Green Tea

Green Tea industry statistics from 2004

Summary

The green tea industry in the North East is fledgling but undergoing rapid development driven by the Japanese beverage marketing company Ito En. They perceive a rapid and continued increase in the demand for prepared green tea sold in bottles or cans in Japan. There is approximately 50 hectares established in the North East all within the Alpine Shire. The first harvest was undertaken in November 2004 with an expected yield of 5 tonnes. There are initially 11 growers with contracts for green tea production.

Green tea Industry overview

Japan is the main market for green tea with a demand of 110,000 tonnes per annum. About 90,000 tonnes are produced domestically in Japan, with the remaining 20,000 tonnes currently sourced from China. Japanese green tea consumption is increasing in Australia, the United States and Europe, as well as in Japan, with estimates of an increase of 50% over current demand.

The green tea industry has been established in the AlpValleys region after trials and testing over a number of years. The green tea trials conducted in the North East have yielded much higher quality that the being grown in China, paving the way for industry development.

Ito-En estimate that AlpValleys production will increase to 100 tonnes by 2008. By 2014, they further predict 1000 tonnes of production with a value of $10 million per annum.

The recent investment in Stage 1 of a planned $15.5 million in Australia’s first green tea processing plant based in Wangaratta bodes well for the future and confidence in this industry.

Location of Green tea production within AlpValleys region

Projected Green tea industry growth

Projected growth for green tea will be influenced by contract arrangements with Ito En.

Demand to increase plantings to 250 hectares by the end of 2006 and projection of requirement for 10,000 hectares required in next 10 years.

There is considerable optimism about the future of this industry within the North East.

Green tea industry labour requirements

Seasonal labour will be employed for the purpose of weed control, but is not significant. Approximately 2 persons per 12 hectares are engaged.

The processing facility based in Wangaratta will employ 4-6 people initially and it is envisaged the plant will operate three shifts over 24 hours per day, employing eight people on each shift, when running at full capacity.

Green tea industry strategic advantages and opportunities

• Regional access to infrastructure, transport, access to market/processing facility is “central” to the growing zones of Ovens, King, Kiewa and Mitta.
• Land management practices among the growers from previous agribusiness enterprises have been well maintained and there is confidence about the ability to transfer these knowledge skills and incorporate new management techniques to green tea production.
• The climatic conditions and water resource availability allow the region to produce high quality “Japanese style” green tea and builds on the regions “clean green” image.
• The region provides adequate volumes and assured supplies of good quality irrigation water.
• Opportunities in the future may exist for the further development of value adding and health related green tea derivative products.
• The ability to process green tea immediately (within hours) after picking at the newly developed Wangaratta processing facility, allows leaf quality to be maintained.
• Opportunity for a tourism benefit in the long term.

Green tea industry strategic disadvantages and impediments to growth

• Concerns regarding the financial profitability over time (yet to be proven).