So far, so good is the expression which one normally is using when the forecast (weather-like) is good.
Of course, nobody knows what will happen in the last minute but……. we are optimistic.
We have been, meanwhile, through the various vineyards in different areas and have seen with our own eyes that the crop looks pretty good.
Of course we had a word with a lot of farmers and they are of the same opinion that if nothing adverse will happen in the weeks/months to come we can expect a good crop. We should not exaggerate things but a bigger crop than last year failure crop seems to be in the pipeline and also the quality is, hopefully, a lot better
What does it mean for the pricing of the goods?
From what we heard, farmers have, roughly speaking, ideas of 15/16 Rand for Thompsons and 21/22 Rand for golden mediums.
One could say that his is an acceptable price-setting.
Whether it is feasable depends on a lot of things.
It is not only the price in Rand but talking about currency it is not so easy because nobody can tell what the Rand will do in two months time when the farmers have to be paid.
Besides that there is the factor of competition.
Yes, we all know and realize that an excellent product from South Africa should make a premium but as Edwin Klinkenberg has said during the meeting with the farmers, competition is getting closer and closer. The advise therefore should be:……..please take the quality serious.
It is worth the premium people are prepared to pay!!
Question is however, to what extend a buyer will be prepared to pay such premium.