Plan to lift tea exports, prices

Vietnam hopes to increase its tea-export prices to the world average and double export turnover by 2015.
Vietnam hopes to increase its tea-export prices to the world average and double export turnover by 2015.

Nguyen Quoc Vong from RMIT University Vietnam , said a nationaltea committee should be set up to create a legal system, defineproduction standards and generally manage the sector's development.

The proposal is well received by representatives from north-westernprovinces with large areas under cultivation – Lao Cai, Yen Bai andTuyen Quang.

However, other planters said the foundationof a national committee is not necessary. Theysaid they believe itwill be more practical to enhance the capacity of the existing VietnamTea Association.

According to the association’s PresidentDoan Anh Tuan, low production from small-scale farms, poor qualitymaintenance and loose links between enterprises and planters areheadaches for the sector.

Tuan said 65 percent of teagrowing areas are under the management of planters, but output is onlyabout 70 percent of that of the bigger enterprises.

NguyenDuy Thinh from Hanoi University of Science and Technology saidVietnam 's tea export price is the lowest in the world, about 1,160 USDa tonne.

This did not encourage planters to continue, hesaid, adding that many wanted to quit when they are recently paid only7,000 VND (34 US cents) a kilo.

Tuan said raising thequality of tea products is the first priority. And building a strongbrand for Vietnam 's tea is the second.

He suggestedthat planters develop terraced fields and be shown which seedlings andfarming techniques to use. He said this will help ensure productivityand quality.

Vong said that to strengthen co-operationbetween farmers and tea processors, planters should consider a schemewhere they – and their land – will become shareholders of tea processingfactories.

He said tea-quality inspection centres be used to ensure that standards complied with overseas demands.

Vietnam ranks fifth in the world in tea production and export. Atpresent, it has more than 130,000ha of land under plantations. Outputhas been increasing at the rate of 6 percent per year.

By 2015, tea export prices are expected to double to about 2,200 USD a tonne and export turnover 440 million USD.

During the first seven months of this year, Vietnam exported 73,000tonnes with a turnover of 108 million USD, an increase of more than 4percent compared to the same period last year.-VNA

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