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Tea Plantation


  1. Product Description:- Tea leaves are used to make a kind of hot drink which is popular in all parts of the world. The drink is believed to have a stimulating effect on the body. Tea leaves grow in tropical countries where there is plenty of rainfall and adequate sunlight. Harvesting of tea leaves is done throughout the year with some intervals allowing the plant to reproduce or replace the leaves cut during previous harvest. This project idea is included by the suggestion of the Investment Office of ANRS.


  1. Market Potential:- almost every person living in urban areas of the region has developed a habit of drinking a glass/cup of tea at least during breakfast. Even in rural areas some families consume tea occasionally. If we assume that at least 90 percent of the urban families and about one percent of the rural families drink tea at least in the morning, total number of families who consume tea in the region will be about 238,000 with 5 people in each family. This means number of people who regularly drink tea every morning in the region will be about 1.2 million. If each family consumes about 50 grams of tea every morning, total consumption of tea in the region for each morning will be 11900 kgs, and annual consumption of tea for morning drink only will be 4.34 million kg or 4343 tons. If we add 40 percent for consumption in other hours of the day, total annual consumption of tea in the region will be 6080 tons or 60800 quintals. All this tea is either imported from abroad or brought in from the tea growing regions of the country.


  1. "Source of Raw Material":- material Tea production requires adequate amount of rainfall. Among the zones in the region, the most appropriate zone for the production of tea will be the Awi zone followed by some isolated localities in East and West Gojam zones.


  1. Process: - The process of establishing and operating a tea plantation is similar to that of any other commercial farm. It involves identification of suitable land, securing the land through lease or by making farmers share holders in the commercial venture, preparing the land, planting and harvesting the tea leaves, drying the leaves and packing. Main pieces of machinery needed include tractors, farm implements and tools and others machines for drying and packing the tea leaves.


  1. Estimated Investment:- Tea plantation is a labor intensive operations; and its capital investment is limited to a few tractors some machines for drying and packing. For a plantation of 100-hectare size, the estimated investment will be:-

§  Buildings 250m2 at Birr 1500/ m2          =  Birr     375,000

§  Machinery ……………..……………=  Birr     500,000

§  Working capital …………..…………   =  Birr     300,000

Total …….      =  Birr 1,115,000


  1. Benefits :- Self sufficiency in tea production, saving of regional financial resources.


  1. Location :-  Awi zone, some localities in East and West Gojam zones.