The price of Rooibos has fallen from an all-time record of R67/kg in 2018, to the lowest in years this season, due to supply and demand being out of sync.
Prices have been on an upward trend since 2015, with production shortages caused by drought conditions experienced in 2017, resulting in the Rooibos harvest coming in at a mere 12 500t in 2018.
The situation had been exacerbated by a decline in demand. Martin Bergh, general manager of Rooibos Ltd, said Rooibos demand averaged around 16 000t per annum, but had declined to between 14 000t and 15 000t due to reduced local consumption.
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