Pros and Cons of Investing in the Tea Industry

Pros and Cons of Investing in the Tea Industry

Investing in Tea industry

First, let’s get this article interesting by reading about too facts related to tea. You may know some, may not know some. Still, ho ahead to get to the pros and cons of investing in the tea industry.

Did you know?

  • Tea is one of the most consumed drinks in the world. In fact, it is second after water. Well, that’s quite an achievement!
  • There was a fancy invention in 1908. Do you know what it was? Well, it was tea bags made of silk. Sounds elite already!
  • The four main types of tea – black tea, green tea, white tea and oolong tea. However, they all come from the same plant, that is, Camellia Sinensis. The treatment of the leaves vary to yield different tastes and flavors.

There are several considerations that you must before investing in the tea sector. First of all, it may come to your mind that if it is consumed at such a global level by such a large mass, then it is definitely a good investment. But that’s where you are wrong. Did you know that a few years back, the tea industry was rapidly declining and tea plantation owners actually had no buyers to sell off their lands which were only getting the heavy losses. It is now that the industry is booming. Though there are consumers for the product, it doesn’t mean that it is always a sound investment and you must get involved without knowing what you’re getting into.

First up, you must see if the area and climate of the region are apt for the tea leave to grow. This means that you must be aware of the geographical necessities for growth of good tea. This includes constant temperature and humidity. Thus, you first need the relevant knowledge before taking the plunge.

Next, you must also know the type of tea consumption that is on the rise. Just because it falls under the large heading of tea, it doesn’t mean that you are bound to make money. Green tea is a top hit amongst all the health conscious individuals and rapidly increasing in demands. Thus, please get prior information about such trends instead of regretting later. Government policies also need to be understood well with regard to their import and export guidelines. Though the investment can be great for you and change your days and lifestyle, it requires a lot of reading and finding out to be absolutely sure about the sector you wish to get into.

Also, there must not be an over supply. Accepted that population rise is increasing the percentage of consumers as well, but that doesn’t mean that you will produce more than needed. Remember the demand and supply curve at this point.

Lastly, did you know that if you get a tea plantation, you are responsible for all the worker on it? Yes. You read that correct. Their lodging, eating and medical safety is all upto you. There have been cases in the past when snake bites haven’t been treated and led to legal rows. Thus, be prepared to literally adopt your workers.