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The tea industry has long been acknowledged as a major source of livelihood in Sri Lanka with regards as the biggest provider of employment, export earnings and government revenue. Kenya, India, China, Vietnam, Malawi and Indonesia are emerging as competitors for Sri Lankan tea industry in the international market. Ceylon tea still has golden opportunity to compete in the global tea market with respect to high quality tea products. Factory model cultivation is initiated to encourage tea factories to control their tea input quality, in turn improves tea output quality. Based on this premise, this study aims to identify the impact of factory model cultivation on tea input and output quality of tea factories in Sri Lanka. An empirical investigation was conducted on a sample comprising 74 tea factories in Ruhunu region, Sri Lanka. A personally-administered structured questionnaire was used to collect data. The independent sample t-test and the multiple regression analysis were employed to test the hypotheses. The findings offer useful insights not only in terms of understanding the link between tea input quality and output quality of tea production, but also the impact of factory model plantation on controllability of the external suppliers input quality. The study has extended the understanding of the extent of applicability of the factory model cultivation to upgrade input and output quality of tea as well as controlling abilities towards input quality of external suppliers. JEL: O13, Q18, Q15
The tea industry has long been acknowledged as a major source of livelihood in Sri Lanka with regards as the biggest provider of employment, export earnings and government revenue. Kenya, India, China, Vietnam, Malawi and Indonesia are emerging as competitors for Sri Lankan tea industry in the international market. Ceylon tea still has golden opportunity to compete in the global tea market with respect to high quality tea products. Factory model cultivation is initiated to encourage tea factories to control their tea input quality, in turn improves tea output quality. Based on this premise, this study aims to identify the impact of factory model cultivation on tea input and output quality of tea factories in Sri Lanka. An empirical investigation was conducted on a sample comprising 74 tea factories in Ruhunu region, Sri Lanka. A personally-administered structured questionnaire was used to collect data. The independent sample t-test and the multiple regression analysis were employed to test the hypotheses. The findings offer useful insights not only in terms of understanding the link between tea input quality and output quality of tea production, but also the impact of factory model plantation on controllability of the external suppliers input quality. The study has extended the understanding of the extent of applicability of the factory model cultivation to upgrade input and output quality of tea as well as controlling abilities towards input quality of external suppliers.
In the slowly growing global tea market Lanka has not performed as well relative to its competitors in recent times as it did in the past. Sri Lanka needs to improve the efficiency of its industry to remain competitive in world tea market. Improving efficiency and international competitiveness in the Sri Lanka tea industry requires that the high costs of production, associated with low productivity, be reduced. Tea producers have the main responsibility for this. However, for improving efficiency and achieving international competitiveness, it is necessary that government policies for the tea industry are consistent with correction of market failures. This is not the case at present, with government policies for the tea industry directed partly to correcting market failures but more to achieving political goals.
Sustainable Production and Consumption
Economic, social and environmental impacts and overall sustainability of the tea sector in Sri Lanka2017 •
2014 •
Tea is the most sought after non-alcoholic beverage in the world. Yet for India, tea is a culture. India is the largest producer, consumer and exporter of tea volume wise. Assam contributes to half of the total tea exports of India. Tea forms an integral part of the line-line of India in general and Assam in particular. The present study is an attempt to explore the procedures following during processing of tea in the factories. The primary focus in understanding the procedures in the factories have been through the quality considerations during processing at the factories. The study has been conducted in the five districts of the Upper Brahmaputra valley in Assam. The study has brought into light varied aspects demanding immediate attention of the Tea regulatory bodies of the industry and the masses as well.
2020 •
Sri Lanka is the third largest tea exporter in the world but nearly 60% of its exports are comprised of bulk tea. Bulk tea secures the lowest prices in world tea market. Sri Lanka earned an average value of US$4.83 per kilogram from 2014 to 2018 for its tea exports, compared to US$24.24 per kilogram in Japan, a highly innovative tea-producing country. The objective of this study is to examine the root causes of product innovation in Sri Lanka, as compared to Japan, by conducting a historical analysis of literature followed by field surveys in Sri Lanka and Ureshino, Japan. About 98% of the tea produced in Sri Lanka is black tea and has mainly focused on incremental innovations in blending, flavoring and packaging than radical innovations. Japan produces a large number of innovative beverage and non-beverage products from tea. Having a large number of small and medium processing factories (4698), Japan’s product innovation capabilities are mainly attributed to firm-level factors and ...
Sustainable Agricultural Value Chain [Working Title]
Tea Value Chains Viability in Limpopo Province of South Africa: A Cost–benefit Analysis2022 •
The research was conducted to investigate the production of value-added tea as part of the resuscitation of Tshivhase-Mukumbani Tea Estate. Data were mainly obtained from records kept at the Tshivhase-Mukumbani Tea Estate, through a review of literature and interviews of the selected respondents. Evaluation of economic viability of the value-adding initiative was based on Net Present Value (NPC) and the Benefit-Cost Ratio (BCR) calculated from time-series data obtained for the period 2005–2012. The quantity of value-added tea produced varied across years, geographical locations, and seasons, with production higher for wetter seasons. The NPV was consistently negative, while the BCR was below unity throughout the study period, implying that the value-adding initiative was economically not feasible. Initiatives for achieving economic sustainability of the value addition were (1) Improve the marketing of the made tea brand Midi Tea as organic and longer shelf life. (2) Good labor contr...
2019 •
Total Quality management is an important tool in the management of organizations in the world. The purpose of this study was to establish the application of TQM strategies in management of performance of tea factories in Kisii County, Kenya. The objectives of the study were: to determine how application of quality leadership influences the performance of tea factories in Kisii County, to find out how application of strategic planning influences the performance of tea factories in Kisii County, to establish how application of customer and market fours influences the performance of tea factories in Kisii County, and to establish how application of supplier focus influences the performance of tea factories in Kisii county. The study employed descriptive survey design. The area of study was Kisii County. The target population of this study included top managers and senior supervisors of Kiamokama, Rianyamwamu, Ogembo, Eberege, Nyamache, and Itumbe tea factories. A total of 96 respondent...
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