ABSTRACT

Shielded from competitive pressures by a regulation regime for most of the Twentieth Century, cellars and growers alike suddenly found themselves face-to-face with the harsh laws of the market when the system was dismantled almost overnight. At least theoretically, the reinsertion into the global economy presented South African growers and cellars with unprecedented opportunities. Nevertheless, some actors in the South African wine industry are benefiting from entry into the new markets. Traditionalist farming styles and an entrenched co-operative culture, characteristic of large sections of the South African wine industry, will be a hindrance rather than an asset, in their struggle for survival. Survival is not made any easier by the fact that globalization is a two-way street. Deregulation of the industry has put in jeopardy the continued survival of a significant percentage of the co-operative sector and all the people who depend on it for their livelihood. Naturally, South African cellars are unequivocally in favour of deregulation.