Abstract

Tea, in Ethiopia, is grown in south west parts of the country. It is produced by estates namely Ethio Agri Ceft, East Africa PLC and other newly established tea plantations. They tried to cover the capacity of their processing factory by out growers surrounding tea plantations. Problems the out growers faced and opportunities they have not yet studied in detail. Therefore, this research attempted to generate useful information on tea out growers’ constraints and opportunities in tea production and marketing, which helps governmental institutions to assess their activities and redesign their operations. The research was done by interviewing tea out growers surrounding the two major tea plantations namely WushWush and Gumero in south west Ethiopia. Data was analyzed using descriptive statistics and constraints were analyzed using Relative Severity Index techniques. The data was collected from 120 randomly selected households surrounding the two major tea plantations. The result showed that out growers on average has experience of five years and allocated 1.37 ha of land to produce tea. Tea is among the most fertilizer and labor intensive crop of all the plantation crops. They plucked on average 295 kg/ha export standard or 731 kg/ha lowquality standard green tea leaves in one harvest in the main season. Relative Severity index analysis revealed that out growers’ major constraints of tea production were high price and not timely availability of inputs, shortage of inputs, high cost of production, need intensive plot management, lack of capital, no government extension service and lack of training. However, they have good opportunities in obtaining frequent income almost throughout the year, high cash income, low risk of animal damage and theft. This study concluded that out growers allocated 33% of total land owned to grow tea. Plucking was the main cost in tea production which took 30% of income from green tea leaves. On average, out growers obtained 2600 kg/ha/year green leaves which was much below the two tea plantations 3500 kg/ha/year. One of the main constraints of tea growing was high cost of production. However, they were benefited more from getting year round cash income, low risk of theft and animal damage.

Highlights

  • Ethiopia’s overall economic and social development is highly dependent on the growth and development of the agriculture sector which contributes almost half of the GDP, employs about 85% of the labor force, accounts for about 75% of the foreign exchange earnings, and provides livelihood for over 80% of the population living mainly in rural areas [1]

  • The two main Tea Development Farms in Ethiopia, WushWush and Gumero, have made contract farming with outgrowers in their surrounding kebeles

  • The WushWushtea farm started the contract farming with tea out growers in 2005 in Michity kebele with five out growers on 2.5 ha of land

Read more

Summary

Introduction

Ethiopia’s overall economic and social development is highly dependent on the growth and development of the agriculture sector which contributes almost half of the GDP, employs about 85% of the labor force, accounts for about 75% of the foreign exchange earnings, and provides livelihood for over 80% of the population living mainly in rural areas [1]. The key concept underlying ADLI is an export-led development strategy aimed at promoting economic growth in Ethiopia while coordinating agricultural and industrial development. Tea is the most widely consumed stimulant beverage worldwide followed by coffee, and accounts for about 46% of the world's beverage market. It is served as morning drink for nearly two-third of the world population. The young shoots (leaves, leaf buds, and internodes) of the tea plant are harvested and processed using various methods. It is consumed in several forms depending on the type of processing technique involved. Of the different tea types; white, yellow, green, oolong and black tea are the major ones prepared and marketed in the world [3]

Objectives
Results
Conclusion

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.