1. l0'l)IiillA.:rtUI
Phongsaly Tea Mountain Study Report
Dr, Dafr rcng Phonqduangsy
11r. Khamphou Phoutlavong
r4r, Vie.qkham Sodahack
December 2O1O
tall
t*r.$

2. Key rMfqs from thE Phonqey te
a PlDngsay lst,id posse$ the mo5t developed aid iilensiv€ tea p'odir.rion in Laos rrith rode
1,361Ha cnenlr mder.u t vation ard Dan5 to ln ease th r b ri362 fa by 2014
tGditoiarly cu tiy rd
mpo{ed Trom Yunmn.utvsed n a more iitensive nanner. Modern riyl.
podtrctoi.omncn.edhl99Tasarcsulofahnesenve{nentindrtrewEDidyoverthener
decadeTea.!rvationbasbeensrronqtyprcmoredo.aybothJ5rnopunslbsttlteandasa
means or povefty €radl@lon
w th fa nere iicreasinq y.utivatiiq ths vaieta Ether than impo ed ryp.s a5 a rpsu t
trcnq ..a govenhenr suppor fori ard eiTorcenrent oT, such
.rrtvrtion pra.tces. The organ. n
w'de y rc.oqn zed w th eme €yid€
d. Ihere arc th ee malor tea poce$inq radores nPhooqsaydshrL
planninq to eetab sh
rarminq provid iq fameE with tea seedliqs i. erhange Ir ex. us v€ purcha5e rqhG nris dfts
not appearb have depressed prics wirh pn..s seneraly fo to'1irc yu
s wde y dspproved of.
e. Tei rrrmere aftJ orc.e$oE we f tlre Pu e r tea mi*.t pri.c
.or€d on in 2003 w th larm gat€ pi.es d€. n nq by some 100%. wht€ th€ industry has pmven
r€s iert with tea pue$oE dveEifynq prodrdion nto qreei aid black teas, lamer n.omer
r'om t.a a.. noL' at 5!bs st€me eves, naiy turmcE have @asen tea picLiq and oye6
pronud oi vdrune5 rre now 5iqrifcirly lo'!er rhan at lrre prG peaI ii 2007/3
rDdud vty thrt trrve to date
been substartally ro'ler than chi arqe pa{ this is du. ro mt .urvatDn
prad.eswhich nvovercativetyh(,hdensiry(about35,000prncperha)prningonoite neep
5 opes wirho( adoB b r) pr4ent toD soir .$, b) inpmv. wat.r pbrtion, 4 rep 4e n rroqetr
lo$es, d) rrad€ tea Lre.i or el etre.tve bush shapnq and ptunins. rr
pr.e dec nes has been to rcsur
'n
a ow p.Linq nte {rqs or tesh lear Dck€d per hom) an.r
is has push.d tca prcdtrdon i the dist|.t ro a nrarqim sratus
andasUbs5tencea.tivty
q. Prdessinq.omprnies typrca y buy drc.l fio curivaiino vit3le
ce55 t€a to ,"r.rr (rouql' tea) a
erh ty )e conprc$ed
prme55inq to rLrao clE is 9e eftly poor wilh hiqh ev.lr or smo[e.on
th?vaueorsu.h teas )yan estinated s0!,t.
hc roa cutvatcd srca by some 37% over the nerr five year5,
howevcr noeas,nq yieds an.r in p
perhaps horc (t.3 ThG requ res l)bltier and Dreoarator for nelv and €:sli9.urrvato.i2)
rif pant o to incrcas. print dens ty; 3) 50 fer ty and ware. retention ino.oveneir;4) use or
shade lrees and 5) mproved pruninq/blsh shapinq khnique5 to ma[e pcki0q easier rhese
tc.hniqoesshoud itrcrcaseylerdsi n roverctu,trsto .bour
. assumiiq thsr orqani. .lrtivrton pra.t.es are maintained, th€ poviron of lehncal srppod in
imDroved orgaiic.urtvaLion is pqu rcd, thi 5 ikely to No ve a) use of equin€ qoutrd.ov€6 to
repace on n tog€n, red!.e weed nq rb.ur
rcqu rcm.nGr b) fe of n,ade trces wthir tea gadens ro .rease srroor prcdu.lio, inpove
waL.r rltention, and throuqh .uttiog oT b,aMher $i ndch i9 ai{J quarity mptuveneit Use ol
o.J y reported to have 5ub5tantia y noeasen y€ks an{t iuther trias are

3. 1.
!14er
q@'
4!e11tq) : !A
ftdudu'lHrt
This study is one of four undeftken on a raiqe ofnifferent t€a prcdudon or potanlalprdJudon
zois n llorthen Laos. stes for these iudies were 5e erled as a rcsult of tea qD iq a$esmeitr
underraken wth oily stes of [9h q!a]iy teas seeded wthin this sampe set, study srer w.r.
nditions fion a) s tes w |r we enrb ished tea ndu5vies to b)
tho5e'|jthoutanys9nficantcommercaJdiVlyalDre5etrt.Thesp
a ro orovide deraired a$e$me
nripron and quantif.rtion, hcudinq oGrotr, exreot ot
rc,oure'deE]tyofteaheessnd.omm0nitya..e$.
ehods.urenny (or potenlia yl ab
and proce5siiq of arfe.t rreir veiirood wi l
consideration qven to issues of q€ideraid ethn.i{y.
.. Toas*$Lvhetheranyrormarcg!aLions,oroclprad.es,s!.hasaroGtonof.on.e*ions
I over an.ie t rea r.sourcesr and to lndeEtand the key
playeE in ttu t€a se.tor n Phonqsalydishct.
The fied a$e$ment in Phonqsa y was undetaketr be$veen 19 27ltrl
o, CARE Feasib ty and D6iqn stldy, aid a roctcoisut{anr wrh
suppoft rrcn the phonqsay PAio A one day paiing m&tnq was herd n Phonqsay pior to fierd
se e.l targ€t v, aq.s,
arangements. F6us qrcup dTtrssronsi ad key inaormant ntetoiers tojether
'!ilh
visb ro rhe te3
qardens, aid tea no.€ssi.g facLoridi Nas us.d to undeEtrid 6nres at v aqe, ra.tory, and o.a
n t4o maii Ga prcdrtm -res (KomJn rnd phoufa) .o,eftq 50% of
tea productoi arcds Df Phonsi y
Th,ee nain tea prc.ersinq radores, o.r ,,ro .ra ole€to6, ai.l
qove nenroBaitatons Phonqsa y pAFoi D^Foi d5trcr coven$r ofrice, er werc idefrered by
the teao, nre study was unden q ac.e$ dificu I In nteryiews
or.Dnridentia and as such 5onre of dre nfomatio pre*ited shoud b
Phongsaydstr.t has a loLa areao n nort,ea5l,Mth Dian blan p,ovin.e or
vetnam (25.4 km), sodtheast wth sanprran diskd {77.3 kn), wcst rth 8om neu d {rd {5s.r
km), no''rh with Nyot 0! disni.t (503 km), and south trri Bom rai dnd cs., kn). rhe
lop.graphy 5 prenon nantly steeD d $e.ted hill outrtry, with e evaLion3 rano n9 rfom r00 masl n
d*p variey troDu up to 2,000 mi Abolt 95% of the tota area i5 highry
mountaifous afd s subdivided inro nin. Kumban (deElopnErtnE
4,2Tq ho usehold s with a total ooo ulauoi ol2l,T9l tz0l0).
vilrage and; arc.rtensive iveraqnq 5ome 71Ha per HH in the dhtrid ai a
'rholeand
ra 9n9 f.oir
a low of 7.9 ha,'HH ii the d {ric .€nrrar kunrbai !r to 236 Ha/HH va TaiKumban rhe d rtl.t a
home to seven ethni. gtuups; Phounoy (sso/.),
^khr
(t%), Bor (11%), tao5eng (e.i), 3nro09
(4vo), raiLeu (3vr, and Lao LDlm P%).
rcacrhemost mpoi(antcopinthedstrctasshorvnbeow(200edata)

4. Tea is .u I lated tlp,.a y oi n*p sope5 (ranqing fiom 1silo.15oi) a
1400 masl. some 1,362 ha ofraud ba5 been a o.ated to rea prc.ludion
.llrvated Loc q.ve.nmeilains Lo have sone 0.42 ha (15,000 seedirqt of rea per abourerwirll
20% or sres to the donr€ni. marlel aid Booi erpofr?d to
Mucr of Phorcsa y prov i.e is high
I Padcrla, havng ex.e cnt.ondtois
Povety rem"ms endeni. i Phofoiy d*.r
'trh
a 2007
''in upkd atas, 65% of hauseltahlt ate b.tov the pow,
ltE . sn.e 1993, undr intenatio".lpre$ute.pnl pappf
eE.liatta, ha inDoy.tEhLtl wtkgps fhe areraqe papy
Gsh jaotne pet fanit, Ms 30 usl pc. yer . rn .dlttor.
*ith iutiindions dg.inn stasl) ard IL 4xntns .Lxnrd.. ."tJ
hLnin-o, addrtionat pt6t0B hale
be LrsD467 snhe 23.13% ofvia
Ar ol 2010, Plronqsry dnrd has
prinai y ii (.men, Photrf3i (m 13,
son,e 30% of tea s n Plioula zone
1,362 M or tei qarden5 o.ated
the diski.t d prcvin.ia Gntr),
13 roie, aid 191! ii (omen70ie
phoura zone G w,ere tea .ultivatioi ,ras f6L orcnoted a d 5 d.sl
. The study team vl5 red 6 orthe 10
v raqes Nrhm this ?onc
v a9es {irrr sohe 79 ha of ai.ie L
t.a aid 17s hJ of modef c! rvated tea q/deE, the tean v 5ted 4 of
Phonqiy d nri.t ha! the nro5t deveop€d teaL
se.tor nationr ry .onrbut nq 5ome 60.i to
total naronar prcdudion
ntiated ii 1997 wth total
arear under crrtivston
sa om lrthin Phodra ,one in 1970 0i ls hi
usiq 5eed5 fronl
Komcf,. Th s .ooplrat ve was re orqan €'l as a
!t leid.r-(r [)

5. ) i!trh:cd vJith t.3 f3rm.B n.,r ol edbyvirageE
with the qoa or poren} erad.at on, sma ho der Lea .ultivatioi I'as a
aunr.rte5 thrcuqh adioE ord chne3e ivest entonrpary (Proura rei F3dory) n 1ee7 and otirer
foms or nvcnmcnt IntralpaiLdi a,ear of 50 ha aoo$ 2:l
'ilaqes
n 1997 hav. ri€ 9ro'tr to
1i362haaoo$12viraqesbyz0r0 00f: peraitr0m on 3veEq.,
Le. o,ltjYatinq hou.ehold5 EVe on
rud be able to p od!.. about 300 {00 toitdrv ear pPr Yc wiu'
rh5 erruatinq t somc 1,750 klJ f,esrr kaiha Phonqsay DAFo Gooded trat n 2009i Phoiosaly
nerh e.r or 2,6e0 tonr {iboul ss ca wlh a'r arq.
yied of 198 LoN of nes, leaves per h.darc Bared on the above av3 abc data, aid .ros{h..k.d
tryoughfamrer i,leruew5 t r.nmalddthataveGqeteldsrnPhon!$rylormode n.trrvaLdtea5
at around 20,000 rant5 / rli p anr ddnsiL) arc some 2i000 kqs of frcnr leaT 0r 400 kqs of pdesed
enin.ted 5eed, onen .oledcd fion an.ie te: v:rieiars or frcil
npofted seedirqs provded at or.on by pro.e$06. Drrinq th
an.. r rvaled aid modei,r .utivtried tea 3re typ.aly sod by rar
whd pm.e$ rierh eaT tea iito ether rlatrha aE ia, nate a for pu erh then tea cak. pmdu.tron 0r
dther qpes ot the e.9 bla.r( leJ, q een tca, B u.hun, bao tea. nre main madet 5 Ylnnani trrild
domert. nrarkels.id spe.i. ie- m k.b a.rdu fo, sma !.une FarmeE iso pro.css Mad.ha
s and u,e rome mide |]a(ha is lord to o.a
n rcsponre ro hgrr defaid tom Y
sDr 2003 lith a 5ubstantrl pr.. .ore.rdi (see pi nq sedoi
b.of). A! a reru t, lea p.iiiiq be
rice thei. peak i.2007 by 5one lsor ln mrny Gses fame6 e 5mply eths not pi.kiq their tea
perod. Tl]s rapd drnge i lodures w(hn th.
led te.tor ssholo ii Fiqrre2
Amonq Lrre rve
Phongsay d*.1, productiotr 6.oncpntat.d in
|1o; Pho0la a]d Komren .oner rvh.h tp.esenl
6l % of t,e area The dGtr.t hi5 prns ii pa.€
to noe.€.urvated rrcas by a funhe, s00 ha
Beid
'narlinq
Prorqrar/ yied5 5.omp.at.d by
wde rriles n ntemrtoN
oqe, attldei vrrehl, and r3m hanag€orent
Phonqiy nated that at
"-,:, , -__

6. Sncethedecl,nenPuerhfices,androowDndcdnesino.arreshearptces,pronu.tionvouDres
hav€ de. ned by alinost 40,1'0 Th s appeau ro be more as a GUt or r.rmer lnuiir nqne$ to pi.k at
curentpr.es rathsthan prc€$o. unwi igiersLo buy
Th.!e yieds 3re le$ lhan s0% of tho$ a.hieved n neqlrblurifq r,le0qa county, Yumai wherc
some 1i0s0 kq5 of dry leaf or s,2s0 fierh lear per ha I produ..d lhe rerson! for th5 slb5trira
rar y a) the ow qua ty of and pr
setup; b) req0ar pclnq aid poor qua ty ptunnqr .) orcin. defruf proluction sy*ems ritholt
n Phonqs-y.o0 d be noeased byat reast
s0% thrclqh mDrcved on Tam maiaqement
Low y€lds (srreL p'odu.tion) €su the nunb€, of rq5 of f'esh lerf
khq €te 6 the key to.omn€.car
pickinq corb.omprsnq thc buk o sased oi famrer nte ielvs I is €srimated
that pckirc €les €n(re rroh 10 1 d teas and 4 s k$ ps day Tor
.ioent.unv.kdreas nlsfamerrateisruqhyharrharof reponedp.kiiqrotesinyunnanand s
arqey a re5utoTa) ovrshmt pronudoi, and b) poorbu+ shapinq due to Door Druiinq
Iheconrbimtionorb'!pi.kingralesandnowmrhowerpri.e5.ombinetosqnifcantyreducethe
attractven6s oT t4 .uuvalon and pck 9 Lo f3rmeE. Thc re.eni d
na,ret deveopmerr may assist iL s wodh rctnq GF beNL) that nesh eaf prces in Phoiqsaly
rema n by reqona standards GaLively h9rr. The key fequ rEmen
..uitivaton. Ths requres the de
aclon iion rm govenme to su
The Phounoy lrave.lltivated an.r p
housum Kao aid Ban P[oigseak in
of about t ha arc ac.e$ ble dny b
Ihes€ ai.ient trees arc lyp'6ly !n pruned and rarh 4 5 meteE o
cncumfer€ices raiging lom r01 iffi.ur1i6 with pi.kng and row
yelds, the tesh ear pr.e is ioma y hiqrE cofrpared L nod.m ltir
anceit tea qardens are dtrcut to a$e$ but estinated to be n tl,e mnqe of 2,000 2,500 kqs of
r dry rrG an.eit vireb his
larcer eaves aM thicker budr conpared to moderi o rvatdi rypdr r
lenqth, and srooc a cm lonq.ornrnon.
Fresh leaf Tom an.e0t trees s attradiig typ clly dorbe the prce of none c!Ltvalenvaretiesand
as su.h,.ommurities arc etpand miated se€dinqs as Dantnq
Gn d Tlerentat€ b€dleen frcnr olv €d teat non aicienl 5eed
stock 5 d ffcu r ro a$ess a though some b!ye6 caim to b€ able to do so.
MODERN TE^ C!LnVAT]oN
Phoufa rea Fa.tory (a tan.h of coargx Nanfing xangei T€a company) srarted d6t,rbutnq
Bte or 2,500 seedlnqs Der labou,er in 1997. The radory initaly
promoted tea .uivaton h 23 v aqe5 and th5 ha5 no,r erpanded lo
pore.lr surh as Prcj.d of Phonqiry Din.id {PPDP) aso distributed rea
seedligs as did qDvernh.nr pqec w trr fame, nvdnmeit d tea seed I pu(hase asc occudnq
yu.n crars.Iea conpany ptuvid.d sone 2 milon seedlings lo
fame6 25%ornhi.liwercoftheocaan.eitva,eta.Ingeie,a,reedtrassou(edfio'nYunial
aid ol reasnabry good qua ity va eta s typi.a y 6ed wlhii the Pu e r eta se.tor. Ths vareta 5
lle sdited to black tea prcdldion aso.

7. .llre planned partnq deEty was 5onre 37is00 s*dlinqs per Ha, 5 m ar to that u5ei rn ilensive
small holder pmdu.tion systems in Yunnan. However due to lopoqraphy and lhe lJck or nputs
povded by rame6, hqh dealh rales o..ured at ths densty with m
ro/ , o.. " irbr'd ro b" o, " 70000/ d.
cuLrwalroN PFrcncEs
sone 50 ha or tea qarde^s were dssity (n€ry 40,000/h4
based on ntensive produ.tion syst€ms in china and vietnan. Horcver, such sysrems Ey on use of
agro.hemi@l inpuc, and hiqh qua ity farm management rhat rarneG were trnwir ng or rnabe to
adoptin Phoiq5aly Uore recnty, plantinq ata rate ofsome30,000 plants per ha is promoted but t
adoptinq J ower rate of perhap5 20,000/ha
PDdu.tion in Phonqsry s wdely
re.ogiEd and va ued w thin tsmajorna eL, Yliiai and th,
has been orcmoted by districl authorites snc€ 2005 thrcuqh
rhe enror@ment orqan. iequlations
usett nust be d$toyed"sa:d head orPhongsay PAFO Despite
the o'san. reputaton orPlroiq5aytt€ produdion- noromal
s nd requ red by majD. Ymmn
wh'leo4anc prcductor c rh0s the ony sy*em abe to be 6edi
there ha5 ben litte promotion or
a.h as 4 ot€ton of shade trecr, b) natura ferr:er
zpp cton tr, o u€ Df
fteshbaryiedszreowerandreafquairyhasa$strfr..ed.Hqh.r.ve3ofne$onpants.anbe
€rc{ted to ncr€are vu ierability to p€ns and d r€ais
T€a seds are co e.red and gem rh seedrinqs trren rcady for
vanspartnq ii June or Jly
s oncn nbr.ropped wiLh upland .i.e,
maze, cucmber, soybean Fsam€, ca$ava, bananas, su fower aid other veqetable5 irany for
homeconsumpton. T€rra.inq oftea qardens s rct undertaten. weed
requn n9 sign r-.ail ialior
nvestneitr, eninaLed at 30 to40 abo. days pe, ha.
Modem tea is typ.a y fiur pi.ken 3 or 4 yea6 afrer plartnq. Pi.k iq
vaue sprioq prck in r.larch/April. Tea leav6 are then norm.ly p.ked €ve'y 1t days dlr q wet
*ason beb4een june and Septemb
be hiqlrcr va uc sprinq prk and uidq pick nq orevalert drnq the
and autumn p.rs. Tbs p.kiq rcqne contibutes to a redlcton in
Theaut!mn pl.ko..uE ii Octoberand November berorc pruniiq and tca bunrer a,e Uren lested'for
s fict underLake in the autumn seaon
p or to tlE fi6t pi.k arler I4 yea6 aid wi then nomany .ontinue on.€ a year after ast a!tumn
pick Prufing is usua y rndedaken wrh a ln le aid s geiera y poor.
s may pick wiLh halr of lh€ daily
pi.k povided to the owner as a fce. Horvever, gven pi.ki9
'aLes
and.mreit tesh eaf p ces this is
!.abe to mat.h 106lwaq3 Eter.
nr ta rcqrrer en
'!eed
n9. H.wever, better Ja,m mrniqeneni
in.rlding betLer redirz ion, prrnino, and pcking s re'tuircd. It 6 a50 srqqencd ih mintaiiil]
r f3rm ma na geneit system fo r
ths ancieit tea Resuc of focus 9rou0 dscu$ois wlth tea prc.csso6 and sit€ visits show thal
an.ient tea tre€s aie now threaten€d by dGease and pesG 5u.h as temiLes. Yied aid qua ity of
ament tea s report€d to hav€ deteiorated and - it s repofted by pb.e$o6 rviL key
nprovement measures are undetaken

8. As tea s Lhe man crop for nany households in Phonqsa y dGtrct, owneEh p ortea ladeds s a kel
lroNehod as.t. on average, a househod has abDd one ha or tea qardens wirh areas ryp.aly
nn9i.9 frn 0.2 to 2 ha Based on inle er6, somE 9001, of househo ds owi therrea gatens with
the re na nder wdrk nq on other's qardens.
when nre ch nes. owned phoufa Tea Facrory (pTF) .ntered ko.m€a u
3qreement was siqnen lor ffesh eaf.a edion in padcuartle hiqh€
PIF thus moiopo zed fresh Lcar.o e.rion unti 2006. Ar rhr time Lhe Ma aysian
p y (Lscr) 6bb i+ed a pmes nq tea rJ.tory i Prroiq5a y,
rep ac nq PTF in tlE co €don of an
prc.Esinq frctory, Phonqsay Gre.i rea (Pm) tr3s set !p rnd a o a owed to co €.r Trom Komei
o.r m.nopo y ror tea .o e.tio fr
and appear5 to have had wder effec posby discomaqng other pote Lia iivestoE. FDs.vcri
b€GGe or ts imited resou(e, hiqh valle and qoDd prot e, the 400 y€ar old aicent rea i Komei
?one is targeted by prDce$or5 and .olecro6 with flre dsrrid atrtho ties ioul .ear $at fron the
2010 spr n9 pi.k, io sinq e comrany shoud have a noiopnly or the co ecuon of t€as fiom rhit area.
Fame6 arc entited to se or kafsf€r $en tea qa.dens uth imited saes oc.urng Based on
rcpoden $er, pr.€s equat€ to some Kip 15 milon per ba {us$2i000) for nrodem.urvared lea.
L:nd p anied with tea s bx cx.mpt ror the nd rouryea6 and is rhen taxed ar a .at. or Kp 10,000 /
Durnq ihe P! erh tea price boon in 2007 rid 2003i ftesh eaT pr.es i phoiqey reached $.n
hiqh€{ evel5 but sii@ the Pd elh pri.e.oredon in ch na have 5 nce d€c ned substanriaty. Wh € a
deE* of ainG prce vararon hrs ont ruen r s highy !i key
2007/3 wir be atahed aqa i
ftesh lear 5 Vp.a y sord by fa.he
virlag€ in renote, stes The pn.e rarmeE are abie to obta
1.T€ ryp€; wlh amied ea fte5.ommaidnq a sqnilcit prcmirn typi.ary roubte ovcr
rc.eitly cu t vated Ylnnan varebk.
2 Pck rq qua ity; with shoDt and Mo top eave5 consdered qood qlarty, fe,v pick€6 .oiistenty
a.hieved tris qtra ity w lri nia pr.
the h qhe( ararty and attQdir9 a hiorr prie pred un as s!.h
fte owest varue tea is p ckrd durnq the wer season dle ro the eaves hqh nr. srure conrent. r l
Phoiqely, the weighrort.a rrves sntrmarydGourted by edt
rr€slr eave5 to pro.eso6. The fnar pck or rhe year in Lb. auium
rodlcnq.ounftes brL this ! not rh
Ibd fmg r.
erh tea boo n and bust on Phonlsa y farmeB Lvth .urent p,lces be nq betLleen 30 509ir of that
dunq the peak in 2003. FarmeG r
rcan..ont8for5ub5i5ten@farnelsequat€teaandl.epl.es
bty r@, ee .'pe tE tesh En. poe ta be a tdn kip 3,ar0 p.t tel one fa ner n Phorra zone
Ii o,der to h€lp itr.rease rierh ent meets rvith each proce$or
monthly to discuss Dr. nq and esrab sh a standard hoithry fi.e. A p

9. and the coll{t ng prce based on t
Based on the above 2010 pri.es i
pidiiq doqe from a hiqh of Kp 70,000/day Gprnq
pi.l ancient tea) down to Ko 20,000/day lor low€st
va ue wet s4son, modem .lrtivated rea. G ven that
arc hlqhy imdl and that
sp. nq p .k volumes are 5t mated to b€ some lso/!
or total, a typi@l da y ncome fron t€a pcking r
Kip ranqe. As a basis of
abornq waqe rates in th€ mea arc oiry diqhty ofrs at a .e@i!ed 25,000
Based or cuirent avenge t€ sarden sne, yed5 Jnd 2010 prces, a hou*hods ld.dne fbm modem
tea .uhvation G e5rmated to be sme Kp 6.7 m ion (933s) per annum, equiyarenr to kip 1.37
A key .omp aint of fame6 s that prcc$oG do nDt a ways buy the fres r eaf col ecred rhis s if
pa''. s due to the baLh nature of prccsinq lvhe€ a company requirss a minmum volume at the
sametmei)under.akeproce$ns wheEfarmeEareunabetose ii€shEarboneormoreorthe
pro.essias.ompanies farmeE wit then typialry home prc.e$ ihe fres
FameE prefs to sellrresh l.rf to prcc$orsbecEe 4 they cn qet @5h fasterr2) proce$irc iito
rcUqhea(Mao.h4i5tmeonsunin9and;3)thereisanoltn
pdeseidg Gven rare oT 4.s k! of frsh tesf to 1 kq of r"lao.hai the
pr(e$ing malqii eamed by farmers e5t maled to be le$ than 10%.
Howder, wheo
"l
there k no rresh kar co kcto6 or pde$oEr b) when p .B is bo rowr tr.) ran
oder has been pa.ed by 3 buyer, farmer5 w prc.e$ fresh leal iito
coll{to6 n town. Prc.e$inq s time .onsuminq with the fo ownq sr€ps 1) wirrinq, z) qEn kirling
(n nq), 3) roll nq, and a) nryin(] rhe€ are two rypes or Mao.ha: srJ?,re,rdrr {5un dr ed rouqh
rea) and Hansqine t laa.ha lover dred ough tea) N lh lhe rorh.r hq
produ.e ii the wet season becuse or hiqh humidty and dryinq d ftclrties Farfred in Phoi9say do
not have the cqupment io oven d.y and as 5u.h rely soley on suniryng methods when rainy,
many lvilldry the tea i6de the hoi n an! lowerva ue
Mao.hap,ccsinPhDnqsaiyhavelitt€ifaf,ypremumwhen.ompar€dwithfresh3afflrc.,+ilrthe
prodoclion n Phonqsay be{ seen as a d5k mtiqaton ratherthan ncom
r,bre s: tu'm q:re,Eo.rap.c3 ( o/kq 2!06:010
equvalent t Deaaps 10% of tob pddu.toi. L6r NIFP radc6 rdrd Mao.ha and other NIFPS
and exDo,t to shaEyonq and Mengla in xishuangbania, Yunnan Hon. pmdued mao.ha ir
qeneG y or poor qua ity, Nlh hlgh evek of snoke contaminatiod and often poory d,ed L6l
There s no ofcia data oi
th€ exi€nt of homc
proce$ n9 ir Phonqery buL
br5ed oi trader nteflews it
kos are produ.ed anntra y

10. turtlrer orc.e$rn9 or Maocha urrD!_oh *erminq and pack nq irto shod
and s mple fon of pmce$ing smiar to that u5ed fo, Pue.h orcducton w th reeu lant b o.hemi.3
pro.6se5 l lery to be sim ar su.h tea r dFGn m keted as Phonqsa y smok€d Tea n rcf edioi or
hea'l smoke.oitaminaton that is typ 6r
Yuroan br5€d buyeE repon thal rmok. .ontam niton Jnd p.or dly1l9 redkes rhe va ue of home
n Pronqsay by ai enmated 50q!. Improvnq rhe qua iry aid h€.ce fices Dr
home pm.cscd mro.ba is ar obvlous *rately to inprov. rarmer ted n.omes bltnesh eafsaes to
.!mme(a proce$DE arc lkey lo
'enain
donrinant
TEA currrvarroN cosr / BENEFTT
ve, a 1s year peiod las lndcda
inrerui.r/sbasedon20l0frcshcafpr.es.absErso.rtedwrththeestablshneilaidn:iilen:n.e
irq the lo.alavemqeaqrculLuE w
ln p6.tce, rame6 use the r own rabof and sonretmes prcduce then orf *ed ngs or Beve d Drl
For anaryss purpdr.s wc asrme thrt arr cosc are fu y n.mred wth resu rr
witlade.ine.f]]i.krcratesto10kgtday€surtiignioaniuarpofils,whiearseite.hrear
pri@s to kp 4i000/kq res!lts in ann!alprofc inoeasnq fiom kip 1.37s to 4.12s nr lroi. An inoea5e
This anaysis sro', tMtat.ufienl pri.$ lea.urvatio w lreak even nyea,eghla d hence torth
qeieDte an ral prolts'o11.3 nr ion Kip per Ha on lhe basis of Kip 6.7 n ion of saes Becuse
labou, provided i5 tlDiclly raniy bared, r a$e$nent of,elr E to labour orcvdes perhaps a
rborr over the ls year per od are 5ome K p
27,400 per Cay o ry sighry rrgh
n yed iioeases of s0% a d p.kig rar€s incedse ro 20 kgs per day ni
the retur to .bour T'om tea cutvation rtreases substantia yto KiD
S miar ana ys s war appied lo th€
5ub5tantaly hqher rctu.ns to labor of sone Kip 70,000 perday
q,rslest taduon of.utvation v/on,en undeia[e the majority of actvt€s aso.atcd wlh i.a
prcducton and pm.esinq vrth wp r n parti.! a, be nq dom nat€d
by women. Hom€ p.o.cssinq to mao.ha s a5o larqely undeftikei by
nvolved n land oreoaraton In qenera io Phonqsaly t s dear that t€ 5 more

11. of a woiren s rather than nan!.
evels of ncome that are generat€d through tea saes arc typ.a y
.d el'o 0.-'od o,.i oo p,.pn!(
'
cu tivation olter undeftak q
Thesteeptea p'ic€d{ nes rcsuitiig fom rhd Pu erh pr.e.orcdion
ncoire5 deived from t€a cu tivaLioi
lvilh aver9. tob in.omes ffom one Ha oT modern cutvaten t€a
6k!aLedlas de. nnq ffom rDmc r3.7 nri on kip ($2,331) r 20007
dowi to6.7 nir oi kp (3B37lr 20lo
wth tlre mlonal.!ra in.omc p.vefry rinc ofkp 32i000 percrpt.
Der monlh and aveEqe househod
tei ln Phonqsry have thus de.
'red
fronr oovidiq 3.9 tmes ths
nc/€ases the Gpacity .f oie hed e ol tea under .urcnt prcdrdion Jnd
piictrgEqmeslogeneEtcstrffi.entn.omesbyir5eftorasehousehodsabovelhepoverv ner
maEiialat best The rcsurG or th me de.iies ceary indtGre rtuL
ror 5ome households, tea rickinq especia y rhe rorver varuc w.t s.
pDer nr nrore rcr:ant on rhe
inrprovenefc are abe lo be made aid yiedr in.reasen by soqo as is
eriqeirnnua teJ incones woud ise prcpoftonalry to lu5t over 10
m ion kip Per Ha (51,2s5)eqliva.nt ro double thc ilElpoverty lne.lf th5 p,odlclrty qa n Llas
achieved ovq the total cdrcir area of.u lvated tea in Phonqsay d
Jdded value or5on,e 4 5 b iotr ri p ($s70,000)
Pr..F.siNc C.Mp^NiFc
Phoiqsalyt tea prcductioi is est nared to be d !ided amon9{ the pm
Phoufa r€a Fa.rory (s5%); Phofeery Green rea (26y!)r Lao syuei c6. (r"6)ald orheE (6o/ri).
s!mmary proriles orthe maii three conoar e5 arc Dre5e rted be o{l
Despite ,apid p,.d de.irc!, trrdte ptu.esni|r compai.s rrave shorn res ie .e a! eviden.ed ty a)
the dvefircation or ponu.tor ito few Des ot tea, b) the 5llrslantia
.apicly that s be nq add€d by these coorpan,es n 2010 (overl an estrmated 20c! rc,ease), .)the
t1

12. deveorment or new market ink get.hanners that have been s
throuqh prcvncia government srpport.
cha €nqes reported by these conpan€s ar€ as lolows:
a. so0rclnq ofsurrieit voLumes o
betrveen buyere is hiqhest,
b. De.line tr total vo lnes ol fierh eaf a€ilabe and the quallty o
. over Pi.kiig durng tlre sprnq p
d. Pmron+arm manaqement resulnq in lowyeld5and de. nlnq eafqla ty
s G.s Ktrmml n thcwde4on.
q Exoort tai oT KiD s00,000/MT
h nmebken in obrain n9 rcqurc
D1fR1'TPERSPEfrIVES ON THETEA SFfr'R
The disvi.r qovenment arms to achieve a 100,6 annuar 96wth wrhrn the agri.ulurarsctor as a
who€ wtn ea 5edor t:rqelen to qenerate some 7,30n tons of rre5h eaf (1,624 bE Dr prmssed
tea)within trie nexl five yea6. rht cquater to an inc.ease of 170q! over 200e vounes and 67%
over p€ak produ.tio. vo um.s in 2007.
The pice oirecton in 2003 has I
cultivation and wiiigness to addre$ p.oducton rsues. The key.harrenqes norv lared are the
instabityofthema*etandnarket.haniekTlredstidnoweno0ragesopencomDetronamonqst
5 ror tea rnd meets wlh buyers to r
Focu5 nq on and enforcing orqanc prcn!.iion s one way rhat the di
ain rssD. ed with lea 9 dei
oi rcrt ity maif,knan.e. T..hnca serui.e .ente6 may provid€ a
n€haibn to dehon{bte improved .urtivaLioi tedrniques brt dsllcl funds are mted sn.e the
a$sment was undertak€n, o.iated w th sD fefr ity, yie {rs aid
f.e+eafquaityhaso..Utred
re o.tr butoi to poverry rcdudio
prce b.om the se.tor is at present p€daps ben seei as maknq a u
rather than prcpe ing houeholds out of p.vedy.lne se.to. is domnated by cthni. womei and a5
such a tocus on th€ sedor sho0 d inevitaby enable qreate. benerts to ac.ru€ to thsi lhe typ.aly
poore5t sesment of Lao sociery. The porentia fo' t@ to siqn ficntly .ontibuLe to nove Y a eviation
n Phonqely is evdent bur ,.€ s Luation w I requB ncrca5ed
rocur and attenioJi rsu.h knefits
eLter rctu s to abour. Ih6 wi
reqlne thc dcvelopnent of ow n t 3re likey to be cha,acterzed
by row prant density, inter.roppig, uf or shade trees. lrre use of regrme ground @ve6 could
€dle *eed nq rqui€menc wh st aEo ontributing to roir fertirity and warer r€t€nuon. In fill re.
platrting w be Eqtr rcd in sone sites. Ine FAo have substantia
seclorand coud assist in ths rcgard. Pronudion modek wi needtobedemDnnrat?donexstingtea
famer gardens with the fu ostsofs!.rt'iaswolldnepdtobepadtopadcipatingrai,ner
lmpovng pickiig €les thbuql bett€r cutvaloi {above) aid mp.oved blsh shaping aid ptunino
wiligo sone way to baancdq ow€r pi.es and thercby n.reasing fa.mer ntererl
lheu5eordaan.ientva.elas.atherthaimp.fredYrnnantypes3i.reasiigyacloowledqedby
of.ia 5 and farmeB as a moreapp en.ourag€d.It s worth not'nq
lvaled anci.nlvarelals arc a rcady n pae.
12

13. Theorqani.iat!reofteacutrvaronnPhonqery5akey.ompararv.advanbqevJirhintheChnese
add if,ternationa nrarket whikt .efrir.aion dos ior app
of Phongsaly tea thal me reporte! to be arcady o.c0ring routd anra.1 a
siqnfiGnt prie pPmum {30%) if intenalonary re.oqnized cenifcation was rndedaken coslr or
@iin.rtion willneen b be borne by p.{e$06/buyeE or lhe did sedor Etherthan byfanreE
Improved on fam prccesins tD mao..ha rppears to orrer gftd opp.frunities to add vaue and
rcdtrG n.om€ ro$ risks at houserrod evets and G te.hncaty
HoNever il w beesentiathatanyproc€$tosupportsrhrlrlyinvoveexstnqrradersandbuye6
ln a) ma*et a$.esmenti b)qua ty stafdad deveropment aid.) proce$ nq tranifq so rrat faml
estabGhed to enouEge su.h improvem.it.
The.onliled hiqh volume prodlction of factory ptud!.sd mro.ha and G q@d qua q suqqests
that d re.t entry to eid m3*eG
reprcsents a major market ror Yu bvious hgh €id na er rhat
Phongsaly praduGE coud seek to entd external faciltatioD and suppo
Slpporinq pro.e$or pafti.paton n the Honq Konq rea Expo (Alsust 2011) and erhibiroi of ben
quality Phonqsa y teas at this event wou d repres€ft an dea rd nep. Support ro rea prc.e$ors in
inprovinq,r!a ty or enteriq new m3*et5 shou d be provded rcspedive or the r o qh
Curent trends lowards ba.k ter producton non ower vaup wet season p.ked rea ofter the
potenua for €otry nto h ther €nd wenern malkets. western bdye6 arc interen€d to sof.s fronr
Phonqsaly ir pri.e/ quality iss!es arc competiive. o.9 d n r ..frir.ation woud tacirtate rhc and shoLrd
enab e Phoigsaly proLju.eE to €ffe.t vely compete p.i@
'!ise.
Ertemaldomr a$istano to the F.tor in phonqsaly appeaG fLara ed rron both a) a lo.alpoveiry
redlct on perpectve and b)rcntbution to natonrl5e.to, wide deve
nd eyideft oppdd!i trc! ror sdordevelopmeflt donorfiian.ifq
ii the ode, of 20c! orannua sdorval!e appeare justiaen.
l

14. cost'be nefit for a ncie n t tea colectio n n Komei in
Fid.ru *oe/er: r0 fk(eb):1,6r aEEe pfte (KPrko e,@