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Commodity Chain Analysis : Kenya Tea

Qianlin Chen

Introduction

  • First Planted in Kenya at 1903
  • Nearly 5000 years old.
  • Produces Black Tea mostly
  • Lipton play as the manufacturer, producer & wholesaler.
  • Tea Farm in Kericho, Kenya

Introduction

How Tea leaves are grown

  • Most Kenya tea is grown in the highlands west of the Great Rift Valley.
  • Most of the world's tea is grown in mountainous areas 3,000 - 7,000.
  • Kenya's tea grows in altitudes between 1500 to 2700, or 5000 to 8800 feet.

More about Tea

Farm Distribution

Kericho

Lipton Farm

  • Kericho farm is set at 6,000 feet above sea level.
  • 10 hours of sun every day.
  • 80,000 residents, 16,000 employees.
  • Free solar powered housing and clean water.
  • 2 Community hospitals, 4 Health centers and 23 dispensaries, providing on-site medical care.
  • Provide nursery, primary and secondary school education to their employees.

Biodiversity

  • support biodiversity and natural balance
  • planted more than 1.3 million trees since 2000.
  • 97% electricity is renewable. (hydroelectric power)
  • Grow eucalyptus trees on less fertile land.

Environmental Sustainability

Processing & Manufacturing

Processing & Manufacturing

  • Almost All tea produced by CTC method (Crush, Tear and Curl)
  • this method produce black tea and produce more cups per kg.
  • Fermentation (45 m to 3 h) or Oxidization for black tea.
  • drying is the process that stops fermentation, and make teas drier with low moisture content between 3 - 3.3%.
  • Manufacturing facilities are within 50 km of the farms.

Global Markets

  • Total Global Tea export in 2017 - $7.12 B
  • Kenya exported $1.38 B > Sri Lanka : $1.37 B
  • Pakistan imported 35% of Kenya Tea.

Global Markets

Exports & whom

Global Exports

Export Data

Data

Export Value:

  • China - $1.3 B (18%)
  • U.S - $49.3 M (0.69%)
  • U.K - $156 M (2.2%)

Kenya Export tea to

  • China - $4.71 M (0.19%)
  • U.S - $23.2 M (0.94%)
  • U.K - $339 M (14%)
  • Pakistan - $871 M (35%)

Conclusion

  • Lipton providing a safer environment for their employees
  • Kenya is top 3 tea exported of the world.
  • there are a lot more we didn't know about manufacturing & packaging.
  • Not just consuming but also contributing.

Conclusion

Work Cited

Work Cited

  • “Loving Our Tea Farmers: Sustainability: Lipton.” Lipton US, 1 Jan. 1970, www.lipton.com/us/en/our-purpose/looking-after-tea-farms.html#.
  • Admin. “Kenyan Tea Industry.” Dominion Tea, 17 Jan. 2017, blog.dominiontea.com/2014/03/27/kenyan-tea-industry/.
  • “Export Destinations of Tea from Kenya (2017).” The Observatory of Economic Complexity, oec.world/en/visualize/tree_map/hs92/export/ken/show/0902/2017/.
  • “Countries That Export Tea (2017).” The Observatory of Economic Complexity, oec.world/en/visualize/tree_map/hs92/export/show/all/0902/2017/.
  • “Tea Fact Sheet.” Tea USA News, www.teausa.com/14655/tea-fact-sheet.
  • Ketepaweb, and Raleigh. “The Tea Journey.” Kenya Tea Packers Limited (KETEPA) - Tea, Black Tea, Green Tea, Safari Pure, Ketepa Pride, Tea Bags,, Loose Tea, Kenyan Tea, 6 July 2015, ketepa.com/tea-journey/.
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