Vietnam tea crop and expectation for year end harvest 2023

Small household tea production remains the dominant force, constituting almost 65% of total tea production. In these operations, predominantly middle-aged family members engage in plantation work, while younger members contribute to factory activities. This decentralized structure involves multiple stages of raw material collection, resulting in heightened input costs, extended storage times, diminished raw material quality, and increased investment costs. Machine harvesting continues to be the primary method employed.

In a noteworthy shift, certain regions that previously expanded orange plantations have opted to demolish orange trees and revert to tea cultivation due to inefficiencies. With a total of 7 crops per year, the absence of the first spring harvest in 2023 and the impact of a heatwave and sporadic drought during the first crop have been particularly challenging. Due to insufficient rain, tea bud development has been hindered, resulting in fewer and smaller buds. This extension of the harvest time by approximately 15 days, compared to the usual 30-day cycle, has led to leaf burn in many areas, resulting in losses.

Accurate figures for tea harvests are unavailable. However, we anticipate that the last two harvests of 2023 will yield results similar to 2022, with the last harvest expected to be less efficient and of lower quality, in line with usual patterns.

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