Case Studies presentations Rooibos Estelle Biénabe, Dirk Troskie

1. SINER-GI project Budapest Regional meeting 24 - 26 October 2007 Case Studies presentations Rooibos Estelle Biénabe, Dirk Troskie

2. Budapest, Regional Meeting, 24-26 Oct. 2007

3. 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 Budapest, Regional Meeting, 24-26 Oct. 2007

4. 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 Budapest, Regional Meeting, 24-26 Oct. 2007

5. 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 Budapest, Regional Meeting, 24-26 Oct. 2007

6. 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) Budapest, Regional Meeting, 24-26 Oct. 2007

7. Impacts of the GI system / protection scheme on sustainability / economic effects • Which GI recognition and protection? 4 scenarii 1. 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 ) Budapest, Regional Meeting, 24-26 Oct. 2007

8. Impacts of the GI system / protection scheme on sustainability / economic effects Budapest, Regional Meeting, 24-26 Oct. 2007

9. Impacts of the GI system / protection scheme on sustainability / social effects Budapest, Regional Meeting, 24-26 Oct. 2007

10. Impacts of the GI system / protection scheme on sustainability / environmental effects • Endemic species adapted to local conditions but current huge threat due to largely uncontrolled expansion Budapest, Regional Meeting, 24-26 Oct. 2007

11. 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 Budapest, Regional Meeting, 24-26 Oct. 2007

12. 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) Budapest, Regional Meeting, 24-26 Oct. 2007

13. 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? Budapest, Regional Meeting, 24-26 Oct. 2007