Foreign businessmen deny buying dry tea

Foreign businessmen deny buying dry tea

(KPL) Chinese and Malaysian tea processing companies, based in Phongsaly province commenced rejecting to purchase the output of dry tea from local tea growers because it is substandard, said local officials.
Growing tea in Phongsaly province was considered as one of most important jobs for Phongsaly residents who live in upland area to reduce their poverty, after suceeding in the elimination of slash-and-burn cultivation practice. Unfortunately tea price has been slumped from 3,500 kip in 2007 to 2,500 kip per kilogram in 2008. The was affected to tea growers in the province.
According to Phongsaly Industry and Commerce Office, it disclosed that in 2006 Chinese and Malaysian companies established their tea processing factories in Phongsaly province. In 2007, Initially these companies have pledged to buy tea from tea growers between 15,000 kip to 20,000 kip of green tea per kilogram and 50,000 kip to 70,000 kip of dry tea per kilogram. But now two companies announced that they could not affort it in those prices because the tea price in the world market was dropped.
Two companies also denied buying the dry tea leaves from local growers after they did not trust in its quality.
Mr Ounkeo Kong, Standing Head of Industry and Commerce Division of Phongsaly province disclosed yesterday that Chinese and Malaysian companies running business on tea denied buying the dry tea product from growers consequence of substandard.
Actually, the tea are grown in Phongsaly province is good smell and good teste it quality can be exported if the growers know how to process correctly.
Last year, Phongsaly province exported 300-400 tons of semi-finished tea product to China and EU, but this year it expected that it would export more than 400 tons.
However tea price was dropped, Phongsaly province still hopes that it will expand more than 5,000 hectares of tea plantation area. Last year, the tea have been planted on 1,000 hectares.