Global Production and Prospective of Green Tea

Mr. P.V. Anil, Dr. M.P. Mahesh

Research Scholar, Department of Commerce, Annamalai University, Annamalai Nagar-608002

Associate Professor in Commerce, Annamalai University, Annamalai Nagar-608002

*Corresponding Author E-mail: anil1830@gmail.com,anilpokkat@gmail.com

ABSTRACT:

All teas are made from the leaves of the Camellia sinensis bush. Green tea is no exception. However green tea’s leaf isn’t withered or broken at all. The tea leaves are steamed almost immediately after they are picked to avoid oxidation. They are rolled and dried after steaming. This process is to prevent green tea from fermenting. Drinking green tea has become an important part of people’s daily life in those nations. Recently, green tea has become more popular in the West because of its outstanding health merits. There are many varieties of green tea created in the regions where they are grown. These varieties can differ substantially in taste, grade, quality and price due to different climates, soils, growing conditions, horticulture, production processing and harvesting time. Therefore almost everyone is sure to find his or her favorite green tea brand. Over the last few decades green tea has been subjected to many scientific and medical studies to determine the extent of its long-purported health benefits. More and more evidences suggest that regular and consistent green tea drinking has numerous health benefits. These benefits include (not limited to) to lower the chances of getting heart diseases and stroke, prevent and help cure certain types of cancer (breast cancer, skin cancer) help raise metabolism to aid in weight loss, protect skin, face and hair, strengthen bones and joints, and fight cold and flu.

KEY WORDS:

INTRODUCTION:

Green tea originated from South-Western China and has been used as a beverage and medicine in China since 2700 BC. Britain imported Green tea from China for over 200 years. About 1830 AD, the British discovered native black tea plants in their colony in India, where cheap labour allowed large scale plantations. Its proximity to Europe by sea also made it cheaper to produce than buying green tea from China. The British therefore changed from drinking green tea to black tea for these reasons. They have since controlled the world marketing of black tea. China is the main producer and consumer of green tea. The most famous green tea is the expensive “Dragon Well” tea, grown in the hillsides of Hanghzou. China has been producing more than 500 M kg of green tea since 2001, which increased to 1046 M kg in 2012.

Green tea is getting increasingly more attention in the world markets because of its health benefits. Green tea may have the ability to help prevent cancers of the skin, esophagus, stomach, colon, pancreas, lung, bladder, prostate, and breast. Medical interest in green tea is centred on chemicals known as polypheones (poly-fenols), which have antioxidant properties. Consumption of green tea is associated with a lower risk of diseases that cause functional disability such as “stroke, cognitive impairment, and osteoporosis” in the elder. It contains more vitamins and minerals than black tea and produces many effects that can fight infection and disease in human bodies. World green tea production, consumption and exports are mainly dominated by China followed by Japan, Indonesia, Vietnam, India, Bangladesh, and Sri Lanka.

Green Tea Process:

The process for making green tea is the shortest. Withering is done first, but this step might be omitted. Rolling the leaves to break the membranes for oxidation is skipped, hence the oxidation process is also skipped. After withering the leaves are pan fired or fired to prevent oxidation from occurring. The last step is to roll the leaves and dry them one last time for its final shape. The green tea leaves usually remain green. The tea is now ready for packing and market.

World Production of Green Tea:

Worldwide there is increasing focus on the health benefits of green tea. Consumer demand has led to the range of products available within Australia, which contain green tea as an ingredient to rapidly expand. Tea used in the production of different types of value added products may only receive minimal processing such as the initial steaming to prevent fermentation of the tea enzymes which cause blackening of the leaf material. After steaming the green tea can be further processed for the traditional green tea or it can be dried for use in other products. Products that are available which contain green tea range from sweets, cakes and biscuits to ready to drink canned tea, nutritional supplements and a wide range of cosmetic products. The publication of media and scientific reports, which detail the benefits of green tea, reflect the consumer interest in alternative health foods.

World production of green tea has been growing consistently and increased from 167.06 M kg in 1978 to 667.61 M kg in 1999. The share of green tea in total tea produced has been consistently increasing and Japan dominated with more than 60 per cent share. From September 2002-03 onwards, China started having a much larger share. However, Japanese production of green tea has declined so much so that it has only 10.23 per cent share in comparison with China which produces nearly 75 per cent of the world production of green tea. Vietnam has been also increasing production of green tea and of late it has a stable 4 per cent share. The share of green tea produced in total tea has been consistently increasing from 9.35 per cent in 1978 to 23.45 per cent in 1999. However, green tea has less than 10 per cent

World Green Tea Production (Qtyin percentage)Source:

Various issues of ITC Bulletin, London share in world exports of tea and that share has been fluctuating. More and more green tea production is retained in producing countries for domestic consumption.

It is observed from the above table that the behavior of each price using the Mean, Standard Deviation and the Coefficient of Variation. In terms of mean China is leading followed by Japan, an indication that prices of tea is high and the tea is of high quality in these two main World productions of green tea. All prices except China. In terms of the Standard Deviation (SD) and Coefficient of Variation (CV), China market ranks number one. Similarly Japan is number two in SD and CV. China market is leading in terms of price volatility. The weakness of using the above summary statistics in the analysis is that they do not incorporate the time series properties of the underlying price series.

Table 1

Years	China	Japan	Indonesia	Vietnam	India	Others
1990-91	64.32	17.39	6.58	4.60	1.59	5.52
1991-92	66.46	16.35	6.13	4.54	1.82	4.70
1992-93	69.04	16.36	6.22	4.48	1.67	2.23
1993-94	71.61	15.68	5.62	4.40	1.27	1.42
1994-95	71.67	15.35	5.66	5.00	1.25	1.07
1995-96	72.28	14.81	5.76	5.18	1.43	0.54
1996-97	71.89	15.10	6.14	5.04	1.41	0.42
1997-98	72.41	14.91	5.88	5.07	1.35	0.38
1998-99	74.61	12.83	5.90	4.82	1.34	0.50
1999-00	74.44	13.26	5.54	5.09	1.23	0.44
2000-01	76.33	12.11	5.45	4.53	1.18	0.37
2001-02	76.09	12.55	5.46	4.32	1.21	0.47
2002-03	77.18	11.26	5.55	4.26	1.28	0.39
2003-04	78.68	10.41	5.42	3.90	1.20	0.41
2004-05	78.45	11.05	5.27	3.71	1.11	0.63
2005-06	77.36	11.36	5.40	4.08	1.17	0.58
2006-07	78.00	10.87	5.33	4.00	1.22	0.49
2007-08	78.31	10.72	5.25	4.01	1.22	0.56
2008-09	78.53	10.53	5.22	4.03	1.13	0.60
2009-10	78.65	10.29	5.23	4.04	1.19	0.60
2010-11	78.83	10.16	5.19	4.05	1.17	0.54
2011-12	78.90	10.23	5.17	4.04	1.12	0.58
Total	1644.04	283.58	123.37	97.19	28.56	23.44
Average	74.73	12.89	5.61	4.42	1.30
Rank	I	II	III	IV	V
SD	4.26	2.41	0.39	0.45	0.19
CV	5.70	18.68	6.93	10.17	14.28

World Green Tea Exports:

Green tea is a prospering industry in many countries around the world including developed and non-developed countries. Importing or exporting tea products to different countries requires some understanding of import / export restrictions and an understanding of quarantine regulations. Data on global green tea export in the past decade show some dramatic changes in the fortunes of China as the major green tea exporter in the world. China was the major green tea exporting country in the world 2001-02, followed by Vietnam, Indonesia, and India in the second, third and fourth positions respectively. Another significant observation is that there has been a drastic reduction in the volume of green tea export from India since 2007-08.

It is also observed from the above table that the behavior of each price using the Mean, Standard Deviation and the Coefficient of Variation. In terms of mean China is leading followed by Japan, an indication that prices of tea is high and the tea is of high quality in these two main world exporters of tea. All prices except China, In terms of the Standard Deviation (SD) and Coefficient of Variation (CV), China market ranks number one. Similarly Japan is number two in SD and CV. China market is leading in terms of price volatility. The weakness of using the above summary statistics in the analysis is that they do not incorporate the time series properties of the underlying price series.

World Imports of Green Tea:

Prior to 1990 Pakistan was a key importer of green tea but there after Morocco emerged as the most significant importer with over one-half of world imports Table 3.

Green Tea Market Trends:

Projections for green tea are provided only for production and exports due to data limitations. World green tea production is forecast to increase from 1299.49tonnes in 2011 to 2604.48tonnes in 2021, reflecting an annual average growth rate of 0.3 percent. During this period production in China would grow by 3 percent per annum from1076.35tonnes to 2323.75tonnes, according to 89.22 percent of global green tea production in 2021, compared to 82.82per cent in 2011. Production in Japan would grow by an average rate of -1.1 per cent to 89.34tonnes, while production in Vietnam is expected to increase by an average rate of 2.5 per cent to50,000 tonnes. Output in Indonesia would grow by 2.3 percent annually to reach 49,000 tonnes. Green Tea exports are expected to exhibit a significant upward trend in keeping with production; total export would increase by 2.8 percent annually from 186800 tonnes in 2000 to 254000 tonnes in 2010. China would continue to be the world’s dominate green tea exporter, with shipments reaching 210000 tonnes by 2010, reflecting an annual average growth rate of 2.7 per cent. During the same period, exports from Indonesia are expected to increase by -5.5 percent per annum to 25.62tonnes, while export from Vietnam would increase by 2.2 per cent a year to 122.16tonnes, Japan would consume most of its domestic production. Morocco, the world’s leading green tea importer, is expected to increase imports from 35200 tonnes in 2000 to 57100 tonnes in 2010, an annual average growth rate of 4.5 percent.

Table 2-Green Tea Exporting Countries (Qtyin percentage)

Years	China	Vietnam	Indonesia	India	Taiwan	Others
1990-91	86.92	6.30	1.82	3.15	1.06	0.75
1991-92	86.86	6.18	2.67	3.09	0.91	0.29
1992-93	85.41	5.94	4.48	2.47	1.05	0.65
1993-94	79.36	6.28	10.08	2.69	0.70	0.89
1994-95	81.10	6.85	7.42	2.90	0.74	0.99
1995-96	81.38	8.52	3.93	3.65	0.99	1.53
1996-97	76.34	10.93	5.91	4.10	1.59	1.13
1997-98	80.94	9.76	4.51	3.08	0.71	1.00
1998-99	85.78	8.06	2.73	2.30	0.27	0.86
1999-00	83.99	7.60	5.06	2.07	0.38	0.90
2000-01	84.25	7.80	4.25	2.40	0.45	0.85
2001-02	83.37	7.45	5.11	2.58	0.59	0.90
2002-03	84.23	7.30	4.61	2.60	0.60	0.66
2003-04	83.02	9.19	2.99	2.69	0.89	1.22
2004-05	81.07	9.29	3.89	2.85	1.62	1.28
2005-06	83.08	9.52	2.85	2.45	0.95	1.15
2006-07	83.03	9.61	2.36	2.98	0.96	1.06
2007-08	83.02	9.71	2.22	3.26	0.81	0.98
2008-09	82.53	9.92	2.64	3.11	0.75	1.05
2009-10	83.02	10.08	2.58	2.40	0.90	1.02
2010-11	83.09	10.21	2.44	2.30	0.91	1.05
2011-12	82.45	10.42	2.47	2.80	0.91	0.95
Total	1824.24	186.92	87.02	61.92	18.74	21.16
Average	82.92	8.50	3.96	2.81	0.85
Rank	I	II	III	IV	V
SD	2.39	1.57	1.96	0.47	0.32
CV	2.88	18.51	49.51	16.88	37.95

Source: Various Issues of ITC Bulletin, London.

Table 3-Green Tea Importing Countries (in percentage)

Year	Morocco	Japan	USA	France	Germany	Others
1993-94	50.56	10.48	9.39	10.25	0.58	18.74
1994-95	54.35	7.83	9.66	8.11	0.51	19.54
1995-96	60.18	10.37	8.51	6.21	0.88	13.85
1996-97	45.32	17.35	9.26	12.26	2.00	13.81
1997-98	49.79	16.11	5.90	12.50	3.27	12.43
1998-99	54.85	8.66	8.62	7.30	7.15	13.42
1999-00	46.26	15.82	10.10	6.97	9.74	11.11
2000-01	48.28	16.25	8.33	8.02	9.32	09.80
2001-02	50.72	14.32	9.23	6.25	8.43	11.05
2002-03	51.35	13.40	11.22	4.83	7.32	11.88
2003-04	53.35	12.19	11.29	3.25	7.76	12.16
2004-05	43.12	12.22	12.11	11.08	8.32	13.15
2005-06	43.60	13.20	10.44	12.12	8.33	12.31
2006-07	45.28	12.16	12.22	10.00	7.56	12.78
2007-08	48.32	12.22	11.11	8.42	6.45	13.48
2008-09	47.25	12.22	13.22	7.32	6.28	13.71
2009-10	49.35	12.07	10.22	6.52	6.95	14.89
2010-11	49.02	11.21	9.33	9.23	7.20	14.01
2011-12	49.23	12.33	7.30	9.07	7.23	14.84
Total	940.18	240.41	187.46	159.71	115.28	256.96
Avg	49.48	12.65	9.87	8.41	6.07
Rank	I	II	III	IV	V
CV	8.48	19.83	18.06	30.29	49.68
SD	4.19	2.51	1.78	2.54	3.01

Source: Various Issues of ITC Bulletin, London.

Table 4-Green Tea Market Trends

	Production				Exports
	Actual	Projected	Growth Rate		Actual	Projected	Growth Rate
	2011	2021	2010-2011	2020-2021	2011	2021	2010-2011	2020-2021
	000 tonnes		Percent per year		000 tonnes		Percent per year
World	1299.49	2604.48	6.9	7.2	295.00	515.72	4.6	5.8
China	1076.35	2323.75	8.3	8.0	230.00	435.81	3.3	6.6
Japan	85.00	89.34	-0.6	0.5	2.23	2.72	13.0	2.0
Vietnam	65.08	122.16	8.7	6.5	40.00	53.75	11.5	3.0
Indonesia	33.00	25.62	-3.0	-2.5	11.40	12.60	12.8	1.0

Source: Various Issues of ITC Bulletin, London.

CONCLUSION:

Production and trade of tea has been extensively conducted for hundreds of years, and while tea has been increasingly consumed over the centuries, making it the single-most consumed beverage in the world, green tea has been extensively conducted only in recent years. The well-publicized results of such research have been available only since the early 1990s but as a result, green tea appears too many in the West to be a recent phenomenon. People have been prescribing tea for a number of ailments for hundreds of years, as well as consuming it daily as a refresh in beverage that is also believed to be preventive of future health problems. The result of recent research is scientific evidence of green tea’s benefits on human health understood by generations of people around the world. Its most notable health benefit is its powerful antioxidant properties which, at the molecular level, help prevent cell damage from certain oxidation actions in the body.

REFERENCES:

1 SNV Nepal, Cost benefit analysis- Production of green tea leaf for orthodox tea. Lalitpur.

2 FAOSTAT (2011) Food and Agriculture Organization (FAO).

3 ITC (2011), International Trade Center.

4 Moxham, Roy. (2003). Tea: Addiction, Exploitation, and Empire. New York: Carroll and Graf Publishers.

5 Hara, Yukihiko (2001). Green Tea Heath Benefits and Applications. New York: Marcel Dekker, Inc.

6. Annual Report (2005), J Thomas & Co. Pvt. Ltd, Kolkata.

Websites:

1. http://www.fao.org

2. http://www.moorecoffee.com.

3. http://www.o-cha.com

4. http://coffeetea.about.com.

5. http://www.worldteaexpo.com.

Received on 10.08.2013 Modified on 01.09.2013

Accepted on 09.09.2013 © A&V Publication all right reserved

Asian J. Management 4(4): October –December, 2013 page 297-300