This article is aiming to provide a comprehensive and understandable statement about the competitiveness of the South African wine industry. A measurement of the competitive performance of the South African wine industry-the WINE COMPETITIVENESS INDEX (WCI)-indicates that South Africa's wines are internationally highly competitive with a sustainable and increasing positive trend over recent years. The wine industry in South Africa also shows positive trends in competitiveness in the long run and it should not lose its competitiveness status in the near future if its dynamic ability to continue to trade is sustained. An analyse of the key success factors that established competitive advantage and constraints that impacted negatively on competitiveness of the wine industry through the-WINE EXECUTIVE SURVEY (WES)-indicates that for the present intense competition in the market, the production of affordable high quality products, stringent regulatory standards in the industry, efficient supporting industries, and the availability of internationally competitive local suppliers of primary inputs are the major success factors to the competitiveness of this industry. The major factors that impact negatively on the competitive success of this industry are the strong Rand, fluctuations in the exchange rate, trust in the political support system, competence of personnel in the public sector, crime, South Africa's labour policy and the growth and size of the local market. These factors should be crafted into a Strategic Plan for the industry.
The competitiveness of the South African agri-food and fibre complex depends upon a number of factors: technological, socio-political and economic. This paper attempt to identify and analyse such factors by using a framework of analysis proposed by Michael Porter (1990). Appropriate measures to increase competitiveness is proposed. These include: improved supply chain management, cost reduction, contractual pricing and the establishment of a clear "agribusiness development policy".
The competitiveness of sixteen selected food commodity chains in South Africa was calculated using the Revealed Comparative Advantage method of Balassa. The majority of commodity chains are marginally competitive. Except for the maize, pineapple, and apple chains, the competitiveness index generally decreases when moving from primary to processed products. This implies that benification or "value adding" opportunities in South Africa are restricted. To compete in a global economy strategies should be followed that improve the competitiveness of the whole food supply chain. It is i.e. not good enough for farmers to be able to compete globally at farm gate level, whilst the locally processed commodities that is sold to the consumer is not competitive in the world market.
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