Journal of Co-operative Studies, 51(1), 27-38

Abstract

Since the mid-1990s the number of South African wine co-operatives has been reduced by two‑thirds. Some of it is due to mergers, but others have converted to companies, partly because they are convinced that this is an organisational model superior to that of co-operatives. By converting, these cellars hoped to free themselves from the classical constraints suffered by co-operatives. But have these hopes actually been realised? This is the central question of the paper. In trying to answer it the paper draws on case studies of 14 co-operatives and ex-co-operatives conducted between 2014-2016. The analysis relies mainly on data and information supplied by cellar staff during in-depth interviews. In our assessment we translate ‘performance’ into financial stability and for this purpose we use mainly two indicators, viz. capital ratio and cash flow. The cases are analysed against the backdrop of co-operative theory, changes in the South African wine industry over the last 20 years, and the particular nature of South African co-operatives.

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