honey bush tea - Department of Agriculture: Western Cape

one (establishment) up to year three. This is based on assumption that the yield
is lower in year one and starts increasing in year two and in full capacity and
constant from year three to year five. Thus, budgets for other years will not be of
any significant difference. Also, costs are higher in year one, decrease in year
two and stable from year three onwards.
Assumed to yield between 0 and 7 tons per hectare depending on the year, area
and species. For subternata, if grown under conducive conditions, more yield
could be expected. Also, in certain production areas, no output could be
expected in the first year of establishment. This could also depend on the
species used as this is highly expected of intermedia although not discussed in
this study.
The current market price that farmers receive is R2.50 per kg of dry honeybush
depending on the area, as Haarlem small scale producers are assumed to
receive a price of R2.00 per kg
Costs are considered at current prices
Mortality rate of plants is assumed at 25%, 30% and 40% depending on the
species and area
Market related interest rates assumed are not less that prime plus two
Marketing and distribution costs are for the account of secondary intermediaries
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