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    Czan Shakya
    The Nepalese tea industry is growing rapidly due to private sector involvement. Nepal is now self-sufficient in CTC tea production and there is demand for its Orthodox tea internationally. Total annual tea production is 20 million kg, of which 4 million kg is Orthodox. The National Agricultural Research Centre has begun research to develop unique Nepalese tea varieties to stand out globally. After over 150 years and efforts from various groups, Nepalese tea now has an international trademark and logo. While European and US demand was hurt by a chemical finding, the situation has improved and organic standards are now minimum requirements in Western markets. There is debate around making all Nepalese tea production organic.

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    Case 1

    Uploaded by

    Czan Shakya
    43 views2 pages
    The Nepalese tea industry is growing rapidly due to private sector involvement. Nepal is now self-sufficient in CTC tea production and there is demand for its Orthodox tea internationally. Total annual tea production is 20 million kg, of which 4 million kg is Orthodox. The National Agricultural Research Centre has begun research to develop unique Nepalese tea varieties to stand out globally. After over 150 years and efforts from various groups, Nepalese tea now has an international trademark and logo. While European and US demand was hurt by a chemical finding, the situation has improved and organic standards are now minimum requirements in Western markets. There is debate around making all Nepalese tea production organic.

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    The Nepalese tea industry is growing rapidly due to private sector involvement. Nepal is now self-sufficient in CTC tea production and there is demand for its Orthodox tea internationally. Total annual tea production is 20 million kg, of which 4 million kg is Orthodox. The National Agricultural Research Centre has begun research to develop unique Nepalese tea varieties to stand out globally. After over 150 years and efforts from various groups, Nepalese tea now has an international trademark and logo. While European and US demand was hurt by a chemical finding, the situation has improved and organic standards are now minimum requirements in Western markets. There is debate around making all Nepalese tea production organic.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    43 views2 pages

    Case 1

    Uploaded by

    Czan Shakya
    The Nepalese tea industry is growing rapidly due to private sector involvement. Nepal is now self-sufficient in CTC tea production and there is demand for its Orthodox tea internationally. Total annual tea production is 20 million kg, of which 4 million kg is Orthodox. The National Agricultural Research Centre has begun research to develop unique Nepalese tea varieties to stand out globally. After over 150 years and efforts from various groups, Nepalese tea now has an international trademark and logo. While European and US demand was hurt by a chemical finding, the situation has improved and organic standards are now minimum requirements in Western markets. There is debate around making all Nepalese tea production organic.

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    Read the following case and answer the questions given.

    Tea industry in Nepal is growing rapidly due to the active participation of the
    private sector. Now, Nepal is self-sufficient in CTC tea. There is a huge
    international market for Orthodox tea. According to Nepal Tea and Coffee
    Development Board, 20 million Kg of tea is produced in the country annually. Out
    of this, only four million kg is orthodox. About eight million kg of tea produced in
    the country is consumed domestically and the rest 12 million Kg are exported.
    The National Agricultural Research Centre (NARC) has started research on the
    production of Nepali varieties of tea. The center which is based at local Pakhribas
    Municipality has initiated the research for developing a unique Nepali brand of tea
    that would stand out in the world tea market. Likewise, after 154 years of tea
    cultivation, Nepal's traditional tea has finally got an international trademark and its
    own logo in the international market. After numerous attempts of the Nepal Tea
    and Coffee Development Board, organizations associated with tea production, and
    experts in the field, Nepali tea has received its own logo and trademark.
    International demand for tea produced in Nepal was hit hard in Europe and USA
    when a test in Germany few months ago revealed that it contained a harmful
    chemical called 'anthraquinone'. However, the situation has improved. Organic has
    become a minimum quality acceptable in Western markets. Western customers
    have started seeking other standards in tea production, such as eco-friendliness and
    bio-friendliness. In the past few weeks, Indian tea producers and traders have been
    seeking ban on import of non-organic orthodox tea from Nepal in their country.
    Keeping health issues in mind, some organic tea producers in the country have
    demanded the government to make all the production of tea organic in Nepal. They
    have argued that this step not only have health benefits for consumers, but also
    helps the economy grow. However, those in opposition say that the move could do
    more harm than good. Organic production takes at least three years to complete.
    And with the lengthy time, the production can be affected by fertilizers shortage
    and other challenges, according to non-organic tea producers. Frequent strikes by
    the workers, effect of climate change, low labour productivity, poor support from
    the government, high cost of capital, use of modern technologies, competition with
    Indian tea, and promotion at the international market are some of the major issues
    confronting the Nepalese tea industries.
    Questions:
    1. Identify two components of the task and general environment for each of the
    Nepalese tea industries.
    2. In your opinion, what are the opportunities and threats for the Nepalese tea
    industry?
    3. In view of the growing globalization, what strategies should Nepalese tea
    industries adopt to remain competitive in the market?
    4. Write how innovation is being important factor of Nepalese tea industries.

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