According to the Vietnam Tea Association’s report, the total value of tea products in 2022 amounted to 12.6 trillion Vietnamese dong, with a substantial portion directed towards exports. Vietnam’s tea exports span 74 countries, primarily targeting accessible markets like Pakistan, China, Russia, and Indonesia. However, accessing more demanding markets such as the USA and EU poses challenges due to inadequate compliance with stringent food safety standards.
Tea from remote, high-altitude areas, particularly Shan Tuyet tea, has premium prices due to its quality and organic nature. Nevertheless, many processing facilities lack adequate raw materials and processing expertise, leading to average tea quality and weak production-processing linkages.
According to the Vietnam Tea Association, roughly 90% of the tea produced in Vietnam is exported in its raw state, carrying relatively low sale prices and marketed under importers’ labels.
There exists a significant disparity where Vietnam’s average tea export price stands at approximately $1,100 per ton, while the global market’s average price hovers around $2,200 per ton. Furthermore, certain buyers within the UK tea industry purchase raw tea from Vietnam for processing and resell it at around $9,800 per ton.
So, how can Vietnamese exporters enhance the tea export position in the world?
– Quality Assurance:
For Vietnam’s tea to gain a substantial foothold in the EU and US markets, compliance with food safety and pesticide residue standards is paramount. Standardizing the cultivation and processing methods of tea leaves becomes imperative to elevate the export value of Vietnamese tea.
– Sustainable Supply Chains:
Tea processing facilities must establish enduring and reliable sources of raw materials. Factories are encouraged to prioritize plant protection services that reduce reliance on harmful pesticides. Tea farmers assume a pivotal role in controlling plant protection, minimizing toxic residues in drugs used on products, ensuring food safety, and enhancing tea yield and quality.
– Science & Technology
Numerous tea farms across Vietnam have transitioned from older tea varieties to newer ones. Tea manufacturing companies acknowledge the importance of investing in processing to meet stringent standards. For instance, diversifying tea products through advanced technology or appropriately adjusting the ratio of black tea and green tea to cater to both domestic and international markets ensures high-quality post-processed tea products.
– Marketing & Promotion
Effective product marketing hinges on comprehensive market research. Vietnam should craft a compelling narrative about its tea, showcasing its origin, cultivation techniques, production methods, and tea-drinking culture to consumers. Exporting businesses must actively engage in various tea, food, and beverage fairs, providing consumers in these regions with increased access to diverse Vietnamese tea brands.
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