The Rwandan Tea Industry

Situation Analysis In 2003, Rwanda politics wants to transform afternoon tea leaf effort that produces in the coun afflict into global market. To face with global competitors, the government believes that the industry should develop diversification and value-added product to improve role and productivity as well as maximize revenues so the government moves the industry into private investors to attract technology, management expertise and stimulate the countrys plantation to invest in a higher quality product. Furthermore, I will try to explain SWOT analysis to cover the internal and immaterial factors of tea industry in Rwanda. SWOT Analysis Strengths Rwanda had lush tropic lands that perfect for tea cultivation. Labor costs in Rwanda remained low. Rwanda was no climatic obstacles that prevented Rwandas growers from cultivating the highest quality types of tea, no technological gaps that prevented factories from go into the higher value segments of tea industry. Rwandas economy was festering and macroeconomic stability was assured. Weaknesses Rwandas production was concentrated in Black tea sector which prices were most volatile. Yields at Rwanda tea factories for swamp and mountain tea lagged behind Kenya, India, and Sri Lanka by 26%. Rwanda could non generate as much revenue from production.

Rwanda was not selling much of its tea harvest at home. completely 3% of Rwandas tea was consumed locally. Transportation costs for tea to be significantly higher than Kenya because of geographic location in Rwanda. Opportunities Tea was the second most popular beverage in the world. The global tea market was upscale. CTC and orthodox teas accounted for 75% of the global tea market which Kenya, Uganda, and Rwanda were the major suppliers of CTC tea. Threats Tea production occurred in a band of nations with similar geographical attributes in numerous regions where highest quality teas could be produced. Asia remained the worlds largest tea... If you want to die a full essay, order it on our website: Orderessay

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