Tea lovers turning to new leaf

Business Asia, Sept 13, 1999

First it was sake and now it is green tea.

Australia is poised to start selling green tea to the Japanese market, just months after the announcement of a similar deal involving that other favourite Japanese beverage, sake.

Murrindindi Shire in Victoria and Japanese company Ito En are developing a grower network and processing capability for an Australian green tea industry.

Farmers in the shire are now in the final stages of research and development to produce green tea for the Japanese market.

Murrindindi Shire spokesman Ian Abernethy said a large market opportunity was emerging as Japanese demand for green tea outstripped supply.

"Domestic production is declining as urbanisation absorbs more land in Japan and the rural population ages," he said.

"China provides the bulk of green tea imported into Japan, but there are reports that it is inferior in taste to the local product and growth rates are unsatisfactory.

"Japanese tea importers are seeking other sources of supply and Australia is in the front line with its large land base, its climate and relative freedom from plant disease."

Growers in Murrindindi have been working with Ito En over the past three years and the first commercial sales of green tea stemming from the alliance are expected in the year 2000.

Ito En is supporting growers by assisting in soil and climate assessment, soil preparation, plant propagation and ongoing product assessment.

"We're aiming to develop approximately 100 hectares of green tea (1 million plants) suitable for export by the end of next year and a full-scale processing plant will be processed in the shire," Abernathy said.

The processing plant must be located within the growing region as green tea needs to be processed within two hours of harvesting.