value chain/ market analysis of the orthodox tea sub ... - Nepal Trade

5.1.2 Processing· Assist in obtaining international certification: International certification likeHACCP, ISO, Organic and Fair Trade are vital for increased market access. Somefactories have already received such certification. Facilitation can be provided tofactories towards obtaining these certifications. The factories which are alreadyorganic can be assisted to get Fair Trade certificate.· Assist in ensuring safety standards, increasing efficiency of the factories andimplementing good manufacturing practices (GMP): To attain these the programfollowing activities can be supported: i) analyze operational and managementconstraints of the factories ii) facilitate to bring technical experts frommachine/equipment supplying companies to conduct study on necessary upgradingrequired, ii) support technology, equipment, and material upgrading depending uponthe cost effectiveness and within acceptable budget, iv) provide training on use andmaintenance on the upgraded technology, v) conduct exposure visit for processors totea factories in China, India or Sri Lanka, and vi) provide managerial trainings onquality management.· Develop tea taster/technician: There are specialized short-term and long-termcourses offered by universities to produce tea experts and professionals. Support canbe provided to send key Nepalese staff or entrepreneurs to attend suitable courses asrequired by the tea sector. Identification of potential candidate can be done throughconsultation with HOTPA/HIMCOOP. At present, most of the tea experts are broughtfrom Darjeeling paying high wages.· Establishment of blending facilities: Blending facilities are need of present andhighly demanded by the industry people. Blending helps in product diversification ofNepalese tea (especially second grade tea like monsoon season tea which are sold indiscounted prices in India) to produce value added tea such as flavored tea, MasalaTea, Spice Blends, Herbal Blend, Dried Fruits Mix, that are highly priced in nicheinternational markets. Support can be provided to establish and operate blendingfacility implementing PPP model whereby the program can assist to search/buildfactory complex, provide blending and office equipments and give trainings toconcerned staffs on operation, maintenance and quality management.The concept of a Central Blending Facility (CBF) could be appropriate in the presentcontext if it is cost effective and remains within program budget, as the quantity ofblending required by an individual factory is less. Hence, consolidated quantities mustbe obtained from various factories to realize the full potential of the CBF. The CBFcan be built and managed in partnership with HOTPA/HIMCOOP or interestedindividuals. The potential location for such CBF could be in and around Kakarbhittain close proximity of proposed Central Warehouse.The alternative/additional activity can be the establishment of cost-effective blendingfacilities at local level that is equipped with efficient blending drum and simpletumble drier manufactured locally. Technical trainings can be provided to assemble,operate and maintain such machineries. Similarly, business planning and managerialtraining is required for better management of the facility.· Research on Nepal’s own blend: The program can assist on research anddevelopment of Nepals own unique blend that are easily marketable in internationalmarket especially focusing on the growing US specialty tea market.Value Chain/Market Analysis-Orthodox Tea 37