Ancient Tea Region & the Upgrading plan
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1) The Shan Tea Factory in Ha Giang Province, Vietnam is upgrading its production chain with a new plan for 2012. 2) Currently the factory has the capacity to produce 250 metric tons of tea per year, with 85% from highland tea bushes and 15% from rare Shan Tea bushes. 3) The new production chain plan aims to increase capacity to 500 metric tons per year, with 65% from highland tea and 35% from Shan Tea, while expanding into new frozen, flavored, and bagged tea products for domestic and international export markets. 4) The goals are to develop the ancient Shan Tea region, create more local jobs, improve the economy, and
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Ancient Tea Region & the Upgrading plan
- 1. Shan Tea Factory UPGRADING PRODUCTION CHAIN PLAN 2012 Mar 2012
- 3. HA GIANG PROVINCE from 1000m over sea level
- 4. Below 800m Far north Mountainous 8,000 square km HA GIANG PROVINCE 705,100 population 22 Ethnic Groups from 1000m over sea level
- 5. ANCIENT SHAN TEA FOREST • 1000-1400 m above sea level • Grows wildly and naturally, big root, huge trunk (in meters), large leaves, thick snowy buds • The most unique flavor
- 6. • Premium material • Land and labor • Increasing market demand DEVELOP THE PROVINCE 6
- 7. Upgrading production chain SHAN TEA FACTORY NOW Capacity 250 t./y 15 % 500t. 30 % Market share 85% highland tea bush 35% Shan Tea, 65% highland tea bush Loose leave tea Frozen green tea, flavored tea bag, Shan Main products 95% Domestic 5% loose tea, white tea Market: Korea, France, Germany 70% Domestic - 30% Exporting: Korea, France, Germany, US 7
- 8. New Production Chain NEW PRODUCTION LINE Profitable product More exporting markets RESERVE AND DEVELOP ANCIENT SHAN TEA REGION More jobs for Better living local people Improve economy 8
- 10. This is a class material, for educational purpose only. Picture source: Internet, many thanks to all the authors of these beautiful photos. Animations are not included in this version. thienhuong.do@gmail.com
Notas del editor
- Good morning everyone, I am Thien-GM of Shan Tea factory.Special thanks to Mr. Abisheck from Agribank, Mr Gove from American Tea Master Association and our provincial leader Mrs. Edillor to join this meeting today. In our homeland, Ha-giang Province, we've been looking for a long-term solution to develop the province. And now I see a possible, within-reach chance comes along with the upgrading production chain of Shan Tea Factory.
- Let's me start with where we are: South East Asia. What's special about this part of the world?Himalaya mountain range? Yes, very famous.The most densely populated region in the world? Yes it's true..Tea? DOUBLE true. This is home of the rare, ancient tea regions which can be as old as a thousand years old. There are less than 10 recognized regions where ancient tea remains in all over the world. They are: Tiger Hill in Nepal, Taishan,Huasha, Shanxi, Yunnan andXishuangbana, all in China,some anonymous regions in Tibetand the last is HAGIANG in VIETNAM.
- There lies Vietnam.And the far-north of the country, near China border is HaGiang province. This province used to be an isolated mountainous region. 20 years ago, it took almost a month to travel from Hanoi, the capital city of Vietnam to Hagiang. And today, with improved transportation facilities it still takes about 1 day to get there. And the distance is only 400 km. there live about Seven hundreds, five thousand people of 22 ethnic groups with different languages and cultures. Below Eight hundred meter, they grow crops and livestock but from the height of 1000 m over the sea level. There are ...
- There lies Vietnam.And the far-north of the country, near China border is HaGiang province. This province used to be an isolated mountainous region. 20 years ago, it took almost a month to travel from Hanoi, the capital city of Vietnam to Hagiang. And today, with improved transportation facilities it still takes about 1 day to get there. And the distance is only 400 km. there live about Seven hundreds, five thousand people of 22 ethnic groups with different languages and cultures. Below Eight hundred meter, they grow crops and livestock but from the height of 1000 m over the sea level. There are ...
- ...Ancient Tea. Forests of ancient, giant teas. We can recognize them with eyes for its big roots, huge trunks and thick buds. As all ancient tea regions are in mountainous, un-touch region of the world. The trees are protected from diseases, they are foster by the most pure environment; stable temperature, they are watered with spring and rain. Especially, no chemical – a headache of today health concerns. All of these results in the most unique smell and flavor, Its quality test shows strong evidence on its high level of catechin - which has been proven to protect cells and and has various disease fighting properties. Another valuable characteristic of Shan tea is its particularly high concentrations ofL-theanine, that plays an important role to create relaxation andsound sleep.
- Basically we have a valuable tea resource, the best material that everyone wants to taste, that all tea makers want to claim they have. We have available Land and labor, a Suitable climate and soil condition and we have an increasing market demand. And, please come back with our people, the owners of this land. Our people living standard are really poor and they mainly self supporting. Their only source of income is from their crop and livestock, and normally they barely can feed the family. Do we want the next generation to grow up in this condition? By expanding the factory, I have chance to open a door to about 10 thousand frequent jobs with trainings and to change the future of our people.
- Let me give more details about this. To the left is current operating capacity of Shan Tea factory. By upgrading current production chain, we can double the capacity to Five hundred ton of tea products per year. This quantity is One third of Vietnam production and is about 2% of the world annual production. Next, we are uplifting our Shan tea production to 35% and offering new, profitable products like Frozen green tea, flavored tea bag, loose Shan-tea, White tea. At this moment, the majority of production is consumed by domestic market with only 5 percentage for exporting but we are adjusting this to 30%. And we gladly to announce that we just sign a 5 year contract with our partner from American Tea Master Association here.
- In short, with the new production chain, we are able to offer various, high quality products to new markets. We are bringing Shan Tea to the world. We also create jobs for local people. This means a more stable income, better living standard, this means more food for the kids. This means better future. Besides, with this improvement we can reserve and develop ancient Shan Tea region. With the loan from Agribank, we will be able to make this come true. Here are our Development Plan with Operating and Budget Planning of how and when we will use the loan. That also includes the appendix of the company financial reports showing our stable growth rate and other activities. Now, thank you very much for your attention and I am open to questions.