Rooibos output to plummet as South Africa faces droughts
Widespread droughts in South Africa, the main producer and exporter of rooibos tea, is likely to have an impact on supply and prices of the popular beverage. While the local trade council recently walked back predictions that prices were likely to increase by 90%, concerns remain that insufficient rainfall during the planting months of July and August could lead to the worst harvest in years. Last year, South Africa produced over 11,000 tons of rooibos and it's likely that this season's harvest will be insufficient to cover local and export demand. More than half of the output is exported to countries like the US, UK, Japan and Germany, with exports earning an estimated $35 million for the local industry.