11 September 1997
SA co-op surrenders statutory powers

South African Ko-operative Wijnbouwers Vereniging is to surrender its statutory powers. These regulate the wholesale pricing of its members crops. The farmers co-operative has dominated the South African wine industry for nearly 30 years.

The co-op must set up a non-profit making trust to manage the industry under an agreement reached with Derek Hanekom, minister of agriculture. This will provide research, advisory services, training and export promotion. It will also provide funds to improve the welfare of farm labourers and encourage new entrants to the industry.

It could have far-reaching implications for other agricultural sectors that have built up substantial assets under self-regulatory regimes that were sanctioned by the former nationalist government, such as Unifruco and the Maize board.

  • Financial Times 11/09/97 page 41