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
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.
- 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
- “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/.