"Not only has the worldwide demand for Rooibos increased, but the harvest this year was not as big as initially projected," said company managing director Martin Bergh.
"Although production will increase next year, the demand will still outweigh supply and the reserve situation is becoming alarmingly low," he added.
Bergh said society was generally becoming more aware of the virtues of Rooibos tea but added that larger export volumes did not mean less Rooibos would be available for South African tea lovers.
"On the contrary, the biggest growth comes from southern Africa," he said.
The company did not have control over retailers and hoped that brand owners and retailers would absorb some of the costs.
"We are unsure of what effect the higher producer price will have on consumers and do not know what the increase in retail prices will be. We have no control over the value chain and cannot speak on behalf of the brands," Bergh said.
Source: Sapa via I-Net Bridge
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