The rooibos industry could have not asked for a better start to the year following China’s tariff rate cuts on imports of South African rooibos tea. From 30% to 6%, producers and the whole industry can now breathe a sigh of relief.
The South African government welcomed the announcement by the government of China, citing that rooibos tea has gained a strong foothold in global markets with hundreds of millions of rands of annual exports in 2022.
China, the world’s largest tea market, previously had tariffs ranging from 15% to 30% on rooibos tea. This has now been reduced to 6%.
Much-needed boost
The South African Rooibos Council (SARC) spokesperson Adele du Toit said the reduced tariffs would help to stimulate growth and contribute positively to growing the industry through economic development by increasing revenue and creating jobs.
“This development is a result of a long process and the SARC and industry are pleased as it poses more opportunities for exports of rooibos to the largest tea-drinking nation in the world.
“The industry is positive in continuing to make a significant difference in people’s lives by producing a superior quality, accessible and unique product to South Africans and beyond,” she said.
Du Toit added that despite the many local challenges agriculture is facing, the rooibos industry outlook for the year ahead is looking great.
“Rooibos is South Africa’s most revered national treasure. It is indigenous to the Western Cape, where committed farmers promote sustainable farming practices.
“Rooibos provides many health benefits when incorporated into a healthy lifestyle, including promoting heart health, improved digestion, aiding in stress management,” she said.
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Elevation of the commodity
Déan Nigrini, the managing director at Cape Rooibos, said while Japan is South Africa’s biggest importer of rooibos, he does not doubt that new markets are set to make a significant impact on the production and profits of rooibos in the country.
“We believe this will have a positive impact on the volumes being exported to China. A growth in demand will benefit the rooibos industry a lot as well as South African exports,” he said.
According to the South African Rooibos Council, approximately 20 000 tons of rooibos are produced in South Africa every year, generating employment for more than 5 000 people. China featured as the seventh largest recipient market in 2023 for South African rooibos out of a total of 45 countries currently importing rooibos tea.
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A cuppa to celebrate
Trade, industry and competition minister Ebrahim Patel welcomed the decision by the Customs Tariff Commission of the State Council of China.
“Our rooibos tea is refreshing, delicious and healthy. This decision will enable more South African rooibos tea to be available to Chinese tea drinkers, creating more jobs in South Africa. Exporters can now ramp up their exports of tea to China, which is currently South Africa’s largest global trading partner, with Chinese customs reporting two-way trade of more than R900 billion.
“We look forward to continuing our engagements with our Chinese counterparts as we seek to shift our exports from main minerals to a greater basket of value-added agricultural and industrial products. I wish to commend minister Thoko Didiza and her team for the close collaboration and hard work to get this decision finalised,” he said.
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