A PROFILE OF THE SOUTH AFRICAN BLACK TEA MARKET VALUE CHAIN

Similar documents
A PROFILE OF THE SOUTH AFRICAN BLACK TEA MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN BLACK TEA MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN BLACK TEA MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CARROT MARKET VALUE CHAIN 2017

A PROFILE OF THE SOUTH AFRICAN SUGAR MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN SUGAR MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CARROT MARKET VALUE CHAIN 2016

A PROFILE OF THE SOUTH AFRICAN HIDES, SKINS AND LEATHER MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CABBAGE MARKET VALUE CHAIN 2017

A PROFILE OF THE SOUTH AFRICAN TOMATO MARKET VALUE CHAIN 2016

A PROFILE OF THE SOUTH AFRICAN SWEET POTATO MARKET VALUE CHAIN 2017

GROUNDNUT MARKET VALUE CHAIN PROFILE. Department of Agriculture, Forestry and Fisheries

A PROFILE OF THE SOUTH AFRICAN CABBAGE MARKET VALUE CHAIN 2016

A PROFILE OF THE SOUTH AFRICAN DAIRY MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN ESSENTIAL OILS MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN TABLE GRAPE MARKET VALUE CHAIN

BLACK TEA MARKET VALUE CHAIN PROFILE

SUNFLOWER SEED MARKET VALUE CHAIN PROFILE

A PROFILE OF THE SOUTH AFRICAN SUNFLOWER MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN SUNFLOWER MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN MAIZE MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN TABLE GRAPES MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CARROT MARKET VALUE CHAIN 2014

A PROFILE OF THE SOUTH AFRICAN SUNFLOWER MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN MAIZE MARKET VALUE CHAIN

BARLEY MARKET VALUE CHAIN PROFILE. Department of Agriculture, Forestry and Fisheries

MAIZE MARKET VALUE CHAIN PROFILE 2011/2012. Department of Agriculture, Forestry and Fisheries

A PROFILE OF THE SOUTH AFRICAN WINE MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN WINE MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN WINE MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN BARLEY MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN DAIRY MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN WINE MARKET VALUE CHAIN

CANOLA MARKET VALUE CHAIN PROFILE. Department of Agriculture, Forestry and Fisheries

CANOLA MARKET VALUE CHAIN PROFILE. Department of Agriculture, Forestry and Fisheries

A PROFILE OF THE SOUTH AFRICAN CITRUS MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CABBAGE MARKET VALUE CHAIN 2014

A PROFILE OF THE SOUTH AFRICAN SOYABEAN MARKET VALUE CHAIN

A PROFILE OF THE SOUTH AFRICAN CABBAGE MARKET VALUE CHAIN 2015

A PROFILE OF THE SOUTH AFRICAN SWEET POTATO MARKET VALUE CHAIN 2014

WINE EXPORTS. February Nadine Uren. tel:

A PROFILE OF THE SOUTH AFRICAN SWEET POTATO MARKET VALUE CHAIN 2013

MARKET ANALYSIS REPORT NO 1 OF 2015: TABLE GRAPES

A PROFILE OF THE SOUTH AFRICAN MACADAMIA NUTS MARKET VALUE CHAIN 2013

Figure 1: Quartely milk production and gross value

QUARTELY MAIZE MARKET ANALYSIS & OUTLOOK BULLETIN 1 OF 2015

World of sugar PAGE 54

Contents 1. Introduction Chicory processing Global Trends in Production, Producer Prices and Trade of Chicory...

A PROFILE OF THE SOUTH AFRICAN ROOIBOS MARKET VALUE CHAIN

STATE OF THE VITIVINICULTURE WORLD MARKET

A profile on duck meat

ANALYSIS ON THE STRUCTURE OF HONEY PRODUCTION AND TRADE IN THE WORLD

THE IRISH BEER MARKET 2017

STATE OF THE VITIVINICULTURE WORLD MARKET

LETTER FROM THE EXECUTIVE DIRECTOR

AMAZONIA (BRAZIL) NUTS MACADAMIAS HAZELNUTS PISTACHIOS WALNUTS PINE NUTS PECANS

Sunflower seed COMMODITY PROFILE

The supply and demand for oilseeds in South Africa

Tea Statistics Report 2015

LETTER FROM THE EXECUTIVE DIRECTOR

Overview of the Manganese Industry

Global Trade in Mangoes

LETTER FROM THE EXECUTIVE DIRECTOR

CHAPTER 9 THE DRY BEAN SUPPLY CHAIN

SINGAPORE. Summary Table: Import of Fresh fruits and Vegetables in Fresh fruit and Vegetables Market Value $000 Qty in Tons

Agri-Food Exports. Alberta to 2014 Economics and Competitiveness. Highlights on Alberta Agri-Food Exports in Tables:

THE IRISH WINE MARKET 2017

The report covers supply and demand trends for sugar in South Africa

GENERAL AGREEMENT ON TARIFFS AND TRADE

UTZ Coffee Statistics Report 2017

World vitiviniculture situation

A PROFILE OF THE SOUTH AFRICAN ROOIBOS TEA MARKET VALUE CHAIN

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

PHILIPPINES. 1. Market Trends: Import Items Change in % Major Sources in %

Mexico Milk Cow Numbers and Milk Production per Cow,

EMBARGO TO ON FRIDAY 16 SEPTEMBER. Scotch Whisky Association. Exports of Scotch Whisky; Year to end of June 2016 (2016 H1)

Statistics & Agric.Economics Deptt., Tocklai Experimental Station, Tea Research Association, Jorhat , Assam. ABSTRACT

United States Is World Leader in Tree Nut Production and Trade

KUWAIT. Similarly there is a decreasing trend for other fresh fruits products like grapes and lychee. India shared 37.6% of import market in Kuwait.

An overview of the European flour milling industry. Gary SHARKEY, European Flour Millers Vice-President

MONTHLY COFFEE MARKET REPORT

UTZ Tea Statistics Report 2017

Taiwan Fishery Trade: Import Demand Market for Shrimps. Bith-Hong Ling

2018 World Vitiviniculture Situation. OIV Statistical Report on World Vitiviniculture

EU: Knives, Scissors And Blades - Market Report. Analysis And Forecast To 2025

World vitiviniculture situation

MARKETING PROFILE OF LITCHI IN SOUTH AFRICA INTERNATIONAL LITCHI SYMPOSIUM, SOUTH AFRICA

Coffee Market Outlook

World Yoghurt Market Report

Germany is the largest importer of cheese and UK and Italy are the second- and third-largest importers.

Wine Economics Research Centre Wine Policy Brief No. 6

and the World Market for Wine The Central Valley is a Central Part of the Competitive World of Wine What is happening in the world of wine?

QUARTERLY REVIEW OF THE PERFORMANCE OF THE DAIRY INDUSTRY 1

State of the Vitiviniculture World Market

Markets and Economic Research Centre. SA Fruit Trade Flow

The European Orange Juice, Fruit Juice and Nectar Markets. Allen Morris, Associate Extension Scientist and Economist, UF/IFAS/CREC

For personal use only

China s Export of Key Products of Pharmaceutical Raw Materials

Consolidation in the Hong Kong Wine Market

MONTHLY COFFEE MARKET REPORT

Transcription:

A PROFILE OF THE SOUTH AFRICAN BLACK TEA MARKET VALUE CHAIN 2011 Directorate Marketing Private Bag X 15 Arcadia 0007 Tel: 012 319 8455 Fax: 012 319 8131 E-mail: MorokoloB@daff.gov.za www.daff.gov.za

Table of Contents 1. DESCRIPTION OF THE INDUSTRY 3 1.1 Production trends 6 1.2 Employment 7 2. MARKET STRUCTURE 8 2.1 Domestic market and Prices 8 3. EXPORTS OF BLACK TEA 9 4. IMPORTS OF BLACK TEA 32 5. MARKET VALUE CHAIN 39 6. PROCESSING 39 6.1 Tea Picking and Harvesting 40 6.2.1 At the Factory 40 6.2.2 Fermenting 41 6.2.3 Drying 41 7. MARKET INTELLIGENCE 43 7.1 Performance Analysis 43 8. MARKET ACCESS 54 9. ORGANIZATIONAL ANALYSIS 60 10. GOVERNMENT INTERVENTION IN THE BLACK TEA INDUSTRY 60 11. NEW DEVELOPMENTS IN THE BLACK TEA INDUSTRY 61 12. ROLE PLAYERS IN THE BLACK TEA INDUSTRY 61 13. ACKNOWLEDGEMENTS 63 2

1. DESCRIPTION OF THE INDUSTRY Black tea production in South Africa has been uneconomic and under severe financial difficulties since 2003/04. Most of the tea estates were established in areas of high unemployment during the 1970s and 1980s to dissuade people from migrating to urban areas. Beginning in 2003 most of the tea estates in the country went out of production and those that remain are in a very precarious financial position and survive partly because they produce a product of high quality but mainly because they receive funding from the state. The key reasons for the price un-competitiveness of the black tea industry are the following: Relatively high production costs ascribed mainly to the introduction of minimum wages in the agricultural sector, Low world market prices for black tea and the fact that black tea is a US dollar traded commodity, The dominance of tea packers; two major tea packaging companies dominate more than 80% of the Southern African black tea market, The difference between the producer prices and retail prices for black tea is alarmingly higher than most other agricultural commodities, Black tea producers in South Africa have no mechanism to negotiate better prices with tea packers; they are price takers as the packers determine the prices. South African tea packers use the South African tea price as a negotiating position when negotiating tea prices with our SADC partners. As a result South African tea packers seem to be the only ones who benefited from the abolishment of the Trade Related Investment Measure (TRIM) and the phasing out of tariffs in terms of the SADC Free Trade Agreement. 3

The contribution of the black tea industry to the gross value of agricultural production is depicted in Figure 1. Figure 1: Gross value of production for Black Tea 120000 Gross Value (R'000) 100000 80000 60000 40000 20000 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Period (Years) Source: Statistics & Economic Analysis Figure 1 indicates contribution of the black tea industry to the gross value of agricultural production between 2001/02 and 2010/11 period. The graph further indicates that during the period under review, the gross value of production for black tea started to increase in 2001/02, and during the same year attained a peak at a gross value of approximately R112 000. In 2002/03 year, gross value of production for black tea experienced a slight decline of 5.6% while in 2004/05 year, the decline in percentage terms was approximately 90.5%. The dramatic decline was due to the fact that Sapekoe stopped its operations due to high minimum wages for farm workers, no protection against tea imports from the Southern African Development Community (SADC). High production costs structure (Electricity, Nitrogen, diesel and wages), the strong rand against US Dollar and UK Pound Sterling, and land claims (loss of title deed by Sapekoe-Pty Ltd) contributed to the decline in the domestic production of black tea due to a decline in competitiveness of the black tea estates. The graph also indicates that between 2006/07 and 2008/09, the gross value of production for black tea experienced some increases until there was a decline in 2009/10 and 2010/11 period of about 16.9%. An increase in gross value of agricultural production was experienced between 2007/08 and 2008/09 when most tea estates were resuscitated by the provincial departments in Limpopo, Mpumalanga and Kwa-Zulu Natal. 4

Table 1: Tea Estates in the Republic of South Africa ESTATE PROVINCE SIZE (Ha) STATUS Tshivhase Sapekoe 577 Producing Mukumbani Sapekoe 504 Producing Grenshoek Sapekoe 451 Not producing Middelkop Sapekoe 501 Not producing Outgrowers Limpopo 100 Not Producing Ngome Sapekoe 500 Not producing Richmond Sapekoe 522 Not producing Ntingwe Kwazulu-Natal 325 Producing Magwa 1784 Producing Majola 385 Producing Paddock Eastern Cape 225 Not producing Senteeko 550 Not producing Gradely Mpumalanga 75 Producing Total 6 499 Of the tea estates listed in Table 1 above it is very clear that only six of the twelve are currently under production while the rest of the tea estates have ceased their operations. Only two tea estates in the Vhembe region of the Limpopo Province are still in production while in the Kwazulu-Natal Province Ntingwe is the only one still producing tea. The Eastern Cape Province is left with two tea estates while in the Mpumalanga Province only one tea estate is under production. A lot of tea processors and packers are based in Johannesburg (Gauteng, City of Johannesburg) and that makes it easy for them to export tea because of the infrastructural set up that is in place. Provinces like Limpopo and Mpumalanga take their tea produce to Gauteng for processing and for the export market. 5

1.1 Production trends On average approximately between 4 and 7 million kilograms of black tea is produced locally each year. Figure 2: Black tea production in South Africa 9000000 8000000 Production (Kg) 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Period (Years) Source: Statistics & Economic Analysis Figure 2 depicts black tea production in South Africa between 2001/02 and 2010/11 period. The graph further depicts that there were less fluctuations in terms of production of black tea during the period under examination. The figure also depicts that black tea production started to increase in 2001/02 and during the same year attained a peak of about 7.6 million kilograms. The graph further depicts that between 2002/03 and 2004/05 black tea production experienced a steep decline to very low levels of production of approximately less than 1 million kilograms. As highlighted in figure 1, production of black tea came to a substantial decline in December 2004 when Sapekoe stopped its operations due to high minimum wages for farm workers, no protection against tea imports from the Southern African Development Community (SADC). High production costs structure (Electricity, Nitrogen, diesel and wages), the strong rand against US Dollar and UK Pound Sterling, and land claims (loss of title deed by Sapekoe-Pty Ltd) also led to very low levels of black tea production in South Africa. In 2008/09 a substantial increase in domestic production of black tea was experienced owing to government efforts in resuscitating tea plantations in major tea producing provinces. 6

1.2 Employment Traditionally tea estates used to be the biggest employers of people in rural provinces of South Africa, providing both permanent and seasonal employment opportunities. With the crisis that the industry is facing employment has declined as most of these tea estates are out of production. Ntingwe Estate employs more than 200 permanent staff and 550 seasonal workers with total employment envisaged to grow to approximately 1 200 at full production. Table 2 below illustrates the employment potential of the various tea estates when they are in full production. Table 2: Employment potential of the various tea estates in RSA Estate Employment Tshivhase Sapekoe 1 489 Mukumbane Sapekoe 1 233 Grenshoek Sapekoe 1 013 Middelkop Sapekoe 1158 Outgrowers 230 Ngome Sapekoe 1 045 Richmond Sapekoe 1 137 Ntingwe 748 Magwa 4 103 Majola 886 Paddock 518 Senteeko 1 265 Gradely 173 Total 14 949 Table 2 indicates that the tea estates in the country are capable of employing more than 14 thousand people when in full production. As of 2004 Magwa and Sapekoe tea estates were the major employers in the black tea industry. Taking into account that tea estates such as Grenshoek, Middelkop, Ngome, Richmond, Paddock and Senteeko have gone out of production, more than 6 thousand employees have lost employment. 7

2. MARKET STRUCTURE 2.1 Domestic market and Prices Tea, like most other commodity products, is a US Dollar traded commodity across the world. Movements in the US Dollar exchange rate compared to other currencies affect price competitiveness of such commodities. South Africa is a net importer of tea. Free market principles determine that domestic market prices will fluctuate in a price range between import parity and export parity levels. The level of competition in the domestic market ensures that prices are set as close as possible to import parity levels, whilst over supply, exchange rates and world market prices determine export parity price levels. In net import situations such as in the case of black tea (SA currently imports more than 50 percent of its black tea), domestic market prices should, according to normal free market principles, be close to or even higher than import parity levels. Pure Ntingwe tea is currently sold under the estate s name in tea bags marked Zulu Tea, while Yorkshire Gold, a blend of Ntingwe tea and other varieties, is a second retail blend sold in overseas markets. Since 2004 the tea has also been sold locally at Woolworths under the Ntingwe Estate brand name. Figure 3: Black tea average producer prices 2500.0 Prices (Cents/ kg) 2000.0 1500.0 1000.0 500.0 0.0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Period (Years) Source: Statistics & Economic Analysis s Figure 3 illustrates black tea average producer prices in South Africa between 2001/02 and 2010/11 period. The graph further illustrates that black tea average producer prices had less fluctuations in the market during the same period under examination. The graph also illustrates that black tea average producer prices started to increase in 2001/02 and in 2002/03 years then a decline occurred in 2003/04 8

season. Black tea average producer prices started to increase again in 2004/05 until a peak was attained in 2008/09 at a price of approximately 1 900 cents per kilogram. The figure also illustrates that, between 2004/05 and 2006/07 seasons, black tea average producer prices remained relatively stable at 1 300 cents per kilogram respectively until an increase in 2007/08 at 1 490 cents per kilogram. The figure further illustrates that between 2001/02 and 2002/03 marketing seasons, average producer prices were stable until a decline in producer prices was attained in 2003/04 at approximately 1 200 cents per kilogram. 3. EXPORTS OF BLACK TEA South Africa s black tea export market is worth about R20 million a year, while the country imports about 16 million kilograms of tea a year for domestic use. Exports Quantity ('000 tons) 20000 15000 10000 5000 Figure 4:Exports volumes of black tea (whether or not flavoured) to various regions 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Africa 875.043 18111.23 1513.95 1131.35 1610.997 356.269 743.566 1370.924 1440.344 Americas 44.847 5.318 20.628 46.811 28.368 24.554 69.017 3.432 30.193 Asia 365.833 288.8 154.221 28.96 369.497 462.349 5741.032 1200.983 488.298 Europe 5008.366 4532.951 3288.549 467.524 1116.138 348.593 1025.815 472.02 284.295 Oceania 126.544 92.666 42.886 1.183 56.989 3.685 30.009 28.247 37.841 Source: Quantec easy data Period (Years) Figure 4 indicates black tea exports volumes (whether or not flavoured) from South Africa to various regions of the world between 2002 and 2010 period. During the period between 2002 and 2010 South Africa exported most of its black tea to the African region followed by Asia in 2008 then Europe in 2002. Low volumes of black tea were exported to the Americas and Oceania between 2002 and 2010. Exports of black tea to Africa attained a peak in 2003 at approximately 17 000 tons. In 2008 black tea exports to Asia attained a peak at an export quantity of approximately 6000 tons. On average exports volumes of black tea from South Africa to all the aforementioned regions were fairly high but declined substantially between the years 2005 and 2010 except for the Asian market. 9

Figure 5:Exports volumes of black tea (whether or not flavoured) to Africa Exports Quantity ('000 tons) 20000 15000 10000 5000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Eastern Africa Rest 23.097 5.178 2.656 13.354 7.441 11.524 3.866 3.804 18.205 Middle Africa Rest 40.708 57.539 4.912 35.718 7.131 0.103 0 0.141 0.162 Northern Africa 0 0.8 0.663 0 24 0 0 0 0 Western Africa 34.08 33.267 2.826 7.996 3.811 2.314 4.087 3.802 125.207 SADC 777.158 18014.4 1502.89 1074.28 1568.61 342.328 735.613 1363.18 1296.77 Source: Quantec Easy Data Period (Years) Figure 5 shows black tea exports volumes (whether or not flavoured) from South Africa to Africa between 2002 and 2010. Major export destinations of black tea from South Africa were mainly SADC during the same period under review. Black tea exports to SADC started to increase in 2003 and at the same time attained a peak at approximately 17 000 tons. Between 2002 and 2010, SADC experienced very low export volumes of black tea from South Africa of not more than 5000 tons. 10

Figure 6: Exports volumes of black tea (whether or not flavoured) to the SADC region 18000 Exports Quantity '000 tons) 16000 14000 12000 10000 8000 6000 4000 2000 0 Angola 5.205 54.257 59.337 25.688 2.938 2.49 2.067 0.136 0.894 Democratic Republic of the Congo 90.796 69.389 1.716 116.429 466.107 2.882 2.125 3.059 4.3 Mauritius 25.697 16634.51 2.176 1.545 1.354 2.279 25.926 4.674 2.595 Malaw i 12.581 0.745 0.142 5.648 3.47 12.595 13.636 28.153 25.426 Mozambique 521.186 1166.408 1338.172 864.256 943.039 216.232 404.088 796.365 767.234 Seychelles 0.459 0.061 0.025 3.142 0.206 0.015 4.414 0.047 0.314 United Republic of Tanzania 0.022 1.566 0.423 0.649 0 0.005 1.079 0.285 0.203 Zambia 92.937 42.403 93.768 17.687 97.164 36.065 103.534 336.795 327.584 Zimbabw e 28.275 45.108 7.134 39.238 54.336 69.765 178.744 193.663 168.22 Source: Quantec Easy Data 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 6 above illustrates volumes of black tea exports (whether or not flavoured) from South Africa to the SADC region between 2002 and 2010 period. The major export market of black tea from South Africa was mainly Mauritius with no competition from other SADC states. Exports volumes of black tea to SADC started to increase in 2003 and at the same time attained a peak at approximately 16 500 tons and a sharp decline from 2004 to 2010. Mozambique, Zimbabwe and Democratic Republic of the Congo had very low export volumes of black tea during the period under scrutiny. 11

Figure 7: Exports volumes of black tea (whether or not flavoured) to Americas Export Quantity ('000 tons) 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Caribbean 0.14 0.005 0.275 0.09 0.2 0.103 3.118 0 0 Central America 0 0 0 0 0 0 0 3.032 0 South America 0 0 0.7 0.118 0.04 0.006 0 0 0.002 NAFTA 44.707 5.313 19.653 46.603 28.128 24.445 65.899 0.4 30.191 Source: Quantec Easy Data Period (Years) Figure 7 indicates volumes of black tea exports (whether or not flavoured) from South Africa to the Americas between 2002 and 2010. Major export market for black tea from South Africa was NAFTA during the period under review. Exports of black tea to NAFTA started to increase in 2002 with a decline in 2003, and then increased in 2004 until a slight decline in 2006 and 2007. In 2008 exports of black tea from South Africa increased and at the same time attained a peak at approximately 65 000 tons. During the same period under review, Caribbean, Central America and South America experienced very low export volumes of black tea from South Africa. 12

Figure 8: Exports volumes of black tea (whether or not flavoured) to Asia Exports Quantity ('000 tons) 5000 4000 3000 2000 1000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Eastern Asia 28.937 15.388 0.43 20.543 8.412 86.626 4327.118 228.205 356.666 South-central Asia 247.901 22.112 135.28 4.739 290.534 309.188 620.64 188.394 131.435 South-eastern Asia 11.076 7.855 9.27 0.362 0.254 0.367 0 0.026 0 Western Asia 77.919 243.445 9.241 3.316 70.297 66.168 793.274 784.358 0.197 Source: Quantec Easy Data Period (Years) Figure 8 depicts volumes of black tea exports (whether or not flavoured) from South Africa to Asia between 2002 and 2010 period. Volumes of black tea from South Africa were exported mainly to Eastern Asia with no competition from other Asian regions. Black tea exports from South Africa to Eastern Asia started to increase in 2008 and at the same time attained a peak at approximately 4 300 tons. Between 2002 and 2007 there were very low levels of exports of black tea to all Asian markets, a decline in exports of black tea to Asia became worse between 2004 and 2005. Figure 8 further depicts that there were no fluctuations in terms of exports of black tea to Asia. 13

Figure 9: Exports volumes of black tea (whether or not flavoured) to Europe Export Quantity ('000 tons) 5000 4000 3000 2000 1000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Eastern Europe 254.316 2.211 0 5.2 0 0.001 0.002 0 0.151 Northern Europe 0 0 0 0 0 0.024 0 0 0 Western Europe Rest 6.551 7.84 0 0.011 0 0.004 0.476 1.418 0.067 European Union 4747.499 4522.9 3288.549 462.313 1116.138 348.564 1025.337 470.602 284.077 Source: Quantec Easy Data Period (Years) Figure 9 shows volumes of black tea exports (whether or not flavoured) from South Africa to Europe between 2002 and 2010 period. The graph also shows that during the period under scrutiny, the major export market for black tea was European Union with no competition from other European regions. The graph further shows that volumes of black tea exports to European Union started to increase in 2002 and during the same year attained a peak at approximately 4 800 tons. From 2003 to 2010 volumes of black tea exports from South Africa to European Union declined continuously up until lower levels of exports were attained in 2010 at approximately 284 tons. 14

Figure 10: Exports volumes of black tea (whether or not flavoured) to the European Union 5000000 4500000 Exports Quantity ('000 tons) 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Austria 0 29 0 1 0 344 0 0 0 Belgium 0 19920 101 0 3598 17598 83 0 800 Cyprus 9 0 3388 18 4253 1478 137 105 494 Germany 193766 294056 223238 74181 47361 9322 48932 9026 10086 Denmark 57 0 21 0 0 0 40 29 7 Estonia 0 0 0 0 0 0 0 0 61 Spain 0 0 20 40 0 150 0 0 40 France 0 220 27 161308 399 208 105 1411 131 United Kingdom 4362466 4176438 2969420 152303 903579 296711 891922 400123 271789 Greece 0 0 3 0 25 9 116 3 48 Ireland 46320 24980 0 10 20 10 27300 13625 0 Italy 2 3 0 812 3203 3432 555 1105 536 Luxembourg 0 0 0 0 0 0 0 0 25 Netherlands 129861 7156 47793 73545 153700 17490 56147 45175 60 Poland 0 0 44500 0 0 0 0 0 0 Portugal 10 0 38 53 0 0 0 0 0 Sweden 15008 98 0 42 0 1812 0 0 0 Period (Years) Source: Quantec Easy Data 15

Figure 10 represents volumes of black tea exports (whether or not flavoured) from South Africa to the European Union between 2002 and 2010 period. The major export market for black tea from South Africa during this period was United Kingdom with no competition from the counter parts. The graph further represents that exports volumes of black tea from South Africa to United Kingdom started to increase in 2002 and during the same period attained a peak at approximately 436 000 tons. Between 2002 and 2005, there was a steady decline in exports of black tea from South Africa to the United Kingdom. The graph also illustrates that there were no major fluctuations in terms of exports of black tea to the United Kingdom during the same period under review. Figure 11: Exports volumes of Black tea (whether or not flavoured) to Oceania 2500 Exports quantity ('000 tons) 2000 1500 1000 500 0 Australia and New Zealand 2316.7 1069.8 592.81 57.381 174.07 246.92 599.48 1087 1867.5 Melanesia 0 0 0 0 616.35 0 0 0 0 Source: Quantec Easy Data 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 11 indicates volumes of black tea exports (whether or not flavoured) from South Africa to Oceania between 2002 and 2010 period. The graph further indicates that the major markets of black tea from South Africa during the period under review were Australia and New Zealand followed by Melanesia. Exports of black tea from South Africa started to increase in 2002 and during the same period attained a peak of about 2 316 tons then declined from 2003 to 2005 until there was an increase between 2006 and 2010 period. Exports of black tea attained a peak again in 2010 at approximately 1 867 tons while Melanesia experienced a peak in exports of black tea in 2006 at an export quantity of about 600 tons. 16

Figure 12: Value of black tea exports by Provinces 160000000 140000000 Exports Value (Rands) 120000000 100000000 80000000 60000000 40000000 20000000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Western Cape 1505160 1920268 2221844 1025776 2190967 2067628 2219510 2508335 2269675 1603709 Eastern Cape 809415 1413354 1358637 883614 1846274 1925215 67174 107349 98782 394516 Northern Cape 0 0 38206 0 4831 1090861 13849 0 0 138579 Free State 0 134098 388533 0 0 3790 233 0 0 306 Kw azulu-natal 2957126 4848442 2138087 2162634 6058581 6796280 6315464 3641062 8834215 6452744 North West 0 0 0 0 0 0 0 0 39928 251326 Gauteng 8327859 1144304 6623643 6476037 5680763 9774669 4125360 1043200 1488440 1441157 Mpumalanga 80282 0 1871 0 114159 0 106137 125358 6460 1313446 Limpopo 7398407 9813357 8075945 6674893 0 0 0 1103096 3374526 1808814 Source: Quantec Easy Data Period (Years) Figure 12 depicts values of black tea exports (whether or not flavoured) by Provinces of South Africa to the world between 2001 and 2010 period. The graph further depicts that the major exporting provinces of black tea during this period was Gauteng province followed by Limpopo province and then KwaZulu- Natal province. The graph also depicts that exports of black tea from Gauteng province started to increase in 2001 with a dramatic increase in 2002 but declined in 2003 to 2005 by 42.1%. The figure also depicts that in 2007 black tea exports from Gauteng province declined dramatically by 57.8% at approximately R40 million. In 2008 black tea exports from Gauteng started to increase at approximately R104 million until a peak in exports was attained in 2009 at approximately R148 million, and in percentage terms of about 93%. Exports of black tea from the Limpopo province started to increase in 2001 until a peak was attained in 2002 at an export value of approximately R98 million rands with an increase in percentage terms of about 32.6%. 17

Figure 13: Value of black tea exports by Western Cape Province 25000000 E xp o rts V alu e (Ran d s) 20000000 15000000 10000000 5000000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 City of Cape Tow n Metropolitan Municipality 12343098 14539277 18098417 6333721 10752944 14524456 18880942 23495110 19786802 11990539 West Coast District municipality 1345823 3791021 4021853 2552120 7008072 1534782 2546438 725682 492355 2870902 Cape Winelands District Municipality 0 852712 87803 32 1384 30869 215 19395 309497 4222 Overberg District municipality 400 19672 0 0 0 1660623 0 59701 0 129541 Eden District municipality 1362288 0 10375 1371890 4147275 2925550 767513 783466 2108102 1041889 Source: Quantec Easy Data Period (Years) Figure 13 shows values of black tea exports (whether or not flavoured) from Western Cape Province to the world between 2001 and 2010 period. The figure further shows that the City of Cape Town Metro dominated the export market of black tea to the world between 2001 and 2010 period. The figure also shows that exports of black tea started to increase in 2001 to 2003 at approximately R18 million (24.5%), until a dramatic decline of about R6 million (65%) occurred in 2004. A surge of exports of black tea was experienced in 2005 to 2007 until a peak was attained in 2008 at approximately R23 million, and then a dramatic decline occurred in 2009 and 2010 years. In percentage terms the decline in black tea exports to the world in 2009 and 2010 years ranged between 15.8% and 39.4% respectively. 18

Figure 14: Value of black tea exports by Eastern Cape Province 2000000 Exports Value (Rands) 1500000 1000000 500000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cacadu District municipality 800003 1283010 1358637 882685 1846274 596229 67174 101566 0 323651 Amatole District municipality 0 0 0 53 0 517130 0 0 98782 48448 Chris Hani District municipality 0 0 0 0 0 795130 0 5614 0 0 Nelson Mandela Metropolitan Municipality Source: Quantec Easy Data 9412 130344 0 876 0 16726 0 169 0 22416 Period (Years) Figure 14 illustrates values of black tea exports (whether or not flavoured) from Eastern Cape Province to the world between 2001 and 2010 period. The graph further illustrates that the major exporter of black tea to the world during the period under review was Cacadu District, followed by minimal exports of black tea from Chris Hani and Amathole District municipalities. The figure also illustrates that between 2001 and 2005 exports of black tea from Cacadu region were more than R600 000.00, and then a dramatic declined occurred in 2006 to 2008 years due to low domestic production. In 2010 domestic production started to increase leading to increases in exports of black tea from Cacadu region to the world at an export value of approximately R 323 651.00 and an increase in percentage terms of about 219% as compared to an export value of about R101 566.00 (51.2%) in 2008 year. 19

Figure 15: Value of blaxk tea exports by Northern Cape Province 1200000 Exports V alue (Rands) 1000000 800000 600000 400000 200000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Namakw a District municipality 0 0 0 0 4831 1090861 13849 0 0 138579 Frances Baard District municipality 0 0 38206 0 0 0 0 0 0 0 Source: Quantec Easy Data Period (Years) Figure 15 indicates values of black tea exports (whether or not flavoured) from Northern Cape Province to the world between 2001 and 2010 period. The graph further indicates that during the period under examination, Namakwa District was the main supplier of black tea exports to the world. The figure also indicates that exports of black tea from Namakwa District started to increase in 2005 until a peak was attained in 2006 at an export value of about R1 million. In 2007 exports of black tea from Namakwa District declined dramatically to about R 13 849.00. Between 2001 and 2004 and 2008 and 2009 years, Namakwa District did not export black tea to the world. The figure also indicates that there was a slight increase in exports of black tea in 2010 at approximately R138 579.00 (9%) as compared to 2007 year. 20

Figure 16: Value of black tea exports by Free State Province 450000 Exports Value (Rands) 400000 350000 300000 250000 200000 150000 100000 50000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Motheo District municipality 0 134098 388533 0 0 0 0 0 0 0 Thabo Mofutsanyane District municipality Source: Quantec Easy Data 0 0 0 0 0 3790 233 0 0 306 Period (Years) Figure 16 depicts values of black tea exports (whether or not flavoured) from Free State Province to the world between 2001 and 2010 period. The graph further depicts that during the period under scrutiny, Motheo District was the main supplier of black tea exports to the world. The figure also depicts that exports of black tea from Motheo District started to increase in 2002 until a peak was attained in 2003 at an export value of about R338 533.00. The figure also depicts that from 2004 to 2010, Motheo District did not export black tea to the world. Thabo Mofutsanyane District exported very minimal exports of black tea of not more than R4000.00 to the world during the same period under scrutiny. 21

Figure 17: Value of black tea exports by KwaZulu-Natal Province Exports Value (Rands) 60000000 50000000 40000000 30000000 20000000 10000000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ugu District municipality 0 0 0 0 0 0 0 0 111400 0 UMgungundlovu District municipality 0 0 0 0 24 1099 0 927 0 1615 Uthukela District municipality 0 951 147711 0 26649 0 88774 88853 185404 453176 Uthungulu District municipality 8508 458 0 202 709 0 0 0 0 112 ilembe District municipality 0 5184 6812 4986 0 0 92585 2154156 1794645 0 ethekw ini Metropolitan Municipality 29562752484778312122635221621160 6031199 6795181 6134104 34166689 6742766 5997841 Source: Quantec Easy Data Period (Years) Figure 17 illustrates values of black tea exports (whether or not flavoured) from KwaZulu-Natal province to the world between 2001 and 2010 period. The figure further illustrates that exports of black tea from KwaZulu-Natal province to the world were mainly from ethekwini Metro with very low/ minimal export values from other district municipalities of KwaZulu-Natal province. The figure also illustrates that black tea exports started to increase in 2001 at approximately R29 million until a peak in exports was attained in 2002 at an export value of about R48.5 million. The figure further illustrates that between 2002 and 2007 exports of black tea declined up to R6.1 million and (69%) in 2007 year as compared to 2002 year. In 2008 exports of black tea from ethekwini Metro started to increase again at an export value of about R34 million, and the declined in 2009 and 2010 years by 40% and 46% respectively. 22

Figure 18: Value of black tea exports by North West Province 250000 E xports Value (Rands) 200000 150000 100000 50000 0 Bojanala District municipality 0 0 0 0 0 0 0 0 0 31091 Southern District municipality 0 0 0 0 0 0 0 0 39928 220235 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 18 shows values of black tea exports (whether or not flavoured) from North West Province to the world between 2001 and 2010 period. The graph further shows that the major exports of black tea from North West province were from Southern District municipality, followed by very low/minimal exports of black tea from Bojanala District. The figure also shows that between 2001 and 2008 years, there were no black tea exports from North West province. The figure further shows that exports of black tea from Southern District to the world started to increase in 2009, until a peak was attained in 2010 at approximately R220 235.00. Exports of black tea from Bojanala District could not exceed R50 000.00 between 2001 and 2010 period. 23

Figure 19: Value of black tea exports by Gauteng Province 120000000 E xports V alue (Rands) 100000000 80000000 60000000 40000000 20000000 0 Sedibeng District municipality 0 89832 486 0 1033 114968 207 1716 6575 26918 Metsw eding District Municipality 0 15485 0 0 1424 0 0 198582 0 0 West Rand District Municipality 520 99790 174 55162 2801427 14461 71525 121491 627729 215801 Ekurhuleni Metropolitan Municipality 2437472 3750813 872662 2206321 1870813 1881410 12731223 45985949 69130541 57386942 City of Johannesburg Metropolitan Municipality 80142452 109753867 65010844 62055397 51488143 93928022 23516431 50546312 74939426 85218203 City of Tshw ane Metropolitan Municipality 698147 720616 352266 443497 644797 1807837 4934216 7465961 4139734 1267844 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 19 depicts values of black tea exports (whether or not flavoured) from Gauteng Province to the world between 2001 and 2010 period. The graph further depicts that the major exporting municipality of black tea during this period was the City of Johannesburg Metro followed by Ekurhuleni Metro. The graph also depicts that exports of black tea from the City of Johannesburg Metro to the world started to increase in 2001 with a dramatic increase in 2002 and during the same year a peak was attained at an export value of about R109 million. Between 2003 and 2005 exports of black tea from the City of Johannesburg experienced a slight decline of up to R51 million in 2005 as compared to 2002 year. In 2006 exports of black tea increased again at approximately R93 million and then a dramatic decline of 29% occurred in 2007 at an export value of about R 23 million. In 2008 black tea exports from the City of Johannesburg started to increase until another peak took place in 2010 at approximately R85 million. Exports of black tea from Ekurhuleni Metro started to increase in 2007, until a peak was attained in 2009 at an export value of approximately R69 million rands, and then a slight decline in exports of black tea by 20.5%. 24

Figure 20: Value of black tea exports by Mpumalanga Province 1400000 Exports Value (Rands) 1200000 1000000 800000 600000 400000 200000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Gert Sibande District municipality 0 0 0 0 0 0 0 0 6460 9708 Nkangala District municipality 0 0 0 0 0 0 0 0 0 491 Ehlanzeni District municipality 80282 0 1871 0 114159 0 106137 125358 0 1303247 Source: Quantec Easy Data Period (Years) Figure 20 illustrates values of black tea exports (whether or not flavoured) from Mpumalanga Province to the world between 2001 and 2010 period. The graph further illustrates that the major export market for black tea from Mpumalanga province was from Ehlanzeni District municipality with no competition from other municipalities. The figure also illustrates that between 2001 and 2008 years, there were no black tea exports from Gert Sibande and Nkangala Districts due to the closing of some tea estates in that province. The figure further illustrates that exports of black tea from Ehlanzeni District to the world started to increase in 2001, 2005, 2007 and 2008 years until a peak was attained in 2010 at approximately R1.3 million rands. 25

Figure 21: Value of black tea exports by Limpopo Province 120000000 Exports Value (Rands) 100000000 80000000 60000000 40000000 20000000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mopani District municipality 73984073 98133572 80759458 66748936 0 0 0 0 0 0 Vhembe District municipality 0 0 0 0 0 0 0 11030962 27483387 998773 Capricorn District municipality 0 0 0 0 0 0 0 0 6261877 810041 Source: Quantec Easy Data Period (Years) Figure 21 shows values of black tea exports (whether or not flavoured) from Limpopo Province to the world between 2001 and 2010 period. The figure further shows that the major export market for black tea from Limpopo province was Mopani District followed by Vhembe District and low export values from Capricorn District. The figure also shows that black tea exports from Mopani District started to increase in 2001, with a peak attained in 2002 at approximately R98 million rands and a dramatic decline occurred between 2003 and 2004 years. Between 2005 and 2010 years there were no exports of black tea from Mopani District. The figure also shows that between 2001 and 2007 years, there were no exports of black tea from both Vhembe and Capricorn District municipalities. Exports of black tea from Vhembe District to the world attained a peak in 2009 at approximately R27.4 million rands. 26

3.1 Share Analysis Table 1: Share of Provincial black tea exports to the total RSA black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Province Western Cape 7.42 6.81 11.5 6.24 25.3 16.1 31.7 14.2 10.6 9.41 Eastern Cape 0.40 0.50 0.71 0.54 2.13 1.50 0.10 0.06 0.05 0.23 Northern 0.00 0.00 0.02 0.00 0.01 0.85 0.02 0.00 0.00 0.08 Cape Free State 0.00 0.05 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 KwaZulu- 14.6 17.2 11.1 13.2 6.98 5.30 9.03 20.6 4.12 3.78 Natal North West 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.15 Gauteng 41.1 40.6 34.4 39.4 65.5 76.2 59.0 58.9 69.5 84.5 Mpumalanga 0.04 0.00 0.00 0.00 0.31 0.00 0.05 0.07 0.00 0.77 Limpopo 36.5 34.8 42.0 40.6 0.00 0.00 0.00 6.23 15.7 1.06 Source: Calculated from Quantec Easy Data Table 1 indicates the share of provincial exports into South African black tea exports in percentages between 2001 and 2010 period. The table further indicates that between 2001 and 2010, Gauteng Province commanded the greatest share of black tea exported by South Africa to the world except in 2003 and 2004 years. Table 2: Share of district black tea exports to the total Western Cape Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts City of Cape 82.0 75.7 81.5 61.7 49.1 70.2 85.1 93.7 87.2 74.8 Town Metro West Coast 8.94 19.7 18.1 24.9 32.0 7.42 11.5 2.89 2.17 17.9 District Cape Winelands 0.00 4.44 0.40 0.00 0.01 0.15 0.00 0.08 1.36 0.03 Overberg 0.00 0.10 0.00 0.00 0.00 8.03 0.00 0.24 0.00 0.81 District Eden District 9.05 0.00 0.05 13.4 18.9 14.1 3.46 3.12 9.29 6.49 Source: Calculated from Quantec Easy Data 27

Table 2 depicts the share of district black tea exports to the total Western Cape Province black tea exports in percentages between 2001 and 2010 period. The table further depicts that between 2001 and 2010, City of Cape Town Metro commanded the greatest share of black tea exported by South Africa to the world throughout the period under review. Table 3: Share of district black tea exports to the total Eastern Cape Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Cacadu District 98.8 90.8 100 99.9 100 40.0 100 94.6 0.00 82.0 Amathole 0.00 0.00 0.00 0.01 0.00 26.9 0.00 0.00 100 12.3 District Chris Hani 0.00 0.00 0.00 0.00 0.00 41.3 0.00 5.23 0.00 0.00 District Nelson Mandela Metro 1.16 9.22 0.00 0.10 0.00 0.87 0.00 0.16 0.00 5.68 Source: Calculated from Quantec Easy Data Table 3 shows the share of district black tea exports to the total Eastern Cape Province black tea exports in percentages between 2001 and 2010 period. The table further shows that between 2001 and 2010, Cacadu District commanded the greatest share of black tea exported by South Africa to the world except in 2006 and 2009 years. Table 4: Share of district black tea exports to the total Northern Cape Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Namakwa 0.00 0.00 0.00 0.00 100 100 100 0.00 0.00 100 District Frances Baard District 0.00 0.00 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Source: Calculated from Quantec Easy Data Table 4 illustrates the share of district black tea exports to the total Northern Cape Province black tea exports in percentages between 2001 and 2010 period. The table further illustrates that between 2001 and 2010, Namakwa District commanded the greatest share of black tea exported by South Africa to the world in 2005 to 2007 and 2010 years. Frances Baard District commanded the greatest share only in 2003 year. 28

Table 5: Share of district black tea exports to the total Free State Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Motheo District 0.00 100 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Thabo Mofutsanyane District 0.00 0.00 0.00 0.00 0.00 100 100 0.00 0.00 100 Source: Calculated from Quantec Easy Data Table 5 shows the share of district black tea exports to the total Free State Province black tea exports in percentages between 2001 and 2010 period. The table further shows that between 2001 and 2010 years, Thabo Mofutsanyane District commanded the greatest share of black tea exported by South Africa to the world except in 2002 and 2003 years. Table 6: Share of district black tea exports to the total KwaZulu-Natal Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Ugu District 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.26 0.00 UMgungundlovu 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.03 District Uthukela District 0.00 0.00 0.69 0.00 0.44 0.00 1.41 0.24 2.10 7.02 Uthungulu 0.03 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 District ilembe District 0.00 0.01 0.03 0.02 0.00 0.00 1.47 5.92 20.3 0.00 ethekwini Metro 99.97 99.98 99.28 99.98 99.55 99.98 97.12 93.84 76.33 92.95 Source: Calculated from Quantec Easy Data Table 6 indicates the share of district black tea exports to the total KwaZulu-Natal Province black tea exports in percentages between 2001 and 2010 period. The table further indicates that between 2001 and 2010 years, ethekwini Metro municipality commanded the greatest share of black tea exported by South Africa to the world throughout the period under examination. 29

Table 7: Share of district black tea exports to the total North West Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Bojanala District 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.37 Southern District 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 87.63 Source: Calculated from Quantec Easy Data Table 7 depicts the share of district black tea exports to the total North West Province black tea exports in percentages between 2001 and 2010 period. The table further depicts that between 2001 and 2010 years, Southern District municipality commanded the greatest share of black tea exported by South Africa to the world throughout the period under examination. Table 8: Share of district black tea exports to the total Gauteng Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Sedibeng 0.00 0.08 0.00 0.00 100 0.12 0.00 0.00 0.00 0.02 District Metsweding 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.19 0.00 0.00 District West Rand 0.00 0.09 0.00 0.09 4.93 0.01 0.17 0.12 0.42 0.15 District Ekurhuleni 2.93 3.28 1.32 3.41 3.29 1.92 30.9 44.1 46.4 39.8 Metro City of 96.2 95.9 98.1 95.8 90.6 96.1 57.0 48.5 50.3 59.1 Johannesburg Metro City of Tshwane Metro 0.84 0.61 0.53 0.68 1.14 1.85 12.0 7.16 2.78 0.88 Source: Calculated from Quantec Easy Data Table 8 illustrates the share of district black tea exports to the total Gauteng Province black tea exports in percentages between 2001 and 2010 period. The table further illustrates that between 2001 and 2010 years, the City of Johannesburg Metro municipality commanded the greatest share of black tea exported by South Africa to the world throughout the period under scrutiny. 30

Table 9: Share of district black tea exports to the total Mpumalanga Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Gert Sibande 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 0.74 District Nkangala 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.04 District Ehlanzeni District 100 0.00 100 0.00 100 0.00 100 100 0.00 99.22 Source: Calculated from Quantec Easy Data Table 9 indicates the share of district black tea exports to the total Mpumalanga Province black tea exports in percentages between 2001 and 2010 period. The table further indicates that between 2001 and 2010 years, Ehlanzeni District municipality commanded the greatest share of black tea exported by South Africa to the world during the period under scrutiny. Table 10: Share of district black tea exports to the total Limpopo Province black tea exports (%) Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Districts Mopani District 100 100 100 100 0.00 0.00 0.00 0.00 0.00 0.00 Vhembe District 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 81.4 55.2 Capricorn District 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18.6 44.8 Source: Calculated from Quantec Easy Data Table 10 depicts the share of district black tea exports to the total Limpopo Province black tea exports in percentages between 2001 and 2010 period. The table further depicts that between 2001 and 2010 years, Vhembe District municipality commanded the greatest share of black tea exported by South Africa to the world during the period under review. 31

4. IMPORTS OF BLACK TEA With annual consumption at around 20 000 tons per annum and domestic production (excluding Magwa) at approximately 10 000 tons, South Africa is a net importer of black tea. Black Tea is imported from Malawi, Zimbabwe, Kenya and Sri Lanka and Mozambique. Tea imported from our SADC partners is mostly secondary grade tea suitable only for blending purposes. Premium quality teas are imported from Sri Lanka and Kenya. Imports Quantity ('000 tons) 30000 25000 20000 15000 10000 Figure 22: Imports volumes of black tea (whether or not flavoured) from various regions 5000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Africa 13826 15909 15492 16531 18441 20256 19257 19538 25699 25158 Americas 218 218 125 0 2 0 1 0 13 327 Asia 1501 1189 885 1029 910 1204 1011 936 1108 1265 Europe 21 14 9 17 18 12 12 12 9 17 Oceania 0 0 0 0 0 1 0 0 0 0 Source: Quantec Easy Data Period (Years) Figure 22 shows volumes of black tea imports (whether or not flavoured) from various regions of the world into South Africa between 2001 and 2010 period. The graph further shows that South Africa imports its black tea from five regions as shown in Figure 22 above, with greater imports derived from the African region followed by small import volumes from Asia. Black tea imports from Africa started to increase in 2001 with a slight decline in 2003 and 2007 until a peak was attained in 2009 at approximately R25 699. 00. Imports of black tea from Africa experienced a slight decline in 2010 years at an import value of about R25 158.00 and that represented a slight decline of 2.2%. Imports of black tea from Asia were very low and not more than R5000.00 throughout the period under scrutiny. 32

Figure 23: Imports volumes of black tea (whether or not flavoured) from Africa Imports Quantity ('000 tons) 30000 25000 20000 15000 10000 5000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Eastern Africa Rest 562.859 630.405 291.019 539.477 594.012 658.188 625.889 991.443 837.497 746.226 Middle Africa Rest 0 0 0 0 0.01 0 0 2.54 0 0 Northern Africa 0.078 0.2 0 0 0 0 0 0.004 0.003 0.1 Western Africa 0.14 0.05 0 0.006 0 0.006 0.01 0.01 0.062 0.002 SADC 13262.9 15278.1 15201.2 15991.4 17846.6 19597.4 18631.2 18544 24861.8 24411.6 Source: Quantec Easy Data Period (Years) Figure 23 depicts volumes of black tea imports (whether or not flavoured) from Americas into South Africa between 2001 and 2010 period. The graph further depicts that major import market for black tea from Africa into South Africa was the SADC region followed by very small quantities of black tea from the other four regions. Imports of black tea from SADC started to increase in 2001 to 2006 until a slight decline in 2007 and 2008. During the same period under scrutiny, figure 5 on exports depicts that South Africa s exports of black tea to Africa decreased from 2004 until 2010 due to low levels of supply from South Africa. Imports of black tea from SADC attained a peak in 2009 at an import quantity of approximately 25 000 tons. Eastern Africa experienced very low levels of imports of black tea into South Africa between 2001 and 2010 period. 33

Figure 24: Imports volumes of black tea (whether or not flavoured) from the SADC region Imports Quantity ('000 tons) 20000 15000 10000 5000 0 Democratic Republic of the Congo 0 0 0 0 0 0 0 0 0 4.526 Malaw i 8142 8877.5 10145 11083 12757 12654 12989 12599 18758 17340 Mozambique 0 389.35 51.366 68.08 28.434 0 0 24.84 0 38.84 United Republic of Tanzania 0 0 168.07 298.76 1316.4 2818.2 2597.8 2771.3 2965.3 2787 Zambia 0 0 0 0 0 0 24 0 0 53.14 Zimbabw e 5111.8 6009.3 4837.2 4541.7 3743 4124.8 3020.3 3148.1 3133.1 4188.4 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 24 indicates volumes of black tea imports (whether or not flavoured) from the SADC region into South Africa between 2001 and 2010 period. The graph further indicates that Malawi was the major importer (market) of black tea from SADC into South Africa followed by Zimbabwe during the period under examination. SADC countries such as Democratic Republic of the Congo, Mozambique, United Republic of Tanzania and Zambia had very low levels of black tea imports to South Africa. The figure also indicates that imports of black tea from Malawi started to increase in 2001 until a slight decline in 2008. In 2009 imports of black tea from Malawi into South Africa attained a peak at an import quantity of about 18 758 tons followed by a peak in Zimbabwean imports in 2002 at an import quantity of about 6009.3 tons. 34

Figure 25: Imports volumes of black tea (whether or not flavoured) from the Americas Imports Quantity ('000 tons) 350 300 250 200 150 100 50 0 South America 218.4 218.41 124.8 0 0.02 0.001 0 0.003 12.005 325.2 NAFTA 0 0 0 0.02 2.331 0.04 0.757 0.216 0.971 1.827 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 25 illustrates volumes of black tea imports (whether or not flavoured) from Americas into South Africa between 2001 and 2010 period. The graph further illustrates that the major import market for black tea from the Americas into South Africa was mainly South America with no competition from the other regions. South America s imports of black tea to South Africa started to increase in 2001 and 2002 and then experienced a decline in 2003 to 2008, however in 2009 imports of black tea started to increase again until a peak was attained in 2010 at an import quantity of about 325.2 tons. NAFTA had very low levels of black tea imports during the same period under review. 35

Imports Quantity ('000 tons) Figure 26: Imports volumes of black tea (whether or not flavoured) from Asia 1600 1400 1200 1000 800 600 400 200 0 Eastern Asia 3.121 2.089 1.878 0.677 2.499 2.193 1.47 12.514 13.865 4.925 South-central Asia 1467.2 1166 752.56 1027.9 903.11 1187.6 652.25 551.8 877.75 1139.5 South-eastern Asia 30.6 20.812 130.48 0.125 0 10.022 349.37 370.68 216.22 120.08 Western Asia 0.03 0 0.001 0.007 4.361 3.883 7.858 1.158 0.015 0.297 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 26 depicts volumes of black tea imports (whether or not flavoured) from Asia into South Africa between 2001 and 2010 period. The major importing market for black tea from Asia into South Africa during this period was South-central Asia followed by South-eastern Asia. The graph further depicts that imports of black tea from South-central Asia into South Africa started to increase in 2001 and then slightly declined in 2002 and 2003 years. In 2004, 2006 and 2010, imports of black tea from Southcentral Asia increased with slight declines in between. The figure also depicts that imports of black tea from South-central Asia into South Africa attained a peak in 2001 at approximately 1 467.20 tons while South-eastern Asia attained its peak in 2008 at approximately 370.68 tons during the same period under review. 36

Figure 27: Imports volumes of black tea (whether or not flavoured) from South-Central Asia Imports Quantity ('000 tons) 1400 1200 1000 800 600 400 200 0 India 155.52 0.406 0.387 1.02 1.609 0.978 1.091 25.314 24.873 57.108 Iran (Islamic Republic of) 0 0 0 0.05 0 0 0 0 0 0 Sri Lanka 1311.7 1165.6 752.17 1026.9 901.5 1186.6 651.16 526.48 852.84 1082.4 Pakistan 0 0 0 0 0 0 0 0 0.041 0 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 27 represents volumes of black tea imports (whether or not flavoured) from South-central Asia into South Africa between 2001 and 2010 period. The graph further shows that major importing markets for black tea from South-central Asia into South Africa was Sri Lanka followed by very low levels of supply from India. The graph further shows that imports of black tea from Sri Lanka started to increase 2001 and then slightly declined in 2002 and 2003 years. In 2004 there was an increase in imports of black tea from Sri Lanka while in 2005, 2007 and 2008 experienced a decline in imports of black tea. The figure also shows that imports of black tea from Sri Lanka attained a peak in 2001 at approximately 1311.70 tons while India attained its peak also in 2001 at approximately 115.52 tons during the same period under review. 37

Figure 28: Imports volumes of black tea (whether or not flavoured) from Europe 25 Imports Quantity ('000 tons) 20 15 10 5 0 European Union 21.488 13.796 9.486 17.475 17.99 12.055 12.375 12.038 9.421 17.1 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 28 indicates volumes of black tea imports (whether or not flavoured) from Europe into South Africa between 2001 and 2010 period. The figure further indicates that the major import supplier of black tea from Europe into South Africa was the European Union with no competition from the other European regions. The graph also indicates that imports of black tea from European Union started to increase in 2001 and during the same year attained a peak at an import quantity of about 21 488 tons. The graph also indicates that there was a decline in imports of black tea from the European Union in 2002 and 2003 years due to low levels of supply from the region. In 2004 and 2005 imports of black tea from the European Union experienced increase in quantities of about 17.475 to 17.99 tons respectively. Between 2006 and 2008 there was slight decline in imports of black tea of between 12.375 and 12.038 tons respectively. In 2009 imports of black tea from the European Union further declined to about 19.421 tons while in 2010 there was a dramatic increase in imports of black tea from the European Union into South Africa at an import quantity of about 17 100 tons. 38

Figure 29: Imports volumes of black tea (whether or not flavoured) from Oceania Imports Quantity ('000 tons) 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Australia and New Zealand 0 0 0 0 0.055 0.813 0.005 0 0 0 Source: Quantec Easy Data 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period (Years) Figure 29 depicts volumes of black tea imports (whether or not flavoured) from Oceania into South Africa between 2001 and 2010 period. The figure further depicts that the major supplier of black tea from Oceania into South Africa was Australia and New Zealand during the period under scrutiny. The figure also depicts that between 2001 and 2004 and between 2008 and 2010 years, South Africa did not import black tea from Australia and New Zealand. Imports of black tea from Australia and New Zealand into South Africa started to increase in 2005 year and during the same period a peak was attained at approximately 0.813 tons. In 2007 imports of black tea from Australia and New Zealand into South Africa started to decline again to about 0.005 tons. 5. MARKET VALUE CHAIN TEA PRODUCERS TEA PACKERS/ BLENDERS TEA TRADER S RETAILERS CONSUMERS 6. PROCESSING There are fourteen tea packers in South Africa who blend and pack tea. All black tea brands are blends of teas sourced from various localities. Medium to superior quality teas contain higher proportions of better quality teas. With respect to the middle and upper end teas of Unilever and National Brands, which together hold 95% of the black tea market, these are blends of relatively high quality teas from 39

estates such as Ntingwe (KZN) and Magwa (Eastern Cape) and lower quality filler from the SADC countries. Despite serving the domestic high quality tea demand and exporting of the remainder of their output, South African black tea producers are unable to obtain a high enough market price to ensure a sustainable profit. 6.1 Tea Picking and Harvesting In most tea-producing countries, the labor-intensive method of picking, drying, crushing and fermenting tea has been used for centuries. The plucked leaves are collected in a basket or bag carried on the back of the plucker and when this is full it is taken to a collection point where the plucked leaves are weighed. It is then taken to the factory for processing, or "making", as tea manufacture is known in the tea trade. In Australia, the industry has been forced to mechanize because tea production, especially tea plucking (harvesting), is extremely labor intensive. As a result, tea is harvested all year round with the use of mechanical harvesters. A harvester moves in between rows of tea bushes and operates like a giant lawn mower cutting off only tender new growth. A harvester can collect up to 1,500 kilograms of green tea leaves at a time at a rate of 4,000 kilograms an hour. On average, 1,000 kilograms of green leaf are required to make just over 200 kilograms of black tea. The productivity of a tea plantation is measured by its yield of black tea per annum per hectare planted. A good yield is between 1,000 to 2,500 kilograms per hectare for hand picked plantations and 3,000 to 4,000 kilograms per hectare for mechanically harvested plantations. 6.2.1 At the Factory On arrival at the factory, the plucked leaves are weighed and assessed for quality before being put in withering bins attached to huge air vents. The moisture in the leaf evaporates in the warm air leaving the leaves flaccid. This process can take between 10 to 16 hours, depending on the wetness of the leaf. Some factories will gently hasten the process with the aid of warm air fans. The withered leaf is broken down by machine so that the natural juices, or enzymes, are released and on contact with the air will oxidize. The shredded leaves, called dhool, are then crushed and fed through the CTC (cut, tear and curl) or Rotovane machine. Its sharp teeth cut the leaf then tear it to release the juices that contain the tea flavor. The traditional process of manufacturing tea is known as Orthodox. It begins with withering freshly picked tea leaves which lose approximately half their moisture within 12 to 18 hours. At the end of this process, the leaf is flaccid. The flaccid leaves then enter a process known as "rolling" which ruptures the leaf cells to release enzymes, and then twists or curls the leaves. Thereafter, to stop fermentation, the leaves are exposed to hot air by passing it through a chamber with perforated moving trays in a process known as "firing". This chamber is known as the drier. This dries the leaves and turns it into a black color. After the fired leaf is cooled, it is sorted by sieves. The next process is known as "CTC" because the tea leaf is crushed, torn and curled. The process is similar to orthodox tea-making. In CTC manufacture, after rolling, the tea leaves are passed through a 40

machine, known as the CTC machine, where the leaves are cut or crushed to a greatly reduced size and most of their cells are ruptured. This intensifies the process of fermentation. 6.2.2 Fermenting The broken leaves are laid out either on trays or in troughs in a cool, humid atmosphere for up to two hours to ferment, or more correctly, oxidize. The trays are gently turned so often throughout the period until all the leaves turn a golden russet color and fermentation is complete. This remains one of the most challenging stages of tea processing. 6.2.3 Drying After fermentation, the leaves are dried or fired. This is done by passing the broken fermented leaves slowly through hot air chambers where all the moisture is evaporated and the leaves turns dark brown or black. It is at this stage that the aroma changes from that of a pungent plant to the familiar earthy tea perfume. The black tea is ejected from the hot chamber into chests. Next it is sorted into grades, or leaf particle sizes, by being passed through a series of wire mesh sifts of varying sizes into containers. It is then weighed and packed into chests or "bags" for loading onto pallets. The bigger curly leaves are used for loose-leaf packet tea while the finer particles are used for tea-bags. Factory tea-tasters will taste the finished "make" to ensure that no mistakes have been made during the manufacture or that the tea has not been tainted by anything within the factory. After each make the tea factory is washed from top to bottom to ensure that the character of the completed make does not transmit to the next make of tea. 41

Figure 22: Flow chart of Tea processing 42

7. MARKET INTELLIGENCE 7.1 Performance Analysis Table 3: South Africa s exports of Black tea & partly fermented tea (HS 090240) in 2010 Trade Indicators Importers Exported value 2010 (USD thousand) Share in South Africa's exports (%) Exported quantity 2010 (tons) Unit value (USD/unit) Exported growth in value between 2006-2010 (%, p.a.) Exported growth in quantity between 2006-2010 (%, p.a.) Exported growth in value between 2009-2010 (%, p.a.) Tariff (estimated) faced by South Africa (%) World 14297 100 4346 3290 13 5-6 Mozambique 4880 34.1 907 5380 32 8 20 0 Zambia 1734 12.1 378 4587 42 43 71 14.1 United Kingdom 1454 10.2 643 2261-9 -12-16 0 Zimbabwe 1015 7.1 311 3264 53 53-4 40 China 978 6.8 329 2973 253 260 49 15 Netherlands 694 4.9 383 1812-2 7-17 0 Pakistan 455 3.2 128 3555 4-16 -51 10 United States of America 340 2.4 151 2252 10 40-56 0 Germany 321 2.2 156 2058 4 19 18 0 Egypt 245 1.7 149 1644 9 10 965 2 Australia 212 1.5 31 6839 52 47 16 0 United Arab Emirates 210 1.5 135 1556 38 46-89 0 Russian Federation 168 1.2 91 1846-6 6.3 Malawi 165 1.2 45 3667 38 55-15 24 Source: ITC Trade Map 43

Table 3 shows the list of importing countries for black tea exported by South Africa to the world in 2010. The table further shows that during the period under review, South Africa exported a total of 4346 tons of black tea to the world. The table also shows that in world terms, South Africa s exports of black tea to Mozambique have increased both in value and quantity respectively by 32% and 8% between the period 2006 and 2010. The major export destinations for black tea originating from South Africa during 2010 were the Mozambique, Zambia, United Kingdom and Zimbabwe. During the year 2010, Mozambique share in South Africa s exports of black tea accounts 34.1% of the total black tea exports originating from South Africa followed by Zambia with 12.1%, United Kingdom with 10.2% and Zimbabwe with 7.1%. The South African black tea exports to the Mozambique increased by 32% in value and 8% in volume between 2006 and 2010. In terms of access to various international markets for South African black tea, countries such as Zimbabwe, Malawi, Ghana and China heavily protect their black tea industries with higher tariffs ranging from 15% ad valorem to 40% ad valorem. 44

Figure 23: Growth in demand for black tea exported from South Africa in 2010 Source: ITC Trade Map 45

Figure 23 shows growth in demand for black tea exported from South Africa to the world in 2010. The bubble graph further shows that in 2010, United Kingdom and United States were the largest import markets for black tea from South Africa during the period under review. However, South Africa s exports of black tea to the United Kingdom decreased in both value and quantity by 9% and 12% respectively. South Africa s black tea exports to China grew by 100% in a dynamic market, as compared to Zimbabwe s 50% annual growth between 2006 and 2010 period. South Africa s black tea exports to Ghana grew by 70% in a declining market, as compared to Malawi s 40% annual growth between 2006 and 2010 period. Mozambique s growth in demand for black tea exports from South Africa also grew up by 30% between 2006 and 2010. Furthermore, South Africa has increased its black tea exports to a declining market of Malawi by close to 40% over the past five years. 46

Figure 24: Prospects for market diversification of black tea exported by South Africa in 2010 Source: ITC Trade Map 47

Figure 24 indicates prospects for market diversification of black tea exported by South Africa to the world in 2010. The bubble graph further indicates that Zambia was the biggest market of black tea exports from South Africa in 2010. The bubble graph also indicates that if South Africa had to diversify its exports of black tea, small but attractive markets exist in Mozambique and China during the period under examination. Mozambique has increased its share in South Africa s black tea exports in 2010 at approximately 33%. Other small markets exist in Poland, Switzerland and Angola. 48

Table 4: List of supplying markets for black tea imported by South Africa in 2010 Trade Indicators Exporters Imported value 2010 (USD thousand) Share in South Africa's imports (%) Imported quantity 2010 (tons) Unit value (USD/unit) Imported growth in value between 2006-2010 (%, p.a.) Imported growth in quantity between 2006-2010 (%, p.a.) Imported growth in value between 2009-2010 (%, p.a.) Tariff (estimated) applied by South Africa (%) World 47189 100 27535 1714 13 7 16 Malawi 25690 54.4 17317 1484 18 10 7 0 United Republic of Tanzania 6078 12.9 2787 2181 10 1 3 0 Zimbabwe 5123 10.9 4472 1146 7 2 81 0 Sri Lanka 4572 9.7 1105 4138 11 1 43 24.5 Kenya 2350 5 747 3146 13 5 18 24.5 China 1013 2.1 297 3411 19 15 22 24.5 United Arab Emirates 404 0.9 73 5534-13 -14 15 24.5 United Kingdom 346 0.7 33 10485-8 2 23 6.1 India 335 0.7 77 4351 46 58 75 24.5 Argentina 329 0.7 301 1093 229 250 1395 24.5 Indonesia 318 0.7 120 2650 96 57-44 24.5 United States of America 90 0.2 21 4286 7 29 25 24.5 Chinese Taipei 83 0.2 15 5533-2 20 453 24.5 Germany 66 0.1 18 3667-8 -11-19 6.1 Hong Kong, China 63 0.1 12 5250-26 -32 37 24.5 Zambia 60 0.1 53 1132 0 Mozambique 49 0.1 39 1256 0 Netherlands 27 0.1 3 9000 20 8 23 6.1 Source: ITC Trade Map and Macmap 49

Table 4 above clearly indicates the list of supplying markets of black tea imported by South Africa in 2010. The table further depicts that South Africa is a net importer of black tea as it exported 4346 tons and imported approximately 27 535 tons during the period under scrutiny. In world terms imports of black tea into South Africa have increased by an average of 13% and 7% in value and volume terms between 2006 and 2010. During the period under review, black tea imports originated mainly from Malawi, Tanzania and Zimbabwe. Malawi commanded the greatest share of 54.4%, Tanzania commanded 12.9% and Zimbabwe commanded 10.9%. Other small markets for black tea imports are Kenya, China and United Kingdom. Of importance to note is that imports of black tea originating from Malawi have increased both in value and volumes terms by 18% and 10% between 2006 and 2010, while those originating from Tanzania have increased by 10% and 1% both in value and volume terms during the same period. Black tea imports originating from Zimbabwe have experienced a increase of 7% and 2% both in value and volume terms during the period between 2006 and 2010. The table further indicates that Malawi, Tanzania and Zimbabwe have duty-free access to the South African black tea market. An ad valorem tariff of 42.9% is applied to black tea originating from countries such as Sri Lanka, China and United Arab Emirates during the period under scrutiny. 50

Figure 25: Competitiveness of suppliers to South Africa for black tea imported by South Africa in 2010 Source: ITC Trade Map 51

Figure 25 shows competitiveness of suppliers to South Africa for black tea imported by South Africa in 2010. The bubble graph further shows that during the period under review, Kenya, Malawi, United Kingdom and Sri Lanka were the between 2006 and 2010, imports of black tea from countries such as biggest markets of black tea imported by South Africa in 2010. Argentina was the most competitive supplier of black tea to South Africa with 100% annual growth of South Africa s imports, followed by Indonesia with 98% annual growth of South Africa s imports during the same period. Conversely imports of black tea from India and China into South Africa declined substantially by 20% and 45% respectively, while these countries exports of black tea to the rest of the world experienced a slight increase. Imports of black tea originating from Kenya (the biggest supplier of black tea) to South Africa have increased both in value and volume terms by 13% and 5% between 2005 and 2010. 52

Figure 26: Prospects for diversification of suppliers of black tea imported by South Africa in 2010 Source: ITC Trade Map 53