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

Annex 9: Cost of Production of Green Tea Leaf in 0.5 ha of land (NPR/kg)Farm Input Costs(Includes PlantingMaterials, Fertilisers,Manure, Pesticides, etc)Labour Costs (includesland preparation,infilling, mulching,weeding, training,skiffing and pruning,fertiliser and manuring,supervision andoverseeing)Labour Cost (Plucking)Overheads (includesstalking, machinery/equipment operationaldepreciation,transportation, irrigation/water, etc.)Capital Costs(includesinterest on investments,interest on operatingcosts, and landopportunity cost)Amortised InvestmentCosts(includes initial five yearsinput costs, manpower/labour costs, overheadsand interest/ capital costsamortised over 30 years)Total Cost ofproductionConventional 42.91(14.9%)1.78(9.1%)6.37(32.6%)1.89(9.7%)4.99(25.5%)1.61(8.2%)19.55(100%)Conversionto Organic(Method 1)5.63 (12.0%)8.52(18.1%)16.71(35.5%)3.85(8.2%)10.75(22.8%)1.61(3.4%)47.07(100%)Conversionto Organic(Method 2)3.74(10.4%)6.57(18.2%)12.89(35.8%)2.97(8.2%)8.24(22.9%)1.61(4.5%)36.02(100%)Organic(Method 1) 55.63(10.8%)8.52(16.3%)16.71(32.0%)3.85(7.4%)10.75(20.6%)6.74(12.9%)Organic(Method 2) 63.74(9.5%)6.57(16.7%)12.89(32.7%)2.97(7.5%)8.24(20.9%)5.01(12.7%)52.20 39.43(100%) (100%)Source: SNV, 20104 Yield for 0.5 ha of conventional cropping regime have been put at 2.75 metric tonnes per year5 Organic Method 1: the productivity or the yield has been calculated at 1.35 metric tonnes of green leaf per year for 0.5 haof land.6 Organic Method 2: the productivity or the yield has been calculated at 1.75 metric tonnes of green leaf per year for 0.5 haof land.Value Chain/Market Analysis-Orthodox Tea 52