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Enhancing the competitiveness of the Rooibos Industry

Assignment (MPhil)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: From 1954 to 1993 the Rooibos Control Board, a statutory one-channel marketing system,
regulated the rooibos industry. In 1993 the industry was deregulated and competition between
different role players in the industry emerged. In this study competitiveness is analysed from
both a historical as well as a modem -day perspective.
Modem economic theory defines that competition is good for all industry and that it leads to
economic development. In the case of the rooibos industry, one could be inclined to think that
the unique character of the product and the fact that the Control Board had established a
marketing mechanism would limit competition and rivalry in the post -Control Board era.
Inthis study it was determined that deregulation in this industry coincided with very intense
price-driven rivalry in the export market whilst very little rivalry occurred in the domestic
market.
The information for this thesis was obtained from published Annual Reports of the Rooibos
Control Board and from personal interviews with the main role players in the industry.
Two strategies that could enhance the competitiveness of this industry are recommended:
1. Repositioning rooibos as a gourmet health tea.
2. Improving supply chain coordination within the industry. / AFRIKAANSE OPSOMMING: Verbetering van die Mededingendheid van die Rooibos Industrie
Vanaf 1954 tot 1993 het die Rooibos Beheerraad, 'n statutêre enkelkanaal
bemarkingsorganisasie, die rooibosindustrie gereguleer. In 1993 is die bedryf gedereguleer en
kon mededinging tussen verskillende rolspelers plaasvind. In hierdie studie word mededinging
uit beide 'n historiese sowel as moderne perspektiefbestudeer.
Moderne ekonomiese teorie stel dit dat mededinging tot voordeel van alle industrieë is en dat
dit lei tot ekonomiese ontwikkeling. In die geval van rooibos sou mens geneig wees om te dink
dat die unieke karakter van die produk en die feit dat 'n bestaande bemarkingskanaal alreeds
bestaan, mededinging sou beperk in die post-Beheerraad tydvak.
In hierdie studie is bevind dat deregulering gepaard gegaan het met intense prys-gedrewe
mededinging in die uitvoermark, terwyl die binnelandse mark bykans geen mededinging ervaar
rue.
Die inligting vir hierdie tesis is verkry uit gepubliseerde Jaarverslae van die Rooibos
Beheerraad en deur persoonlike onderhoude wat gevoer is met rolspelers binne die bedryf
Twee strategieë word voorgestel waarmee die bedryf meer mededingend gemaak kan word:
1. Produk herposisionering as 'n gourmet gesondheidstee.
2. Verbeterde koordinasie binne die voorsieningskettings.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51741
Date January 2000
CreatorsHayes, Paul Bertus
ContributorsKaraan, A.S.M., Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format76 p.
RightsStellenbosch University

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