PTPN plans for its tea ex­ports’ di­rect ac­cess to MENA, Egypt

Cli­mate change neg­a­tively re­flected pro­duc­tion amounts, says Luga Kadaris­man

The Daily News Egypt - - News - By Hagar Om­ran -Ban­dung

PT Perke­bunan Nu­san­tara Hold­ing com­pany (PTPN) plans for its tea ex­ports’ di­rect ac­cess to the Mid­dle East and North Africa re­gion (MENA) in­clud­ing the Egyp­tian mar­ket, said Luga Kadaris­man, vice pres­i­dent for an­nual plants at the PTPN,not­ing that Dubai is the main re­gional hub for his com­pany in the MENA.

Luga Kadaris­man added that traders buy the com­pany’s tea and ex­port it to many mar­kets in the MENA re­gion that’s why PTPN aims to di­rectly ac­cess busi­nessper­sons in the re­gion, in­clud­ing Egypt.

“Malaysia, Euro­pean coun­tries, Afghanistan, Pakistan, Sin­ga­pore, Rus­sia and Aus­tralia are our main ex­port des­ti­na­tions,” noted Luga Kadaris­man, adding that PTPN pro­duces two of tea types which are the Ortho­dox and the CTC.

Ortho­dox Teas are whole leaf teas man­u­fac­tured by us­ing the tra­di­tional process of mak­ing tea while CTC Teas are made through the crush, tear, and curl (CTC) process of man­u­fac­ture, pro­duc­ing a gran­u­lar leaf par­ti­cle, elab­o­rated Luga Kadaris­man.

About 65% of the PTPN’s an­nual tea pro­duc­tion is ex­ported, and the com­pany can pro­duce about 77,000 tonnes of tea an­nu­ally. How­ever, the cli­mate change neg­a­tively af­fected of the pro­duc­tion amounts that cur­rently only reach about 44,000 tonnes of tea, dis­closed Luga Kadaris­man.

“We have about 28 Ortho­dox tea pro­cess­ing fac­to­ries which an­nu­ally pro­duce about 63,000 tonnes,” men­tioned Luga Kadaris­man, high­light­ing that PTPN uses in­sec­ti­cides ac­cord­ing to stan­dard amounts based in­ter­na­tional in­sti­tu­tions. How­ever, the com­pany plans to segue to­wards nat­u­ral in­sec­ti­cides man­u­fac­tured from other nat­u­ral herbs.

Tea is one of In­done­sia’s main agri­cul­tural prod­ucts and an im­por­tant ex­port com­mod­ity.The cul­ti­va­tion of tea in In­done­sia dates back to the Dutch colo­nial era.The sec­tor suf­fered from a lack of in­vest­ment in the decades fol­low­ing the coun­try’s in­de­pen­dence, but by the mid-1980s ex­ports were re­vived, ac­cord­ing to pre­vi­ous re­ports.

De­spite re­ced­ing in re­cent years,In­done­sia still ranks among the world’s top 10 grow­ers and ex­porters of tea, and In­done­sia cur­rently stands as the sev­enth tea ex­porter world­wide. Ris­ing costs are putting pres­sure on lo­cal pro­duc­ers, and some tea plan­ta­tions have been con­verted for al­ter­na­tive use.

Nev­er­the­less, the sec­tor of­fers count­less busi­ness op­por­tu­ni­ties, par­tic­u­larly con­cern­ing do­mes­tic sales.

West Java, the tra­di­tional heart­land of tea cul­ti­va­tion in In­done­sia, still ac­counts for more than two thirds of na­tional out­put. Cen­tral Java and var­i­ous prov­inces in Su­ma­tra con­trib­ute most of the re­main­der. High­land ter­ri­to­ries of­fer the best con­di­tions for grow­ing tea in In­done­sia’s trop­i­cal cli­mate, with fer­tile vol­canic soil pro­vid­ing a nat­u­ral ad­van­tage in many ar­eas, ac­cord­ing to pre­vi­ous me­dia re­ports

The UN’s Food and Agri­cul­ture Or­ga­ni­za­tion (FAO) ex­pects to­tal world tea con­sump­tion to rise by an an­nual 1.8% un­til 2021, and green tea is fore­casted to grow at a much faster rate of 7.2%, mak­ing this a par­tic­u­larly at­trac­tive seg­ment.

In In­done­sia, the up­per end of the mar­ket ap­pears to har­bour much po­ten­tial. Pre­mium teas, ready-to-drink tea-based bev­er­ages, and flavoured teas could be at­trac­tive start­ing points to rein­vig­o­rate In­done­sians’ taste for tea, ac­cord­ing to In­done­sian me­dia re­ports.

West Java is the tra­di­tional heart­land of tea cul­ti­va­tion in In­done­sia

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