Tea Sector of Indonesia – Structural Decline in Production, Plantation Size and Exports
A couple of months ago, we presented a detailed overview of Indonesia’s (upstream) coffee sector. This time our attention goes to tea, which -too- ranks among one of the world's most consumed beverages.
It is believed that tea originates from China, where this beverage has been drunk for thousands of years. Around the sixteenth century, when the Portuguese expanded their power into the Southeast Asian region, tea started to be imported into Europe, and it quickly became a popular drink which, in turn, made the Portuguese (and later the Dutch) decide to establish large-scale tea plantations in their colonies in Asia.
It was not a coincidence that tea plantations were established in the Southeast Asian region (which includes Indonesia). Constant temperatures and humidity are needed to have ideal conditions for the tea plant to grow. These conditions are found in the tropical and subtropical climates of Asia, where the majority of the global tea supply is produced.
It are in fact the cooler highlands that produce the best quality tea leaves. This helps to explain why the Puncak area in West Java is famous for its tea plantations.
It takes around four years for the tea plant to become productive. When harvesting, only young leaves are selected, implying that manual picking is more efficient than using mechanical equipment. This is what makes tea production a labour-intensive business.
There exist more than a thousand different tea varieties around the world (based on the degree of oxidation), with the most common ones being white, green, oolong and black. Oxidation, which occurs when tea leaves are crushed and muddled together, produces a bright and tangy taste and has a higher caffeine content. Meanwhile, teas that have low oxidation levels are believed to offer more health benefits.
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This article discusses:
• Worldwide tea production and consumption.
• Tea plantations in Indonesia.
• Tea production across Indonesia.
• Tea consumption in Indonesia.
• Indonesia's tea exports and imports.
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