IMPACT OF FACTORY MODEL CULTIVATION ON TEA INPUT AND OUTPUT QUALITY: A STUDY IN SELECTED TEA FACTORIES IN RUHUNU REGION, SRI LANKA
DOI:
https://doi.org/10.46827/ejefr.v0i0.271Gako-hitzak:
Ceylon tea, factory model cultivation, input and output quality, Galle districtLaburpena
The tea industry has long been acknowledged as a major source of livelihood in Sri Lanka with regards as the biggest provider of employment, export earnings and government revenue. Kenya, India, China, Vietnam, Malawi and Indonesia are emerging as competitors for Sri Lankan tea industry in the international market. Ceylon tea still has golden opportunity to compete in the global tea market with respect to high quality tea products. Factory model cultivation is initiated to encourage tea factories to control their tea input quality, in turn improves tea output quality. Based on this premise, this study aims to identify the impact of factory model cultivation on tea input and output quality of tea factories in Sri Lanka. An empirical investigation was conducted on a sample comprising 74 tea factories in Ruhunu region, Sri Lanka. A personally-administered structured questionnaire was used to collect data. The independent sample t-test and the multiple regression analysis were employed to test the hypotheses. The findings offer useful insights not only in terms of understanding the link between tea input quality and output quality of tea production, but also the impact of factory model plantation on controllability of the external suppliers input quality. The study has extended the understanding of the extent of applicability of the factory model cultivation to upgrade input and output quality of tea as well as controlling abilities towards input quality of external suppliers.
JEL: O13, Q18, Q15
Article visualizations:
Erreferentziak
Ariyawardana, A. 2003. Sources of Competitive Advantage and Firm Performance: The Case of Sri Lankan Value-Added Tea Producers, Asia Pacific Journal of Management, 20, 73–90
Botheju, W. S., Abeysinghe, I.S.B. Herath, N.L. 2000. Effect of standard of plucking on quality and profitability of made tea produced in the up country Uva region during the non flavour season, Sri Lanka Journal of Tea Science, 66 (1 / 2), 36-41
Botheju, W. S., Abeysinghe, I.S.B. Illeperuma, C.K. 2001. Effect of Plucking Standard on Quality and Profitability of Made Tea Produced in the Up Country Dimbulla Region During the Cropping Season, Tropical Agricultural Research, 13, 90-99
Central Bank of Sri Lanka. 2015. Annual Report, Central Bank of Sri Lanka, Colombo
Chang, K. 2015. World tea production and trade Current and future development, Food and Agricultural Organization of the United Nations, Retrieved from: http://www.fao.org/3/a-i4480e.pdf (Accessed 12.10.2017)
Chittithaworn, C., Islam, M.A., Keawchana, T., Yusuf, D.H.M. 2011. Factors affecting business success of small & medium enterprises (SMEs) in Thailand, Asian Social Science, 7(5), 180-190.
Colombo Tea Traders’ Association. 2017. Grand charity auction: Commemorating the sesquicentennial of the Ceylon tea industry, Retrieved from: http://www.historyofceylontea.com/pdf/Auction-Catalogue-2017.pdf (Accessed 12.10.2017)
Dulekha, K. 2008. An overview of the Sri Lankan tea industry: an exploratory case study, Marketing Review, 8(4), 367-381
Ethugala, C. V. 2011. Expectations of the Private and Civil Stakeholders Responsiveness of the State Sector: Tea Industry of Sri Lanka. Journal of APBITM, 1(1), 13-19
Fonseka, D. C. 2009. Visionary leadership and the case of Dilmah, Sri Lankan Journal of Management, 14(2), 1-16.
Hair, J. F., Anderson, R. E., Babin, B. J., Black, W. C. 2010. Multivariate Data Analysis, Seventh Edition, Prentice-Hall, New Jersey.
Herath, H. M. U. N., De Silva, S. 2011. Strategies for Competitive Advantage in Value Added Tea Marketing, Tropical Agricultural Research 22(3), 251-262
Karunaratne, D. D. R. M., Dharmadasa, R. A. P. I. S., Rathnayaka, R. M. S. D. Edirisinghe, E. A. J. K. 2014. Determinants of Net Sale Average (NSA) of Orthodox Black Tea Factories in High Elevation, Sri Lanka, Kelaniya Journal of Management, University of Kelaniya, 3(1), 63-85
Leech, N. L., Barrett, K.C., Morgan, G.A. 2005. SPSS for Intermediate Statistics: Use and Interpretation, Second Edition, Lawrence Erlbaum Associates Publishers, New Jersey, London.
Noorain, R. T. 2014. Quality Considerations in Manufacturing of Tea: A study in selected Estate Owned Tea Factories of Assam, India, International Journal of Current Research and Academic Review, 2(12), 130-135
Outschoorn A. D. 2000. Strategies to Enhance the Competitiveness of the Tea Industry of Sri Lanka, Sri Lankan Journal of Management, 5(1 & 2), 15-47
Sachitra, K. M. V. and Kumarasinghe P. J. (2015), “Critical Success Factors for Innovation: An Empirical Analysis on Tea industry in Sri Lanka”, International Journal of Research in Commerce, Economics and Management, Vol. 5 Issue 01 (January) pp. 69-74
Sachitra, K. M. V., Kumarasinghe P. J. 2014. An Empirical Study on Tea Export Competitiveness in Sri Lanka: Based on Partial Least Squares Structural Equation Model (PLS-SEM), International Journal of Research in Commerce, Economics and Management, 4(4), 51-58.
Sylvestre, H., Jacqueline, N., Alphonsine, M. Olive, T. 2014. Impact of plucking interval on tea productivity and green leaf quality, International Journal of Soil and Crop Sciences, 2(10), 68-72
Tea Board Statistics, 2015. Tea market update, V o l. 1 1(4)
Wijeratne, M. A. 2003. Harvesting policies of tea (Camellia sinensis L.) for higher productivity and quality, Tropical Agricultural Research and Extension, 6, 91-97
