KWV
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in 1917, stability and prosperity were brought again into the industry. KWV organized the wine industry into cooperative producers and growers. It established quality standards and
controls, limited the production, set the minimum price and controlled all exports. KWV’s traditional focus was on basic wine sold in bulk. The first farmers’ winery was formed in 1935
in Stellenbosch and in 1945 another producers’ organization, Distillers, was formed.
The end of Apartheid in 1993–94 meant a new era of growth and improved quality for the South African wine industry. The number of small wineries also increased as a result of the
ending of the quota system. This made it possible for start-ups to enter the industry and it paved the way for cooperative growers to market their wines independently. The best and
most expensive wines today are cuvées from typical Bordeaux grapes.
6.4.3 Factors contributing to the success of the wine cluster
Collective actions: One of the most important success factors of the South African wine cluster has been that key actors in the industry have recognized that innovation at technical
and organizational level is crucial. Support service institutions have focused their attention on expanding the volume of export wines in super premium segments. As marketing functions
were seen as being weak, various forms of cooperation between producers and institutions have emerged to support marketing activities Abiola, 2006. Furthermore, producers have
engaged in production innovation and knowledge sharing with various support bodies.
Institutional support: Government support: The South African wine cluster developed under strict government control since the beginning of the twentieth century with the formation
of KWV in the 1910s. The sector remained under state control with stabilized prices and production volumes until 1993. Today, the South African wine industry is backed by a
state-funded research body, the Nietvoorbij Institute for Viticulture and Oenology of the Agricultural Research Council, employing some 250 staff.
Other supporting institutions: A coordinating role in wine research is played by the Wine Industry Network for Expertise and Technology, which is controlled by the South African
Wine and Brandy Company. It is a network formed by industry, scientists and technicians.
Since 2000, Wines of South Africa, an independent non-profit entity, has been responsible for the international promotion of South African wines. Another important support institution
is the South African Wine Information Service SAWIS, a not-for-profit organization that collects, processes and disseminates industry information. It is also responsible for the
administration of the industries’ Wine of Origin system.
Academic and research support to the cluster is provided by the Departments of viniculture and viticulture at the University of Stellenbosch, and the Elsenburg Agricultural College,
which offers courses in cellar technology.
35 Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt
6.5 COFFEE CLUSTER IN KENYA 6.5.1 Some figures
