babe shan tea feasibility study

8/4/2019 BaBe Shan Tea Feasibility Study

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PPAARRCCBBAABBEE// NNAAHHAANNGG

FOREST PROTECTION DEPARTMENT (FPD),

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT (MARD)

Shan Tea Feasibility Study

(final draft)

Household shan tea trials, including technical requirements for developments at

Phia Chang, Na Con and Na La Villages, Son Phu Commune, Na Hang District

Farmers in Na Hang planting Shan Tea on sloping land

PARC Project VIE/95/G31&031

Creating Protected Areas for Resource Conservation

using Landscape Ecology

October 2000


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This report is prepared for the Government of Viet Nam, within the framework of the GEF and UNDP-funded project VIE/95/G31&031 Creating Protected Areas for Resource Conservation usingLandscape Ecology (PARC). The authors are Do Thi Ngoc Oanh and Phuong Thi Nam.

Citation: Do Thi Ngoc Oanh and Phuong Thi Nam,2000, Shan Tea Feasibility Study,PARC Project VIE/95/G31&031, Government of Viet Nam (FPD)/UNOPS/UNDP/Scott Wilson Asia-Pacific Ltd., Ha Noi..

Project Funding: The Global Environment Facility (GEF), United Nations DevelopmentProgramme (UNDP) and the Ministry of Agriculture and Rural Development

Implementation: Forest Protection Department, Ministry of Agriculture and Rural Development

Executing agencies: United Nations Office for Project Services (UNOPS)Scott Wilson Asia-Pacific Ltd., The Environment and Development Group,and FRR Ltd. (Site Manager: L. Fernando Potess)

Copyright: Forest Protection Department, Ministry of Agriculture and Rural Development

Available from: www.undp.org.vn/projects/parc

The report reflects the personal points of view of the authors and does not necessarily representthose of the United Nations Development Programme, or those of the Forest Protection Department,or those of their employing organisations.

This is an English translation of the original report written in Vietnamese. Due to the large inputsrequired to proof-check all reports submitted through the PARC Project, some inaccuracies and errorsmay occur in the translations. In case of doubt, please refer to the original Vietnamese version of this

report.

This internal report of the PARC Project was written to support project objectives. It is provided as areference on components of the landscape ecology approach taken by the project. As a result ofproject progress, some of the issues and activities within the report may have been superseded at thetime of its electronic publication.

Reproduction of this publication for educational or other non-commercial purposes is authorisedwithout prior written permission from the copyright owners provided the source is fully acknowledged.Reproduction of this publication for commercial purposes is prohibited without prior written permissionof the copyright holder.

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http://www.undp.org.vn/projects/parchttp://www.undp.org.vn/projects/parc


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Table of ContentsForeword.................................................................................................................................. 3

Summary.................................................................................................................................. 4

1 Introduction..................................................................................................................... 5

2 Study method.................................................................................................................. 6

2.1 Time and places of study..........................................................................................................6

2.2 Team of study and used methods ............................................................................................6

3 Findings .......................................................................................................................... 7

3.1 An overview of present shan tea production in Phia Chang, Na Con and Na La villages .......7

3.2 A description of district and provincial government plans for development of the shan

tea as forest species under the 661 program.........................................................................103.3 Economic feasibility ................................................................................................................10

3.4 Environmental aspects ...........................................................................................................12

3.5 Marketing aspects...................................................................................................................13

3.6 Geo-physical characteristic of the target area and physiological requirement for shantea cultivation..........................................................................................................................13

3.7 Policies regarding the maximum allowable tea plantation size ..............................................14

3.8 Production information on local production of shan tea harvest.............................................14

3.9 Silvicultural requirements for shan tea production in both form (Tea garden and Teaforest)......................................................................................................................................15

3.10 Seed and seedling preparation:..............................................................................................16

3.11 Knowledge on tea production that local people need to have:...............................................17

3.12 Design for tea trials .................................................................................................................17

3.13 Marketing strategy for shan tea production in Son Phu..........................................................18

3.14 List of special training requirements for success of shan tea production and processingequipment and techniques requests.......................................................................................19

4 Conclusions .................................................................................................................. 20

4.1 Advantages of producing shan tea in Son Phu ......................................................................20

4.2 Challenges..............................................................................................................................20References............................................................................................................................. 21

Appendix 1: Establishment and management cost for 1,000 m2 of tea garden in the first3-year..................................................................................................................................... 22

Appendix 2: investment for soybean Intercropping with in 1,000 m2 of tea garden............... 23

Appendix 3: Net profit from 1,000 m2 of tea garden in Year 4, 5, 6 and later years............... 24

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Foreword

The project Creating Protected Areas for Resource Conservation using Landscape Ecology(PARC) is a joint effort of the Socialist Republic of Vietnam (Ministry of Agriculture and RuralDevelopment-MARD) and the United Nations Development Programme (UNDP). TheUnited Nations Office for Project Services (UNOPS), implements the project in collaborationwith the Forest Protection Department (FPD) within MARD. Field implementation is carriedout by a Sub-Contractor consortium of Scott Wilson Asia-Pacific Ltd., The Environment andDevelopment Group, and Forest Renewable Resources Limited, in cooperation withprovincial, district, and commune government officials, protected area staff, and localcommunities. The PARC Project is co-financed by the Global Environmental Facility (GEF)and UNDP/TRAC, and falls under the GEF operational strategy for conservation of biologicaldiversity.

The PARC Project seeks to develop an effective demonstration model for conservingVietnam's considerable biological diversity heritage through habitat protection. Using alandscape ecology approach, which links a variety of land uses into a matrix of strict

protection, buffer, and forest rehabilitation areas, the project will help alleviate threats tobiological diversity through integrating conservation and development objectives. Twolocations have been chosen to test the PARC Project model. The first site is located at YokDon National Park, in the Central Highlands region. The second site corresponds to Ba BeNational Park (Bac Kan Province) and Na Hang Nature Reserve (Tuyen Quang Province) inNorthern Vietnam.

A focus of the PARC Project is on implementing tangible conservation and developmentprograms through a participatory approach involving local communities as well as concernedgovernment officials. Therefore, the implementation of program activities is used as a tool tobuild local capacities. Given the need to strengthen the organization of the Ba Be NationalPark and Na Hang Nature Reserve, the project emphasizes the building technical,

managerial, and field operational capacities of protected area staff. Particular attention isgiven to all planning and implementation aspects of ecological monitoring, conservationoperations, and community extension services, including alternative income generation.Local communities play a vital role in all project activities. All project programs, therefore,follow a participatory approach, whereby local people are encouraged to express theirneeds, expectations, and concerns about project activities, and are thus able to participate inproject planning and development.

This Document

This report on the Feasibility of Shan Tea production has been produced for the PARCProject site at Ba Be National Park and Na Hang Nature Reserve. The documentconstitutes the Mission Report, and feasibility study result, from the PARC Shan Tea Forest

Products Specialist (Do Thi Ngoc Oanh Thai Nguyen University and Phuong Thi Nam -Song Lo Tea Enterprise, Tuyen Quang).

Recommendations presented herein should be seen as general guidelines for marketing anddevelopment of non-timber forest products available in the Ba Be and Na Hang regions. It islikely that PARC Project strategies will include guidelines and recommendations providedherein. However, some of the guidelines provided may change in scope, timing, orimplementing strategy. Reasons for possible modifications include the biodiversityconservation priority of the PARC Project, the sustainability premise in all PARC Projectactivities, and the likely changes of local biophysical and socioeconomic settings resultingfrom PARC Project activities.

Site Task ManagerPARC Ba Be/Na Hang

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Summary

Shan tea is native species in forest of Na Con and Phia Chang villages. Villagers collected

shan tea seedling from forest to plant in their home garden. Tea area of the villages wasvery small because tea planting was for household demand only. Tea production in thesevillages was very poor in term of production and technical aspect. These villages have goodconditions to grow tea such as soil, climate and existing native shan tea. Shan tea growingin these villages has promising future as it has economic feasibility and strong marketdemand. Provincial and district government had planned to improve shan tea production inNa Hang and Son Phu commune. Two tea trials were designed to establish demonstration invillages. However, villagers need training on tea production techniques.

Shan tea growing was a need of people in Na Con, Phia Chang and Na La villages. Nativeshan tea in surrounding forest was one of evidence that shan tea can be grow in thesevillage. However, feasibility study is needed to make sure that shan tea planting will meetconservation objectives of PARC project and generate income for local people to cover foodshortage period.

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1 Introduct ion

Shan tea (Cammellia sinensis var.shan) is considered as valuable source of Vietnam. It is a

native and evergreen species in the northern mountainous area of Vietnam. Shan tea hashigh quality and yield. Shan tea is preferable, because it is considered as organic product oftea. To protect environment and improve income of mountainous people shan tea wasrecommended as one of forest species to be planted.

Recent PRA and VDP exercises in the Son Phu Commune - Na Hang District have pointedthe possibility of commercial production of shan tea in Phia Chang and Na Con villages.Shan tea is native species in the jungle forests surrounding these villages. The markets havestrong demand on shan tea but the shan tea production in Son Phu and local knowledge arevery poor. Shan tea development would help achieve conservation objectives of the PARCProject if the crop is produced in an environmentally sustainable manner. There are severalreasons for that such as Shan tea would replace maize and rice on upland areas of thesevillages when soil fertility is too poor to grow food crops. Thus, local people have morechoice to supplementary income to cover food shortage period. They do not have to go toforest to collect forest products for their survivors. Tea is a permanent crop once it is grownin bush form on uplands is considered as good manner to protect soil erosion.

Objectives

This study was carried out to:

1. Collect sufficient information on available markets, environmental issues,socioeconomic opportunities, and government policy and regulations, to allow PARCProject to determine the feasibility of intensifying shan tea production in Phia Chang,Na Con and Na La villages.

2. Provide PARC Project with a breakdown of silvicultural and managementrecommendations to initiate trials of shan tea production, if the economic feasibilityproves positive.

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2 Study method

2.1 Time and places of study

Times: The study was carried out from 13 to 19/10/2000 and from 26/10 to 6/11/2000

Places: Three villages: Phia Chang, Na Con and Na La in Son Phu Commune, andfunctional departments of Na Hang district, and Tuyen Quang province.

2.2 Team of study and used methods

RRA method was used to collect information for this report.

The working team consisted of two tea experts:

1. Mrs. Do Thi Ngoc Oanh - Thai Nguyen Agriculture and Forestry College - Teamleader

2. Mrs. Phuong Thi Nam - Song Lo Tea Enterprise, Tuyen Quang Province

List of offices which had discussion with study team:

Provincial Forest Protection Department

Investment and Planning office

Forestry office of Provincial Agriculture and Rural Devel.Dep.

District Forest Natural Reserve and Forest ProtectionDepartment

District Agriculture & Rural development Department

District People Committee

People Committee of Son Phu Commune

Na Hang Forestry Enterprise

Village Chiefs Phia Chang, Na Con andNa La

Households who have shan tea in villages

Tea interest group in Na Con village

Shoppers in Na Hang town and in villages

Tea producers in Nang Kha commune, Nahang

Meeting with tea interested group in Na Con Village

Meeting with district officers

On the last day of field work we had a meeting with District officers, Vice Chairman of Son

Phu commune and project staffs to discuss on proposals and feasibility for tea production inthree villages. List of participants is provided in the annex.

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3 Findings

3.1 An overview of present shan tea production in Phia Chang, Na Con and Na Lavillages

3.1.1 Shan tea is native species

Shan tea is native species in the jungle forests surrounding surveyed villages. It appears inforests named Phia Hooc, Phia Khau and Khuoi Tau. In Phia Hooc we saw tea tree ofaverage 5-8 m high and 20-30 cm in diameter. It is said that 3-4 years before in Phia Hooocforest there were tea trees with circumference of circle more than 150 cm. In about 40minutes in Khuoi Tau forest we found three big tea trees. The circumference of a circle of thebiggest tea tree is 270 cm. It is about 11 m tall. The tree has four main-stems. Theircircumference at 1.3 m high from ground surface is 100 cm; 110 cm; 90 cm and 65 cm. Thetree was pruned to have more tea shoots and leaves for harvesting. Our guider, Mr. TrieuPhuc Vuong (Na con village), said that about 20 years ago, 12 peoples claimed up this treeat the same time to collect tea shoot and leaves. Each person plucked about 5 kg of teashoots. The circumference of two others trees were 160 cm (at 40 cm high) and 180 cm (at 1m high). They were about 10 and 11 m tall.

About 20 years ago when villagers did not plant tea in village they collected tea from forestfor household consumption.

3.1.2 Tea production in three villages

Tea area is very small

To avoid long traveling to forest for collecting tea villagers planted tea and saved native teatrees on their field during forest opening for agriculture. Thus tea in the villages can be foundin home garden, uplands and fallow fields. The tea area is very small because it is used forhousehold consumption not for sale. There is low demand on tea that villagers did not payattention on tea production.

About 20% to 30% of households in these villages have tea in their home gardens. Eachhousehold had 7-15 tea plants that are planted by wild seedling. Tea was planted about 15-20 years ago. Tea has been unattended crop. The sources of seedlings were different inthree villages. Phia Chang and Na Con people collected seedlings from Khuoi Tau and PhiaHooc forest, border area of Tuyen Quang and Bac Kan province. Na La people collectedseedlings from Sinh Long (their previous village). It means tea genotypes are high diversity.

On upland field and fallow fields, native tea plants are left to grow. They are about 5-6 mhigh and 10-15 cm in diameter.

Tea grown for household consumption only

Villagers planted tea for household consumption only. It is a reason they have very smalltea area. On the other hand their tea quality was too low to sale. The "biggest tea producer"is in Na La village - Mr. Truc Y Thong. He has about 15 plants. In 1999 he sold about 10 kgof dry tea with price of about 20.000 VND/kg. He said it was very difficult to sale because oflow quality tea. Before August 2000 (when Phia Chang and Na Con received new teaprocessing dryer form PARC) nobody in Phia Chang and Na Con had tea to sale.

The reason of low quality tea was because of poor processing techniques. Now tea qualityimproved as a result of using new tea dryer and new processing techniques. Villagers arehappy with this improvement.

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Villagers have been drinking tea in three types:

1. Fresh tea: boiling fresh and mature leaves

2. Dry tea: panning, curling and drying.

3. Dry young flower tea: panning and drying

The fuel wood consumption implication did not seem a problem in the villages. In otherwords, fuel wood consumption for tea processing was small in comparison with fuel woodusing for heating. People do tea processing two times per year with small amount perhousehold. One of the "heavy" tea drinkers in Phia Chang said his family consumed 2 kg ofdry tea per year. Means that about 6 kg of firewood was needed for processing. In present,it was estimated that the total tea production of three villages was about 150 kg fresh tea or30 kg of dry tea. If current fuel wood consumption was twice as much as consumption ofnew dryer the estimated firewood for processing above 30 kg of dry tea could be need 90 kgfirewood/year. (See more detail in Table 4)

Tea grows well even without any input

Most of tea trees grow vigorously even without input. Tea trees have dark green color andvigorous branches. The common plant type was single plant. Plant had branches at about1.5- 2 m high. Its average diameter was 10-15 cm.

There are 3 main shan tea species.

Tea plants in these villages can be classified as shan tea because they have deeply serratedand long leaves; and long and white, hairy shoots. They are 3 different species as follows:

1. Dark green, deep serrated and thick leaves, and long shoots; high density of shoots

2. Light green leaves, and light violet shoot; low density of shoots

3. Yellow green and thin leaves, low density of shoots

For planting one should collect seeds from the first species because commonly this type hasgood taste and harvest.

Tending regimes and harvesting

As mentioned above, each household planted few tea trees for household consumption.The distance between trees is 2 x 2 m. There is no input on tea production. Tendingconsisted of weeding and pruning only. People do pruning and weeding for plants that hashigh yield.

Tea was harvested two times per year in April and September. Because tea was not prunedregularly people have to clime up to a tree to do plucking. There were two ways. If tea treewas not pruning or has long stems people cut down stems and then picked tea shoots. If teatree was pruned they stood on tea tree and plucked tea shoots. The picking part consisted of2-4 young leaves with about 20-25 cm long of shoot. Tea yield was 2-3 kg freshtea/plant/picking time. A big plant can provide 5-6 kg/time. This is high potential yield.

Tea processing was a problem in these villages.

Quality of tea in these villages was very low because of poor processing techniques. Thecommon method of tea processing in the villages as follow:

Harvesting tea was cut in to 2-3 parts

Panning

Curling by hand;

Partly drying on pan or fully dry

With partly drying tea: dry on a bamboo frame above cooking place.

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In 1999 Mr. Trieu Phuc Tien in Na Con tried to sell tea in Na Hang town but nobody bought.Villagers knew that they could not sale their tea because of low quality tea.

In August 2000 PARC project provided new tea processing dryer and training on teaprocessing. Now by these enforces Phia Chang and Na Con villages produce much bettertea than that before. This change was recognized by villagers, Na Hang district officers and

other drinkers. After that some offices in Na Hang town order tea but villagers could notoffer because the amount of tea was too little they want to save for their own consumption.It was hardly for us to find 1 kg of tea with price of 30.000/kg (higher price than in Na Hangtown) in Na Con where the new dryer installed.

Propagation ability:

Tea area can be extended by local source from seeds and vegetation propagation. Thenumber of tea plants in homegarden of Phia Chang and Na Con was about 200. Mr. DangVan Quy in Na Con collected 10 kg seeds from one plant. If each plant provides 10 kg ofseed means the source of seeds would be 2000 kg. But note that if plant has a lot of seedmeans its potential shoot and leave yield is low. Therefore, plants with less seed andvigorous vegetation grow is the good one to collect seed from for propagation.

Vegetation propagation can overcome seed limitation but it required trained techniques. Inbush form vegetation propagation ability is 10 times as much as that of seed propagation.Less seed and vigorous vegetation plants are good for cutting stock.

Changes of local attitude on tea production

Villagers have been happy with the improvement of tea quality as a result of using new teadryer and processing techniques. By that they changed their attitude on tea production. Wemet villagers who wanted to invest on tea production. We found about 10 households in PhiaChang and Na Con collected tea seeds to extend their tea area. It could be good ideal toselect these households to do tea trials. One shopper in Phia Chang wanted to buy her owndryer for renting. Mr. Trieu Phuc Minh in Na Con wanted to borrow 1 million VND from PARC

project for his tea group to by fresh tea for processing. Some peoples do weeding for tea onfallow maize field like Mr. Dang Tien Thong in Na Con. The ideal of providing newprocessing technique accompany with new tea processing dryer were excellence ideal toencourage people to grow more tea.

It is good ideal if the project offers Mr. Trieu Phuc Minh's wish because by this encouragesvillagers pay more attention on tea production and know more about potential of teaproduction and they can replace food crop on steep land by growing permanent crop suchas tea. These were positive signs that people recognized promising future of tea production.

We had meeting with tea interest group in Na Con. The findings from this meeting were:

Villagers wanted to plant tea to gradually replace rice and maize on degraded land.Because, in the next few years if they do not find any potential crop to grow on riceand maize field villagers will face more hunger.

Some people prepared seeds to grow tea in the end of 2000 or begin of 2001 butthey did not know how to plant properly.

They wondered if forest protection department allow them to grow tea on steep landor not. (Forest land was not allocated in these villages)

Each household can grow about 500-600 m2 tea in bush form and 2000-3000 m2 oftea in tree form (under 661 program). Fuel wood could not be a problem becausethey can use grass for tea processing. The amount of tea production will not be big.Thus there will be not a big deal on fuel wood. (See more detail in page 15).

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3.1.3 Limitations on tea production in these villages

Lack of techniques in tea production from planting to processing and storage

Low knowledge in farming such as using and making manure, soil degradationprotection...

Steep land Land tenure: forest land was not allocated

Free grazing

Lack of fertilizer

Low income and food shortage

Poor infrastructure

3.2 A description of district and provincial government plans for development of theshan tea as forest species under the 661 program

Shan tea is considered as forest species under reforestation program at national and locallevels. Provincial, district and commune authorized agencies all have policies on growingshan tea under the 661-reforestation program.

Announcement of The Provincial Communist Party dated Mach 2000 wrote that: Tea can beplanted as forest species in Sinh Long, Hong Thai ... Na Hang district.

October 2000 Provincial People Committee approved the proposal of The Na Hang forestryenterprise. This was proposal of reforestation by shan tea in Sinh Long commune. Shan teawill be planted in:

Protection forest: on barren hills with slope degree from 25 to 400. It can be pure

forest of shan tea with forest shading species; Regeneration forest: with density of shan tea is 1,100 plant/ha; and interval between

trees is 3 x 3 m.

Resolution of the District Communist Party on November, 2000 pointed: From year 2001 to2005 Ha Hang will plant 1,500 ha forest of shan tea.

3.3 Economic feasibility

3.3.1 Growing tea provides more income than growing corn, cassava and rice

In these villages tea can be grow in three forms to make: agroforestry tea garden (bushform), tea forest (tree from) and tea hedgerow (live hedgerow to control erosion). Thedifference between three forms as follows:

Tea in bush form

TEA GARDEN

Tea in tree form

TEA FOREST

Tea hedgerow

TEA HEDGROW

- intensive grow with fertilizerapplication and intensive tending

- high density of tea

- early and high harvest

natural grow

low density of tea

late and low harvest

-scatted row of tea on uplandfields

-bush form

-additional income

(See more detail of planting techniques on page 17) Agroforestry tea garden (TEA GARDEN): tea in bush form intergrows with native

species. The objective of agroforestry tea garden is generating income so it requires

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fertilizer application; yearly pruning and monthly harvest. The density of tea is 17000plants/ha whereas the density of native species is 200 plant/ha. Agroforestry teagarden will be planted at 1/3 of hill at bottom part, native species leaves to grow at2/3 of top hill. The estimates yield will be 300 kg fresh tea/1000 m2 in the year 4(more detail on table 2)

Tea forest (TEA FOREST): tea in tree form will be planted under reforestationprogram. It is mixed forest in which tea density is 2500 plants/ha and native speciesdensity is 200 plants/ha. If it is needed (on barren land) native fast-growing specieswill be planted. The main objective of tea forest is conservation. But it providesincome in the year 6 with the yield of 120 kg fresh tea/ 1000 m2.

Tea hedgerow: two rows of tea in bush form to make live hedgerow. The distance oftea will be 0.3 x 0.5. The objective of tea hedgerow is erosion control. It will providethe yield of 150 kg fresh tea/10002 of tea hedgerow in the year 5.

If tea planted in bush form in the same area of land income from tea growing is 3 times asmuch as that of rice, corn and cassava.

Table 1: Comparison of income from tea, rice, corn and cassava in 1000 m2/year (VND)

Indicators Tea (TEAGARDEN)

Rice Corn Cassava

Yield/1,000 m2

(kg) 300 135 200 810

Price (VND) 2,000 1,500 1,200 250

Income (VND) 600,000 202,500 240,000 202,500

Note:

Fresh tea yield/year is calculated for the first harvesting year (after planting 3 years). It could be 7 to 10

crops/year. Tea yield will increase in the following years. Corn, cassava and rice yield taken form PRA report (3/2000)

Price: current price in Tuyen Quang town and Na Hang

Income from tea on 1,000 m2 can buy 400 kg of rice (which needs 3,000 m3 if growing rice),which is enough for one person per year. On the other hand with the current farming practice(no fertilizer and no erosion protection) in the next 2-3 years villagers cannot grow rice anymore (because of degraded land, no harvest). Villagers recognized this problem and theywish if they could find any crop to replace upland rice. Mr. Quy in Na Con village said if theycould not find any crop to replace upland rice they will face more hunger in very near future.

3.3.2 Benefit of growing agroforest tea garden (TEA GARDEN)

The objective of growing agroforest tea garden is generating income; whereas theobjective of growing tea in tree form is conservation thus we make cost benefit analysis forthe first fives of growing tea in bush form.

In the first three years tea plant is small so it cannot fully cover soil surface. To generateincome, reduce weed, soil erosion and improve soil fertility soybean will be planted betweenrows of tea (the area of soybean is 1/3 of tea area = 300 m2). Two rows of soybean will beplanted between two rows of tea.

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Table 2: Cost benefit analysis for 1000 m2

of tea in bush form intercrop with soybean (year 1-6)

Year Investment for Income from Net profit

Tea Soybean

Total Tea Soybean

Total (Thousand VND)

Establishment 595.0 595.0 0.0 0.0 -595.0

Year 1 246.6 150.0 396.6 0.0 375.0 375.0 -21.6

Year 2 266.6 150.0 416.6 0.0 375.0 375.0 -41.6

Year 3 276.6 150.0 426.6 0.0 375.0 375.0 -51.6

Year 4 468.6 0.0 468.6 1500.0 0.0 1500.0 1031.4

Year 5 497.3 0.0 497.3 1752.6 0.0 1752.6 1255.3

Year 6 506.5 0.0 506.5 3000.0 0.0 3000.0 2493.5

Total 2,857.2 450.0 3,307.2 6,252.6 1,125.0 7,377.6 4,070.4

Note: Tea forest will be harvested at 6 years after planting.

3.4 Environmental aspects

Control erosion

Save forest. There is no threatening to forest because growing tea by using newprocessing equipment firewood is not necessary. Firewood for processing will not bea problem because by using new tea dryer grass can be used instead of firewood.On the other hand tea production will not big. When villagers collect grass (lau andlach) from forest trees will grow better because of less competition with weed.

People in Tan cuong commune -Thai Nguyen province used grass instead offirewood for tea processing. Grass are lau (Sacchrum spontaneum) and lach(Miscanthus chinensis). Firewood requirement to process 10 dry tea by new dryer inTan Cuong, Thai Nguyen as follow.

30 kg of grass lau (Sacchrum spontaneum) and lach (Miscanthus chinensis).

or 15 kg of firewoods (branches with diameter of 3 cm)

Table 3 : Estimated fuelwood consumption to dry tea of 1000 m2

(in agroforestry tea garden)

Items Year 4 Year 5 Year 6

Dry tea (kg) 60 90 100

Grass (kg) 180 270 300

Firewood (kg) 90 135 150

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It is estimated that in year 6 when tea garden gains 6 ton/ha and tea in tree form gains 1.2ton/ha there will be bigger amount of tea production. If every household in 3 villages (150households) plant tea the estimated fuelwood consumption for tea by using new tea dryer asfollow:

Table 4: Estimated fuelwood consumption for tea processing in year 6 in three villages

Items 1 household 150 households

Tea garden

area

fresh yield

dry yield

fuel by

+ grass

+ firewood

600 m2

360 kg

72 kg

216 kg

108 kg

9 ha

54 ton

10.8 ton

32 ton

16 ton

Tea forest

area

fresh yield

dry yield

fuel by

+ grass

+ fuelwood

3000 m2

360 kg

72 kg

216

108

45 ha

54 ton

10.8 ton

32 ton

16 ton

3.5 Marketing aspects

Tea markets in Tuyen Quang and Na Hang town have two main types of tea. They areTrung Du tea and Shan tea. Trung du tea is locally produced, but shan tea is imported fromHa Giang province. Shan tea is considered as "high class" tea because it has better qualityand more expensive in comparison with local tea. Shan tea is preferable tea. It occupiedabout 80% tea market in Tuyen Quang (CECI, 1998)

In 1999, one shop in Tuyen Quang town sold 600 kg of shan tea/month with average price of25,000 VND/kg. The shopper said it is very easy to sale shan tea because Trung du tea hadbad reputation on pesticide residual. In Chiem Hoa town one shop sold 600 kg tea/month.

In Na Hang town, there are about 6 shops that sell tea. Each month they sold about 240 kgdry tea (or 3 tons/year). More than 50% of tea was Trung Du tea even though people prefershan tea. In October 2000 price of Trung du tea was 17,000 VND, whereas price of shan teawas 25,000 VND. Tea price was changed from 20,000 to 30,000 VND in a year.

3.6 Geo-physical characteristic of the target area and physiological requirement forshan tea cultivation

Na Hang located in Viet Bac - Hoang Lien Son tea production area that is classified by TeaResearch Institute. This area is important tea production area of Vietnam. Its climateconditions are tropical moon soon with high humidity. They are suitable for tea production.

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Table 5: The comparison of suitable characteristic of target area for tea cultivation

Characteristics Requirement Na Hang

Average temperature

- Max. temp.

- Min. temp.

Annual rainfall

Humidity

18-250C

400C

60C

1,500-2,000 mm

80-85%

22

38

0-6

1,800

80

The above figures show that it is suitable to grow shan tea in Son Phu, Nahang. Theevidence is native shan tea in forest of these villages.

Besides, there are species, which are indicator for planting tea in these villages such as mua(Melastoma candidum), co cut lon, ferns etc.

3.7 Policies regarding the maximum allowable tea plantation size

We discussed with Mr. Phong in Planing and Investment Offices of the Provincial Agriculturaland Rural Development Department of Tuyen Quang. According to him at household level,there is not maximum allowable plantation size. People can grow as much as they can.

We discussed with Mr. Ngo The Kim, Vice-chairman of Nahang District People Committeeregarding allowable tea plantation size. We received written answer from People Committeeas follows:

1. People in Phia Chang, Na Con and Na La are allowed to grow intensive tea in

agroforestry type on agricultural land of slash and burn fallow land which wasidentified in project's PRA report as follow:

Phia Chang: 14 ha

Na Con: 12 ha

Na La: 13 ha

2. Planting sites are current farming land with slope degree more than 250. Tea has tobe grown on 1/3 of the hill at the below part; whereas forestry species will be plantedon 2/3 of the hill at upper part.

3. Growing tea as forest species in 661 program in areas closes to residential area andhave good soil with slope degree from 25-400

4. The size of tea area depends on labor and land ability of a household.

3.8 Production information on local production of shan tea harvest

According to Do Ngoc Quy (1998) old shan tea plants are common in mountainous areaswhere ethnic minority such as Dao, H'Mong and Thai are living. The old shan plants appearon areas with elevation above 200 m from sea level. The biggest production area (produces1,000 ton of dry tea/year) is Tay Con Linh, Ha Giang province (border of Tuyen Quang) andthe second biggest area (produces 60 ton/year) is Suoi Giang, Nghia Lo province.

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Table 6: Shan tea yield in some areas (ton/ha)

Location Bush form Tree form

Tan Trao enterprise (Tuyen Quang) 8-15

Selected clones 4,5-9,5

Ha Giang province 6

Moc Chau enterprise 10-15

Note:

Tea planted in 1961, highest yield was 18 ton/ha which obtained in 1976; recently years: 8 ton/ha

Vegetation propagation ability of selected clone: 70% survival seedlings.

Density of 2,500 plants/ha; 4-6 harvesting/year; 6 ton/year/ha x 2,000 VND/kg = 12 million/ha. Laborforces for harvesting: 1.2 million/ha; weeding 0.5 million/ha and transportation 0.5 million/ha; profit 9.8million/ha (Do Van Ngoc, 1998)

The 39 ha of shan tea grown in 1962 in Moc chau had yield of 17 ton/ha in year 1999 (Do Ngoc Quy,2000)

3.9 Silvicultural requirements for shan tea production in both form (Tea garden andTea forest).

Table 7: Benefit comparison of tea grown in two forms

Objectives Tea forest (under 661 program) Tea garden

Conservation - Save more native species

- Lager area of covering

Save native tea genotypes,

Saving land for agriculture and forest

Economic - Low investment

- Longer establishment time toharvest (can be harvested at 6year after planting)

- Low yield (120 kg/1,000 m2)

- Higher investment

- Sooner to harvest (harvested at 3year after planting)

- Higher yield: 300 kg/1,000 m2

- Have income in the first three yearsby Intercropping legumes

Table 8: Silviculturalrequirements to grow shan tea (for 1,000 m2)

Requirements Tea forest (under 661program)

Tea garden (agroforest teagarden)

Planting site - slope degree 25 -400

- regeneration forest

- barren land

- near village

-plant on 1/3 hill (with slopedegree more than 25

0) at bottom

part

- food crop production area

- close to a house, home garden

Soil requirement -relatively rich fertility soil

- soil depth is more than 80 cm

-relatively rich fertility soil

-soil depth is more than 100 cm

Site preparation -partly weeding in plantingplace of 1 m

2size

-save native tree speciesabove 2 m tall

- minimum soil preparation

-slashing and in-row tillage (about30% of field is cultivated) alongcontour line

-save native tree species above 2m tall

-dig ditches along contour lines:

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Requirements Tea forest (under 661program)

Tea garden (agroforest teagarden)

-dig planting hole:

30 x 30 x 30 cm

30 x 30 cm

Density 250 1,700Distance (m) 2 x 2 1.2 x 0.5

Investment

Seed includes 10%reserve (kg)

- Fertilizer (kg):

+ Animal manure

+ Wild green manure

+ Phosphorus

Mulching

Shading species

Legume seeds

0.8

None

None

None

None

None

None

5.5

1 ton

2 ton

60 kg

1 ton

2 kg

2 kg/year

Shading tree species (ifneeded) either: xoan(Melia azedarachta), mo(Mangletia glauca) anddoi(Michelia

20 plants 20 plants

Planting material By 10 month old seedlings By seeds or cutting seedlings

Planting time September By seeds in Oct-Nov

By seedlings in Mar or Sep

Tending regimes - Weeding around plant 30 cmafter planting 1 month. Afterthat weeding by slashing every2 months

- Weeding around tea plant 50 cmevery month by hoe

- Pruning every year

- Fertilizer application

Seeds should be collected in vigorous plants, which have high yield. Seed selection criteria:pure, clean, ripe, big and heavy (seed should has 14 mm in diameter); water proportion from28-30%, germination rate is more than 75%.

Native forest tree above 2 m will be save as shading tree for tea. After that they will bepruned to have properly sunlight for tea. At mature stage it will have density of 200 trees/ha.Fast-growing tree species are recommended to plant as shading tree if needed. Shadingtrees will provide firewood or timber.

3.10 Seed and seedling preparation:

Seed preparation: collect seed from good yield plants. Fruit, which has brown color, isready to collect. When tree has 4-5% fruit opened, it is ready to collect fruit. Do not collectunripe ones. October is time to collect seed.

Storing fruits in shading area avoiding direct sunlight and rain. Fruit layer is not more than

10-15 cm thick. After 2-3 days fruit opened itself.

Seed selection: putting seed under water, remove floating ones. Sowing in October orNovember.

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Nursery: it is better to establish a nursery for an interested group not individual. Dependingon situation maybe one village has 2-3 nurseries. Nursery should have roof in the first fewmonths.

3.11 Knowledge on tea production that local people need to have:

1. Soil erosion protection

2. Planting techniques:

site preparation

seed collection

sowing

3. Tending of:

replace dead plants

intercroping

weeding

fertilizer application

pruning

plant protection

4. Harvesting

5. Processing

6. Storing

3.12 Design for tea trials

TEA FOREST in barren hill.

Planting site: relative fertile soil, soil is more than 80 cm deep; slope degree 25-400, close to village

Density: 250-plants/1,000 m2 with distance of 2 x 2m.

Shading trees: By Saving native forest species above 2 m, or fast growing treewill be planted if needed. The trees will also provide firewood and timber forconstruction. At mature stage it will have density of 20 plants/1,000 m2

Land preparation: clearing along contour line (1 m width), save native foresttrees above 2 m tall for shading. Digging hole size 30 x 30 x 30 cm. Weeding byhoe around a hole 30 cm width

Nursery: sowing in plastic bag size: 8 cm in diameter and 16 cm high. Plantwhen seedling is 10 months old. Establish nursery near planting site to reducetransportation problems.

Planting time: September - October

Planting techniques: watering seedlings before planting; remove plastic bag;place seedling upright in the hole, filling up the hole. Scrape topsoil from thearea around the hole and use it to fill it up after planting the seedling. Gently

step on the soil around the seedling to tamp it down firmly. Tending of: weeding around seedling 30 cm after planting 1 month and 2

month. Then weeding every 3 months in the first 3 years.

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TEA GARDEN growing

The agroforestry tea garden consisted:

1. Native forest species at 2/3 of top hill

2. Tea is grown at 1/3 of bottom hill

3. Native forest species mix with tea plants

4. Soy bean intercropping with tea during the first three years

Objective: produce organic and high quality tea "special shan tea" to increaseincome for farmers to buy foods instead spending more land to grow food crops.

Planting site: agricultural of slash and burn fallow lands; close to a house; fertilesoil; soil is more than 1 m deep. Slope degree is more than 250. Growing tea on1/3 of hill at bottom part. Forestry species will be planted or regeneration ofnative forest species at 2/3 of top hill.

Density: 1,700 plant/1000 m2. Distance 1.2 x 0.5 m. Save native forest species

above 2 m on planting site as shading trees. At mature stage shade tree willhave density of 20 trees/1000 m2

Soil preparation: sowing Tephrosia candida in March -April on rows; distancebetween rows is 1.2 m. Before planting time 1 month dig ditches with size: 30 x30 cm

Fertilizer: 1 ton of animal manure; 2 tons of green manure; 60 kg ofphosphorus. Put fertilizer right after finish ditches digging. Fill up ditches.

Timing and sowing: sowing in October- November. Seed selection mentionedabove. Digging hole with 3-5 cm deep, 5-6 seed/hole. Cover seed with soil.

Mulching: using grass to cover soil surface to suppress weeds and save water.

Mulching layer is 10 cm thick (after pressing); 30 cm width each size. Put grassbetween sowing rows.

Weeding: around plant 1 month after it emerged.

Intercroping: by soybean between rows of tea to generate income; improve soilfertility; and reduce weeds.

3.13 Marketing strategy for shan tea production in Son Phu

Shan tea has good reputation in Vietnam

Market demand on shan tea has been increased (Prime Minister decision, 1999) because it

has good quality. Besides, it is considered as organic product.

Shan tea is considered as "special tea" because of the following reasons:

Good quality material (better than Trung dutea - common tea in Vietnam)

It is product of mountainous people means low or free of chemical inputs. Thus,customers considered it as "organic product" - good reputation.

Reasonable price.

CECIs study (1998) on green tea market found that shan tea of Ha Giang has considered as"special tea". Price and demand on "Special Tea" has increased.

Some officers in Na Hang had tasted Na Con tea and Hong Thai, Sinh long (Na Hang) teafound that Na Con tea had better taste and smell than those of Hong thai. Once varietyselection being done may create new good clone of shan tea from Son Phu.

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Marketing strategy for shan tea to be produced in Son Phu:

Producing "special tea" to exploit ecological advantage, suitable conditions and availablelabors. Strategies are:

Produce high quality of tea

Production is not too large area but in household level to produce organic tea.

Customers of Son Phus tea will be institutional offices and well-of people in Na Hang, TuyenQuang and others. According to CECI report (1998) the governmental offices are big teaconsumers in Vietnam. A tea shopper in Na Hang estimated each month Na Hang districtoffices consumed about 40 kg tea. Provincial and Nahang customers consume Na Hang teawill save transportation cost.

If 50% of agricultural of slash and burn fallow lands in three villages grow tea the villagerswill have about 20 ha tea. With yield of 600 kg dry tea/ha/year (3 ton fresh tea/ha) the 20 haof tea will produce about 12 tons of dry tea, or value of 150-180 millions dong (tea price of25,000 dong/kg) which is equivalent of 10 tons of rice. Na Hang and Chiem Hoa willconsume half of these products, the rest will provide for Tuyen Quang town markets.

3.14 List of special training requirements for success of shan tea production andprocessing equipment and techniques requests

Training on:

nursery

making compost

soil preparation and planting

Caring of: fertilization, crop protection and pruning

harvesting

processing and storing

Processing equipment:

dryer

circling

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4 Conclusions

4.1 Advantages of producing shan tea in Son Phu

1. Climate and soil conditions are suitable (page 13)

2. Shan tea is native species (page 4)

3. Meet to local economic development strategy (page 8)

4. Meet to conservation and development objectives (page 9 to 11)

5. Land and labor available (page 8)

6. Shan tea demand increases (page 18)

7. Meet the needs of the villagers (page 8)

8. Shan tea production has economic and environmental feasibility (page 12 and 15)

4.2 Challenges

1. Lack of food,

2. Poor infrastructure and techniques

3. Soil degradation.

4. Land tenure: villagers are not clear if they are allowed to grow tea in certain areas(page 8)

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References

CECI, 1998. Report on Tea Market analyses and channel of green tea distribution in

Vietnam.District Communist Party, 2000. "Decisions of the District Communist Party for the 18th

worked period"

Do Ngoc Quy, 1980. Tea Planting. Agricultural Publish House - Ha Noi

Do Ngoc Quy, 1997. Vietnamese Tea. Agricultural Publish House - Ha Noi

Do Ngoc Quy, 2000. Report on survey on tea production in Moc chau Tea Enterprise

Do Van Ngoc, 1998. Results on Survey and Selection ofCamelia sinensis var. shan, in themountainous area of Northern Vietnam and its Development perspective - Tearesearch results (1988-1997) Tea Research Institute Agricultural Publish House - HaNoi

Prime Minister decision, 1999. Prime Minister decision on tea production planning year1999-2000 and tea development trend to period of 2005-2010

Song Lo Tea Enterprise, 1999. Technical guides for tea planting

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Appendix 1: Establishment and management cost for 1,000 m2

oftea garden in the first 3-year

Items Unit Amount Price (dong) Cost (dong)

I. Establishment

Labor (Land preparation: 24 day, planting: 13 days) Man/day 37 10,000 370,000

Animal manure kg 1,000 100 100,000

Nitrogen kg 6 2,500 15,000

Phosphorus kg 60 1,000 60,000

Seeds kg 50 1,000 50,000

Sub-total I 595,000

II. Management cost in the firs t 3 years -

Year 1 -

Nitrogen kg 12 2,500 30,000

Potassium kg 10 2,500 25,000

Labor Man/day 15 10,000 150,000

Capital interest 7 % of establishment/year dong 595,000 41,650

Sub-total 246,650

-

Year 2 -

Nitrogen kg 15 2,500 37,500

Potassium kg 15 2,500 37,500

Labor Man/day 15 10,000 150,000


Sub-total 266,650

-

Year 3 -

Nitrogen kg 17 2,500 42,500

Potassium kg 17 2,500 42,500

Labor Man/day 15 10,000 150,000


Sub-total 276,650

Sub-total II 789,950

Total 1,384,950

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Appendix 2: investment for soybean Intercropping with in 1,000 m2of tea garden

Items Unit Amount Price (dong) Cost (dong)

Seeds kg 2 10,000 20,000

Nitrogen kg 6 2,500 15,000

Potassium kg 6 2,500 15,000

Phosphorus kg 25 1,000 25,000

Labor Man/day 8 10,000 80,000

Total cost 155,000

Income from soybean kg 75 5,000 375,000

4.2.1 Net profit220,000

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Appendix 3: Net profit from 1,000 m2

of tea garden in Year 4, 5, 6and later years

Items 4.2.1.1.1 Amount Price(dong)

Cost (dong)

Year 4

Nitrogen (Urea) kg 172,500

42,500

Potassium kg 242,500

60,000

Labor (tending: 20; harvest: 3; fuel collecting (grass): 3 days Man/day 26

10,000

260,000

Processing dryer deduction (30%) for each household dong 30,000 9,000

Capital interest 7 % of establishment cost dong 1,387,450 97,122

Total cost 468,622

Income from tea kg 60 25,000 1,500,000

Net profi t 1,031,379

Year 5


67,500


100,000

Labor (tending: 22; harvest: 4; fuel collecting (grass): 5 days Man/day 3110,000

310,000


Capital interest 7 % of establishment cost dong 155,000 10,850

Total cost 497,350Income from tea kg 90 25,000 2,250,000


Year 6


67,500


100,000

Labor (tending: 22; harvest: 5; fuel collecting (grass): 6 days Man/day 3310,000

330,000

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Capital interest 7 % of establishment cost* -

4.2.2 Total cost506,500

Income from tea kg 120 25,000 3,000,000


* Farmer has money to pay all establishment cost already

Note:

Dryer cost: 400,000 VND + 25,000 VND (stove covering ) + 25,000 (labour) + 150,000(transportation)

= 600,000 VND.

One dryer cost will be shared for 20 households or 30,000 VND/household

1 labour day can process 20 kg dry tea

Tea yield in:

+ year 4 is 3 ton fresh tea/ha or 60 kg dry tea/1000 m2

(5 kg fresh = 1 kg dry)

+ year 5 tea yield will be 4.5 ton fresh tea/ha or 90 kg of dry tea/1000 m2

+ year 6 tea yield will be 5.0 ton fresh tea /ha or 100 kg of dry tea/1000 m2

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- 26 -

Model of TEA FOREST

2.- -2.5 m Forest tree

Tea plant

! ! !

! ! !

2.- -2.5 m

! 2.0 - 2.5 m ! !

* * * * * *

* * * * * *

* * * * * *

* * * * * *

* * * * * *


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Model of TEA GARDEN

Soybean will be grown in alley between 2 rows of tea in the forst three year for

income generation

Tea row

0.5 m

1.2 - 1.5 m

* * * *

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Model of upland farming with tea

(Using shan tea as live fence to control erosionand generation of income)

7 m

0.4 m

* * * ** * * *

* * * ** * * *

* * * ** * * *

* * * ** * * *

* * * ** * * *

0.4 m

Two rows of shan

Live fence of tea surrounding the plot

Food crops as corn, soybean grown in alley



35-40 m

30m

babe shan tea feasibility study

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