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Business Environment - Essay Example

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The black tea production accounts for roughly seventy five percent of the world’s production, and more than ninety percent of the market share in the countries from the West. Black tea…
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Business Environment Essay
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Business Environment

Download file to see previous pages... That is on a rough estimate from 2.1 to 3.1 million tones. At the same time world production of green tea is expected to grow at a faster rate of around 4.5 percent on an annual basis for the next ten years. During this time FAO expects that tea production would outstrip the consumption part (Agritrade, 2009).
Tea is basically grown in thirty six tropical and semitropical nations. Twenty one of these are from the ACP region. The first six biggest producer countries include; China, India, Kenya, Sri Lanka, Indonesia and turkey in that respect. This group accounts for eighty percent of the global output. However, it is only less than half of the production which is exported. This is because China and India are major consumers of their own productions.
Since the period of 1993-95, global tea production has grown by around two percent. At the same time, consumption in Western states has less than matched this growth by only increasing by a one percentage upward move. In the year 2007, the world tea consumption was on a virtual stagnation point. The increase was quite minimal rising from 3.649 to 3.668 million tones on the basis of the year before. However, in a number of developing countries, the production pace has matched the consumption rate or in other states. In other cases it has fallen short of consumption demands. In this period, China’s consumption overtook that of India as a result of a thirteen point six percentage increase. It is also worthy mentioning that the United Kingdom purchases roughly half of the consumption of the European segment (Agritrade, 2009).
The global production of tea witnessed a 2.3 percent growth rate in the year 2007 which saw production levels hit the 3.7 million tones level. It is the Chinese production that accounted for thirty point six percent of the total production, closely followed ...Download file to see next pagesRead More
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