The South African Department of Trade, Industry and Competition on January 23,2024 announced China has Slashed Import Tariffs on the country’s Rooibos Tea by 80% effective from January 1, 2024. The African country hopes this will pave the way to substantially increase the volumes of herbal tea to China. China is the seventh-largest recipient market which South Africa exports rooibos.
South Africa has gained victory in its quest to boost agricultural exports to the BRICS groups of nations. China has reduced import tariffs on South Africa’s prized Rooibos tea by 80% effective from January 1, 2024. The African country is hoping this will pave the way to substantially increase volumes of the herbal tea to China. Duties on the herbal tea that’s unique to South Africa were lowered to 6% from a range of 15% to 30% according to the Department of Trade, Industry and Competition.
“Rooibos is reflectinging high quality, it’s one of those products which is also perceived to be much healthier and u think that we would likely see the volume out of South Africa going to China increasing. It will stimulate production with South Africa and increase from the 20000 tones that was produced in 2023”.
Wandile Sihlobo, Chief Economist, Agricultural Business chambers – South Africa
Rooibos is cultivated on land ranging between 200 kilometers (125 miles) and 300 kilometers north of Cape Town. According to the South African Rooibos Council, the industry produces approximately 20,000 tons every year and provides employment to 5,000 people.
“It will help us to sustain our business, we would retain jobs in south Africa which is a very important thing especially in the current situation with the economy”.
Charl Rudman, International sales manger, Carmen tea – South Africa
In 2014, the European Union granted rooibos tea geographical indication status, which gave manufacturers in South Africa’s Cederberg region full ownership of the name. Recent trends in the global Rooibos tea market report showcase a consistent and robust growth trajectory, projecting positive developments expected to persist until 2031.