Case Studies presentations Rooibos Estelle Biénabe, Dirk Troskie.

Case Studies presentationsCase Studies presentations Rooibos

Estelle Biénabe, Dirk Troskie

Budapest, Regional Meeting, 24-26 Oct. 2007

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Rooibos presentation• Rooibos tea or red bush tea =

herbal tea• South Africa, Cedarberg region

(36.000ha)• 10.400 tonnes (2005)• 400-450 mainly large scale

producers / 8 large processors • 40% domestic / 60% export

(mainly Germany)• ‘Mass’ consumption (large

retailers, discount), health product, and niche markets (specialty tea)

• Export in bulk for mainly flavoured or blended end products


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Protection schemes• Wine of origin scheme and protection (Act of 1970 & 1989)• No GIs in South Africa and no specific system in place• Provision for protection as collective trademark =

compliance with TRIPS– Private initiatives (i.e. Cambeboo Mohair, Swakara, Klein Karoo

Ostrich, etc.)

• Current revision of Trademark act (indigenous knowledge)• Indiv. trademark protection of name rooibos in some

countries but also usurpation of name in others / no current collective protection

• Four provinces Departments of Agriculture GI initiative / National Agricultural Marketing Council


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GI system• Industry controlled locally by 8 processors (one

major player: Rooibos ltd = 75% prod°) and at export level by German brokers

• Government support in ‘US battle’: South African patrimony, and SA Rooibos Council set up

• NGO involvement with Small-Scale Farmers (SSF)• Western Cape Department of Agriculture, University

of Pretoria and CIRAD / GI initiative (IPR DURAS action research project)

• Cape Nature (provincial conservation agency) and Sustainable rooibos initiative: stakeholder in GI initiative


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Motivations and emergence

• Marketing board dismantled (1994)• Phenomenal growth, esp. export market:

– 742% between 93 and 2003– 15.000ha (out of 36.000ha) planted in 2005

• Marketing strategies development: trademark expansion and US battle– From 1 to 8 processors– SSF cooperatives and fair trade /organic prod°– Price wars on export market (high price

sensitivity but huge variability)


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Impacts of the GI system / protection scheme on sustainability / economic effects

• Which GI recognition and protection? 4 scenarii1. No local nor international GI recognition: continuation of

individual strategies

2. National GI recognition but no formal international recognition (EU application rejected): collective name reservation, but weak effects

3. National and international recognition (EU application accepted)

• 3.1. Low requiring collective quality strategy• 3.2. Highly requiring collective quality strategy (possibility for GI

as an umbrella + collective ‘terroir’ definitions )


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Impacts of the GI system / protection scheme on sustainability / economic effects

Scenarii 1 2 3. 1 3.2

Name reservat°

-- Risk of delocalisation outside SA

++

Collect. Q managmt

--- --

Risk of reputation and market share loss

++ Value adding potential

But risk of loss for convent° rooibos

Territorial dynamics

--- -- ++ Tourism dev. potential (rooibos route)


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Impacts of the GI system / protection scheme on sustainability / social effects

Scenarii 1 2 3.1 3.2

Name reservat°

-- Risk of SA production decline:

potentially huge impact on labour

stronger impact on trad° prod° area than expans° area

++

Collect. Q managmt

+ +++

SSF specific assets recognit°


Potential synergies/ rallying point between SSF and large scale farmers


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Impacts of the GI system / protection scheme on sustainability / environmental effects

Scenarii 1 2 3.1 3.2

Name res° Delocal° risk: pos. ++ impact on biodiversity and envt

Collect. Q managmt

-

Mainly private initiatives (organic…)

+ +++

Expans° controlled

Sustainable practices

enforced collectively


-- -- ++ Ecotourism

• Endemic species adapted to local conditions but current huge threat due to largely uncontrolled expansion


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Comparison with other SA GI cases / with fair trade

• Pilot case in SA: more advanced GI initiative, wide facilitation support from IPR DURAS project

• Emblematic case: indigenous resource valorised by small and large scale producers / National patrimony

• GI protection building in a highly dynamic market context• Collective industry-based coordination process to set up GI

standard (GI committee)– Biodiversity strategy as an integral part of GI specification: adapted to

local conditions ≠ Fair trade: global envtal standards with unanticipated social and envtal impacts

– Not a differentiation strategy inside SA ≠ Fair trade: high price premium for SSF but sustainability? (large scale farmers certification by FLO)

– Evolution from mere name reservation to quality and biodiversity management tool: arena for discussion


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Trends and perspectives: GI system

(value chain structure/technology/market)

• Expansion and diversification of export marketing channels and volumes

• Consolidation of ‘new’ SA players / Increased competition at processor and trader level

• Significant production potential but quality concerns + environment (new entrants and changes in practices)

• New needs for coordination at SA industry level• Channel captain (corporate governance) but

evolution towards sectoral governance (SARC)


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Trends and perspectives:GI protection schemes

(organization and political strategies )• Rooibos industry lobbying power + other ‘DURAS

project’ related GIs initiatives• SA international versus local positioning / GIs:

– Agricultural negotiations, ‘new world’ country, (local production of port, sherry, camembert, brie…)

– Indigenous knowledge and resources: SA patrimony and empowering local communities

• Lack of local skills and knowledge / GIs– Not a priority?

• But trademark Act revision– More private initiatives expected?

Case Studies presentations Rooibos Estelle Biénabe, Dirk Troskie.

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