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RIMAIAgribusiness SchoolMy land

Module 12 · M18 Industrial and Beverage Crops

Tea and Coffee

Can tea, coffee or the herbal teas earn a premium on my land, and can I reach a processor and a market that pays for origin?

A sugar mill beside cane, vineyard rows and tea bushesMILL

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Beverage crops are grown in specific climates and sold on quality and origin. Coffee and black tea need cool, high-altitude, well-watered land. Rooibos and honeybush grow only in South Africa’s fynbos regions. This Major teaches the student to judge whether the land fits, and how origin and processing turn a commodity into a premium.

Tea and Coffee: the product, the five stages of the business, the unit it is sold by and where it is producedTea and Coffee: how the business runsSold bykg of green leaf or green coffee1Plant2Grow bushes3Pluck green leaf4Factory5Made tea or green coffeeZAZWZMBWNAProduces commerciallyImports most needsZA South Africa, ZW Zimbabwe, ZM Zambia, BW Botswana, NA Namibia

U1. The industry and where it grows

Article 116 explains that rooibos grows commercially only in South Africa’s Cederberg, with about eight processors handling around 90% of supply. Article 118 describes honeybush moving from wild harvesting to farming. Article 119 records South African black tea at roughly 4 to 7 million kilograms a year, a minnow against East Africa. Article 123 notes that South Africa is barely a coffee producer.

Zimbabwe’s Eastern Highlands grow tea and coffee, including estates in the Chipinge area. Zambia has a coffee sector in its northern and central provinces and tea on a small scale. Botswana and Namibia lack the climate for tea and coffee. Zimbabwe's tea exports earned US$12.66 million in 2025, and its coffee crop is about 350 tonnes at roughly US$6 a kilogram. Zambia's Kawambwa estate makes about 660,000 kilograms of processed tea a year, and the country exported about 2,000 tonnes of green coffee in 2019. Botswana imported US$7.38 million of tea and Namibia US$9.49 million of coffee in 2023.

U2. Market structure and prices

Black tea is sold at auctions, notably Mombasa for East and Central Africa, and through direct contracts, priced per kilogram of made tea. Coffee is priced against world arabica prices with premiums for quality and origin, sold through exporters, auctions or directly to roasters. Specialty coffee scored on quality can earn several times the commodity price.

U3. Imports and exports

Zimbabwe and Zambia export tea and coffee. South Africa imports most of its black tea and coffee and exports rooibos and honeybush worldwide. Article 117 explains how South Africa protected the rooibos name against biopiracy, securing it as a geographical indication.

U4. The value chain and who buys

Tea and Coffee value chain: stages from inputs to the consumer, who operates each, where the margin is taken, where a small farm enters and who buysTea and Coffee: the value chain and who buysFollow the product left to right. Ochre shows where most of the margin is taken. Green shows where a small farm can enter.1GrowGreen leaf orcoffee cherry2FactoryMakes tea;pulps and driescoffee3ExportMade tea andgreen beansMOST OF THE MARGIN4RoastRoasters andbrands5RetailShops and cafes6ConsumerTea and coffeedrinkersYour entry pointGrow for a shared factory; roast and brand locally to keep more of the margin.Buyers you can reachTea factories, coffee processors and local roasters.

For tea, growers sell green leaf to a factory within hours of plucking, and the factory makes and sells the tea. Article 120 presents Kenya’s smallholder tea model as the template for organising small growers around shared factories. For coffee, growers pick cherries, which are processed by pulping and drying into green beans for export or roasting. Roasting and branding locally capture the highest margins.

U5. Market access and barriers

Climate is the decisive barrier: tea and coffee need altitude, cool temperatures and high rainfall or irrigation. Specialty coffee buyers require traceability, quality scoring and often certification. Geographical indications protect rooibos and honeybush names.

U6. The entry route

Real minimum capital. Plants, land preparation, shade and irrigation, then three to four years before coffee bears and longer for tea to reach full production. Processing equipment for coffee or access to a tea factory.

Input choke points. Suitable land at altitude, quality planting material, and a factory or processor within reach.

Offtake options. Tea factories and estates, coffee exporters, processors, local roasters and specialty buyers.

Who to call. In Zimbabwe, Eastern Highlands tea and coffee estates and their outgrower schemes. In Zambia, coffee growers and exporters. In South Africa, rooibos and honeybush processors and their councils.

The verdict for a small holding. Tea and coffee are open only to land in the right highland climate, best entered as an outgrower to an estate or factory. Specialty coffee with local roasting and an origin brand is the highest-value route for those who have the land.

The South African benchmark and your market

Market Position Latest data-layer reference
South Africa Rooibos and honeybush monopoly; small black tea Black tea about 4-7 million kg a year (structural baseline)
Zimbabwe Eastern Highlands tea and coffee Tea export earnings: 12.66 USD million (2025), 3 figures (LIB-C-ZW-TeaCoffee)
Zambia Coffee in the north Processed tea, Kawambwa Tea Estate: 660,000 kg/yr (2025), 2 figures (LIB-C-ZM-TeaCoffee)
Botswana Climate unsuited Tea imports: 7.38 USD million (2023), 1 figure (LIB-C-BW-TeaCoffee)
Namibia Climate unsuited Coffee imports: 9.49 USD million (2023), 1 figure (LIB-C-NA-TeaCoffee)

Apply it to your land

Check the land’s altitude, temperature and rainfall against the crop. If it fits, cost establishment in T-M18-02 Establishment Cost, estimate outgrower income in T-M18-03 Contract Grower Income, test processing or roasting in T-M18-04 Processing Margin, compare prices in T-M18-05 and enter the result in T-M18-01 Enterprise Budget.

Dictionary terms introduced

Code Term Plain meaning
D-green-leaf Green leaf Freshly plucked tea leaf delivered to a factory
D-made-tea Made tea Tea after processing in the factory
D-green-coffee Green coffee Dried, unroasted coffee beans
D-specialty-coffee Specialty coffee High-quality coffee scored and sold at a premium
D-geographical-indication Geographical indication A protected name tying a product to its place of origin

Calculators: T-M18-01 Enterprise Budget, T-M18-02 Establishment Cost, T-M18-03 Contract Grower Income, T-M18-04 Processing Margin, T-M18-05 Market Price Comparator.

Library sources: LIB-A116, LIB-A117, LIB-A118, LIB-A119, LIB-A120, LIB-A123; LIB-P-Rooibos, LIB-P-Honeybush, LIB-P-Honeybush-IP, LIB-P-BlackTea; LIB-C-ZW-TeaCoffee, LIB-C-ZM-TeaCoffee, LIB-C-BW-TeaCoffee, LIB-C-NA-TeaCoffee.