Browsing by Author "Hayes, Paul Bertus"
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- ItemEnhancing the competitiveness of the Rooibos Industry(Stellenbosch : Stellenbosch University, 2000) Hayes, Paul Bertus; Karaan, A. S. M.; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.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.