Trials Flashcards
Future directions paragraph
Production: 30% forecasted increase (big outputs from bla countries)
- HYV, biotech,
- more precision tech, GIS, automation
Consumption
- 60% of china’s supply consumed by their pop
- growing middle class with disposable incomes (grow by 7.6%)
- more in China, India other emerging economies
Challenges
- urban sprawl (less arable land)
- cutivated land being reduced by 1% in china
- food crop demand 50% increase by 2030, compete with this
- 2005-2010L 13,000 ha in Indonesia
- reduced labour force due to youth
- 85% of tea sold by MNC
- 45% sold by unileaver and tata
Economic factors for tea
price of tea
- 70% of global tea production is sold via auctions
- Tea production costs per kg: India ($1.62), Sri Lanka ($1.16), Kenya and Malawi ($0.84).
- Costs are higher in India because estates provide workers education, medical and water.
- Indian tea fluctuates in price due to seasonality associated with the monsoon season.
- During the dry season less tea is produced prices rise 100% from $2 -$3 per kilo.
- During spring, first flush (highest quality tea) prices up to $300 per kilo at auction.
- Sri Lankan teas are the highest average price due to their higher quality, mostly orthodox, hand-plucked and processed tea (G.I.) and government restrictions (e.g. on pesticide use).
Economic factors for tea
influces on tea
- Initial causes of price spikes included droughts in producing nations and rising oil prices.
- Oil price increases caused rise in costs of fertilizers, food transport, and agriculture.
- Prices tripled for fertilisers e.g. ammonia, urea and phosphate (require oil).
- Kenya 2008- 2011 drought caused crop production losses, particularly in tea processing.
- During the 4 years, the agriculture sector experienced losses of almost USD $11B and sector growth fell to -5% in 2008. .
Sociiocultural stats to remember
like India, China, and the Africa remains eminently rural (78%).
* Approximately, 250 M rural migrants now live in cities with 54% of the total Chinese population living in urban areas.
Political factors points
subsidies
Subsidies
- * Gov supports smallholders with a subsidy for inputs, e.g. fertilisers, to increase competitiveness with larger estate holders and MNCs receive $200 per hectare.
* Since 2005, fertiliser subsidy has accounted for 2%-2.5% of total gov expenditure (very expensive) increased fertiliser use, yields and profits will increase.
- The subsidy was in response to drought in the country in 2004 where tea output fell 19.7% and the lack of fertilizer used.
Political factors points
quotas
- Typically used to benefit the producers of a good in that economy protect local.
- Sri Lanka Tea Board regulates imports into Sri Lanka tea imports require a license.
- Sri Lanka only imports $10M worth of tea per year. (USA imports $438 M per year).
Political factors points
MRLs
- Food safety standards are a non-tariff barrier to trade as they prevent the import of goods that cannot comply.
- MRLs set max levels of pesticide residue that can be in food to ensure food safety.
- Regulations vary across countriesEU strongest: 454 pesticides regulated on tea.
- China’s exports to EU decreased significantly, after 2005 when MRLs were enforced.
- In 2013 5.1% of the tea imported in EU from China was above the accepted maximum residue limits but rejected by the EU.
Ownership points
changing ownership
Changing ownership
* Traditionally grown on a small scale on South-East Asian farms of less that 1ha in size.
* Following British colonisation of India, large tea plantations >10ha were established that were controlled by the British East India company and sold and taxed in Europe. .
* Smallholders and estates also began producing tea in countries like Sri Lanka and Kenya, which were owned and operated by families, private companies the state.
* After WWII, the WTO was established to promote increased global trade.
* This, combined with increasing SSTs resulted in globalisation and trade liberalisation.
* Resulted in the growth and dominance of large MNCs.
* Growth of these firms came through acquisition of tea estates and smallholder farms.
- Tata Tea owns 51 tea estates in India, 10 tea processing facilities and employs 59,000.
- More than 1 million smallholders work for Unilever.
Organisational points
multinational decision making and control
Multinational decision making and control
* Tea supply chain is characterized by vertical and horizontal integration, with a small number of companies controlling the entire supply chain.
* 85% of global tea production is sold by multinationals, 3 control 1/5 of the market:
- Unilever (12%), Tata Global Beverages (4%) and Twinings (3%).
* Individual tea producers typically have little influence over the conditions of trade.
* MNCs increasingly purchase smallholder estates reduces profits and farmer autonomy.
- Workers subsequently practise ‘crop husbandry’ where they simply earn a wage for their work, rather than a cut of the profits.
Alpine spatial patterns
- 36S, 1800m high.
- Southern end of Great Dividing Range in Australian Alps.
- 100km2 largest alpine zone only 0.01%of Australia
- Altitude: 1800
- Fragmented ecological islands
- Undulating plateaus fragmented by deep river valleys
- Glacial cirques and moraines.
Urban dynamics
Forces that bring about change in an urban area
London stats
8.9 million people
contained in M4 road
generates 30% of UK GDP
2000 years old
Examples of urban villages
Brent in inner east: 45% indian
Lambeth in south west of city: 13% caribean
Goldscreek: Jewish
Nightridge: Arabs
Kingcross/Soho: LGBTQ gay cultures
300 languages spoken and 1/8 non white ethnicity
Prone to racism
multicultura urban villages,
1950s, large migration of ethnicties
Newham: 50000 pakistanis
Bangledeshi business in Tower of Hamlet (65,000 Bangledeshis)
Brick Lane ‘Banglatown’
- Brick Lane curry festival
- Bangla New year
- Baishakhi Mela
Racial attacks on black poeple, asians and othe minorities
Urban renewal examples
Docklands, 3km east from CBD
22km2 of decay from relocation of shipping to Tilbury
govt incentivised with $3900 mil
New financial distrinct
$3900 funding
2000 new homes, 2.2 mil metres2 office space
e.g. APS like Murchoch Printing Press relocated to Canary Ward towers, HSBC
working class –> white collar professionals, young entrpenurs
all differnt towers, West Indian Docks
urban decay examples
Millwall, Docklands
busiest port in world 19th centuary
bombing in WW2
shipping mvoed to Tilbury
closing in 1960s
London Docklands Development Corporation LDDC
potention of land: along water front, city centre
govt incentivised with $3900 mil
