Black economic empowerment in the South African wine industry : fair trade, power relations and socio-economic rights

Abstract

The following study was conducted in the Western Cape region in South Africa, with the purpose of contributing to the understanding of Fair Trade in the South African wine industry on the background of socio-economic conditions and power relations in the sector, the South African Constitution’s commitment to equality and transformation, as well as previous empowerment strategies in the sector. A theoretical perspective combining Human Rights Based Development approaches with Value Chain Analysis was applied. The study combined policy analysis with case studies of three different farms in the Western Cape Province, South Africa, and interviews with other actors in the value chain of wine production from the marketing level, as well as from nongovernmental organizations. Fieldwork was conducted in the Western Cape Province, South Africa from August to October 2008, as well as extensive literature reviews between January 2008 and May 2009. The thesis argues that the increase of corporate retail participation in the value chain of South African Fair Trade wine has significant implications for the politics of transforming the industry. Central contradictions exist within the policy-practical oriented levels, whereas on the one hand, the policy formulation process endeavors to realize a broad spectrum of human rights, including socio-economic rights. On the other hand, policy implementation reveals an experience of flawed strategies that iterate more narrow conceptions of human rights. In South Africa, Black Economic Empowerment (BEE) requirements are incorporated in the Fair Trade standards, but there are important differences between choosing a social brand and the set of codes and principles entrenched in the BEE strategy. The growing tendency of ownership in brand, instead of land is one aspect of this. It can be argued that dominant actors working with the BEE and Fair Trade initiatives are appropriating the language of transformation are but appear unwilling or unable to really grasp and address the reality of power inequality in the wine industry in South Africa.