Supply Chain Issues The Tea Industry Face

International Trade & Business

Mar 27, 2023

296 Views

India is a second largest producer of tea globally. india export tea to more than 25 countries throughout the world. To get accurate import export data report of various products including tea and coffee you can contact exim panel to get USA Import Export Data. The global market tea has been depressed over the last few years.The tea industry most likely to face supply chain issues due to various reason:

Labour shortage : The shortage of labour in tea industry can impact the cost and availability of tea. labour is a important component of tea production as it involves various task such as planting, harvesting and processing of tea leaves. when there is shortage of labour the production task is not carried out efficiently which impact the costing of tea, the prices get high.
Climate change : Change in climate and having extreme weather can impact the growth and quality of tea. Extreme weather and temperature can affect the plant ability to absorb water and nutrients. This can lead to decrease in tea production.
Transportation and logistics : The transportation of tea from production region to consumer can be impacted by political instability, natural disasters and other economical and environmental factors.
Food safety regulation : The tea industry like other food industry must compel with a variety of food regulation to ensure that tea is produced is safe for consumption. These regulation can include standard of growing, harvesting, processing, packaging and labeling of tea. compliance with this regulation can be costly as it require investment in new equipment, training of personnel and other resources. This leads to increase in the cost of production and ultimately impact the cost of tea for consumer.
Sustainability concerns : The tea industry will be in pressure to adopt more sustainability practices and reduce its production and impact on the environment. This growing concern about climate change and environment degradation, consumers are becoming more conscious of the product they purchase and the environmental impact.
Increasing cost : The cost of production, labour, transportation likely to increase which will ultimately impact the cost of tea for consumers. when any of these costs increase , it lead to increase in the final cost of the tea.
Competition from other drinks : The tea industry face competition from other drinks such as coffee, soda, energy drinks which has impact the sales and profitability. The consumer has wide range of option to choose from. The popularity of other drinks can impact the sales and profitability. To sustain in the market the tea industry has to innovate unique flavors and blends and market their product effectively to attract customers.