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

2. 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

3.  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

4.  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

5. Where are we? Growth of Wineries1991200220052006200720082009 Number of primary wine producers 4786434643604183399938393667 Number of wine cellars which crush grapes 212427581572560585604 Producer cellars 706665 595857 Producing wholesalers 61121172023 www.wosa.co.za

6. Where are we? 2009/20082010 (Jan-June) UK11182 Netherlands99101 Sweden118105 Germany99150 Far East150156 Canada111110 Belgium95112 USA100132 Denmark95 Total107104 TOTAL PACKAGED WINE (Litres) EXPORT GROWTH TRENDS www.wosa.co.za

7.  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?

8. 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?

9. 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.

10. Challenges: 2010 - 2015 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.

11. 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

12. Sharron Marco-Thyse Chairperson sharron@crls.org.za Cell: 082 4903675 Charles Erasmus CEO charleserasmus@live.co.za Cell: 082 5607779 Thank You www.sawit.co.za