Are wine co-operatives creating value?

Abstract

This article examines the introduction of Economic Value Added (EVA) as a performance measure that South African wine co-operatives can use to determine whether value has been created for members. A detailed explanation of EVA is given, and the components of EVA are calculated. The EVA's of a number of co-operatives have been calculated and analysed. Important trends have been identified. Recommendations have been made based on the conclusions drawn from these results. Finally, opportunities for potential improvement that could arise from using EVA as a performance measure in wine co-operatives are discussed.