Strategic cost management of tea industry : adoption of Japanese tea model in developing country based on value chain analysis
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概要
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The products of the agriculture industry occupy a major portion of international trade. Export of agricultural commodities from developing countries consists of tropical beverages (tea, coffee, cocoa) and other agricultural products such as, bananas, sugar, oilseeds and natural rubber. Beverage like tea comprises a major fraction of the total export of the agricultural products of the Asian countries. Tea industries in the developing countries of Asia are facing huge competition. There also exists inefficiency in the value chain management in the tea industry especially related to land management and plucking efficiency and manufacturing cost. This in fact hinders the growth of this industry. Value chain analysis is one of the main components of strategic cost management. That is why the objective of this paper is to investigate the structure of value chain of the tea industry and associated problems in the developing countries. This paper attempts to find a strategic solution examining the strategic accounting model adopted by the developed countries like Japan. It examines and compares the value chain models that are adopted by the tea industries of Bangladesh and Japan. It has been observed that tea estate managers of Bangladesh are reluctant to maintain tea bushes which actually cut down the level of production and create anomaly in the value chain and provide less yield and low price. It is observed from the analysis that age of tea bushes has significant influence on production and young bushes have very significant influence on production of tea. Bangladesh tea industries possess 82% of the tea plantation area which has mature, old and very old bushes. The old bush plants comprise 42% of total tea producing area. The low yield tea estates possess large number of old bushes. About 40% of the tea estates of the country produce less than 1, 000kg. tea per hectare. About 50% of these low yield tea gardens produce less than 600kg. tea per hectare. If the low yield gardens had more young bushes, production would increase to 3, 818kg/hectare if other variables remain constant. On the other hand, Japanese tea industries observe a very good operating result by introducing smallholding farmers' cooperative model. Strategic cooperative alliance model developed in this study in the light of Japanese cooperative model can help the poor performing gardens of Bangladesh to device an appropriate strategy. This model can help to avert the risks associated with the management of bushes. The firms can use funds of the cooperative for managing bushes and modifying the manufacturing unit. It is understood that the adoption of this model by the tea industries of Bangladesh will enhance tea production significantly. It is also found from cost analysis that SCA gardens will get higher profit after the implementation of SCA model.