Enhancing the competitiveness of the Rooibos Industry

Date
2000
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
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.
Description
Assignment (MPhil)--Stellenbosch University, 2000.
Keywords
Rooibos tea industry -- South Africa, Competition -- South Africa, Competition, International
Citation