Rooibos producers positioned for growth

Werner Nieuwoudt, chairperson of the newly formed Rooibos Tea Producers’ Association, spoke to Glenneis Kriel about the launch and vision of the organisation, and how rooibos farmers could benefit.

- Glenneis Kriel

What led to the launch of the Rooibos Producers’ Association?

The South African Rooibos Council was launched in around 2005. While there’s a seat on it for a farmer representative, the organisation over time became more market-driven and focused on the interests of consumers.

For instance, while a lot of research is conducted on the health benefits of rooibos, producers’ research started dwindling in about 2016 in the absence of coordination. The Rooibos Tea Producers’ Association was launched to address the need for an organisation that focuses on the needs of rooibos tea producers.

Does that mean you’ll negotiate better prices for farmers?

No, our intention is not to pressure processors into paying better prices, but to promote the combined interests of farmers. By doing this, we hope to improve industry stability, which in turn should spark investment and enable the industry as a whole to grow.

But hasn’t pricing always been a problem for rooibos producers?

The industry is subject to price cycles, with long lead and lag times. The reason for this is that farmers plant more rooibos when prices are high, which leads to an oversupply. They then downscale production when prices are low, leading to an undersupply.

For example, prices hit a record of R70/kg in 2018, but fell to about R14/kg in 2021 and 2022, which is not enough to cover production costs. This is a problem not only for producers, but also for processors, brand owners and consumers.