouer blokke wat eenvoudig net nie die mas kan opkom nie, raak al hoe meer algemeen. Weens die bogenoemde was

Production costs are not limited to cash expenditure alone, capital items also have to be replaced over time – an element considered critical to sustain a business and ensure long-term sustainability. These implicit costs are referred to as provision for renewal. The total provision for renewal in the 2024 vintage amounted to R18 098 per hectare; an average increase of 7.5% per year since 2015. Unsustainable average gross income levels also restrict producers from performing the necessary capital replacement. An improvement in price points over the past two years contributed to producers keeping underperforming blocks in production, but older blocks that simply cannot make the grade are becoming an ever more common occurrence. Due to this, the effect of an ageing vineyard surface on the overall crop size was significant for the second year running.

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22 • VINPRO KOSTEGIDS / COST GUIDE

die effek van ’n ouer wingerdstand op die algehele oesgrootte vir die tweede opeen volgende jaar beduidend. Wingerde drie jaar of jonger maak slegs 8.61% van die totale wingerdstand uit met die komponent van wingerde ouer as 20 jaar wat 30.4% van die steekproef uitmaak. Dit is teenstrydig met die algemene norm dat 15% van wingerde drie jaar of jonger moet wees en die gedeelte ouer as 20 jaar nie 15% moet oorskry nie (Figuur 8).

Vineyards aged three years or younger, comprise only 8.61% of the total vineyard surface, with the component of vineyards older than 20 years constituting 30.4% of the survey sample. This contradicts the prescribed norm that 15% of vineyards should be three years or younger and that the portion of vineyards older than 20 years should not exceed 15% (Figure 8).

Ouderdomsamestelling / Age distribution Bedryf / Industry

Ouderdomsamestelling / Age distribution Bedryf / Industry

14 13

13 14

14

14

15

15

16

16

18

22

24

27

28

30

31

16

15

18

20

22

23

24

22

22

21

21

18

20

42

42

41

41

39

39

36

%

34

32

32

30

28

29

30

28

21

19

17

17

16

16

11 15

11 15

10 15

10 13

15

10 13

15

13

13

12

12

12

11

11

11

9

9

9

8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

<= 3 jaar / years (%)

4-7 jaar / years (%)

8-15 jaar / years (%)

16-20 jaar / years (%)

Ouer as 20 jaar / Older than 20 years (%)

Figure 8: Age distribution - industry average. Figuur 8: Ouderdomsamestelling - bedryfsgemiddeld.

GELYKBREEK / BREAK-EVEN

Die gelykbreekprys is die bedrag wat be nodig word om die totale produksiekoste te dek – geen ondernemersloon, rente of be lasting word ingereken nie. Die gelykbreek prys word bereken deur totale produksie koste deur die gemiddelde opbrengs per hektaar te deel. Dit is dus moontlik om deur middel van opbrengsverhogings stygings in totale produksiekoste uit te balanseer of selfs te oortref. Die potensiaal vir oortreffing kwyn egter soos wingerdstokke verouder met ’n gepaardgaande afname in produktiwiteit (Figuur 9). Die bedryfsgemiddelde gelykbreekpunt het met 6.97% tot R4 698 per ton toegeneem vir die 2024-produksiejaar, vergeleke met 2023. Anders gestel: die eerste R4 698 wat

The break-even price is the amount required to cover the entire production cost – no entrepreneurial remuneration, interest or tax are taken into account. The break-even price is calculated by dividing the total production cost by the average yield per hectare. It is thus possible to balance or even exceed increases in total production costs through yield increases. The potential to exceed diminishes however as vines age, with an accompanying decrease in productivity (Figure 9). The industry average break-even point increased by 6.97% to R4 698 per tonne for the 2024 production year, compared to 2023. Differently put: the first R4 698 received by the producer for a tonne of grapes during

VINPRO KOSTEGIDS / COST GUIDE • 23