Buchu Oil Producer – Market & Harvest Report
Buchu thrives in the Western Cape's Mediterranean climate, yet South Africa's water scarcity limits its growth, with rainfall playing a crucial role in yields.
The Western Cape where Buchu is endemic, is characterised as having a Mediterranean climate with wet winters and warm, dry summers. South Africa in general is classified an arid or water scares region with significant water limitation in the agricultural sector.
Buchu is largely not considered a primary crop by most farmers in the region. As a result, it does not receive the same input and resource allocation as primary crops, with water allocation for irrigation being the most critical. Water is usually reserved for perishable and higher income-generating crops. Therefore, adequate winter rainfall is crucial for replenishing groundwater, which supports regrowth and plant material yields.
The drought conditions from 2015 to 2019 had a negative impact on the Buchu industry, further compounded by wildfires that destroyed thousands of hectares of plantations and veld. With a return to normal rainfall levels, the 2023-24 harvest season for Buchu have seen once again marginal improvements. The recovery has further allowed for less reliance on wild harvested Buchu to supplement industry demands.
2024 so far has seen above average rainfall, however the month of July has been an outlier with record breaking levels of rainfall. The pattern of extreme weather conditions has been a reoccurring theme over the last couple of decades.
Demand for Buchu oil manufacturing in the flavour and fragrance industry is growing again following a period of drought constraints and reformulation. Competition for plant material from the dried Buchu leaf (Herbal tea market) remains stable, although this market is expected to continue to grow which remains a concern for Buchu oil producers which are competing for the same resources. The forecast for the Buchu oil market remains stable after receding from its peak in 2021-22. Price indications in the market is around USD 850/kg.
In conclusion, while the Western Cape’s Mediterranean climate provides a favorable environment for Buchu, South Africa’s overall water scarcity poses significant challenges to its cultivation. Puris, as a Buchu oil producer, understand that the prioritization of water for higher-income crops has historically limited Buchu’s growth, making it vulnerable to drought and other extreme weather conditions. However, recent improvements in rainfall have allowed for a gradual recovery in the Buchu industry, supporting both regrowth and yield. As demand for Buchu oil in the flavor and fragrance industry continues to rise, competition for resources remains a concern for Buchu oil producers. Despite these challenges, the Buchu oil market shows signs of stability, with prices holding steady around USD 850/kg. Continued vigilance and adaptation to changing weather patterns will be essential for the sustained growth of this valuable crop.