Businesses urged to consider setting up winery in the South

THE Managing Director (MD) of Aussenkehr Farms, Dusan Vasiljevic, has called on Namibian business people to investigate the possibility of a winery or juice plant in the South.

Vasiljevic said their farms produced a lot of grape that they do not export and can be used for such a venture. Speaking at the Karas Investors’ Conference held at Keetmanshoop recently, the grape production expert said such a plant can be set up through black economic empowerment (BEE) programmes.He was, however, quick to point out that NamibiaŽs financial institutions were failing to support BEE programmes.One example was that his company was struggling to get assistance from banks to empower previously disadvantaged Namibians to enter the grape production industry.Aussenkehr Farms are situated along the Orange River and produces prime grapes.”There is no true empowerment without ownership.At least 50 per cent of the grape industry should be in the hands of the indigenous Namibians,” he said to the applause of the black business people who attended the conference.Vasiljevic said the capital-intensive yet lucrative grape industry in the South was spread over around 1 400 hectares of vineyards and and had pumped in around N$600 million.The total areas of vineyards includes the dominant Aussenkehr Farms, Noordoewer and Komsberg.Around 14 000 residents – 22 per cent of the total population of the Karas region – live on the grape farms but Vasiljevic said they should be able to employ 20 000 at full production.Yet, the industry is not without challenges.Vasiljevic said they face heavy duty on their exports by the European Union (EU) while they faced more competition from their South American counterparts.”Brazil, Chile and Peru are coming in heavily but due to our dry climate, our products have a superior value.The UK market has also stagnated and we are now expanding to Asia,” he said.Though Namibian retailers were happy with the strong local currency, Vasiljevic said it cut their income by around 40 per cent because 90 per cent of the grapes are exported.He said another challenge was to penetrate the Asian market in a heavy way.Speaking at the Karas Investors’ Conference held at Keetmanshoop recently, the grape production expert said such a plant can be set up through black economic empowerment (BEE) programmes.He was, however, quick to point out that NamibiaŽs financial institutions were failing to support BEE programmes.One example was that his company was struggling to get assistance from banks to empower previously disadvantaged Namibians to enter the grape production industry.Aussenkehr Farms are situated along the Orange River and produces prime grapes.”There is no true empowerment without ownership.At least 50 per cent of the grape industry should be in the hands of the indigenous Namibians,” he said to the applause of the black business people who attended the conference.Vasiljevic said the capital-intensive yet lucrative grape industry in the South was spread over around 1 400 hectares of vineyards and and had pumped in around N$600 million.The total areas of vineyards includes the dominant Aussenkehr Farms, Noordoewer and Komsberg.Around 14 000 residents – 22 per cent of the total population of the Karas region – live on the grape farms but Vasiljevic said they should be able to employ 20 000 at full production.Yet, the industry is not without challenges.Vasiljevic said they face heavy duty on their exports by the European Union (EU) while they faced more competition from their South American counterparts.”Brazil, Chile and Peru are coming in heavily but due to our dry climate, our products have a superior value.The UK market has also stagnated and we are now expanding to Asia,” he said.Though Namibian retailers were happy with the strong local currency, Vasiljevic said it cut their income by around 40 per cent because 90 per cent of the grapes are exported.He said another challenge was to penetrate the Asian market in a heavy way.