’n Vergelykende studie van plaasgrootte- en grondprys- verwantskappe tussen drie erkende wynproduksie- areas in die Wes- Kaap

Du Toit, Daniel Ernst (2018-12)

Thesis (MCom)--Stellenbosch University, 2018.

Thesis

ENGLISH SUMMARY : This study serves as enquiry into drivers of financial performance for three recognised wine-production areas in the Western Cape, namely Stellenbosch, Breedekloof and Olifants River. The importance of this study lies in the findings that there are significant differences between these areas' financial performance on farm level when only focusing on wine grape production, as well as significant differences of their land prices – which represent an investment requirement. While the findings indicate a trend where land prices per hectare decrease as the farm size increases, this study therefore determines the financial implications of these trends for various farm size and land price combinations in these wine-production areas. This study furthermore includes a survey that determines the financial management strategies that producers follow within these farm size and land price trends. Financial modelling as research method was used to measure financial performance on farm level. Input and output data were obtained from practising role players in the industry, combined with secondary data as used in the model. Financial performance on farm level was measured by the internal rate of return (IRR) and return on investment capital (ROIC). Repayment ability was measured by net present value (NPV). After comparing financial performance on farm level, the sensitivity of farm sizes was tested at specific exogenous variables for these wine production areas by the use of scenarios. The findings show that, in spite of Stellenbosch's relatively high land prices, this area’s financial performance on farm level is relatively speaking the lowest when focusing only on wine grape production. The findings also show that Breedekloof maintains the best financial performance on farm level, followed by Olifants River. Within these trends, the practising role players indicated the financial management strategies that they implement, along with general comments that interpret the nature of these trends. This study can serve as a guideline for role players to better understand and interpret the financial implications of the South African wine industry. Role players can thus use this study as a tool for performance measurement and interpretation – which ultimately influence decision making.

AFRIKAANSE OPSOMMING : Hierdie studie dien as ondersoek na finansiële drywers van plaasgrootte vir drie erkende wynproduksie-areas in die Wes-Kaap, naamlik Stellenbosch, Breedekloof en Olifantsrivier. Die belangrikheid van hierdie studie lê in die bevindinge dat daar verskille tussen hierdie areas se finansiële prestasies met wyndruifproduksie op plaasvlak is, asook verskille in hulle grondpryse – wat investeringsbehoefte verteenwoordig. Terwyl die bevindinge toon dat daar ʼn tendens bestaan dat grondpryse per hektaar afneem soos die plaasgrootte toeneem, bepaal hierdie studie dus watter finansiële implikasies hierdie tendense vir verskillende plaasgrootte- en grondpryskombinasies in hierdie wynproduksie-areas inhou. Verder bevat hierdie studie ’n opname waarin bepaal word watter finansiële bestuurstrategieë produsente binne hierdie plaasgrootte- en grondprystendense per wynproduksie-area toepas. Finansiële modellering as navorsingsmetode is gebruik om finansiële prestasie op plaasvlak te meet. Inset- en uitsetdata is verkry vanaf praktiserende rolspelers en is gekombineer met sekondêre data as toepassing in die metodiek. Finansiële prestasie is gemeet deur middel van die interne opbrengskoers (internal rate of return; IRR) en rente op kapitaal aangewend (return on invested capital; ROIC). Terugbetaalvermoë is gemeet deur netto huidige waarde (net present value; NPV). Na aanleiding van ’n vergelyking van prestasiemeting is scenario’s gebruik om die sensitiwiteit van plaasgroottes in hierdie drie wynproduksie-areas teen spesifieke eksogene veranderlikes te toets. Die bevindinge toon dat, ten spyte van Stellenbosch se relatiewe hoë grondpryse, hierdie area finansieël die swakste op plaasvlak presteer wanneer daar slegs op wyndruifproduksie gefokus word. Breedekloof het die beste finansiële prestasie op plaasvlak gehandhaaf, gevolg deur Olifantsrivier. Binne hierdie tendense het praktiserende rolspelers aangedui watter finansiële bestuurstrategieë hulle toepas, asook algemene opmerkings gemaak waarmee die aard van hierdie tendense geïnterpreteer kan word. Hierdie studie kan as riglyn dien vir rolspelers om die finansiële implikasies van die wynbedryf beter te verstaan en te interpreteer. Rolspelers kan dus hierdie studie gebruik as maatstaf vir prestasiemeting, sowel as interpretasie – wat in effek besluitneming beïnvloed.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/105057
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