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1. Sample Essay on Economic Factors Affecting Tea
Production
Tea is a major cash crop produced in several countries such as Kenya,
Sri-Lanka, Vietnam, China, and Indonesia. Many people across the
world cannot think of a life without consuming tea. However, there are
several economic factors affecting tea production in the contemporary
world. These factors are affecting both farmers and even major tea
companies in the world.
One of the major economic factors that affect tea production is
monopoly by the large tea companies. For instance, Unilever owns
Lipton, Twinings, Brook Bond and PG Tips, Tata Global Beverages and
Finlays have come up with competitive strategies for protecting their
long-term futures in the tea business. These strategies ensure that the
companies can always access tea at affordable prices without allowing
other companies to venture into the market.
Unless this monopoly is managed properly, the future of tea production
will remain unpromising. The tea industry needs to be managed
properly to ensure that other players can venture into the tea market
successfully. This way, farmers will be able to sell their tea at high
prices which will motivate them to produce more tea.
Competition in the tea industry can have both positive and negative
effects. For instance, increased competition in
the markets can boost the price of tea at the auctions because more
buyers want to purchase tea of a country. This implies that farmers will
get more returns from the tea that they produce and offer for sale in
the market. Going by this perspective, competition in the tea industry
should be encouraged.
On the other hand, competition in the global market can negatively
affect tea production. This is because when more countries produce tea
there will be an oversupply in the market. This will affect prices of tea

2. negatively and farmers will not be motivated to produce more tea.
Thus, competition for tea in the market is good because it causes an
increase in price while competition in tea production affects prices
negatively.
Other economic factors affecting tea production include delayed
payments and funds mismanagement. Farmers are unable to plan for
their earnings and re-invest them in the tea industry to boost
production when payments are delayed. Mismanagement of funds by
farmers and factories via which they market their tea also affect tea
productions.
For instance, if money set aside for the development of feeder roads is
mismanaged, these roads will not be developed. This implies that green
leaves of tea will not be collected on time which can cause damage or
reduction of quality because tea is a perishable commodity that must
be delivered to a processing factory quickly.
Fluctuation of tea prices in the market also affects tea production in
most countries. This is because when the prices fluctuate, farmers may
get low payments than they expected and this in turn affects their
morale to produce more tea.
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