Surreal illustration of Rooibos tea farm overshadowed by corporate buildings.

Is Market-Based Sustainability a Mirage? Unpacking the Rooibos Tea Paradox

Lena Kashyap in Business & Economy August 2025 • 4 min read.

"Dive into the complexities of sustainable trade with the story of South African Rooibos tea, revealing the challenges and promises for small-scale farmers in a global market."

In today's world, consumers are increasingly demanding goods that meet high social and environmental standards, sparking a “certification revolution” across global markets. Sustainable trade systems, once a niche market, are now partnering with major corporations, offering a potential counterpoint to the often destructive practices of global value chains. From Fairtrade to corporate social responsibility (CSR) initiatives, these systems aim to reshape commerce, particularly in the Global South.

However, navigating these certifications requires significant resources and skills, raising questions about power dynamics and the true effectiveness of these practices. Are these systems genuinely empowering marginalized producers, or simply creating new forms of dependency?

South Africa’s Rooibos tea industry provides a compelling case study. In a post-apartheid context marked by stark racial disparities, this industry grapples with the legacy of exploitation and exclusion. By examining various market-based approaches to sustainability in the Rooibos sector, we can gain valuable insights into the challenges and promises of creating a truly equitable and sustainable trade system.

Why Are Sustainable Initiatives Failing Small Rooibos Farmers?

Surreal illustration of Rooibos tea farm overshadowed by corporate buildings.

Several initiatives have aimed to benefit or improve market access for Rooibos farmers through socially and environmentally responsible practices. These include Fairtrade packaging, corporate community tea campaigns, organic Rooibos seedling research, biodiversity labeling, and shared leadership programs. While each approach employed different development strategies, none have achieved sustainable outcomes.

These efforts highlight the challenges and the need for more holistic approaches. Third-party and corporate efforts have exposed producers to risk and dependency, while industry actions have fallen short of their intended goals. Shared leadership projects have also struggled to overcome material barriers to participation.

High Certification Costs: Small-scale farmers often struggle to afford the costs associated with organic and Fairtrade certifications.
Limited Support Services: Insufficient training and resources leave farmers unable to meet stringent standards.
Lack of Inclusivity: Marginalized groups are often excluded from planning and governance processes.

The Rooibos industry's history of racial exploitation and exclusion continues to shape present-day challenges, with complex barriers reinforcing disparities and hindering efforts to meet sustainability standards. Without addressing these underlying issues, market-based solutions risk perpetuating inequality.

The Path Forward: Building a Truly Sustainable Rooibos Industry

Despite the challenges, the Rooibos story offers hope. Sustainable trade systems provide marginalized groups a platform to demand more equitable arrangements. By shifting from a hierarchical to a relational power orientation, reducing certification costs, extending support services, and ensuring inclusivity in planning and governance, we can unlock the potential of market-based sustainability.

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Everything You Need To Know

What are the main challenges faced by small-scale Rooibos tea farmers in their pursuit of sustainability?

Small-scale Rooibos farmers encounter several obstacles in their pursuit of sustainability. These include the High Certification Costs associated with obtaining certifications like organic and Fairtrade, which they often struggle to afford. Additionally, there's Limited Support Services, such as insufficient training and resources, which hinder their ability to meet stringent standards. Furthermore, the Lack of Inclusivity in planning and governance processes excludes marginalized groups, reinforcing existing disparities and hindering efforts to meet sustainability standards. These challenges prevent farmers from benefiting fully from market-based sustainability initiatives.

How do sustainability standards, such as Fairtrade and CSR, impact the South African Rooibos tea industry?

Sustainability standards such as Fairtrade and corporate social responsibility (CSR) initiatives aim to reshape commerce, particularly in the Global South, including the South African Rooibos tea industry. These standards are designed to offer a potential counterpoint to destructive practices within global value chains by promoting goods that meet high social and environmental standards. However, navigating these certifications requires significant resources, and questions arise about the effectiveness of these practices in empowering marginalized producers versus creating new forms of dependency. The Rooibos industry serves as a case study, where the legacy of exploitation and exclusion complicates efforts to achieve equitable and sustainable trade.

Why have various market-based sustainability initiatives failed to achieve sustainable outcomes for Rooibos tea farmers?

Several initiatives, including Fairtrade packaging, corporate community tea campaigns, organic Rooibos seedling research, biodiversity labeling, and shared leadership programs, have fallen short of achieving sustainable outcomes for Rooibos farmers. These efforts exposed producers to risks and dependency due to third-party and corporate actions, while industry actions did not reach their intended goals. Shared leadership projects struggled to overcome material barriers to participation. Furthermore, underlying issues such as the Rooibos industry's history of racial exploitation and exclusion continue to shape present-day challenges, reinforcing disparities and hindering efforts to meet sustainability standards.

What steps are necessary to build a truly sustainable Rooibos tea industry?

To build a truly sustainable Rooibos tea industry, several steps are essential. The focus should be on shifting from a hierarchical to a relational power orientation to ensure equitable arrangements. Additionally, there's a need to reduce Certification Costs, making it more accessible for small-scale farmers. Extending Support Services, providing adequate training and resources, is critical to help farmers meet sustainability standards. Lastly, it is vital to ensure Inclusivity in planning and governance, enabling marginalized groups to participate and benefit from the initiatives. By addressing these factors, the potential of market-based sustainability can be unlocked.

How does the history of the Rooibos tea industry influence the challenges faced by farmers today?

The history of the Rooibos tea industry, marked by racial exploitation and exclusion, profoundly influences the challenges farmers face today. This historical context has created complex barriers that reinforce existing disparities, hindering efforts to meet sustainability standards. The legacy of exploitation impacts various aspects, from access to resources and market opportunities to participation in decision-making processes. Therefore, addressing these historical issues is crucial to create a truly equitable and sustainable trade system in the Rooibos sector. Without addressing the past, market-based solutions risk perpetuating inequality and failing to deliver meaningful benefits to marginalized producers.