What is interesting in the case of the cooperation between Reyneke Wines and its neighbours is the symbiotic nature of the benefits that are generated. Because of different foci, the different entities all benefit without necessarily impeding on each other. In the previous section dealing with the Organic Farmers Association, mention was made of the value to Reyneke to convert other farmers to organic, as some are its neighbours (like Interviewee W20) mentioned. It was also mentioned that the neighbour benefits in a symbiotic way by attaining higher prices for their grapes in a guaranteed market.
Another neighbour, Interviewee W19, chose not to convert completely to organic farming, but does apply many of the principles. Interviewee W19 provided an example of how they cooperate with Reyneke Wines in the production of compost because of physical barriers they experience.
We had a compost pit right above our borehole, but IPW [Integrated Production of Wine, an industry body] came to us and said you cannot have a compost heap above your water source. So we had to decide to either stop making compost or do something else. Then we said “why don’t we talk to Johan, let's take all our compost and we will make our compost with his compost and then we divide it there.” So in that way we will work together again.
There is seemingly very little benefit for Reyneke Wines in jointly producing compost, but they do so anyway.
Another example of cooperation between Reyneke and a neighbour provides another case of environmental coopetition. As part of its biodynamic practices, Reyneke Wines use cattle to fertilise the soil rather than other forms of fertilisation. When he did not have enough feed for his herd, Johan Reyneke asked his neighbour if his cattle could graze in the neighbour’s vineyard. Reyneke tells the story:
I have a herd of cattle here, I started with two cows, I now have more than 60, and the farm is only 37 ha. So, there is no way there is enough food for all the cattle. So these guys allowed me to put some cattle on their land. I pay them, they get the dung of the cattle, they get additional income, some are making compost and, you know, are now far less dependent on primary input and production costs to keep their business going.
[…] There is a growing demand for organic wine and those are my cattle. It's like a sub-business that grew from this that nobody planned.
Reyneke mentioned that biodynamic farmers are not subjected to exchange rate moves when it comes to fertiliser prices. Reyneke’s neighbour supports this view:
He [meaning Johan Reyneke] is a pioneer; so many of the things he has tried and saw what works and what does not work. Part of organic farming is that you use cattle and Johan has herds. So he and I work together regarding the cattle. He brought his cattle here, so his cattle graze on my farm. A big thing with it is that you can make compost for example, it's very important. And oh, you know, we saw now, we have allowed the cattle to graze in the vineyard this year. So, previously we used machinery to cut the grass. Now the cattle eat the grass. You do not pay the cattle to keep the grass short.
Both Reyneke Wines and the neighbouring farm benefit economically from the cooperation, but in a synergistic way.
As with Laibach in the mealybug case study (in Section 6.7), Reyneke benefits directly from converting his neighbours to organic farming because he suffers fewer losses from potential herbicide and pesticide drift from his direct neighbours. The neighbours realise that they cannot farm with conventional methods while Reyneke Wines does not.
Well, if he is biodynamic on his own island and he may not spray and we spray, then the pesticides may affect his vineyards. His pests, because he would have more pests, and I'm talking about insects and such things, can come to us again. So, we are starting to work together and saying “okay, let's make this whole hill almost organic.
You can go certify, we’re not going to certify, but it's much better for the environment”.
(Interviewee W19)
Interviewee W19 estimated that there is a negligible difference in cost between farming organically and conventionally. They adopt some of the practices from Reyneke, but do not follow the rules strictly. Table 6.17 summarises the synergistic value appropriation between the farms.
Table 6.17: Synergistic value appropriation between Reyneke Wines and its neighbours
Reyneke Wines Neighbouring farms
Conversion to organic
farming Access to more resources
Increased production due to more
neighbour’s farm Access to more feedstock
Able to grow herd size and sell cattle
Reduced costs of keeping grass interviews for this study, Johan Reyneke would be mentioned as a pioneer in the wine industry.
I know Reyneke is [collaborating] – you know, when they talk about environmentally aware, Reyneke is always like one of the most important places, but they’re one of those sort of top biodynamic producers in South Africa. But I mean, it’s very much a guy with his passion for biodynamic and he tells the story well, you know, Johan Reyneke. (Interviewee W10)
Lastly, the conversation of brand value again returns to the issue of distance to consumer.
Reyneke Wines gain considerable brand value as a leading organic farm. One respondent felt that Reyneke has an opportunity to market the cooperation of surrounding farmers to increase the capacity for organic and biodynamic wine producing in the immediate region.
He [Reyneke], out of that cooperation agreement, can use it in his marketing and say look, it's rubbing off on our neighbours, and they are now starting to improve, because once again, an organic biodynamic guy cannot be an island. He has to rally his neighbours around him. (Interviewee W19)
6.9.4 Socio-environmental value
A resilient eco-system holds economic value for wine producers through reduced costs, healthier grapes and wines, and ultimately higher prices for the wines. A study done by the Institute for Wine Biotechnology at Stellenbosch University (Setati, Jacobson, Andong & Bauer, 2012) evaluated the impact of different farming systems (viz. conventional, integrated and biodynamic viticulture practices) on grape associated yeast diversity. Part of the study was conducted in the vineyards of Reyneke Wines, as well as some of its neighbours.
The study reported that higher number of yeasts with biocontrol potential were isolated from the biodynamic vineyard. M. geulakoningii, for instance, is a mite-associated yeast that causes 100 percent mortality in different species of mites, e.g. carmine spider mite and citrus rust mite, and which could be effective against other mites that are found in vineyards (ibid.). The authors concluded that:
…the unique diversity could be due to the poor phytosanitary condition associated with the biodynamic vineyard, but it could also reflect the establishment of the natural enemies of different pests in the absence of pesticide application (ibid.: 6).
Apart from biocontrol, yeasts and other microorganisms contribute significantly to the final aromatic properties of wine (ibid.: 1).
The same study also reported that there could be limited cross-transfer of yeasts from one vineyard to another (ibid.: 9), supporting an earlier view that biodynamic farming requires the cooperation of neighbours, but furthermore, that it also benefits its neighbours.
Apart from micro-organisms, other forms of biodiversity are also impacted by conventional farming techniques. Herbicides, pesticides and fungicides have a negative impact on multiple trophic levels (a term referring to the place in the food chain).
You know, in our original days when we had mealybugs, you would come in and you spray this vineyard for mealybug, but with the mealybug, you also spray the ladybirds and all the other good insects, killing the chameleons. (Interviewee W19)
Interviewee 19 further explained the positive impact of organic farming on natural predators on his farm:
So, our owl population is growing. Our hawk population is growing. Our chameleons are starting to come back. We now see ladybirds. We are even seeing small buck in the vineyards. (Interviewee W19)
A visible increase in biodiversity affords Interviewee W19 an opportunity to tell visitors (physical and on their website) about the conservation of the natural wildlife. While Reyneke Wines uses its biodynamic methods as a strong differentiator in the market, it rather serves as a reputation protection tool for Interviewee W19:
We want to see that nature returns. And yes, we talk a lot with people. You know, part of our tour, when we go through here, we show them “there is an owl”. “Oh, you've got owls? What do you do with owls?” And we explain, “you know, if you poison the mice in the vineyard and the owl eats a dead mouse, he eats the poison and then the owl also dies”. And that's the kind of thing that we can convey. That we are firstly working with nature, and secondly, that we are carbon neutral producers. And we do it again in a different way, not by saying we're going to use small thin bottles or not going to export, but rather planting plants around the vineyards. (Interviewee W19)
However, there is also appreciation among the farmers for the intrinsic value of the environment:
In other words, if you look at a person; let's say you work in a company and you earn X amount, it's hard to think of yourself as the sum total of value X. You'd like to think there is a bit more to you than what you earn. Now, biodynamic farming feels strongly that people deserve that respect, but so do animals and plants. I would almost say everything, soil microbes, fungi, all life in the soil, everything deserves that respect. In other words, when you walk in the vineyard and you see a little weed, you don’t look at those plants and say “you compete with food and water for my vineyard, so I will kill you”. I seek a greater harvest. You will manage it, but you don’t assume that if you cannot make money out of something, that it is completely worthless. Thus, the effect or impact on your management style is that you follow a bit of a ‘live and let live’
approach. So, you know certain things, you understand certain things, and you respect it. But you also know that there are certain things that you don’t know and that you don’t understand, and you respect that. (Interviewee W18)