Case Study – Cyber PC and ASK

All players have made use of new machines, like Dilatoriness and Q. C. Machines, for attractive packaging and digital scales for quality blending. But advent of tea bags has really changed the consumption patterns. Tea bags have given convenience and hygiene to consumers. In some urban segments, tea bags are more popular than regular packs. Area cultivation in Pakistan For tea cultivation some areas of Cyber Buckwheat were found suitable that include the districts of Managers, Bathmat, Shanghai and Swat. In these areas 1. 5 lack acre of land has been declared suitable for tea cultivation.

To grow tea domestically many efforts have been made to cultivate it in the mountainous areas but could succeed. Now three private companies have planned to grow tea over an Area of 17,000 acres in Cyber PC and ASK, which would be given on lease for a period O to 40 years to the investors who intended to invest so R . 5 billion. Out to the three tea importing companies, two companies have managed to acquire 1 ,OHO acres each in ASK at lease for 30 years. The National Tea Research Institute, Skincare, was to provide saplings.

Although ANTI was established in 1970 but after lapsing 30 years the desired results could not be achieved. Only 1,350 acres were brought under plantation by institute. On the other hand, to fulfill domestic demand about 170,000 acres are needed to be brought under cultivation. Tea plantation in ASK rhea ASK government has leased out 3,000 acres of forest land to a group of three companies for 15 years for tea cultivation in the area. The land had been leased out against Rises,OHO per annum. The group of tea plantation was to invest about RSI . 5 billion over the next five years in the ASK, east of Microfarad city.

The project has a potential of producing over 100 million keg of tea per annum. The group would train and encourage local farmers to set up tea sapling nurseries in their holdings on a guaranteed buy back agreement basis. The group would also establish tea recessing units after tea plantations were set up in the area at large scale. These units would buy all the raw green leaf produced by the private farmers in the area. rhea tea cultivation is a labor intensive activity; it would generate employment opportunities and can reduce poverty in the tea growing areas.

Besides, it is estimated that a farmer can earn up to Errs,OHO per year from tea cultivation on one canal of land, which is many times more than the income from any other crop. It was planned that tea farmers could also get interest free loans from the scheduled banks under the policy of the federal government. Plan to reduce tea import bill or reduce the tea import bill that is more than Errs billion, the government has decided to commercialism tea production by starting a Rises million public-private partnership programmer. The project was to be launched in the northern areas of the KIP and ASK.

According to the plan, tea plantation would be done on 4,000 acres by the private sector, 800 acres by the KIP extension department, 200 acres by the ASK extension department and 50 acres in FAT. There are many constraints in tea cultivation such as climate and frequency of rainfall, type of land, degree of slope of and, availability of inputs like seed and fertilizers and the untrained labor. Tea cultivation is not possible in Punjab and Kinds due to the above reasons. Due to small holdings the farmers are reluctant to grow tea because it is a long duration crop takes seven to eight years to reach complete yielding stage.

Therefore, they prefer short duration crops like vegetables, maize, rice and wheat etc. That provide quick return to meet their daily life expenditures. Most of the farmers are very poor Nile tea requires some investment for its cultural practices such as weeding, fertilization and irrigation etc. Thus investment on tea and poverty of the farmers are one of the big hurdles for tea cultivation in Pakistan. Development and Market Position of TAP rap, is the first tea company to be awarded ISO 9002 quality certification, the International symbol of highest quality standards.

In Pakistan, Tap is one of the best organized companies, as far as quality controls are concerned, and it enjoys a strong distribution network. The company has enjoyed phenomenal growth particularly during the last decade. Tap, today, enjoys over 17 per cent or 22 million kilogram share of the total tea market. Tape’s envious growth has come at the expense of its major multinational competitors, Brooke Bond and Lipton, whose combined market share has shrunk from 60 million keg to 45 million keg during the same period.

Putting the per capita tea consumption in Pakistan at about one kilogram, approximately 140 million keg of tea is marketed annually in the country, of Inch 110 million keg is met by imports while the rest of the 30 million keg demand is fed by smuggled channels. Of the 110 million keg regular imports, 70 million keg is branded while the unbranded market makes up the rest of the 40 million keg. Tap ND its multinational rival, Milliner, together enjoy the lion’s share of the branded market ? 60 million keg, leaving the remaining 10 million keg for a number of other smaller companies.

Tap is in the process of venturing into foreign markets, particularly those having a sizeable population of Pakistani expatriates who look forward to having Tap tea. The company has already appointed a distributor in the AAU, and is targeting many other markets in America and Europe, which show promising demand for tea. Developments Pakistan Science Foundation (SSP), Pakistan Agricultural Research Council (PARA) and papal Tea Company have signed a Memorandum of Understanding to establish Green Tea Processing Plant at Skincare to the tune of RSI. 1 Five acres of land at Skincare have also been reserved for tea plantation In the first phase the seedlings and technical assistance will be provided by the National Tea Research Institute (ANTI). Tap will help farmers get the land leased and bear all other expenses for cultivation. Tap will buy the raw tea to be processed at ANTI tea- processing plant, Skincare. After successful completion of the first phase of the project Tap will then add on to the land area for tea cultivation. This will eventually help save millions of dollars in foreign exchange.

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