Rooibos price rises as drought persists

Rooibos production is primarily concentrated in a small section of mountains in the Clanwilliam area.Photo Supplied

Rooibos production is primarily concentrated in a small section of mountains in the Clanwilliam area.Photo Supplied

Published Nov 20, 2015

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Cape Town - It is not only food prices that are set to soar as a result of the crippling drought – the price of Rooibos is set to skyrocket by up to 90 percent. Ernest du Toit, spokesman for the SA Rooibos Council, says the 2016 harvest could be the worst in years.

“Although difficult to evaluate the true impact of the drought at this stage, we expect it to be significant. Output losses can only be quantified between January and May of next year, once the final volume of the harvest is known,” Du Toit said.

Rooibos farmers received very little or no rain in the planting months of July and August. It means that exports are likely to be affected and there could be job losses. The Rooibos sector currently provides employment for around 6 000 people .

Rooibos is indigenous to the Cederberg region and is the only place in the world where Rooibos grows naturally. Clanwilliam, Graafwater, Citrusdal, Van Rhynsdorp, Nieuwoudtsville and Wupperthal are some of South Africa’s Rooibos-producing towns. About 50 to 60 percent of what is produced annually is exported.

Du Toit said exports would decrease as a result of supply constraints which would drive up the price of Rooibos, making it very expensive.

He said that as things stood, there would not be enough to service both the local and export demand, and processors would need to prioritise sales between local industry demands and exports.

Meanwhile, the Western Cape Provincial cabinet is considering asking its national counterparts for a provincial disaster classification before the end of the month.

Anton Bredell, MEC for Local Government, Environmental Affairs and Development Planning, said the decision followed the provincial disaster management authority’s completion of its assessment of the provincial water situation.

“The assessments indicated more than one region or district municipality in the province is experiencing very dry and water-stressed conditions. In such an instance, by law, a provincial disaster classification is required. We will approach the Western Cape cabinet in this regard.”

Bredell said that least four municipalities had already moved to implement water restrictions as a precautionary measure – and more may follow over the coming months.

He warned that the water system was expected to come under additional pressure over the holiday season when there would be an influx of visitors to the coastal areas.

The Department of Water and Sanitation said the West Coast and the western parts of the Breede River System were “moderately” to “extremely” dry.

The remainder of the province had received normal to above normal rainfall over the same period.

The city, Stellenbosch, Drakenstein and some municipalities in the West Coast were supplied by multiple dams managed by the department which were around 72 percent full, which was considered sufficient to cater for the short-term water demand.

The groundwater levels in the West Coast and Cape Flats were also relatively stable, although the department recommended that, as a precautionary measure, all municipalities using groundwater appoint a specialist to provide groundwater management.

Minister in the Presidency Jeff Radebe said the government would set aside another R96.6 million to help with drought relief efforts across the country.

“This includes the purchase of 45 water tankers for distribution of water to affected areas, borehole drilling and rehabilitation, water conservation and demand management, and water source augmentations,” Radebe said while briefing journalists after Wednesday’s fortnightly cabinet meeting held in the city this week.

Other efforts would include the Department of Rural Development and Land Reform, allowing the relocation of livestock to state-owned land “where there is still better pasture”.

* Additional reporting ANA

CAPE ARGUS

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