Organisation: Food and Agriculture Organization of the United Nations (FAO), AGST
Prepared by Anne Plotto.
Edited by François Mazaud, Alexandra Röttger, Katja Steffel, Larissa D'Aquilio (HTML transfer)

CHAPTER XXVIII HIBISCUS: Post-Production Management for Improved Market Access for Herbs and Spices - Hibiscus

1 Introduction
1.1 Economic and social impact of Hibiscus
1.2 World trade;
   1.2.1 Global production
   1.2.2 Main consumption areas and trends
   1.2.3 Trends in international prices
   1.2.4 Assessment of future opportunities
1.3 Primary products
1.4 Secondary and derived product
1.5 Requirements for export and quality assurance

1. Introduction

Hibiscus sabdiriffa var. sabdariffa, commonly known as hibiscus or roselle, grows in many tropical and sub-tropical countries and is one of highest volume specialty botanical products in international commerce. Roselle is an annual herbaceous shrub of the Malvaceae family. The leaves are used extensively for animal fodder and fiber, but the swollen calyces are the plant part of commercial interest. As the flowers fall off, the bright red calyces swell. These are harvested by hand, dried, and sold whole into the herbal tea and beverage industry. The flavor is a combination of sweet and tart, similar to cranberry. In addition to international markets, there are extensive local and regional markets as well where it is processed into hot and cold herbal beverages, jellies, confectionaries and other products.

Figure 1: Hibiscus plants (Hibiscus sabdariffa)¹⁰

1.1 Economic and Social Impact of Hibiscus

Roselle is an ideal crop for developing countries if market demand is favorable. It is drought tolerant, relatively easy to grow, not suitable for mechanized harvest, labor intensive to process, and can be grown as part of multi-cropping system. In addition to fodder and fiber, it is used for other purposes as well. In China the seeds are used for their oil and the plant is used for medicinal properties, and in West Africa the leaves and powdered seeds are a local foodstuff. It has many other local names including sorrel, l'oiselle (French), jamaica (Spanish), bissap (Wolof/Senegal) and dâ (Bambara) among others. In North Africa and the Near East roselle is called karkade (Arabic), the name also used in the pharmaceutical and food flavoring trade in Europe.

Like many specialty botanical products, market information is not readily available for roselle. Prices and production are not tracked like a conventional agricultural commodity and there are few, if any, published market reports ¹.

Figure 2: Hibiscus flowers¹¹

1.2 World trade

1.2.1 Global Production

Demand has steadily increased for roselle over the past decades. Currently approximately 15,000 metric tons enter international trade each year.³ Many countries produce roselle but the quality markedly differs. China and Thailand are the largest producers and control much of the world supply. Thailand invested heavily in roselle production and their product is of superior quality, whereas China's product, with less stringent quality control practices, is less reliable and reputable. The world's best roselle comes from the Sudan, but the quantity is low and poor processing hampers quality. Virtually all of Sudan's production is exported to Germany. US importers also prefer the Sudanese product, but due to a trade embargo, importers there are forced to source this product through Germany at a considerable mark-up in price. As such, the Sudanese product is used much less in the US, and China and Thailand are the main suppliers. Mexico, Egypt, Senegal, Tanzania, Mali and Jamaica are also important suppliers but production is mostly used domestically.

1.2.2 Main consumption areas and trends

Germany and the United States are the main countries importing roselle. The biggest German buyer (as well as for the whole of Europe and the world) is Martin Bauer, one of the oldest and largest companies in the herb industry ². Roselle is used in numerous products there including herbal teas, herbal medicines, syrups and food coloring. Tables 1 and 2 list German imports of plants used in herbal teas, medicines and perfumes from 1993-1997. The data indicate an increase of 41% in volume and 72% in value over the 5 year time period. Specific information on roselle is not available, however importers estimate that that raw materials intended for the herbal tea industry account for roughly one quarter of the total volume.⁹

Table 1: German Imports of Plants and Plant Parts used in Herbal Teas, Medicines and Perfumes (t)

Table 2: German Imports of Plants and Plant Parts used in Herbal Teas, Medicines and Perfumes (ECU 000s)

Main importers in the United States are Celestial Seasonings and Lipton, both tea companies.³ Roselle is also used in ready to serve beverages made by Knudson, Whole Foods and other food and beverage manufacturers. Like Germany, there has been a steady increase in imported products used in the US herbal tea industry. The data in Tables 3 and 4 show that between 1994 and 1998 there was a 78% increase in volume and a 156% increase in value.

Table 3: US Imports of Plants and Plant Parts for Use in Herbal Teas (t)

Table 4: US Imports of Plants and Plant Parts for Use in Herbal Teas (US$'000s)

1.2.3 Trends in international prices

The market for roselle is notoriously volatile and prices can fluctuate dramatically. Due to the fact that it grows in many places, the market is easily oversupplied. When demand and price increase, more suppliers come online, causing prices to drop and supply to outstrip demand. This causes farmers to switch to other crops, which may induce a shortage the next year. This kind of fluctuation can happen over the course of a single year and is often related to climate and quality control problems.

The year 2003 is indicative. Prices are at an all time high of US$ 4000/t due to a decrease in quality supply from China and Thailand brought on by unseasonably rainy and humid weather. This prohibited the product from being sun dried, and much was lost to mold and rot.

In general prices range from 1200-3600 US$/t depending on quality, time of year, and amount purchased ³. Quality is a function of taste and color primarily, followed by cleanliness and other factors. The best quality is dark red in color with a sour-fruity taste.

The table below gives an indication of price ranges per metric ton over the past year for dried hibiscus⁹, as well as variations in the liquid product from country to country. Prices include freight and insurance costs (CIF).

Table 5: Price Ranges for Dried Hibiscus (CIF, US$ per ton), 3/97-4/98

1.2.4 Assessment of Future Opportunities

While China and Thailand control much of the world supply, there are opportunities to penetrate this market with better quality and reliable production. The humid climate in China and Thailand make production susceptible to the vagaries of climate, and importers often complain about the unreliable quality of the Chinese product. And even though the Sudanese cultivar ("El Rahad") is considered superior, there are significant quality control issues as well as obstacles created by the US trade embargo.

Roselle is easy to grow, but it is hard to produce high quality. Opportunities may exist for producers who can procure Sudanese seeds, or who can grow in geographical regions with the right climatic conditions (for example in drier areas of the tropics and subtropics), or who can grow off-season in order to provide buyers with year-round sourcing options.

The main constraints to production are many producers, volatile markets, and unorganized and poorly monitored growth, harvest and post-harvest handling operations. Product quality (especially taste) and seller reputation are key criteria for accessing international markets. New producers can rarely expect to sell anything but whole material, as once processed it almost impossible to clean. Due to its well-organized production system and sound reputation, Thailand is the only country that has been able to add value locally by cutting and sifting the calyces into tea bag size. At this time there is only a small demand for organic roselle, although this could change with time.

Local and regional markets may offer additional opportunities for expansion through product diversification and better market linkages. In many ways, these markets are preferable for the small farmer as they are less volatile and represent a more even playing field. Locally, regionally and internationally, the market for roselle will continue to remain strong.

1.3 Primary Products

Fresh hibiscus

Roselle fruits are best prepared for use by washing, then making an incision around the tough base of the calyx below the bracts to free and remove it with the seed capsule attached. The calyces are then ready for immediate use. They may be merely chopped and added to fruit salads. In Africa, they are frequently cooked as a side-dish eaten with pulverized peanuts. For stewing as sauce or filling for tarts or pies, they may be left intact, if tender, and cooked with sugar. The product will be almost indistinguishable from cranberry sauce in taste and appearance. For making a finer-textured sauce or juice, syrup, jam, marmalade, relish, chutney or jelly, the calyces may be first chopped in a wooden bowl or passed through a meat grinder. Or the calyces, after cooking, may be pressed through a sieve.

The young leaves and tender stems of roselle are eaten raw in salads or cooked as greens alone or in combination with other vegetables or with meat or fish. They are also added to curries as seasoning. The leaves of green roselle are marketed in large quantities in Dakar, West Africa. The juice of the boiled and strained leaves and stems is utilized for the same purposes as the juice extracted from the calyces. The herbage is apparently mostly utilized in the fresh state though it can be evaporated and compressed for export from the Philippines.

1.4 Secondary and derived product

Dried and frozen Hibiscus

The calyces are either frozen or dried in the sun or artificially for out-of-season supply, marketing or export. In Mexico today, the dried calyces are packed for sale in imprinted, plastic bags. It is calculated that 11 lbs (5 kg) of fresh calyces dehydrate to 1 lb (0.45 kg) of dried roselle, which is equal to the fresh for most culinary purposes. However, dried calyces as sold for "tea" do not yield high color and flavor if merely steeped; they must be boiled.

For retailing in Africa, dried roselle is pressed into solid cakes or balls. In Senegal, the dried calyces are squeezed into great balls weighing 175 lbs (80 kg) for shipment to Europe, where they are utilized to make extracts for flavoring liqueurs. In the United States, Food and Drug Administration regulations permit the use of the extracts in alcoholic beverages.

Juice and wine

Juice made by cooking a quantity of calyces with 1/4 water in ratio to amount of calyces, is used for cold drinks and may be frozen or bottled if not for immediate needs. In sterilized, sealed bottles or jars, it keeps well providing no sugar has been added. In the West Indies and tropical America, roselle is prized primarily for the cooling, lemonade-like beverage made from the calyces. In Egypt, roselle "ade" is consumed cold in the summer, hot in winter. In Jamaica, a traditional Christmas drink is prepared by putting roselle into an earthenware jug with a little grated ginger and sugar as desired, pouring boiling water over it and letting it stand overnight. The liquid is drained off and served with ice and often with a dash of rum. A similar spiced drink has long been made by natives of West Tropical Africa. The juice makes a very colorful wine.

Sauce or syrup

Roselle sauce or syrup may be added to puddings, cake frosting, gelatins and salad dressings, also poured over gingerbread, pancakes, waffles or ice cream. It is not necessary to add pectin to make a firm jelly. In fact, the calyces possess 3.19% pectin and, in Pakistan, roselle has been recommended as a source of pectin for the fruit-preserving industry.

Seeds

The seeds are somewhat bitter but have been ground to a meal for human food in Africa and have also been roasted as a substitute for coffee. The residue remaining after extraction of oil by parching, soaking in water containing ashes for 3 or 4 days, and then pounding the seeds, or by crushing and boiling them, is eaten in soup or blended with bean meal in patties. It is high in protein.

1.5 Requirements for export and quality assurance

Table 6: Common Guidelines and Specifications for Dried Hibiscus sabdariffa

Shipping and Customs

Germany and US regulations regard roselle as safe by virtue of it being dried. No special import permits are necessary and producers do not need to be registered

Contract Logistics

Most product is purchased in advance by mid-September. Buyers may request either FOB (freight on board), CIF or CNF quotes from suppliers. FOB refers to the cost at the shipping port, without freight or insurance costs. CIF includes freight and insurance costs to a specific port, and CNF includes freight but not insurance.

Accessing Export Markets

Quality and reputation are everything in the specialty botanicals marketplace. In order to gain market share and develop a trustworthy reputation, producers must be able to consistently product a reliable quantity and quality. It does not necessarily have to be the highest quality product, but it needs to be of a reliable quality, and of course, clean. (Buyers interested in receiving samples are listed in Appendix 2).

¹The information below is based mostly on interviews with buyers, traders and industry experts.

² German herbal products dominate the European market.

³ Lower prices are typically negotiated for larger orders.