Conclusion
Agriculture commodities (like tea) in the developing countries are facing price competition. Poor land management, plucking inefficiency and high manufacturing cost which may be observed in the value chain, hinders their growth. It can be concluded from the study that the managers of the tea estates of Bangladesh are reluctant to maintain the tea bushes which further reduces tea production and abruptly affects yield and quality of green leaves. This in turn raises cost in the value chain and lessens price of tea in the auction market. About 40% of tea estates of the country have yield below 1000 kg./hectare. Among these low yield gardens, yield of around 50% gardens is less than 600 kg./hectare though they possess large areas of land for tea cultivation. Moreover, these low yield gardens also receive lower price comparing to high yield gardens due to the poor quality of green leaves which they produce. The regression analysis shows that if the low performing gardens possess more young tea bushes, production level can be increased up to 3,818 kg./hectare keeping other variables constant. In this respect old tea plants of these gardens should to be uprooted and new plants must be planted soon. But due to poor land management and worry of lowering production, this type of initiative is not taken by the management of the low performing gardens. Strategic cooperative alliance model which is developed in the light of Japanese cooperative model can be a solution for these poor performing gardens. This model, if adopted, may significantly reduce the problems of land management and at the same time strategic alliance farms can enjoy benefit of using the common fund for bush management and improve the overall manufacturing facility, which may further improve the quality of finished tea. It is also found from financial analysis that SCA gardens will obtain higher profit after successful implementation of the model. In addition young bush area will not only give high yield during young stage, but also be a constant source of good quantity and high quality of green leaves during mature stage of the plants. This will certainly boost this industry to secure a strong position in the world tea markets.
Conclusion Agriculture commodities (like tea) in the developing countries are facing price competition. Poor land management, plucking inefficiency and high manufacturing cost which may be observed in the value chain, hinders their growth. It can be concluded from the study that the managers of the tea estates of Bangladesh are reluctant to maintain the tea bushes which further reduces tea production and abruptly affects yield and quality of green leaves. This in turn raises cost in the value chain and lessens price of tea in the auction market. About 40% of tea estates of the country have yield below 1000 kg./hectare. Among these low yield gardens, yield of around 50% gardens is less than 600 kg./hectare though they possess large areas of land for tea cultivation. Moreover, these low yield gardens also receive lower price comparing to high yield gardens due to the poor quality of green leaves which they produce. The regression analysis shows that if the low performing gardens possess more young tea bushes, production level can be increased up to 3,818 kg./hectare keeping other variables constant. In this respect old tea plants of these gardens should to be uprooted and new plants must be planted soon. But due to poor land management and worry of lowering production, this type of initiative is not taken by the management of the low performing gardens. Strategic cooperative alliance model which is developed in the light of Japanese cooperative model can be a solution for these poor performing gardens. This model, if adopted, may significantly reduce the problems of land management and at the same time strategic alliance farms can enjoy benefit of using the common fund for bush management and improve the overall manufacturing facility, which may further improve the quality of finished tea. It is also found from financial analysis that SCA gardens will obtain higher profit after successful implementation of the model. In addition young bush area will not only give high yield during young stage, but also be a constant source of good quantity and high quality of green leaves during mature stage of the plants. This will certainly boost this industry to secure a strong position in the world tea markets.
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Conclusion
Agriculture commodities (like tea) in the developing countries are facing price competition. Poor land management, plucking inefficiency and high manufacturing cost which may be observed in the value chain, hinders their growth. It can be concluded from the study that the managers of the tea estates of Bangladesh are reluctant to maintain the tea bushes which further reduces tea production and abruptly affects yield and quality of green leaves. This in turn raises cost in the value chain and lessens price of tea in the auction market. About 40% of tea estates of the country have yield below 1000 kg./hectare. Among these low yield gardens, yield of around 50% gardens is less than 600 kg./hectare though they possess large areas of land for tea cultivation. Moreover, these low yield gardens also receive lower price comparing to high yield gardens due to the poor quality of green leaves which they produce. The regression analysis shows that if the low performing gardens possess more young tea bushes, production level can be increased up to 3,818 kg./hectare keeping other variables constant. In this respect old tea plants of these gardens should to be uprooted and new plants must be planted soon. But due to poor land management and worry of lowering production, this type of initiative is not taken by the management of the low performing gardens. Strategic cooperative alliance model which is developed in the light of Japanese cooperative model can be a solution for these poor performing gardens. This model, if adopted, may significantly reduce the problems of land management and at the same time strategic alliance farms can enjoy benefit of using the common fund for bush management and improve the overall manufacturing facility, which may further improve the quality of finished tea. It is also found from financial analysis that SCA gardens will obtain higher profit after successful implementation of the model. In addition young bush area will not only give high yield during young stage, but also be a constant source of good quantity and high quality of green leaves during mature stage of the plants. This will certainly boost this industry to secure a strong position in the world tea markets.
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