Orthodox Tea: Value Chain Analysis From The Perspective Of Certification In Ilam District Of Nepal

Pabitra Mishra (), Rishi Ram Kattel, Shiva Chandra Dhakal and Padam Lal Bhandari
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Pabitra Mishra: Agriculture and Forestry University, Rampur, Chitwan, Nepal
Rishi Ram Kattel: Agriculture and Forestry University, Rampur, Chitwan, Nepal
Shiva Chandra Dhakal: Agriculture and Forestry University, Rampur, Chitwan, Nepal
Padam Lal Bhandari: Agriculture and Forestry University, Rampur, Chitwan, Nepal

Food & Agribusiness Management (FABM), 2020, vol. 1, issue 2, 63-67

Abstract: This study was conducted in the Ilam district of Nepal to identify the value chain actors of certified orthodox tea and estimating the share value of respective actors along the chain. 160 households (80 certified and 80 non-certified tea growers) from Ilam, Suryodaya, Dewmai Municipalities, and Phakphokthum Rural Municipality were selected by using simple random technique. Primary data were collected from the pre-tested semi-structural interview schedule by using KoBoToolbox, direct observation, focus group discussions, key informant interviews, and rapid market appraisal whereas secondary data were collected from journals, articles, bulletins, and reports from different organizations. This study revealed that the certified tea growers were small farmers with the total tea cultivation area 0.64 ha. The share of orthodox tea on the total annual income of HHs was 31.98%. Certified orthodox tea growers can sell their products to contracted tea processing factories with a guaranteed market. The return from certified green tea leaves was higher (NRs.70.74/kg) as compared to the non-certified green tea leaves (NRs. 41.87/kg). But yields were found relatively low among the certified orthodox growers due to which high price premium obtained for the certified orthodox tea barely compensated for the yield difference. In addition to production, processing and the value addition are the most profitable, but this part of the value chain is done by a limited number of private tea processing factories. The findings of this study indicate restructuring as well as changing modes of production to increase the yield, capturing value-addition in the orthodox tea supply chain, and intervention to support processing facilities and infrastructure, and strengthening of national brand can enhance return to actors.

Keywords: Value chain; Orthodox tea; certification; export; Income (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zib:zbfabm:v:1:y:2020:i:2:p:63-67

DOI: 10.26480/fabm.02.2020.63.67

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