Tea Plantation

TECHNO-FEASIBILITY REPORT FOR

TEA PLANTATION IN AN AREA OF

5000 HECTARE

CONTENTS

Sl. No. | Subject | Page No. | 1 | Preamble | 1-7 | 2 | Execution Summary | 8-20 | 3 | Profile of Ethiopia | 21-23 | 4 | Profile of Lucky group of Companies | 24-26 | 5 | Brief note on manufacture of Black Tea | 27-29 | 6 | Tea production in different countries | 30-37 | 7 | Tea cultivation and production process | 38-41 | 8 | Classification of manufactured tea | 42-44 | 9 | Machine for processing Black Tea | 45-49 | 10 | Location of proposed Area | 50-63 | 11 | Project details | 64-84 | 12 | Financial Analysis | 85-97 | 13 | Annexure | | 14 | Strategies for implementation of the project I | 37-117 | 15 | Rainfall at few tea growing location of II | 118-119 | 16 | World tea production and consumption III | 119-126 | 17 | Biology and control of the pest IV | 127-132 | 18 | Eucalypts plantation V | 132-134 | 19 | Market Analysis VI | 134-143 | 20 | Location of port from the Plantation Area VII | 143-144 |

PREAMBLE

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

Preamble

The Committee also visited WushWush Tea Garden located on Jimma Obera road. This tea garden was established in year 1995 comprising an area of about 1000 ha. The WushWush Tea Garden earlier was under the Govt. Of Ethiopia and subsequently purchased by the present owner. In spite of having surplus staff, the Committee Members were pleased to note that the Tea Garden is making modest profit. The well maintained WushWush Tea Garden also impressed the Members of the Committee. The average yield of Black Tea of the Garden is around 300 Qtl. per ha which the Committee found to be quite satisfactory.

In new of the above Techno feasibility report is being prepared for resubmission.

EXECUTIVE SUMMARY

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

INTRODUCTION

XYZ,India has floted a new company is going to acquire 5000 Ha area of virgin land in the name of Verdanta Plantation in the Gambella Regional State, Mazenger, Godare wereda, Government of Ethiopia for undertaking tea cultivation. Out of 2100 Ha, 2000 Ha will be brought under normal tea plantation.

1.0. BRIEF DESCRIPTION OF THE PROJECT:

A. Location of the proposed project : Wereda Mazenger Region, Godera Zone, Gambella Ethiopia. Godare wereda is 717 KM from Addis Ababa in south – west direction via Gore-Masha Road. In other direction via Mizan – Tepe road the identified area is 626 KM from Addis Ababa.

B. Head Office of the Company :
I. Constitution : Private Limited Company
II. Total Cost of the Project : US$ 54021101 (Up to 7th Year)

III. For Bank Financing Cost upto : US$19355038
6th Year was taken in to consideration IV Means of Finance : a. Equity 30% : US$ 5806514 b. Bank Loan 70% : US$ 13548524 ______________________________ Total : US$ 19355038 ______________________________ IV. Employment potential : Daily Rated workers 4200 No. Staff/ Sub staff/ drivers 132 No. V. Repayment Programme : The proposed Bank Loan will be repaid within a period of 10 years on yearly installments (As per details given in appropriate table)

* Particulars of the Project:

The proposed project is for production of high quality CTC/ORTHODOX black tea. The project comprises 2000 ha and will be planted within a period of 8 year in a phased manner. The harvesting of green leaf will start from the later part of 1st year of planting and the yield patterns of black tea production will be as follows:

Table No: 1 Yield of Black Tea per hectare

Year | Yield in Kg/ha | 1 | 270.00 | 2 | 675.00 | 3 | 1350.00 | 4 | 2430.00 | 5 | 3200.00 | 6 | 4200.00 | 7 | 5100.00 | 8 | 5700.00 | 9 | 6300.00 | 10 | 6800.00 | 11 | 7200.00 | 12 | 7200.00 | 13 | 7200.00 | 14 | 7200.00 | 15 | 7200.00 |

In the 2nd year of starting the plantation, state of the art modern CTC/Orthodox black tea factory will be established on the site. Thereafter, other infrastructures relating the Project will be built up. Since the project area is large, the next large capacity modern tea processing factory will be established in the 7th year of production.

* Project Prospect:

The demand for both high quality CTC/Orthodox black tea very high in the International markets. Considering the suitable agro-climatic conditions of the project area, Gambella Regional State of Ethiopia appeared to be ideal for growing highland high quality CTC and Orthodox teas. Such high quality highland tea has a ready internal and international market. This Project will also bring Ethiopia among the producers of high quality teas of the world. The first 300ha will be organic Tea and will be processed as orthodox tea. In subsequent years CTC tea will be produced.

The agro-climatic conditions of the proposed investment area are given below:

* Soils:

The Scientists from the Ministry of Agriculture and Rural Development, Govt. of Ethiopia carried out an extensive field work on soil fertility status and physical properties of the soil in the proposed investment area in Gambella Regional State in
June 2007. Representative soil samples were collected from the area and analyzed in the laboratory. Their findings are given below:

Pedons

Pit No. GT1 ( Gumare – Titi, About 4 km south of Gemadro )
Cordinate: N 070 22’58.6” E 350 23’21.6”
Altitude: 2200 m asl

This area has well drained soil with rolling topography (12% slope).The soil is moderately deep (<100 cm) and dark brown in colour when moist. The texture is loam with moderate sub-angular blocky structure. These soils have friable consistency when wet, slightly sticky and slightly plastic when moist.

Pit No. GT2 ( Gumare – Titi, center of the project site )
Coordinate: N 070 22’58.6” E 350 23’21.6”
Altitude: 2000 m asl

This unit refers to well drained soils that occur on undulating land (8% slope). Soils of this unit is very deep (<150 cm) and are black in colour when moist. The texture is clay loam with moderate sub-angular blocky structure. These soils have consistency that is friable when moist, slightly sticky and slightly plastic when wet.

Pit No. GT3 ( Gumare – Titi, North – West of Tepi Town )

Coordinate: N 070 21’48.3” E 350 22’56.6”
Altitude: 2000 m asl

This unit refers to well drained soils that occur on rolling topography (10% slope). Soils of the unit are very deep (< 150 cm ) and are black when moist. The texture is silt loam with moderate sub-angular blocky structure. These soils have consistency that is friable when moist and slightly sticky and slightly plastic when wet.

Table 2: Soil Chemical & Physical Properties of Soils
(National Soil Research Center, Govt. of Ethiopia)

Field No. | Depth (cm) | PH H2 O | Total N % | O. Carbon % | C/N Ratio | P PPM | K cmol(+)/kg | Texture | GT -1 | 0 – 15 | 5.1 | 1.179 | 16.280 | 14 | 71.20 | 4.57 | L. Sand | GT-1 | 15 – 40 | 5.1 | 0.215 | 2.335 | 11 | 78.00 | 0.61 | S. Loam | GT-1 | 40 – 100 | 5.2 | 0.186 | 2.594 | 14 | 55.20 | 0.58 | S. Loam | GT-1C | 0 – 20 | 5.4 | 0.619 | 7.182 | 12 | 45.60 | 1.77 | L. Sand | GT-2 | 0 – 10 | 5.4 | 0.640 | 8.778 | 14 | 45.40 | 2.61 | S. Loam | GT-2 | 10 – 30 | 4.8 | 0.313 | 2.673 | 9 | 50.32 | 1.00 | S. Loam | GT-2 | 30 – 90 | 5.0 | 0.176 | 2.000 | 11 | 45.36 | 0.73 | S.C. Loam | GT-2 | 90 – 150 | 5.1 | 0.102 | 0.958 | 9 | 8.18 | 0.42 | Sandy | GT-2C | 0 – 25 | 4.8 | 0.611 | 7.103 | 12 | 27.52 | 1.38 | S. Loam | GT-3 | 20 – 50 | 4.4 | 0.901 | 10.214 | 11 | 54.36 | 3.00 | L. Sand | GT-3 | 20 – 50 | 4.5 | 0.557 | 7.262 | 13 | 40.32 | 1.34 | S. Loam | GT-3 | 50 – 90 | 4.5 | 0.186 | 1.456 | 8 | 44.56 | 0.61 | L. Sand | GT-3 | 90 – 150 | 4.8 | 0.123 | 1.138 | 9 | 18.50 | 0.46 | S. Loam | GT-3C | 0 – 30 | 4.6 | 0.643 | 7.820 | 12 | 18.52 | 1.69 | S. Loam |

From the above field and laboratory analysis data on representative soil samples collected from the proposed investment area shows that by and large, the soil is chemically and physically suitable for tea cultivation. The inherent fertility level of the soil is satisfactory.

1.04 Temperature

For good growth of tea, it’s essential that the ambient temperature range should be 100 - 300 C. The temperature data pertaining to the proposed investment area is given in the following table:

Table 3: Ten Years Mean Monthly Temperature Data (1997 – 2006 )

Sl. No. | Month | Temperature in 0 C | | | Mean Max. | Mean Min. | 1 | September | 18.6 | 14.1 | 2 | October | 18.3 | 14.2 | 3 | November | 18.5 | 13.4 | 4 | December | 18.9 | 13.2 | 5 | January | 26.1 | 10.1 | 6 | February | 28.4 | 10.6 | 7 | March | 27.5 | 12.3 | 8 | April | 20.3 | 13.2 | 9 | May | 19.4 | 12.2 | 10 | June | 18.9 | 12.8 | 11 | July | 18.0 | 13.0 | 12 | August | 17.9 | 13.9 |

From the above Table it is found that the ambient temperature range prevailing in the proposed investment area is suitable for tea growing.

* Rainfall

For good growth of tea, a minimum of 2000 mm of well distributed annual rainfall is very essential. The mean annual rainfall data for last 10 years is given in the following Table :

Table 4: Ten years mean annual rainfall of Gumare area (1997 – 2006)\
Source: Gemadero Coffee Plantation (2006) Sl. No. | Month | Rainfall (MM) | 1 | September | 276.9 | 2 | October | 183.6 | 3 | November | 206.8 | 4 | December | 207.6 | 5 | January | 42.2 | 6 | February | 128.5 | 7 | March | 94.7 | 8 | April | 128.1 | 9 | May | 297.3 | 10 | June | 291.5 | 11 | July | 290.6 | 12 | August | 403.4 | | Annual | 2147.8 |

From the above it is seen that the proposed investment area receives an average annual rainfall of 2147.8 mm which is adequate for tea cultivation. The rainfall is fairly well distributed except for the month of January and March. The shortfall in these two months can be compensated through irrigation if the situation demands.

2.00 Socio-economic condition of the proposed investment area

Population

Tea plantation is labour intensive and more than 75% activities in a tea estate is labour oriented. Therefore, to make the investment successful, adequate labour supply is very essential. The Godere district has a population of 48,436, out of which 52% are male and the rest is female. An experience from Gemadro coffee plantation shows that there is a shortage of labour in this specific area. The people who live around the area have various opportunity of income such as gathering of wild coffee, honey and spices from the forests. Therefore, they are not interested to work as daily wage labourers.

Labour Supply

The identified proposed investment area (10000 Ha) falls in the vicinity of Tepi, Mizan Teferi and Gecha (Andracha) towns. In view of this it’s expected that there won’t be much difficulty in finding adequate labourers for the new tea investment project.

To tide over the situation, for the upcoming tea plantation, it will be necessary to mobilize additional manpower from highly populated areas such as Hadiya, Kembata, Welayita, Gojam and Wello where there is high rate of unemployment by formulating a national mobilizing campaign.

Settlement in the proposed investment area

Most of the Gumare – Tepi area is already reserved as a forest and investment area. Because of this, there is not human settlement in the specified area. But two years ago, some 30 farming families have settled in the south west part of the area without any recognition of the local Government. To solve this problem, the woreda administrative council proposed and promised the settlers to provide another place for settlement and the farmers agreed to this proposal. It’s expected that the re-settlement programme will be accomplished in the end of this cropping season.

On the other side, in the western part of the identified area is the place where one of the major nations of the region, the Mezenger people are living and it’s the source of several rivers. In view of this the central part of the identified area is demarcated as reserved forest conservation area.

2.01. Social Infrastructure

Transportation

The identified area is connected by road and air. The eastern part of the project site is found along the main road via Gore – Masha – Gecha and Tepi. In addition, it’s about 18 Km from Tepi airport.

Table 5 Distance of the identified area (Gumare) from nearby town (in KM)

Rol.No. | Name of the town | Distance in KM | 1 | Meti (Godere) | 16 | 2 | Tepi | 17 | 3 | Gecha (Anderacha) | 15 | 4 | Masha | 53 | 5 | Mizan Teferi | 57 | 6 | Gore | 116 | 7 | Gambella (Capital) | 291 |

Power supply

Recently the Godere town has been connected to the electricity grid from Gilgel Gibe Hydroelectric Station. This is an important step for the proposed investment area since power is one of the main inputs in any investment. Transmission line passed through the identified area. Therefore there will be no problem for power.

Water

The proposed investment area is located in a well distributed high rainfall zone. Therefore, it’s a highly potential area as far as water resource is concerned. The central part of the demarcated reserved forest area is the source of more than five perennial rivers. This will provide ready source of water for irrigation and other purposes for the new investment area.

But there is shortage of drinking water in the woreda. However, the regional Government has planned to develop and improve the coverage of drinking water in near future.

Health

For the success of any agricultural investment, a healthy and productive labour force is important. Considering the new investment project, Godere woreda has insufficient health services. There’s only one health center, 3 health posts and 5 clinics in the woreda. The nearest Hospital is in Mizan Teferi town, which is 64 Km away from the investment area. In Gumare Titi Kebele (Project site) there’s no health center. But in near future the Gambella Regional Government has a plan to develop additional health service institutions.

Malaria, TB, Typhoid, Typhus, Pneumonia and Amoebasis are the main diseases that afflict the productive labourers in the district.

Telecommunications Godere is one of those woredas with telecommunication service. The woreda has got the opportunity to access mobile telephone service.

Education

Education has better coverage as compared with other development sectors. In
Godere woreda, there are 27 schools, out of this, 19 are first cycle elementary
Schools (1 – 4), seven second cycles (5 – 8) and one high school. In Gumare
(Project area) there’s only one first cycle elementary school (grade 1 – 4). In
Addition, Mizan Tepi University is newly opened in Tepi town which is 17 km from the Project site.

Flour Mills & Others

In Godere district there are 27 flour mills, 2 coffee washing stations and 4 dry coffee hullers. These are few small scale industries among other services.

Financial Institutions

In Godere district there is no Government or private financial institution. But in
Tepi town which is 17 km away from the project site, there’s a Bank and other financial services.

Income Source and market availability

The identified area lies between the towns Tepi and Meti and highest income- generating source of this area is coffee. Furthermore, since the area is covered by forests, there’s another source of income i.e. honey.

With regard to market, as there’s sufficient services and significant economic
Activity in Meti, Tepi and Mizan Teferi, it has speculated in this study that the area will be suitable for establishing service sector businesses.

* Agriculture

Despite the fact that the district of Godere is mainly covered with forests, its share with regard to food crop production is low as compared with other areas. As the people living in this area dependent on forest for an income, their involvement of food crop production is not significant. Besides, the acidic soils are unsuitable for production of food grain crop. This has been confirmed by the Agronomists of Agricultural office.

Maize, Sorghum and coffee are the main crops cultivated in the area. During 2006 Budget year, 49,900 quintals of Maize was produced from 3,150 Ha of land and 27,455 quintals of Sorghum was harvested from 3,074 Ha area. The productivity of Maize is 16 quintals and Sorghum is 9 quintals per ha. Out of the total of the district, 65,200 ha is a potential area for other crop production. according to the district office of Agriculture and Rural Development. The land is suitable not only for tea but also for coffee, spices and fruit production.

* Major Land Cover Types

Total land cover of the district and area proposed for tea investment

In Godere district, the total area coverage is 156,249 Ha of which 70% is covered by forest (including bush & disturbed forests); the rest is used for crop production, grazing, settlement and other infrastructures. The area proposed for tea cultivation is about 10069 ha, of this 8537 ha is covered by bushes and bamboo, 1532 ha is covered by disturbed forest, 7,331 ha dense forest and 40 ha is settlement, grazing and cultivable land.

Table 6. Area Delineated for Tea Investment and other Coverage’s

Sl. No. | Delineated area | Coverage | | | Area(ha) | % | 1 | Area delineated for tea production | 10,069 | 57.7 | 2 | Area demarcated for reserved forests | 7,331 | 42 | 3 | Settlement, grazing & cultivated land | 40 | 0.23 | | Total | 17,440 | |

THE PROJECT
After having deep study of soil climatic condition, labour supply and other infrastructural facilities offered by Govt. of Ethiopia it was observed that the demarcated area is suitable for Tea Plantation and may be in future produced one of the best quality of tea.
The management of the XYZGroup of the Company therefore, has decided to complete all the formalities with the Govt. of Ethiopia and take possession of land as early as possible. It was also decided that commercial bank of Ethiopia may be approached for financial assistance over above the equity participation of about 30% given by the promoters. It was further decided that president of Gambella Region and Hon. Minister for Investment will be approached to develop a plan for to spend additional 4 to 5 million of US$ for development of infrastructure which includes development of road providing street light drinking water facilities , shelter for labours, Primary and secondary school, Primary health centre and Hospital. Rehabilitation of labour in the identified area need to be taken on top priority. The govt. may also consider providing following benefit to the promoter.
1 Free supply of electricity up to the period of 5 years.
2 Land rent may be charged from the 5th year only and the area which is under plantation i.e. rent should not be charged for the forest land even through possession has been given to the promoter.
3 To permit plantation of medicinal or coffee plants in the remaining time 2000ha of land and a permission of a paper pulp unit.
LOAN AND EQUITY
The total requirement of funds for the Projects is about 54021101 US$ (about 55 Million US$), out of this amount loan from the Bank will be 13548524 US$ and balance amount US$ 5806514 will be equity participation of promoters. Over and above state Govt. has to incurred and additional amount of 4 to 5 Million US$ for development of infrastructure facilities as stated above.
Yearly requirements of loan amount from the Bank and promoters contribution has been carefully calculated and it was presumed that loan from the Bank will be taken only up to 6th year of operation as per yearly requirement given in the table on the next page. From 7th year onwards Bank loan amount will be refunded back @ 1500000 US$ per year. After 7th yearly requirements of fund will be taken from the promoters own resources or the surplus generated by the Company. At the end of 14th year 5.09 million. However, a decision of the management has to be taken for additional plantation of Tea, Coffee or medicinal plant, as per market requirement. Total Bank loan will be paid.

| Yield Production and Price Realization | | | | | | | | Year | Area | Cumulative Area | Yield in Kg/ha | Total Production | Price realized @ | | | | | | US$ 1.97/kg | 1st | 100 | 100 | 270 | 27000 | 53190 | 2nd | 200 | 300 | 675 | 121500 | 239355 | 3rd | 200 | 500 | 1350 | 324000 | 638280 | 4th | 200 | 700 | 2430 | 702000 | 1382940 | 5th | 200 | 900 | 3200 | 1265000 | 2492050 | 6th | 200 | 1100 | 4200 | 2005000 | 3949850 | 7th | 200 | 1300 | 5300 | 2955000 | 5821350 | 8th | 200 | 1500 | 5700 | 4015000 | 7909550 | 9th | 200 | 1700 | 6300 | 5215000 | 10273550 | 10th | 300 | 2000 | 6800 | 6552000 | 12907440 | 11th | | 2000 | 7200 | 7938500 | 15638845 | 12th | | 2000 | 7200 | 9311000 | 18342670 | 13th | | 2000 | 7200 | 10589000 | 20860330 | 14th | | 2000 | 7200 | 11620000 | 22891400 | 15th | | 2000 | 7200 | 12520000 | 24664400 |

COST OF PRODUCTION

STATEMENT OF PROFITABILITY US$

Yield Projection and Price Realization (Traditional Method)

Year | Area under tea(Ha) | Yield in kg tea made/Ha | Total ProductionIn kg tea made | Price realized@ US$ 1.97/Kg(Figures “000” US$) | 1 | 100 | 270.00 | 27000 | 53.19 | 2 | 300 | 675.00 | 121500 | 239.35 | 3 | 600 | 1350.00 | 351000 | 671.47 | 4 | 900 | 2430.00 | 796500 | 1569.10 | 5 | 1200 | 2700.00 | 1444500 | 2844.45 | 6 | 1500 | 3375.00 | 2295000 | 4521.15 | 7 | 1800 | 4050.00 | 3307500 | 6515.77 | 8 | 2000 | 4725.00 | 4495500 | 8856.10 | 9 | 2000 | 5400.00 | 5791500 | 11409.25 | 10 | 2000 | 7290.00 | 7141500 | 14068.00 |

Under normal circumstances production of tea starts form the 3rd year onwards. However we have decided to plant a hybrid Tea plant which gives production from the first year itself and keep on increasing the yield till it reaches optimum label of 6 to 7 metric tons per year. The organic matter content of the soil is very high and there will be no difficulty in achieving the yield figure stated above, rather we are expecting to get higher yield.

There will be collection centre at the middle of each 25 ha plantation. The fresh leave will transported to the weathering shade immediately to maintain the quality of the Tea.
For late plantation there will be increase in the yield up to 15 years as the optimum yield reaches up to 10 years. However for calculation of the project report only yield data up to 10 year has been taken into account.

TEA PRODUCTION IN DIFFERENT
COUNTRIES

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

5.0Tea Production in different country of the word

5.1 INDIAN EXPERIENCE

Whether tea originated in India or China is still a matter of debate. One thing is sure that drinking of tea was first initiated in China as medicine which later spread as a nourishing beverage and organized cultivation was taken up there only. Thereafter, the Buddhist monks took tea to Japan.

Tea cultivation flourished in India under the British rule and today India is the largest producer of tea in the world. After Europe adopted tea as its main hot beverage and China imposed restrictions on its export to outside world, the British established the cultivation in the north eastern parts of India during 1850s onwards which later spread to South India during first world war and later to Sri Lanka.

Many features of tea cultivation and processing were standardized during this period and mechanization was undertaken to handle ever increasing crop to meet global supplies. Green tea, which was normally made in China, was improved upon and Black tea manufacturing was set up which improved shelf life of tea and allowed tea to be transported for longer and longer periods to reach far flung areas.

Darjeeling tea is unique in the world for its aroma and flavours, grown in the foothills of the Himalayas, and is a prized Indian black tea. This tea was marketed with vigorous campaigning by Royal Family and it came to stay as the best teas of the world.

Assam teas are known for their malty liquors and promoted as the milk teas and a newer process called CTC (Crush, tear and curl) was established to handle huge bulks of crop harvested during rainy season.

So, Indian teas came to be known worldwide as the milk teas and a new era heralded over lighter green teas coming out of China till then. Indian Tea Board took various programmers to protect the interests of Indian Tea industry and recently GI registration process was taken up worldwide, by first establishing Darjeeling CTM (certification trade mark).

The East India Company also had interests along the routes to India from Great Britain. The company undertook cultivation and production of tea in India. Its products were the basis of the famous Boston Tea Party in Colonial America.

5.2 Production

The production of Tea in India during the year 2005-06 was estimated at 930.85 million kg as against 906.84 million kg in 2004-05. During 2006-07 the total production is expected to reach 950 million kg. Tea production during the current year 2006-07 (April-November) has been estimated at 811.12 million kg as against 784.15 million kg of the corresponding period of 2005-06 of last year.

5.3 PRICES

The average prices of tea sold at Indian auctions recovered from a downward trend and have been ruling at a higher level right from the month of January 2008 to November 2008 as compared to the corresponding period of 2007. The details are given below:

During the year 2008 average price at the auction cnetre of north India was Rs 75.00. Where as it was Rs 94 for the year 2009.

5.4 Chinese Experience

The Chinese have enjoyed tea for centuries, if not millennia. While historically the use of tea as a medicinal herb useful for staying awake is unclear, China is considered to have the earliest records of tea drinking, with recorded tea use in its history dating back to the first millennium BC. The Han Dynasty used tea as medicine.

Laozi (ca. 600-517 BC), the classical Chinese philosopher, described tea as “the front of the liquid jade” and named it an indispensable ingredient to the elixir of life. Legend has it, master Lao was disgusted at his nation’s immoral way of life, so he fled westward to Ta Chin. While passing through the Han Pass, he was offered tea by a customs inspector named Yin His. Yin Hsi may have inspired the writers of the Dao De Jing, a collection of Laozi’s sayings. Yin’s generosity helped many people and thus began a national custom of offering tea to guests, in China.

In 220, a famed physician and surgeon named Hua Tuo wrote Shin Lun, in which he describes tea’s ability to improve mental functions: “to drink k’u t’u (bitter tea) constantly makes one think better”.

In 59 BC, Wang Bao wrote the first known book providing instructions on buying and preparing tea, establishing that, at this time, tea was not only a medicine but an important part of diet.

During the Sui Dynasty (589-618 AD) tea was introduced to Japan by Buddhist monks.

The Tang Dynasty writer Lu Yu’s (729-804 AD) Cha Jing is an early work on the subject. (See also Tea Classics) According to Cha Jing writing, around 760 AD, tea drinking was widespread. The book describes how tea plants were grown, the leaves processed, and tea prepared as a beverage. It also describes how tea was evaluated. The book also discusses where the best tea leaves were produced. Teas produced in this period were mainly tea bricks which were often used as currency, especially further from the center of the empire where coins lost their value.

During the Song Dynasty (960-1279), production and preparation of all tea changed. The tea of Song included many loose-leaf styles (to preserve the delicate character favored by the Court society), but a new powdered form of tea emerged. Steaming tea leaves was the primary process used for centuries in the preparation of tea. After the transition from compressed tea to the powdered form, the production of tea for trade and distribution changed once again. The Chinese learned to process tea in a different way in the mid 13th century. Tea leaves were roasted and then crumbled rather than steamed. This is the origin of today’s loose teas and the practice of brewed tea.

In 1391, the Ming Court issued a decree that only loose tea would be accepted as a “tribute”. As a result, loose tea production increased and processing techniques advanced. Soon, most tea was distributed in full-leaf, loose form and steeped in earthenware vessels.

5.4 Sri Lanka/ Ceylon Experience

The name Ceylon always brings to mind about tea as Ceylon or Sri Lanka is renowned for its high quality teas. Sri Lanka as the 3rd biggest tea producing country globally has a production share of 9% in the international sphere, and one of the world’s leading exporters with a share of around 19% of the global demand. The total extent of land under tea cultivation has been assessed at approximately 187,309 hectares.

Ceylon tea is divided into 3 groups as Upcountry, Mid country and Low country tea based on the geography of the land on which it is grown.

The plantations started by the British were initially taken over by the government in the 1960s but has again being privatized and are now run by ‘plantation companies’ which own a few ‘estates’ or tea plantations.

Though tea is not the largest export commodity in Sri Lank, it is the most value added product since the total production from the beginning is done within the country.

Tea produced in Sri Lanka carries the “Lion Logo” on its packages which indicate that the tea was produced in Sri Lanka. The use of Lion Logo is closely monitored by Sri Lanka Tea Board which is the governing body of tea industry in Sri Lanka. If a tea producer wants to use lion logo on his packaging, they need to gain permission from the Sri Lanka Tea packaging; and also they need to gain permission from the Sri Lanka Tea Board.

Tea Board then performs a strict inspection procedure on the product, the passing of which allows the producer to use the logo, along with the “Pure Ceylon Tea- Packed in Sri Lanka” slogan on their tea packaging. Each and every consignment is thoughroughy inspected by Sri Lanka Tea board officers before being shipped. Therefore the lion logo and the wording is indeed the assurance of the origin of tea and its quality.

Most of the Sri Lankan tea exporters now focus on adding more value to the exports rather than exporting raw tea. The name “Ceylon Tea” or “Sri Lankan tea” is still regarded as a sign of quality throughout the world.

5.5 Grading of Ceylon Tea

Grade names which are used in Sri Lanka to classify its teas are not by means the indication of its quality but its size and appearance. Mainly there are two categories. They are “Leaf grades” and “Smaller broken grades”. Leaf grades refer to the size and appearance of the teas that were produced during Sri Lanka’s colonial era (which are still being used) and the other refers to the modern tea style and appearance.

5.6 Japan Experience

The earliest known references to green tea in Japan are in a text written by a Buddhist monk in the 9th century. Tea became a drink of the religious classes in Japan priests and envoys sent to China to learn about its culture brought tea to Japan. Ancient recordings indicate the first batch of tea seeds were brought by a priest named Saicho in 805 and then by another named Kukai in 806. It became a drink of the Royal classes when Emperor Saga, the Japanese Emperor, encouraged the growth of tea plants, Seeds were imported from China, and cultivation in Japan began.

In 1191, the famous Zen priest Eisai brought back tea seeds to Kyoto. Some of the tea seeds were given to the priest Myoe Shonin, and became the basis for Uji tea. The oldest tea specialty book in Japan, Kissa Yojoki was written by Eisai. Eisai was also instrumental in introducing tea consumption to the warrior class, which rose to political prominence after the Heian Period.

Green tea became a staple drink among cultured people in Japan, a brew for the gentry and the Buddhist priesthood alike. Production grew and tea became increasingly accessible, though still a privilege enjoyed mostly by the upper classes. The modern tea ceremony developed over several centuries by Zen Buddhist monks under the original guidance of the monk Sen-no Rikyu (1522-1591). In fact, both the beverage and the ceremony surrounding it played a prominent role in feudal diplomacy.

In 1738, Soen Nagatani developed Japanese sencha literally roasted tea, which is an unfermented form of green tea. It is the most popular form of tea in Japan today. In 1835, Kahei Yamamoto developed gyokuro, literally jewel dew, by shading tea trees during the weeks leading up to harvesting. At the end of the Meiji period (1868-1912), machine manufacturing of green tea was introduced and began replacing handmade tea.

5.7 Tea and Kenya
Kenya is a major tea-producer. It has more than 110,000 hectares of land devoted to tea. In Kenya, tea is grown in the highland areas with adequate rainfall and low temperatures. The main tea-growing area is in the Kenyan Highlands, west of the Rift Valley, at altitudes between 5,000 and 9,000 feet. Tea is a major foreign exchange earner, and the main source for 17 to 20 percent of Kenya's total export revenue. In 1995, the tea industry brought US$342 million into the country and Kenya became the largest exporter of black tea in African and third largest in the world. Small-scale farmers grow more than 80 per cent of it while the rest is by large-scale producers. Small-scale farmers market their produce through the umbrella Kenya Tea Development Authority (KTDA), who is in charge of collection, processing and selling of processed leaves. Large-scale producers of Kenyan tea include Brooke Bond, George Williamson, Eastern Produce and African Highlands. Unlike small-scale farmers, large-scale growers are responsible for processing and marketing of their own crop. Kenya's production is usually in the region of 245 million kilos per year. The majority of the Kenyan tea production is sold through the Mombasa auction, with Pakistan, the UK and Egypt being the biggest buyers. Kenya Tea Development Authority and Association of Tea Growers develop and market Kenyan teas worldwide. These organizations’ aims are to promote recognized standards and certification for the industry in general. They have made outstanding contributions to the Kenyan economy through excellence, innovation and quality

in exporting overseas. They also provide a market for the 314,875 farmers who depend on tea growing as a livelihood. Established under an act of parliament (cap. 343) in June 1950, the Tea Board of Kenya licenses tea growers manufacturing and exports. The board also carries out research on tea through the technical arm; The Tea Research Foundation of Kenya is composed of the government, Kenya Tea Development Authority, Kenya Tea Growers Association, Nyayo Tea Zone, Development Corporation and East Africa Tea Trade Association. Kenya production is almost exclusively CTC manufacture (cut, twist and curl). This type of manufacture produces strong-liquoring teas, which yield a high number of cups per kilo, when brewed both loose and in teabags. The bushes are harvested throughout the year, with the best quality being produced in January and February and again in July, during the drier periods of the year.

5.8 Tea in Ethiopia
Tea has been grown and cultivated in Ethiopia seventy years ago at Gumaro, but it is still in an undeveloped condition as not much efforts has been made to grow tea in the areas suitable for its cultivation.

Tea plantation and production:- * The total area covered by tea plantation in Ethiopia is 2700 ha. * Annual production is 6000 ton of black tea. * The export volume is 30% (this is exported to about 12 countries). * Usually it is of high quality, because it is grown on the high lands of Ethiopia. * There are two private tea enterprises in the country, known as Ethio –Agri – ceft & East Africa Holdings.

5.9 Ethio- Agri- ceft has two Tea Garden:-

Wushwush - 1250 ha. tea and 977 ha eucalyptus tree plantation.
Gumaro - 861 ha tea and 734 ha eucalyptus plantation East Africa Agri – business has one Garden:-
Chewaka - 570 ha tea and 160 ha eucalyptus plantation 21 Assam types of clones are cultivated in Ethiopia, the dominant ones are 11/56, 11/4 BB/35, 12/38, SR, B/9, L/6, 6/8, Gumm, chaii. Average Productivity per /ha is recorded as 30Qt.
Quality grading system:- * For Export = Bp1, PF1, PD (B+1, B+2) * For local market = 1st grade, BMF, Dust (B+1, B+2, B+3)

| | YEAR 2008 | yEAR 2009 | S.No. | name of Country | qUANTITY | qUANTITY | 1 | kENYA | 4293661 | 4258361 | 2 | uGANDA | 922795 | 938564 | 3 | rWANDA | 184293 | 153705 | 4 | bURUNDI | 127799 | 167845 | 5 | tANZANIA | 296555 | 187388 | 6 | dEM rEP OF cONGO | 26424 | 5984 | 7 | mOZAMBIQUE | - | 87727 | 8 | mADAGASCAR | - | 2392 | 9 | mALAWI | 43608 | 17600 | | tOTAL | 5895135 | 5819567 |

5.10 QUANTITY OF TEA SOLD IN MOMBASA

View of Tea Garden

TEA CULTIVATION
&
PRODUCTION PROCESS

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

Tea Cultivation and Production Process

6.0 Botinical classification

Tea plant is botanically known as Camellia sinensis is an evergreen plant grown in tropical and sub-tropical climate. The natural habitat of the Tea Plant is between Latitude 210 57’ and 29 0 North and Longitude 89 0 40’ and 970 25.5’ Ease. At present the commercial cultivation of tea extends from 44 0 N to 340 S Latitude. In addition to the climate, the crop can grow in the area where rainfall is more than 1250 mm. It also prefers acidic soils. Many high quality tea plants grow at an elevation up to 1500 ft. (5000 ft.) above the mean sea level. At this altitude plants grown slowly and acquire better flavour. Only the top two leaf and a buds are plucked for manufacture of Black and Green teas. The tea bushes, in a growing season produces 4 flushes of such growth in a month.

6.1 Rainfall:

Tea is a rain-fed crop and a well distributed rainfall of minimum 1250 mm is essential for good growth of tea. In a large part of the tea growing world, usually rainfall exceeds evaporation losses in a course of growing season. But its uneven rainfall may lead to deficit of water during the period of scanty rain. Therefore, more than the total amount, distribution of rainfall matters a lot for sustained high yield of tea throughout the season. In the North East India, the rainfall distribution is not even. The excess rainfall in the monsoon months of June-September causes drainage problems. The average monthly rainfall during November to March is less than the evapo- transpiration losses and the resulting soil moisture deficit affects tea bushes. If this dry spell persists for a longer period, tea plants suffer heavily and yield goes down in spite of having sufficient rainfall in the monsoons. The rainfall pattern of some of the tea growing areas is shown in a separate table in annex.

6.2 Temperature and RH:

Temperature affects tea yield by influencing rate of photosynthesis and controlling growth and dormancy. In general, the ambient temperature within 13°C and 28-32°C is conducive for growth of tea. Maximum ambient temperature above 32°C is unfavorable for optimum photosynthesis more so if it is accompanied by low humidity. In the tea belts if the average winter minimum temperature (Dec-Feb) remains below 12°C and there will be hardly any growth during this period. Flushes commences from March with the rise in temperature. Winter dormancy however is the result of interaction of short day length and low temperature. Low temperature causes slower growth and low yield. Tea cultivated near the Equator produces almost the same yield , but further from Equator winter harvest gradually decline and at Latitude beyond about 160 , there is complete winter dormancy as shown in the table below:

Mean latitude and approximate period of winter dormancy in a few tea-growing
Regions

Region | Mean latitude | Months of winter dormancy | Georgia, U.S.S.R. | 42°N | 6 | Turkey | 41°N | 6 | Iran | 37°N | 5-6 | North-East India | 26°N | 3-4 | South India | 11°N | 0 | Sri Lanka | 6°N | 0 | Kenya | 0 | 0 | Indonesia | 5°S | 0 | New Guinea | 6°S | 0 | Malawi | 16°S | 0 | Mauritius | 20°S | 2-3 | Argentina | 30°S | 3-4 |

For optimum growth of tea, high atmospheric relative humidity is very essential although the critical limit of the ideal humidity level is not yet established. Due to heavy rainfall and temperature, the level of relative humidity rarely falls below 60% in the major tea growing regions.

6.3 Day length: Day length influences growth and dormancy in tea bushes. When days of less than 11hr duration last for at least six weeks tea bushes become dormant. Hence the length of growing season decreases with increasing distance from the equator. Seasonal dormancy appears from around 18° North and South latitudes. In the Northeast India (25°-27°N latitude), the tea bushes remain dormant during the winter season for about 3 months on account of the combined effects of short days and low temperature.

6.4 Soil:

Tea grows well in well- drained, deep, acidic soils within a pH range of 4.5 to 5.5 containing more than 1% soil organic matter. Shallow and compacted sub-soils limit root growth. Tea plants growing on such soils are liable to suffer from draught during dry period and water logging during the rainy months. There should not be any hard pan or acidic

concretions in the subsoil within 2m depths. The depth of ground water table should not be less than 90 cm for good growth of tea. Catchment planning is required for improved soil and water management practices. In a tea estate land survey to identify all major and minor topographical features needs to be carried out.

6.5 Plantations:Unlike other perennial crop, tea is unique in that only its vegetative parts - the two top leaves and the bud - are commercially exploited. For the purpose, the height of the tea bush is maintained low without affecting its aphasic growth. Both these aspects call for manipulation of plant parts for optimal productivity and growth.The term 'flush' describes the growth by the apical bud between two successive phases of dormancy. The phase of dormancy or resting period of the shoot is called banjhi phase, and the apical bud is then described as the banjhi bud. This is enclosed by two bud scales or cataphylls called the janams. The position of janam and their fish leaf on the shoot is of great importance in considering the standard of plucking.The breaking of dormancy is marked by the unfolding of the bud scales which drop immediately, leaving their scar marks on the stem. As the bud continues unfolding, normal leaves are produced which grow in size, that is, become the flush leaves with elongating internodes. After the sequence of production of normal leaves, the shoot again goes banjhi, thus completing one phase of production, followed by further ones of the same type, and the process continue This periodicity between banjhi and productive phase of the shoot is intrinsically regulated, independent of plucking: a typical 'growth' being a composite of two scale leaves, a fish leaf (janam) and four flush leaves.Clearly therefore, the phasic growth habit is of great significance in tea productivity; as productivity is not only inexorably linked to bud and shoot growth, but higher productivity is possible to achieve only by biological manipulation of the growth processes. The process starts with the selection of seeds. The seeds can be improved by production of new seed varieties through scientific breeding process. | 6.6 Vegetative Propagation: Clones are selected from high yielding seed population scientifically for producing both high yield and quality through vegetative propagation.6.7 Planting: Planting of young tea is very crucial operation as it basically determines the development and productive level of tea throughout its economic life. Wrong planting of good planting materials is doubly unproductive as investment is lost both on account of producing the plants and failure to put them up for productivity. Therefore, care, planning and refinement of techniques are essential for achieving long term sustained yield from tea fields. 6.8 Pruning: Pruning of a tea bush is basically renewing of wood. It helps in maintaining the plant as a low bush in a phase of continuous vegetative growth. Pruning both stimulates and controls growth. It removes dead, diseased and overage wood, and thus helps rejuvenate bushes that have crossed the period of maximum productivity.6.9 Fertilizer: The nutrients that are removed from the plant as yield and from the tea bush in turn obtained them from the soil for its growth and productivity. Therefore, to maintain the adequate level of nutrients in the soil, it is essential to replenish the nutrients removed by the tea crop through regular application of fertilizers from external sources. A balanced fertilizer application program therefore is very essential for maintaining higher productivity in tea.6.10 Weed control: Weeds compete with tea crop for moisture, nutrients and sunlight. The ultimate effect is a considerable reduction in yield. Thus, the timing of weed emergence relative to the growth stages of tea is an important parameter in weed management. Apart from directly causing crop losses, weeds in tea areas also acts as secondary hosts for some important pests of tea. 6.11 Pest and Disease management: The simultaneous presence of different species of mites, insects and diseases each with their characteristic mode of feeding, infection in diverse habitat and seasonal cycles, call for optimal management of the pests and diseases, which should be both ecologically and economically sound. |

BRIEF NOTE ON MANUFACTURE
OF BLACK TEA

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

7.0 A BRIEF NOTE ON MANUFACTUR OF BLACK TEA
There are basically two Black Tea Manufacturing processes * Orthodox Process * CTC Process

7.1 Withering:

Withering is the first processing step in the factory and is a process in which freshly plucked leaf is conditioned physically, as well as, chemically for subsequent processing stages. Indeed, withering is one of the most important tea processing steps and can be said to constitute the foundation for achieving quality in tea manufacture. Based on achieving the desired level of withering, one can make better quality teas and, on neglect, can invite serious problems in subsequent steps of manufacture.

7.2 Leaf Laceration:

The principal objective of leaf laceration is to undertake cell rupture carried out in a rolling machine where progressive disintegration of cellular organelles takes place. The process results in exposure of cell sap leading to intermixing of chemical constituents and enzymes in the presence of atmospheric oxygen to form the important chemical constituents responsible for characteristics of tea. From the moment the laceration starts, the ‘fermentation’, which is primarily an oxidation process, begins. The shoot with different degree of tenderness is subjected to considerable deformation during rolling, and, during the process of gradual rupture of leaf, the epidermis is torn up in pieces, cells are crumpled, the cuticle wrinkled and the intercellular space is increased. The mechanical breaking of shoots at this stage also results in the formation of particles of various shapes and sizes depending on the method adopted and the extent of cell damage. These factors have strong effect on the processing steps that would follow as well as market choices for the made teas. Therefore, leaf laceration is also a key step in tea manufacture.

7.3 Rolling Process: A component for both Orthodox & CTC Manufacture

Rolling process is essential for both Orthodox and CTC manufacture. Before the advent of tea machinery, the most convenient method for cell rupture was to rub the leaf in between palms. The Rolling table is simple equipment that emulates the hand rolling method in a commercial level operation. The process of rolling applies pressure and twist between leaves as well as between leaf and surface of the equipment used for rolling. The degree of pressure depends upon the quantity of leaf charged as well as the position of the pressure cap. Resulting friction causes heat, which in excess will hasten the chemical reactions to result in the formation of undesirable constituents detrimental to the quality. The cell rupture in the small and tender shoots is completed faster and chemical reactions set in earlier while the coarser leaves require a little more time. Also the leaf, which has already undergone size reduction and twisting after some amount of rolling, impedes twisting of larger leaf, which may extend the period of rolling. Segregation of such leaves is carried out after an appropriate period (30-45m). The leaf is discharged and then passed through a Sifter or a Ghoogie. The Ghoogies and Sifters have perforations of different sizes. The particles passing through the perforation are called fines and the spill is known as ‘Coarse’ leaf, which is sent for further rolling. The fine leaf is taken for ‘fermentation’. The coarse leaf after second roll is subjected to similar process to get the 2nd fine and if need be the 2nd coarse leaf may further be subjected to 3rd rolling. It may be noted that major portion of the leaf grades come from the coarse leaf.

7.4 Rotor vane and CTC Manufacture:

Cell damage of withered leaf is also caused through Rotor vane and then the lacerated leaf is feed to the CTC Rollers for final processing of the withered leaf before fermentation.

7.5 Oxidation:

The principal difference between black teas and other forms of teas like green tea and oolong tea is the presence of condensed catechins, i.e. polyphenols of higher molecular weight formed through enzymatic oxidation with the help of enzyme polyphenol oxidase (PPO) and peroxidase (PO). The next process objective is, therefore, to allow intimate contact of the catechins with the respective enzymes, which oxidize these catechins in presence of oxygen. The temperature and Relative Humidity also have a role in these oxidation reactions and should be kept at a levels at which the enzyme activity is at the peak.

7.6 Drying:

The main objectives of drying are: • To arrest enzymic reaction as well as oxidation, • To remove moisture from the leaf particles down to 3% and to produce a stable product with good keeping quality.

7.7 Sorting:

Despite more or less intense sifting, bulk obtained after drying are still heterogeneous. Tea ranges in size from that of a speck of dust to a leaf approximately 4 cm long and 1cm wide. The fractions are to be brought to the desired sizes and forms with adequate uniformity and cleanliness conforming to trade requirement. Tea is, therefore, sorted into pieces of roughly equal size. Four main sizes are produced, namely, Whole Leaf Grades, Brokens, Fanning’s and Dusts. Within each of these sections tea is further split up into grades of varying qualities. Whole Leaf Grades are the largest sizes produced and depending on the actual grade within the section may range from a long and wiry stem, 1cm to 2cm in length, to a round and knobby twisted leaf similar in size and shape to that of a small garden pea. Of the former style there are the Orange Pekoes and long Leafed Pekoes. In Chinese, Pekoe means white beards.

7.8 Tasting:

The dry black tea particles are generally placed on a piece of white paper and the following points are recorded:

• Grade: The teas have to be classified as per their grades.

• Colour: The Grayness in tea is not desirable as it denotes faulty manufacturing process. This can also develop during sorting process. The thin and varnish like coating on the dry leaf is rubbed off and results in a grey colour. This golden coppery coloured coating is soluble in water and plays an important part in liquoring properties. It’s absent; the tea must necessarily have been deprived of its fullest liquoring capabilities. A brown appearance, on the other hand, is often the result of coarse plucking containing more fiber.

Some teas produce a reddish appearance at certain times of the year. This is generally found during the autumnal period when growth is slow and the tea shoots become less succulent tinged leaf throughout the year. A reddish appearance in dry leaf is undesirable if caused by coarse plucking. In this case the red appearance brought about by hard and coarse leaf is considerably emphasized by the presence of red stalk.

CLASSIFICATION OF MANUFACTURED TEA

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

CLASSIFICATION OF MANUFACTURED TEA

8.0 Tea is traditionally classified based on producing technique:

8.1 White Tea

Young leaves (new growth buds) that have undergo no oxidation; the buds may be shielded from sunlight to prevent formation of chlorophyll. White tea is produced in lesser quantities than most other styles, and can be correspondingly more expensive than tea from the same plant processed by other methods. It is less well known in countries outside of China, though this is changing with increased western interest in organic or premium teas.

8.2 Green Tea

The oxidation process is stopped after a minimal amount of oxidation by application of heat, either with steam, or by dry cooking in hot pans, the traditional Chinese method. Tea leaves may be left to dry as separate leaves or they may be rolled into small pellets to make Gunpowder tea. This process is time consuming and is typically done with pekoes of higher quality. The tea is processed within one to two days of harvesting.

8.3 Oolong Tea

Oxidation is stopped somewhere between the standards for green tea and black tea. The oxidation process takes two to three days. In Chinese, semi-oxidized teas are collectively grouped as blue tea (literally: blue-green tea), while the term “oolong” is used specifically as a name for certain semi-oxidized teas.

8.4 Black Tea/Red Tea

The tea leaves are allowed to completely oxidize. Black tea is the most common form of tea in southern Asia (Sri Lanka, India, Pakistan, Bangladesh, etc.) and in the last century many African countries including Kenya, Burundi, Rwanda, Malawi and Zimbabwe. The literal translation of the Chinese word is red tea, which is used by some tea love$ The Chinese call it red tea because the actual tea liquid is red. Westerners call it black tea because the tea leaves used to brew it are usually black. However, red tea may also refer to rooibos, an increasingly popular South African tisane. The oxidation process will take between two weeks and one month. Black tea is further classified as either orthodox or as CTC (Crush, Tear, Curl, a production method developed about 1932). Unblended black teas are also identified by the estate they come from, their year and the flush (first, second or autumn). Orthodox processed black teas are further graded.

8.5 Post-fermented Tea

Teas that undergo a second oxidation, such as Pu-erh, Liu’an, and Liubao, are collectively referred to as secondary or post-fermentation teas in English. In Chinese they are categorized as Dark tea or black tea. This is not to be confused with the English term Black, known in Chinese as red tea. Pu-erh, also known as Pou lei (Polee) in Cantonese is the most common type of post-fermentation tea in the market.

8.6 Yellow Tea

Either used as a name of special tea processed similarly to green tea, or high-quality tea served at the Imperial court.

8.7 Kukicha

Also called winter tea, kukicha is made from twigs and old leaves pruned from the tea plant during its dormant season and dry-roasted over a fire. It is popular as a health food in Japan and in macrobiotic diets.

MACHINERIES FOR PROCESSING OF
BLACK TEA

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

9.0 Black Tea Processing Process

The harvest green leaf will be processed in latest state of the art tea processing factories which will be established in the Project area. By and large the following methods will be used for manufacturing of Black tea: * Initially we shall go for Rotor vane – CTC type of manufacture. * The green leaf will be brought to the tea factory soon after it is plucked and will be withered in withering troughs. * The green leaf will be withered for a period of 14 – 16 hours to bring down the moisture level between 70 – 75 %. * The withered leaf will then be fed to Rotor vane for initial cell damage. * The lacerated leaf from Rotor vane will go directly to CTC machines for obtaining the desired particle sizes. * The processed leaf from the CTC machines will be fed into continuous fermenting machines for achieving proper fermentation (Oxidation). * All the systems such as Rotor vane, CTC and the continuous fermenting machines will work in tandem. * The fermented leaf particle will then fed into fluid bed tea drier for final stage of tea manufacture where the moisture content in the dried tea particles will be brought down to 3%. This is essential for increasing the keeping quality of Black tea. * From the drier, the tea particles will be sent to various sorting machines to sort them into various Black tea grades.

9.1 Packing and Transporting
The sorted Black tea will then be packed either in wooden tea chests or polyethylene lined de-oiled Jute bags bearing Company’s Logo and other details. The packed tea is then ready for dispatch to either tea auction centers or to markets.

MACHINERY FOR PROCESSING OF TEA

DESCRIPTION OF GOODS | QTY | 1. AXIAL FLOW FAN 485, with minimum 28000 CFM and maximum 32000 CFM at ½” WG at sea level with Aluminum blades, complete with 5 HP 960 RPM motor, starter and reversible switch 2. Fabrication and supply of M.S. Pre-fabricated open Withering trough made of M.S. angles, flats and sheets including y-duct as per our design and drawing 3. 3” x 1” x 6G x 10G M.S. weld mesh to be spread on the above Withering Trough 4. Netlon net to be spread on the top of the weld mesh 5. AARKAY’S SPLIT TYPE, ALL STAINLESS ROTORVANE 15 Inch size with complete barrel made of 8 mm thick SS 304 quality plates with machine bore and bolts for resistor & safety guards made of stainless steel and polished finish. All working parts such as Hopper, Barrel, casted Feed Worm, Forged Resistors, Forged Trunion, and Discharge Pressure Control fittings made of Stainless SteelThe machine will be supplied complete with U-800 Gear Box, Fabricated Pedestal, and 20 HP Motor along with suitable Starters. Machine with IRIS Discharge | 24 Nos. 12 nos.14400 sq. ft 14400 sq. ft. 1 No. |

6. AARKAY’S FIERO MODEL 36” SIZE QUADRUPLEX TEA PROCESSING MACHINE having 13” dia Segment rollers and Heavy Duty Gear Box 1:10 ratio, complete with attachments.SCOPE OF SUPPLY INCLUDES:- * Instant De-jamming arrangement * Tracking free PVC Belts for all Conveyors * Lifting Tackle for easy removal of Rollers and Trolley for carrying them * Air Cooling arrangement with Blower Fan, PVC Pipes & Fittings etc. * Extended Discharge Conveyor as per our Standard Design & Specification 6.0 Mtr. IC with Tracking free arrangement * 108 Pcs. Forged Stainless Steel CTC Segments AISI-304 quality, size 13” x 2”, duly sharpened * Electric Motors & Starters 25/20/20/20 HP * Roller Speed Ratio 10:1 (550:55 RPM) Interchangeability of High Speed Roller to Slow Speed Roller and vice-versa for longer Segment life INCLUSIVE OF SPARE SET OF CTC ROLLER fitted with Stainless Steel CTC Segments ASSI-304 quality. Size : 13” x 2”, duly sharpened to 8 TPI, V profile with tooth to shoulder ratio 1:1 7. MOTOR CONTROL PANEL, desk type, with controls for Rotor vane and CTC Machine. The unit will be supplied with MCCB, MCBs, Volt meter with its own selector switch, and separate Ammeters for Rotor vane & CTC motors with individual selector switches. The board would be completely dust, rust, water and vermin proof with internal light and two industrial power take off points, one three Phase and the other single phase 8. PORTABLE CONVEYOR from CTC to CFM 10 feet long with PVC Belt mounted on frame, rollers & motor. 9. FERMENTO PVB 8 FT 7 MODULE wide as per our standard design and specification detailed below.SCOPE OF SUPPLY INCLUDES:- * 7 Nos. Stainless Steel Modular Hopper to supply humidified fresh air to the tea bed. * Mechanical Drive System for 40 – 120 minutes residence time * Hinged type Comb Plough: 2 Nos. * Electrical Motor & Starter * Rotary Brush: 2 Nos. | 1 bank8 Pairs1 No.1 No. 1 No. |

* Humidification arrangement to supply humidified air to maintain proper RH% on the tea bed * Feed Conveyor 7 feet long complete with spreader & Drive arrangement (PVC Belt size 2 meters wide x 5 meters long) 10. MOTOR CONTROL PANEL, desk type, with controls for Fermentor. The unit will be supplied with MCCB, MCBs, Volt meter with its own selector switch, and Separate Ammeters with individual selector switches. The board would be completely dust, rust, water and vermin proof with internal light and two industrial power take off point, one three phase and the other single phase. 11. BELT CONVEYOR from CFM to VFBD to carry fermented tea to the dryer feed conveyor 12. VIBRO FLUID BED DRYER MODEL E300 capacity 300 kgs/hour at 70% withering as per our standard design and specification. SCOPE OF SUPPLY INCLUDES: * Drying Chamber with Stainless Steel fabrication with perforated plates having transverse slots. * Plenum Chamber made of Carbon Steel fully insulated * High efficiency aerodynamic cold air centrifugal blower fan for mixing cold air for two temperature drying * Perfect excitation by single mass vibratory system * High life carbon steel springs to support vibrating assy. * Flexible Teflon bellows placed inside a casing for protection. * Feed Hopper and Ball Breaker Assembly * Exhaust and dust collection system comprising of Dustractors, Cyclo -refirers, Cyclone Blower & Cyclone separator. * Sturdy carbon steel standard console for single point control of all equipment * All electric motors, belt guards, pulleys, belts etc.13. COAL FIRED AIR HEATERS 18x6 Pass with A12507 ID Blower constructed with high quality graded cast iron, mainly the heating chamber is fully lined with refractory bricks. The heater will be supplied complete with ID Fan, 7.5 HP Motor, connecting ducts etc, Heater is suitable for wood / coal fuel | 1 No.1 No.1 No1 Set |

14. VIBRO SCREEN 48” dia x 7 decks sorting machine used for sorting of finished CTC tea 15. MYDDLETON SORTER made of M.S structure with dimple tray, to segregate fine & coarse leaves separately complete with 1 HP/1440 RPM motor and V-drive.16. FIBRE EXTRACTOR 48” x 4 Roll with PVC Rollers17. PACKERS WITH HOPPER complete with 2 HP motor and drive arrangement to facilitate packing in paper sacks. 18. WEIGHING SCALE of 100 kg capacity of reputed brand. 19. PAPER SACK SEALING machine complete in all respects. 20. MOTOR CONTROL CENTRE FOR ALL THE ABOVE sorting machines controlling each motor and drive unit. The unit will be supplied with MCCB’s voltmeter, ammeter, selector switches. The panel will be completely dust and vermin proof and painted with 2 coats of paints. 21. MILLING CUM CHASING MACHINE 22. TOOL & CUTTER GRINDER 23. INSPECTON BENCH 24. SPARES FOR 2 YEARS NORMAL OPERATION | 2 Nos.1 No.2 Nos.1 No.1 No.1 No.1 No.1 No.1 No.1 No.1 No. |

PROJECT DETAIL AT A GLANCE

11.0 Project detail at a Glance

This investment is highly recommended with respect to the main natural resources of Ethiopia that is manpower and land. There are suitable climatic and soil conditions to produce the best quality highland organic tea.

Based on this fact when the investment is realized:

There will be an opportunity to optimize the use of land for production of high quality organic tea with high price realization.

Employment opportunity will be created

Foreign currency earnings will be increased

Necessary infra-structure will be developed

There will be a possibility to conserve moisture, soil and the macro climate

There will be a chance to introduce and disseminate modern technology to the community.

The surrounding farmers will be benefited by participating as out growers.

11.1 Strategies for implementation of the Project

The major steps involved for the implementation of the Project are given below:

Taking possession of the land from the Government of Ethiopia.

Arranging for finance from the financial institutions.

Surveying, measuring the land and making lay-out plan.

Developing, preparing the land and putting an effective drainage system.

Improving roads and bridges

Establishment of nurseries

Purchasing capital expenditure items such as Bulldozers, Tractors and other farm equipments

Establishment of tea processing factories

Civil constructions such as office building, godowns, and factory shade, executive and staff quarters, labour quarters, garages etc

Planting tea and raising nurse crops.

Weed control.

Young tea pruning and bringing up young tea.

Plucking.

Application of compost, vermicompost and Fertilizers to the tea fields.

Preserving natural enemies of tea pests.

Controlling pests and diseases.

Irrigation.

Setting a pruning cycle.

Developing market strategies.

11.2 Present Status of the Project

The land for the project is being acquired from the Government of Ethiopia.

Strategy for implementation of the Project (Traditional Methods)

11.3 Land development, preparation and contour surveying.

The land in the Project area will be cleared of all existing trees, jungles, shrubs by using Bulldozers and tractors. Thereafter, the land will be regarded, leveled. The prepared land will be contour surveyed to isolate the major and minor catchments in order to minimize soil erosions by providing an effective drainage system. The land will be cross ploughed using 50 HP tractors with 55 cm disc ploughs. The clods will be broken by cross harrowing using disc harrow. Thereafter, the land will be given a through leveling using tractors and manually.

11.4 Establishment of nurseries

The required nurseries will be established using 250 gauges thick, 25 cm long and 13 cm lay-flat polyethylene sleeves. Sandy loam virgin soils with high organic carbon having Ph range between 4.5 and 5.2 will be collected for filling the sleeves. Before filling the sleeves, the soil will be cleared of all un-decomposed vegetative matter and will be passed through wire mesh sieve No.4 twice to obtain a good tilth. The size of each nursery bed will be 1.5 m x 33 m and will be raised to a height of 25 cm from the ground level. Each nursery bed will be separated by 325 cm wide and 45 cm deep interconnected drains. Overhead shade will be provided by using bamboo lath frames/mats.

11.5 Planting Materials

Initially, high yielding good quality clone will be obtained from local sources. Later, high yield quality Biclonal tea seeds of Stock 491 and 589 will be imported from Assam, India. Clonal from Kenya will also be brought to cover at least 25 ha of land.

11.6 Plant population

A plant population of 14652 plants/ ha will be accommodated using a spacing of 105 x 65 cm staggered single hedge. Additional provisions of planting material against possible mortality will be kept.

11.7 Staking the plant positions

A suitable size of box using coir strings/survey chains will be made on the ground and the plant positions as per spacing will be staked out before planting.

11.8 Planting of young tea

Healthy plants between 9 – 11 months old bearing at least 8 – 10 maintenance leaves will be selected for planting. Planting pit size of 45 cm x 45 cm will be used. At the time of planting, each pit will be manured with 4 – 5 kg well decomposed compost and 40 gm of Single Super Phosphate will be mixed thoroughly with the excavated soil from the planting pits. In addition, 10% suspension of Thrichoderma biocide (BICON) @100 ml of the biocide will be mixed with the above ingredients as a precaution against possible attack by primary root diseases. While planting sufficient care will be taken to keep the Bheti / soil lump inside the polyethylene sleeve intact.

11.9 Post planting care

The success of the young tea will depend upon the post planting care given to it. The following post planting treatment will be given:

After planting, the sides of the Bhetis / Soil lumps will be compacted by ramming properly keeping in mind to keep the Bhetis / soil lumps intact. Entire land will again be leveled manually to preclude formation of depressions and to keep the soil surface weed free.

The young tea will be kept free of weeds by adopting manual and chemical methods of hand weeding as and when required.

For controlling pests, both chemical pesticides as well as bio-pesticides will be used depending upon the situation. As soon as the plants are established, seeds of leguminous nurse crop such as Arhar (Cajanus cajan) will be sown in 5

cm deep furrows in alternate lines in between every second rows of tea plants. Germinating nurse crop seedlings will be kept free of weed competition by hand weeding.

11.10 Mulching

To remove weed competition, conserve moisture and enhance the inherent nutrient level of the soil, young tea fields will be heavily mulched to a thickness of 20 cm using succulent vegetative matter.

11.11 Pruning

To develop an ideal bush early, following pruning schedule will be adopted to bring up the young tea: In the first year i.e. in the year of planting, as soon as the young plants are fully established in the field (which takes about 2-3 months from the day of planting), the plants will be given a finger prune /lung prune at a height of 15 – 20 cm from the ground.

The dried portion of the broken stem will be removed using a small sharp knife.
The newly develop shoots will be plucked at a height of 55 – 60 cm from the ground when ready. In the second year, the frame will be opened up selectively and the young tea will continued to be plucked at the previous plucking level.

In the third year, the young tea will be given a frame formative prune at 50 – 55 cm from the ground and the ready shoots will be plucked over an allowance of 20 cm or over 5 full leaves whichever is less.

11.12 Pruning Cycle

To avoid poorer quality leaf and to distribute the harvested leaf evenly, either a 3 year or a four year pruning cycle will be followed.

11.13 Manuring

To maintain the inherent soil fertility level, a combined system of commercial chemical NPK fertilizers and organic composts treated with Azatobacter will be applied. Under such a situation, the requirements of NPK commercial fertilizers will be reduced in course of time.

Pest, disease and weed control

11.14.1 Pest control

In a traditional tea field, it is essential that the tea fields are kept free of pests for higher yield. Therefore, a combined system of chemical pesticides and botanical/bio-pesticides will be used depending upon the situation. The aim will be to reduce the need of chemical pesticides over the years.

11.14.2 Disease Control
Disease affected leaves of the tea bushes will be removed manually and destroyed. For control of diseases, a combined system of chemical fungicide (Copper Oxychloride) and bio-agent such as Bacillus subtilis will be used to control diseases. At the time of planting 10% suspension of Trichoderma biocide (BICON) @ 100 ml of the product / planting pit will be used along with other pit mixtures. Immediately following each pruning, the pruned tea fields will be sprayed with 10% suspension of Trichoderma biocide (BICON) as a preventive measure against possible attack by stem diseases.

11.14.3 Weed control

Weeds will be controlled both manually and by applying commercial chemical herbicides. As far as possible, the young tea fields will be heavily mulched using succulent vegetative matter. This will help in keeping down the weeds as well as conserving moisture in addition to supplying sufficient quantities of valuable organic matter.

11.5 Manufacture process of Black Tea
Quality of the end product in any process industry depends mainly on the raw material and tea is no exception. Apart from plucking standard, age of bush, stage from previous pruning, plucking round etc. are some of the important factors that contribute to the quality of the tea shoots. Besides, in the same shoot, the chemical composition of 1st leaf, 2nd leaf, other leaves, stem, etc. vary widely.
For manufacture of black teas, the shoots pass through the following six distinct phases of processing: * Leaf harvest and transport to factory * Withering - physical and chemical * Cell maceration * Oxidation * Drying * Sorting and Packing

11.5.1 Standard of plucked leaf
The liquoring quality of a tea is measured in terms of total oxidisable matter (catechins) or primary polyphenols and caffeine. If the plucking is coarse, the percentage weight of two-leaf shoot will be much less. An average plucking standard should have ideally about 75% fine leaf by weight comprising bud and two leaves, soft banji, undeveloped bud plus two leaves. For achieving quality the fine leaf should not be diluted with coarser leaf. Shoots comprising of 1+ bud and 2+bud are detached either by hand, shears or by machine, put normally in a basket, weighed and taken to the factory either manually or in a multi-tiered trolley by a tractor. It’s of utmost importance that the plucked leaf is brought to the factory in an undamaged condition without loss of time. This enhances quality of leaf. It should be remembered that tea quality is produced in the field and is maintained in the factory.
11.5.2. WITHERING
Withering is the first processing step in the factory and is a process in which freshly plucked leaf is conditioned physically, as well as, chemically for subsequent processing stages. Indeed, withering is one of the most important tea processing steps and can be said to constitute the foundation for achieving quality in tea manufacture. Based on achieving the desired level of withering, one can make better quality teas and, on neglect, can invite serious problems in subsequent steps of manufacture. As a matter of fact, in planter's perception, "Withering makes or mars the tea".
11.5.3. Objectives of Withering
The process objectives to be achieved during withering are as follows: * To breakdown complex chemical compounds in the cells to simpler compounds which along with other simpler molecules then recombine to contribute to quality attributes of tea like the 'body' and 'flavour' at a later stage. This is known as the Chemical Withering of the leaf. * To reduce the moisture content of the fresh leaf which ranges between 74 - 83% * To make the leaf `flaccid' or `rubbery' which is essential for the subsequent step of processing (maceration) or rather for 'twisting' or 'curling' etc. * Both these constitute the Physical Withering of the leaf.
There are important component of withering of green leaf and they are:
11.5.4 Chemical Wither
Chemical wither starts immediately after plucking. It is independent of the rate of loss of moisture and is a function of time and temperature. Although the desired moisture level may be reached in a few hours, the catabolic changes, which had been initiated at the time of plucking, will take time. The chemical composition of the leaf will thus be unsuitable for manufacture after the leaf has been desiccated for a few hours. It is, therefore, necessary to continue to supply sufficient air and wait for breakdown of large organic molecules to simpler structures. The following chemical changes occur during withering:

* Release of carbon dioxide and water due to break down of larger molecules. * Changes in enzyme activity. * Partial break down of proteins to amino acids which act as precursors for aroma. * Increase in caffeine content - this contributes towards briskness. * Production of Volatile Flavor Components (VFC): Some of these compounds contribute to the grassy odor and others are responsible for the flowery aroma. * Reduction in chlorophyll content.
The above chemical changes are all intrinsic of the biochemical structure of the leaf, but the range and the extent of the reactions depend on the Jat, cultural practices and physical parameters like temperature, humidity etc. This process normally takes about 12 - 16 hrs. and cannot be hastened.
11.5.5 Physical Wither
Physical withering reduces the moisture content in the leaf and correct withering is essential for quality, although, it has always been difficult tasks to determine the end-point of wither. The same reduction in moisture percentage and increase of flaccidity of leaf to the desired level can be achieved in a shorter period; a longer period is necessary for chemical wither. Therefore, physical wither is regulated at a slower rate, so as to reach the desired physical withering in the same interval as required for the chemical wither. The objectives are achieved by passing air through the leaves.
11.5.6 Percentage of Wither (% wither)
Percentage of wither is defined as the weight to which 100 kg of leaf is reduced at the end of the withering process. In conventional parlance, 70% withering signifies that 100 kg of fresh green leaf has been reduced to 70 kg after withering and 30 kg of water has been removed. This method of expressing wither is irrespective of the initial moisture content of the leaf. Thus, depending on initial moisture content, the same 70% withered leaf, would lead to various moisture contents. This is an anomalous situation and was introduced when it was not possible to measure the moisture content of green and withered leaf accurately. The following table illustrates how the variability in the moisture content of the withered leaf, depending on the initial moisture content of the leaf, vary even though the leaf has been subjected to the same 70% wither.
Variation in moisture content of withered leaf Percent wither | Percent moisture | | Green leaf | Withered leaf | 70 | 82 | 75.3 | 70 | 80 | 72.6 | 70 | 78 | 69.9 | 70 | 77 | 68.4 | 70 | 74 | 64.3 | | | |

It is, therefore, not desirable to wither the leaf throughout the season to one and the same weight as this may require elimination of different quantities of water in different periods. Besides, during the withering process though there is carbohydrate degradation and consequent respiration leading to loss of 4% soluble solids, there is some increase in caffeine and other constituents. Thus, for practical purposes the loss is compensated. It would be better to ascertain the degree of wither by use of the ratio of dry matter to moisture.
11.5.7 Recovery Percentage
The ratio of made tea to green leaf is termed as "recovery percentage" alternatively, as "out turn". This ratio varies depending on the initial moisture content of the leaf. Leaf with moisture content of about 83% during wet period produces 16.5 kg black tea from 100 kg of green leaf. Similarly, leaf with moisture content of 72% during dry period produces as much as 27.5 kg of tea from 100 kg of green leaf. Taking an average of 77-78% moisture for the whole season, 22.5 kg of made tea is expected from every 100 kg of green leaf.
11.5.8 Hygrometry and Relative Humidity
Usually, Wet and Dry Bulb Thermometers are used to measure RH. The difference between the wet and dry bulb readings is known as Hygrometric Difference or HD. A difference of 40C (70F) has been found to be optimum under normal conditions, but with wet leaf a difference of 6-8OC (10-14.5OF) is used initially to drive off the surface moisture after completion of which the hygrometric difference is brought down to 4O C.
11.5.9 Withering Equipment
Although there are various systems of withering green leaf existed, out of these the Trough withering is the most popular system currently being used all over the world. The advantages of a Trough withering system are:
a) Economy, b) Greater flexibility with respect to capacity and degree of wither,
c) Flexibility of construction, d) saving in space and e) economy of labour and easier operation.
Withering Trough is a rectangular duct with one opening for letting the air in and the leaf bed acts as an outlet or exhaust. Air is blown into the trough by an axial flow fan fitted at the inlet with the help of a tapered expansion hood, termed as the diffuser, which smoothness the airflow and reduces the turbulence. The escaping air thus carries moisture in the leaf away.

Due to long duration of withering, the trough cannot normally be used more than once a day. Therefore, sufficient capacity must be provided to hold the entire quantity of a day's leaf input in the factory. Capacity to hold green leaf equivalent to 1% of the annual crop is considered as a reasonable provision for the purpose, since this capacity exceeds only on 2 or 3 occasions in a year. Withering troughs can be of various sizes. However, for convenience of loading and unloading, a width of about 1.8 m is preferred in which case the length is 23 to 24 meters.

The troughs are of two types - Open trough and enclosed trough.
11.5.10 Manufacturing Process
Leaf Maceration
The principal objective of leaf maceration is to undertake cell rupture carried out in a rolling machine where progressive disintegration of cellular organelles takes place. The process results in exposure of cell sap leading to intermixing of chemical constituents and enzymes in the presence of atmospheric oxygen to form the important chemical constituents responsible for characteristics of tea. From the moment the maceration starts, the 'fermentation', which is primarily an oxidation process, begins. The shoot with different degree of tenderness is subjected to considerable deformation during rolling, and, during the process of gradual rupture of leaf, the epidermis is torn up in pieces, cells are crumpled, the cuticle wrinkled and the intercellular space is increased.
The mechanical breaking of shoots at this stage also results in the formation of particles of various shapes and sizes depending on the method adopted and the extent of cell damage. These factors have strong effect on the processing steps that would follow as well as market choices for the made teas. Therefore, leaf maceration is also a key step in tea manufacture.
The following processes carry out maceration in North East India: * Orthodox * CTC (Crush, Tear and Curl)

11.4.1 Orthodox process of manufacture
In the orthodox process of manufacture maceration or disruption of the leaf cells is carried out in a Rolling Table. During rolling juice from the leaf is wrung out and the leaf is also twisted and broken into smaller particles.
The process objectives during orthodox rolling are therefore * To rupture the cell walls and expose their contents * To bring the contents of leaf cells in contact of air to start the process of oxidation * To twist the leaf and give it the desired shape or appearance

11.4.2 to break the larger twisted leaf into smaller particles
Rolling
Before the advent of tea machinery, the most convenient method for cell rupture was to rub the leaf in between palms. The Rolling table is simple equipment that emulates the hand rolling method in a commercial level operation. The process of rolling applies pressure and twist between leaves as well as between leaf and surface of the equipment used for rolling. The degree of pressure depends upon the quantity of leaf charged as well as the position of the pressure cap. Resulting friction causes heat, which in excess will hasten the chemical reactions to result in the formation of undesirable constituents detrimental to the quality.
The cell rupture in the small and tender shoots is completed faster and chemical reactions set in earlier while the coarser leaves require a little more time. Also the leaf, which has already undergone size reduction and twisting after some amount of rolling, impedes twisting of larger leaf, which may extend the period of rolling. Segregation of such leaves is carried out after an appropriate period (30-45m). The leaf is discharged and then passed through a Sifter or a Ghoogie. The Ghoogies and Sifters have perforations of different sizes. The particles passing through the perforation are called fines and the spill is known as 'Coarse' leaf, which is sent for further rolling. The fine leaf is taken for 'fermentation'. The coarse leaf after second roll is subjected to similar process to get the 2nd fine and if need be the 2nd coarse leaf may further be subjected to 3rd rolling. It may be noted that major portion of the leaf grades come from the coarse leaf.
11.4.3 Dual manufacture
During the early manufacturing season (up to second flush) when the leaf is of better quality, there is demand for orthodox teas and dual manufacture may be adopted. The first fine as described above goes for orthodox manufacture and the coarse goes for CTC manufacture. It is to be remembered that for dual manufacture, the wither should be appropriate for CTC. An extraction up to 10% of fines does not affect the quality of the CTC tea.
The following machines are used for conventional orthodox rolling. * Rolling Table * Boruah Continuous Roller (BCR)
Rolling Table
11.4.4 Essential parts * A circular table with a depression (asymmetric well) at the centre closed by a door below. * A cylindrical hood to hold leaf and having a feed hopper at the upper end. * A pressure plate or cap. * Three cranks placed at 120° apart, one with the drive to give the eccentric motion either to table or to the hood or to both. The length of the crank is 23 cm (9 inch).
11.4.5 The process: Orthodox Manufacture
Two to three rolls, each lasting between 30-50 minutes, are given for manufacture of orthodox tea in the plains. When tip is not a consideration the period of 1st rolling can be extended. The rolling program should be planned judiciously and it should be dictated by the drying capacity of the factory. The output of the Rolling table should be match the requirement to produce as much fermented leaf per hour as to keep the dryers full.
The programme should be such that the rollers are neither overcharged nor under charged and leaf is going to the fermenting room every 15 minutes.
For the sake of convenience rolling time is taken as commenced from the time of last leaf enters the roller and fermentation begins when the first roller has been failed. Rollers should not be filled once the rolling starts.
11.4.6 Dual manufacture
In the dual process, the fines containing the valuable tips are extracted as first fines after a normal 30 minutes roll. An extraction of up to 10% fines can be adopted without any detectable adverse effect on the cup character of CTC teas. Extraction of higher percentage of fines will not only result in the production of quite an amount of not so attractive grades like Orthodox BP, Fanning and Dusts but will also adversely affect the liquor of CTC teas.
With tippy and pubescent leaf available throughout the year it is possible to adopt dual manufacture throughout provided adequate withering facilities are available; otherwise dual manufacture may be restricted to second flush period only. As has already been mentioned wither for dual manufacture should be suitable for CTC manufacture.
11.4.7 Boruah Continuous Roller (BCR)
The BCR consists of a reciprocating cylinder, with both ends open, inside serrated, one and wall with an opening fitted with a hopper to feed the leaves; stroke length 24.13 cm. The other components are an oscillating rotor, frusto-conical in shape fitted with a number of vanes and pins and on the straight portion an adjustable pressurizing sleeve with battens, oscillating 180° at half the speed of the cylinder, a cylindrical block with closed ends fixed to the frame concentrically inside the cylinder at the hopper end and the driving mechanism with gearbox, roller chain, cranks, connecting rod etc. Expressed in terms of diameter of the cylinder; 37 cm, 40 cm and 45 cm sizes have been prescribed.
11.4.8 The CTC Process of Manufacture
The CTC machine achieves the three actions of Crushing, Tearing and Curling in the same machine at one go. Instead of working on large volumes of leaf, the CTC takes a fast, thin, but steady stream of leaf to pave the way to continuous processing in place of the batch mode of orthodox rollers. Leaf appearance, make, grade percentage, fibre content, liquor and infusion depend on the cut obtained in the CTC machine.

11.4.9 Preconditioning for the CTC Process
Leaf is preconditioned by making use of orthodox rollers or Rotorvane/BLC Preconditioning of leaf aims at imparting twist to the withered leaf in order that the CTC rollers can give adequate treatment. When flat leaf is fed to the CTC machines considerable quantity of made tea may have flaky appearance. The cells of the flat leaf do not undergo correct maceration and as such their cells cannot be exposed to atmosphere for proper fermentation resulting in poorer liquor quality.
11.4.10 Preconditioning in Rolling Table
Correctly withered leaf will have the required twist after 20 minutes of rolling without pressure provided the Rollers are properly charged. A 91 cm (16 inch) roller should be charged between 110-145 kg of leaf while a 117 cm (46 inch) Roller should be charged with around 300 kg of leaf. The Rolling programme should be arranged to coincide with the output of driers. It is important to see that the Rollers giving best twist are employed.
11.4.11 Preconditioning in Continuous Preconditioning Machines * Rotorvane * Barbora Leaf Conditioner (BLC).
11.4.12 Essential Parts
A cylinder, one end closed and the other end open, with feed hopper near the closed end. The processing zone inside is fitted with either resistors (Rotorvane) or pins (in BLC).A rotor fitted concentrically inside the cylinder consists of a feed worm, with a number of vanes (in case of Rotorvane) disposed slightly at a angle and at right angles to the next, and an end device, which in case of Rotorvane is commonly an Iris plate or cone with battens, and in case of BLC, a cone with vanes and battens. In case of Rotorvane using a cone, a sleeve is fitted at the discharge end of the cylinder for pressure adjustment.
Working
Withered leaf fed through the hopper is pressed by the feed worm and brought to the processing zone where the leaf is worked upon mechanically by the rotor elements like vanes or battens over the cone against the cylinder inside surface and the elements thereon, all under pressure produced on the leaf by the feed worm. The pressure can be adjusted by releasing it by opening out the Iris plate or by moving the pressure sleeve and vice versa.
Being continuous, the machines can easily be regulated to supply leaf at the same rate as the input of the dryers. It is merely necessary to supply the required quantity of withered leaf that permits a continuous feed into the Rotorvane with minimum delay after removal from troughs. Leaf should not be piled up for feeding into the Rotorvane or BLC.
Pressure applied n the Rotorvane/BLC should be just sufficient so as to express just enough juice for spreading over the cut leaf. Excessive heating during Rotorvane processing must be avoided and leaf temperature should not be allowed to go beyond 32°C (90°F).
Excessive heating in the rotorvaned leaf may result from any of the following reasons. * Heating up of leaf in basket or in heaps after removal from the withering trough * Overfeeding of leaf into the Rotorvane * Uneven feeding * Feeding over-withered leaf
The rotorvaned leaf is fed directly to CTC (in tandem) with the help of conveyor for further processing.
11.5.0 The CTC Machine
Essential Parts
Two stainless steel rollers with circumferential as well as helical grooves machined to certain definite specification, meshed closely, rotated in opposite directions at a speed differential of 1:10. The diameter of the roller varies between 20.3 cm (8 inch) - 20.95 cm (8.25 inch). The larger 33 cm (13 inch) diameter CTC machines are gaining popularity now days.
Three or four CTC machines in tandem are connected to each other with the help of conveyors made of non-toxic, food grade and hygienic rubber belt discharging onto the slow speed roller.
11.5.1 Principle of Working
The triple process of Crushing, Tearing and Curling is done by the teeth on the two rollers moving against each other at differential speeds. Preconditioned leaf is fed to the slow speed roller of the first cutting unit by a feed conveyor and is processed between the rollers adjusted with a gap of about 0.050 mm (2 thou). The sharp edges of the teeth cut and tear up the leaf while the leaf is crushed between the shoulder of teeth and the matched meshing groove, and curled due to rubbing action between the flanks of the teeth. The processed leaf is discharged below the pair of the rollers on to a moving conveyor belt, which carries the leaf to the next cutting units slow speed roller. The shape, size and differential speed of these teeth are of vital importance in CTC processing.
Sharpening of rollers to accurate specification and proper meshing assume great significance considering their influence on the quality of made tea. * Tearing action is related to closeness of setting and the speed ratio. Closer the setting and higher the speed ratio more are the smaller grades. * Curling and Crushing - The two simultaneous processes depend on the available surface area on the teeth, closeness of setting and linear differential speed. * Capacity - Capacity drops with the reduction in the roller diameter and also due to reduction in discharge area when milling angle is reduced. The reduction in the milling angle increases tooth shoulder area that will help in producing more grainy teas. With reduction of roller diameter, there is also deterioration in style.
11.5.2 Basic Requirements for Manufacturing of CTC Tea * Quality of leaf:
The CTC machine is capable of handling coarse leaves but teas produced from such leaf are more fibery and flaky with poor liquor characters. It is therefore advisable to use standard to medium plucked leaves (fine leaf and 70%). * Optimum Wither:
In North East India a light wither of 72-75% (68-69% moisture) has been found suitable. The variation in wither will depend on the texture of the leaf. Coarser the leaf, lighter wither. 11.5.3 Temperature in Rolling Room:
The rolling room should be cool and humid. There should be enough exchange of air so that heat developed during processing is easily dissipated - minimum 10 air changes per hour is recommended. 11.5.4 Machine with Correct Specification:
The CTC machine used should conform to correct specifications which are laid down for the purpose.

11.5.5 Fermentation (Oxidation)
The principal difference between black teas and other forms of teas like green tea and oolong tea, is the presence of condensed catechins, i.e. polyphenols of higher molecular weight formed through enzymatic oxidation with the help of enzyme polyphenol oxidase (PPO) and peroxides (PO). The fermentation process objective is, therefore, to allow intimate contact of the catechins with the respective enzymes, which oxidize these catechins in presence of oxygen. The temperature and Relative Humidity also have a role in these oxidation reactions and should be kept at a levels at which the enzyme activity is at the peak.
11.5.6 Requirements of Fermentation (Oxidation) * Adequate supply of oxygen in the system * Ideal leaf maceration during Roll / Rororvane / CTC process * Leaf processed in CTC / Rollers should be passed to continuous fermenting machine or to fermenting floor without delay * Allowing sufficient time for the Catechins to come in contact with the oxygen * Maintaining ideal temperature in Rolling and Fermenting rooms * Turning of the processed leaf during fermentation
11.5.7 Method of oxidation
There are basically the following two methods of oxidation are used in Tea Manufacture. They are * Floor and Rack * Troughs * Continuous Fermenting Machines
11.5.8 Floor
Oxidation on cement floor is the oldest and most popular method. This method produces the best results especially during the quality period. Spreading thickness vary depending on the method of manufacture.
Completion of oxidation is usually assessed by studying the colour change and increase in aroma/flavour. But such a test is visual and needs considerable experience. Kits are available for assessing the oxidation. However, these methods assess the total polyphenols and do not reflect the composition of individual TFs or TF : TR ratio. It is important to note that there is not one optimum time for oxidation - it keeps on varying all the time depending on various factors.
11.5.9 Trough
Trough is a better-controlled system because the quantity of airflow and the pressure can be adjusted. It also cut down the total surface area required. A 15 cm deep trough can

hold up to 16 kg processed leaf when filled to the top. However, the troughs are not filled up to the brim to facilitate turning of the leaf, if required.
After CTC cut the leaf temperature rises because of the chemical reaction. In deep bed oxidation it is much higher, as the heat cannot escape rapidly. It is normally observed that the temperature continues to rise for the first quarter of oxidation and then falls.
However, in troughs, a temperature rise even up to 43°C (110o F) has been found not harmful if adequate quantity of humidified air is passed through and the oxidation period is cut down.
11.5.10 Continuous fermenting machine Limitation of space, spiralling cost of labour, and the need for making tea processing a continuous one have lead to the mechanization of the oxidation system resulting in the development of the Continuous Fermenting Machine (CFM). The CFM uses the best of both floor and gumla fermentation. Introduction of CFM has been able to achieve the following objectives:
11.6.0 Advantages of Continuous Fermenting Machine (CFM) * Allow variability in thickness of bed, period of oxidation and volume of air * Achieving optimum ranges of temperature and humidity * Sustain quality
11.6.1 Methodology
The macerated leaf is dropped on to a moving perforated tray forming a moving bed. The speed of the moving bed is regulated to allow variation in the period of oxidation. The continuous feeding to and discharge from the fermenting machine have been able to eliminate the batch system.
In the CFM a higher bed thickness, as in the case of gumla fermentation, can be used. Present day CFMs are designed mostly on modular concepts, each module having its own fan, which helps in pushing air from the bottom or draw in air from the top through the bed, thus making the operation of the machine highly flexible.
The CFM can produce equally good quality tea as in floor fermentation as handling of leaf is minimized and parameters used can be brought under control.

11.6.2 Factors influencing oxidation
Temperature
Temperature has a greater influence on the rate of initial oxidation of catechins and their subsequent condensation. The rate of consumption of oxygen increases with temperature up to around 29°C (84°F) and is most active at temperature at 27°-29°C (80-84°F), after which the rate declines. It is therefore desirable to keep the temperature during rolling at around 29°C.
11.6.3 Degree of wither
Hard wither causes slower rate of oxidation. If the wither is only moderately high, the effect may not be that detrimental. Damaged leaf leads to uneven oxidation. Such leaf should be processed separately at the earliest.
11.6.4 Rolling
During rolling tender leaf parts are bruised first followed by the coarser ones. Therefore, the finer particles formed from tender leaf start oxidation reaction instantly. Oxidization requirements of the fine particles are, accordingly, different from those of the coarse particles. Coarser particles are rolled for a longer period to achieve oxidation. The various fractions obtained from 2-rolled or 3-rolled systems are oxidized separately for different periods. In case of hard twisted leaf in orthodox manufacture penetration of oxygen into leaf cells becomes difficult and as such oxidation takes longer time. On the other hand, severity of leaf maceration with CTC rollers considerably reduces oxidation time.
11.6.5 Degree of oxidation
Leaf plucked from different sources has different capacity for oxidation. Planting materials have, therefore, been classified on the basis of their ability to oxidize into three broad categories as fast fermenters, medium fermenters and slow fermenters.
Mixed leaf may therefore lead to uneven oxidation. Planning of plucking and segregation of leaf at the withering stage, therefore, reduces heterogeneity and helps in producing better quality tea.
11.6.6 Period of oxidation
During oxidation, the colour of the processed leaf changes from green to coppery red and liquor characteristics develop. The important characteristics that develop are briskness, brightness, astringency and strength. These characteristics reach their optima at different times. It is therefore apparent that a compromise has to be arrived at on the oxidation time so that the overall effect is the best.

11.6.7 Environment for oxidation
The room where oxidation is carried out should be cool and humid with ambient temperature maintained at 27° - 29°C (80° - 84°F). The room therefore, must have provision for availability of humidified air to keep the macerated leaf cool and fresh. The temperature should be maintained around 29° ± 2°C (84° ± 4°F (with hygrometric difference of less than 1.5°C (3°F). Adequate ventilation must be provided to effect 15 to 20 changes of air per hour.
Besides the surfaces are to be always kept clean and free from stale juice deposits. Joints between tiles, cracks, small holes and rough surfaces are sources of bacterial contamination.
11.6.8 Tea Drying
The main objectives of drying are: * To arrest enzymic reaction as well as oxidation, * To remove moisture from the leaf particles and to produce a stable product with good keeping quality.
11.6.9 Technology of tea drying
On an average 100 kg of fresh leaf produces 22.5 kg of dried tea containing residual 3% moisture. The difference of 77.5 kg between the figures represents the moisture evaporated during the process. Of the 77.5 kg, about 20-25 kg is evaporated during withering and around 20-50 kg are evaporated during drying. A leaf particle has to undergo a moisture change from around 70% to 3% during drying.
During the early stage of drying the solid is so wet that a continuous layer of moisture exists over the entire surface. The temperature of the solid particles will be near the wet bulb temperature of the drying air. Removal of this layer of film of moisture is easier and such evaporation rate is independent of the moisture content of the particle and the moisture will be evaporated at the constant rate. This stage of drying is known as the 'constant rate drying'. With the freely available water from the surface of the solid particle evaporated the drying no more takes place at the constant rate. Under this condition diffusion process controls the drying rates. The moisture trapped inside the drying particle travels to the surface before being evaporated. With reduction of moisture the drying now takes place at a falling rate. The quantity of moisture removed during the "Falling rate period" is small but the time taken is quite long. Hence the falling rate period has a very important effect on the time of drying and is dependent on size of the particle, thickness of spread and external variables like volumetric flow, temperature and humidity of air.
A tea dryer consists of the dryer, the air heater, heat exchanger and a fan. The fan is used to introduce the clean hot air at the bottom of the dryer. In the conventional dryer, the fermented leaf falls over a series of moving perforated trays where the hot incoming air-dries the leaf and the moisture is reduced from around 70% to 3%.

11.6.10 Factors that influence drying
The following factors influence drying: * Temperature of inlet and exhaust air * Volume of air * Quantity of leaf fed (i.e. thickness of spread) * Period of drying (through put time)
11.6.11 Temperature of inlet air
Drying of tea involves both physical and chemical aspects. Temperature, at which tea is dried, therefore, has to be selected judiciously. Too high temperature at the initial stage may cause case hardening and blistering or scorching. Even if these effects are taken care of a faster rate of evaporation may impart the teas an undesirable harshness. On the other hand, too low a drying temperature slows down the rate of drying and high temperature oxidation is allowed to proceed for a longer period resulting in a 'dull' and 'soft' product. This affect is known as stewing. For conventional drier, an inlet temperature between 82-99°C (180-210 °F) has been found to be satisfactory. However, for Darjeeling manufacture where the wither is also high, a high inlet temperature of around 115°C (240 °F) is used to bring out the desired flavour. Exhaust temperature is equally important, for, it indicates how much heat has been extracted from the incoming hot air. For conventional drier an exhaust temperature of 49-54°C (120-130°F) is advocated as at this range the oxidation of the leaf is brought nearly to a stop.
11.6.12 Volume of air
Volume of air for drying depends on two factors - moisture to be removed and temperature selected. If the volume of air is below the normal requirement, the temperature will have to be increased to produce the same amount of heat. Increasing air volume can increase the capacity of a dryer to a certain extent. On the other hand lower fan speed, small exhaust duct, partly closed fan valve (damper) result in lower volume of airflow. There is a limitation in increasing the airflow as excessive airflow may result in blowing away of the small/dust leaf particles.
11.6.13 Thickness of spread
In a conventional drier in particular, the spread of the leaf should be to a reasonable depth to prevent the air from escaping freely through it. Overloading the dryer requires higher drying temperature and longer period of drying. In general, finer material should be spread thinner. Big bulk requires slightly longer period of drying and should be spread thicker. The thickness of spread of leaf will also depend on the degree of wither as well as inlet temperature index. A drier should never be operated with fixed spreader position.

11.6.14 Period of drying
Time required for drying tea varies with degree of wither, temperature, thickness of spread and volume of air. It is apparent that the two main objectives of drying viz., final moisture content (3%) and arrest of 'oxidation' can be achieved even in shorter residence time by increasing the drying rate. It does not necessarily mean that evaporation rate is also high in this case. A fast drying rate carries the risk of case-hardening or scorching. On the other hand longer period of drying which, may be due to higher thickness of spread, produces uneven teas, as the contact between the leaf particles and hot air supply is not proper.
11.7.0 Tea Sorting:
The Grades
Despite more or less intense sifting, bulk obtained after drying are still heterogeneous. Tea ranges in size from that of a speck of dust to a leaf approximately 4 cm long and 1cm wide. The fractions are to be brought to the desired sizes and forms with adequate uniformity and cleanliness conforming to trade requirement. Tea is, therefore, sorted into pieces of roughly equal size. Four main sizes are produced, namely, Whole Leaf Grades, Brokens, Fannings and Dusts. Within each of these sections tea is further split up into grades of varying qualities. Whole Leaf Grades are the largest sizes produced and depending on the actual grade within the section may range from a long and wiry stem, 1cm to 2cm in length, to a round and knobby twisted leaf similar in size and shape to that of a small garden pea. Of the former style there are the Orange Pekoes and long Leafed Pekoes.
Broken grades consist of smaller than the Whole Leaf Grades, are generally about 1cm in length and are largely made up of leaf as opposed to stem. In this section are the Broken Orange Pekoes, Broken Pekoes, Broken Pekoe Souchongs and the Broken Teas. Fannings Grades are smaller still and sizes of more than 1/8 of an inch are rare. Fannings contain small parts of the leaf, which have broken off either during rolling or sorting and consist mainly of Broken Orange Pekoe Fannings, Orange Fannings, Pekoe Fannings and Fannings.
Dust grades are self-explanatory regarding size and are generally made up of the Pekoe Dusts, Dusts and Churamoni Dusts.
Within the Trade grades are abbreviated by using the first letter only of each word. In this sense a Broken Orange Pekoe becomes a B.O.P., an Orange Fannings becomes an O.F., etc.

The Grades and sub-grades are as follows: Kind of tea | Grades | Nomenclature | Orthodox Tea | | | Whole leaf | FTGFOP | Fine, Tippy golden flowery orange pekoe | | TGFOP | Tippy golden flowery orange pekoe | | TGFOP 1 | Tippy golden flowery orange pekoe one | | GFOP | Golden flowery orange pekoe | | FOP | Flowery orange pekoe | | OP | Orange pekoe | Brokens | GFBOP | Golden flowery broken orange pekoe | | FBOP | Flowery broken orange pekoe | | GBOP | Golden broken orange pekoe | | BOP 1 | Broken orange pekoe one | | BPS | Broken pekoe souchang | Fannings | GOF | Golden orange fannings | | FOF | Flowery orange fannings | | BOPF | Broken orange pekoe fannings | | OF | Orange fannings | Dust | OPD | Orthodox pekoe dust | | OD | Orthodox dust | | OCD | Orthodox churamoni dust | | FD | Fine dust | CTC Tea | | | Brokens | BOP | Broken orange pekoe | | BP | Broken pekoe | | BPS | Broken pekoe souchang | Fannings | OF | Orange fannings | | PF | Pekoe fannings | | PF 1 | Pekoe fannings one | Dust | PD | Pekoe dust | | D | Dust | | CD | Churamoni dust | | PD 1 | Pekoe dust one | | D1 | Dust one | | RD | Red dust | | FD | Fine dust | Green Tea | | | Whole Leaf | YH | Young hyson | | FYH | Fine young hyson | Brokens | GP | Gun powder | | H | Hyson | Fannings | FH | Fine hyson | | Soumea | Soumea | Dust | Dust | Dust | | | |
Various machines sort out all grades

11.8.0 Sorting Process
The guideline for sorting orthodox and CTC tea sorting is given below:
11.8.1 Orthodox tea
The bulk mal initially is passed through a Myddelton Stalk Extractor. The Myddelton's are fitted with trays of either 17/64/0.125" and or 3/16/0.125". The top and bottom trays of Myddelton should be so adjusted that only broken grades are removed. These feed directly into the sorter conveniently sited near the Myddelton. The bottom tray of the Myddelton should contain mainly whole leaf grades and these should feed into wire mess googie having No. 12, 10, 8, and 6 meshes. Through No.12 FTGFOP, No.10 TGFOP, No.8 GFOP and No.6 FOF grades will be obtained. The spill from the googie will go to the breaker cum stalk separator machine. From breaker the mal will go to a Myddelton. From the top tray of Myddelton the mal will go to pucca sorter and following broken grades will be obvtained. From the bottom tray of Myddelton the smaller grades will be obtained through another pucca sorter. Through top tray
17/64/0.125" | | Through bottom tray
3/16/0.125" | | | |

| | Through No.10 | mesh over 12-BOP1 | 12 | 14-BP | 14 | 16-FBOP | 16 | 18-GBOP | 18 | 20-GFBOP | 22 | 24-FOF/GOF | 24 | 26- PF | 28 | 30- OPD | 30 | 40-OD | 40 | 60-OCD | | |
11.8.2 CTC Tea
The following sorting process is now-a-days very much popular. The CTC bulk mal is passed through a fiber extractor and a pre-sorted. From the pre-sorted the larger leaf will go to a sorting machine from where the broken grades are obtained. Medium size particles will go to another sorting machine to give fannings. Likewise the smaller particles will go to a third sorting machine from where dust grades will be obtained. The following diagram will show the process.

11.8.3 Tocklai Tea Breaker
Breakers are used to reduce the particle size of orthodox tea. These breakers use the principle of crushing, which, if not used judiciously, may lead to graying of tea. Besides, picking of stalks has to be done manually and is thus a labour intensive process.
Unlike these breakers, the breaker developed at Tocklai, known as the Tocklai Tea Breaker (TTB), has a unique action. In this unit, the tea is passed on to a Roller running at high speed. The roller, which is fitted with rods throws the tea on a stainless steel striker plates at a certain force (action is like throwing the tea against a wall). Tea being brittle breaks but the stalk does not. The striker plates deflect the tea back on the roller, which in turn, throws it back again on the next lot of striker plates. Thereafter the tea passes on to the second roller for repeat operation.
Since no crushing is involved, a) the tea retains its bloom, b) mostly leaf and broken grades are produced and c) most of the stalk remains intact.
The tea, after breaking, is passed through a Middleton or a Sorter, during which approximately 50% of the tea is recovered as leaf and broken grades. The balance coarse tea is again passed through the TTB and the Sorter. The process is repeated till the final coarse mal consist mostly of stalk.
11.8.4 Packing
After the tea has been manufactured and sorted into its respective grades, it is necessary to pack it in suitable containers so that, its quality does not deteriorate. Bulk packing containers should be fed from a hopper at a regular rate or fed and the containers should be filled expeditiously. Tea should never be forced down by hand to save the same from loss of bloom, damage and dust. The CTC teas made from under withered teas are likely to be damaged more, unless handled carefully.
The moisture content of the made tea and its shelf-life are closely related. Maximum amount of tea should be packed in the container because oxygen and moisture in the free space promotes bacterial growth and enzymes are regenerated affecting the TFs in particular. After filling, the containers should be closed promptly.
Tea should contain no more than 4% moisture, when it is packed preferably 3%. There is no harm in bringing the moisture content down to say 2.5%, but no extra benefit will result. Furthermore reducing moisture much below 3% is a costly operation, as the rate of loss of moisture becomes very slow at that low moisture content.
Teas made from day to day vary both in leaf and liquor. Hence before packing into chests it becomes necessary to bulk all the leaf intended to be sent in one break to ensure uniform leaf and liquor in each container. Tea of the grade are tipped on to a canvas sheet, spread on the floor of the packing room in a circle and then shoveled into the centre of the canvas. During the process of sorting and bulking, tea picks up moisture and more often than not the moisture content is much above 4%. It is therefore necessary to final fire

the tea in order to bring down the moisture content to about 3%. This final firing is known as `gapping'.
Opinions differ about the desirability of gapping. Some believe that gapping has a detrimental effect on the quality of tea and say that it is desirable not to gap the tea before packing, provided the moisture content of the tea is not more than 4.5%. It is true that gapping has a slightly detrimental effect on the quality of the tea, but it is likely that quality will be preserved over a longer period if the tea is gapped.
Sampling should be done in such a way that it is representative of the whole bulk of tea from which it has been taken. If the sample is taken from the top layer of the heap then it is quite likely that the percentage moisture in the sample will be more than in the bulk of the tea due to the absorption of moisture on the surface from the atmosphere. Similarly if the sample is drawn from the bottom layer of the heap lying on a damp floor, then the leaf, which is liable to contain more dust and small broken leaf, will have high moisture content. A correct and representative sample should be drawn from different places in the heap. The container used should be clean and air tight. A sample should not be pressed in a container as the leaf is liable to be broken while under pressure. Samples, it should be collected with hands clean and free from any odor. Hair oil taint is very common in tea samples. If the container is aluminum one the joint should be sealed completely with cello tape. If the container is made of plastic, the lid should be screwed firmly. If the plastic container is overfilled it becomes difficult to fix the lid firmly. Labels with full details including date of manufacture and name of estate should be pasted on top of the containers for identification.
Bulk packing containers should be fed from a hopper at a regular rate or feed and the containers should be filled expeditiously. A Flow Diagram for manufacture of both CTC and Orthodox Black tea is shown below:

Green Leaf Sifting

Withering
Rotorvane / Rolling Table
CTC Machine
Fermenting Machine/Floor
Tea Dryer for Drying Tea
Sorting, Grading, Packing
Dispatch

FINANCIAL EVALUATION

TECHNO FEASIBILITY REPORT ON TEA PLANTATION- ETHIOPIA

THE PROJECT

After having deep study of soil climatic condition, labour supply and other infrastructural facilities offered by Govt. of Ethiopia it was observed that the demarcated area is suitable for Tea Plantation and may be in future produced one of the best quality of tea.
The management of the lucky Group of the Company therefore, has decided to complete all the formalities with the Govt. of Ethiopia and take possession of land as early as possible. It was also decided that commercial bank of Ethiopia may be approached for financial assistance over above the equity participation of about 30% given by the promoters. It was further decided that president of Gambella Region and Hon. Minister for Investment will be approached to develop a plan for to spend additional 4 to 5 million of US$ for development of infrastructure which includes development of road providing street light drinking water facilities , shelter for labours, Primary and secondary school, Primary health centre and Hospital. Management of these institutions however will be taken up by the Tea state and all the recurring expenditure will be incurred by them.

LOAN AND EQUITY

The total requirement of funds for the Projects is about 14989023 US$ (about 15.0 Million US$), out of this amount loan from the Bank will be 10492308 US$ and balance amount US$ 4496705 will be equity participation of promoters. Over and above state Govt. has to incurred and additional amount of 4 to 5 Million US$ for development of infrastructure facilities as stated above.
Yearly requirements of loan amount from the Bank and promoters contribution has been carefully calculated and it was presumed that loan from the Bank will be taken only up to 6th year of operation as per yearly requirement given in the table on the next page. From 7th year onwards Bank loan amount will be refunded back @ 1350000 US$ per year. After 7th yearly requirements of fund will be taken from the promoters own resources or the surplus generated by the Company. At the end of 10th year 5092308 US$ of Bank loan will remain unpaid. However, a decision of the management has to be taken for additional plantation of Tea, Coffee or medicinal plant, as per market requirement. The unpaid bank loan will be repaid back to the bank along with the interest in the subsequent years.

Yield Projection and Price Realization (Traditional Method)

Year | Area under tea(Ha) | Yield in kg tea made/Ha | Total ProductionIn kg tea made | Price realized@ US$ 1.97/Kg(Figures “000” US$) | 1 | 100 | 270.00 | 27000.00 | 53190 | 2 | 300 | 675.00 | 67500.00 | 239355 | 3 | 600 | 1350.00 | 135000.00 | 671470 | 4 | 900 | 2430.00 | 243000.00 | 1569105 | 5 | 1200 | 2700.00 | 270000.00 | 2845605 | 6 | 1500 | 3375.00 | 337500.00 | 4521150 | 7 | 1800 | 4050.00 | 405000.00 | 6515775 | 8 | 2000 | 4725.00 | 472500.00 | 8856135 | 9 | 2000 | 5400.00 | 540000.00 | 11409255 | 10 | 2000 | 7290.00 | 729000.00 | 14068755 |

Under normal circumstances production of tea starts form the 3rd year onwards. However we have decided to plant a hybrid Tea plant which gives production from the first year itself and keep on increasing the yield till it reaches optimum label of 6 to 7 metric ton per year. The organic matter contain of the soil is very high and there will be no difficulty in achieving the yield figure stated above, rather we are expecting to get higher yield.

There will be collection centre at the middle of each 25 ha plantation. The fresh leave will transported to the weathering shade immediately to maintain the quality of the Tea.
For late plantation there will be increase in the yield up to 15 years as the optimum yield reaches up to 10 years. However for calculation of the project report only yield data up to 10 year has been taken into account.

4.01. FINANCIAL ASPECT OF THE PROJECT
US$
(A) Variable Costs
(a) Plantation Labour mandays

Particulars | 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year | | | | | | | | | | | | Area Ha | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | | | Cumulative | | | | | | | | | | | Land Preparation | 18900 | 37800 | 56700 | 56700 | 56700 | 56700 | 56700 | 37800 | 0 | 0 | Survey | 1350 | 2700 | 4050 | 4050 | 4050 | 4050 | 4050 | 2700 | 0 | 0 | Drains digging | 8775 | 19575 | 32400 | 44550 | 56700 | 68850 | 81000 | 93150 | 12150 | 12150 | Planting Tea | 47250 | 97200 | 141750 | 141750 | 141750 | 141750 | 141750 | 94500 | 0 | 0 | Shade Tree Planting | 2700 | 5400 | 8100 | 8100 | 8100 | 8100 | 8100 | 8100 | 0 | 0 | Manual Cultivation | 4995 | 14985 | 29970 | 44955 | 59940 | 74925 | 89910 | 99900 | 99900 | 99900 | Chemical Weed control | 2700 | 8100 | 16200 | 24300 | 32400 | 40500 | 48600 | 56700 | 56700 | 56700 | Plant Protection | 2700 | 8100 | 16200 | 24300 | 32400 | 40500 | 48600 | 56700 | 56700 | 56700 | Fertilizer Application | 1350 | 4050 | 8100 | 12150 | 16200 | 20250 | 24300 | 27000 | 27000 | 27000 | Mulching | 10800 | 21600 | 32400 | 32400 | 32400 | 32400 | 32400 | 21600 | 0 | 0 | Shade Maintenance | 1350 | 4050 | 8100 | 12150 | 16200 | 20250 | 24300 | 27000 | 27000 | 27000 | Irrigation | 1350 | 4050 | 8100 | 12150 | 16200 | 20250 | 24300 | 27000 | 27000 | 27000 | Pruning | 4050 | 12150 | 24300 | 36450 | 48600 | 60750 | 72900 | 81000 | 81000 | 81000 | Total | 108270 | 239760 | 386370 | 454005 | 521640 | 589275 | 656910 | 633150 | 387450 | 387450 | Cost of Mandays @ USD $ 1.35 mandays | 146165 | 323676 | 521600 | 612907 | 704214 | 795521 | 886829 | 854753 | 523058 | 523058 | Cost of Plucking | | | | | | | | | | | @ USD$ 0.052 | 6318 | 28431 | 82134 | 186381 | 338013 | 537030 | 773955 | 1051947 | 1355211 | 1355211 | Per kg of Green | | | | | | | | | | | Leaf plucked | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | |

(b) STORES USD

Particulars | 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year | Area (Ha) | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | | Cumulative | | | | | | | | | | | Planting Material | 2160000 | 4320000 | 6480000 | 6480000 | 6480000 | 6480000 | 6480000 | 4320000 | 0.00 | 0.00 | Numbers in “000” | | | | | | | | | | | Cost of planting | 216000 | 297000 | 513000 | 513000 | 513000 | 513000 | 513000 | 432000 | 0.00 | 0.00 | Material @ US$ | | | | | | | | | | | 0.13 each | | | | | | | | | | | Shade Tree | 37800 | 75600 | 133400 | 113400 | 113400 | 113400 | 113400 | 113400 | 0.00 | 0.00 | Saplings Numbers in “000” | | | | | | | | | | | Cost of each | 4910 | 9830 | 14900 | 14900 | 14900 | 14900 | 14900 | 14900 | 0.00 | 0.00 | Sapling @ US$ | | | | | | | | | | | 0.13 | | | | | | | | | | | Cost of Herbicides @ | 13580 | 40740 | 81490 | 122230 | 162970 | 203720 | 244460 | 271620 | 203720 | 162970 | US$ 100.65/Ha | | | | | | | | | | | Cost of Pest | 13140 | 39410 | 78810 | 118220 | 157630 | 197030 | 236440 | 262710 | 262710 | 262710 | Control | | | | | | | | | | | Chemicals @ | | | | | | | | | | | US$ 97.36/Ha | | | | | | | | | | | Cost of Fertilizers @ US$ 148 / Ha | 19980 | 59940 | 119880 | 179820 | 239076 | 299700 | 359640 | 399600 | 399600 | 399600 | Total | 305410 | 522520 | 941480 | 1061570 | 1200976 | 1341750 | 1481840 | 1494230 | 866030 | 825280 | | | | | | | | | | | | Figures in “000” US$ | | | | | | | | | | |

FIXED COST
(b) Capital Expenditures
(I) Civil Constructions

| 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10th Yr | | | | | | | | | | | | Area (Ha) | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | 2000 | Cumulative | | | | | | | | | | | Particulars | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Factory Shed | 0 | 145651 | 0 | 0 | 0 | 0 | 248683 | 0 | 0 | 0 | Workshop | 0 | 9517 | 0 | 0 | 0 | 0 | 13068 | 0 | 0 | 0 | Withering shed | 0 | 71050 | 0 | 0 | 0 | 0 | 134284 | 0 | 0 | 0 | Bungalows: | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Gen. Manager | 0 | 0 | 66069 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Estate Manager | 59319 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Factory Manager | 59319 | 0 | 0 | 0 | 0 | 59319 | 0 | 0 | 0 | 0 | Asstt. Nursery | 46183 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Asstt. Garden | 46183 | 0 | 46183 | 46183 | 46183 | 0 | 0 | 0 | 0 | 0 | Asstt. Factory | 46183 | 0 | 0 | 0 | 0 | 92367 | 0 | 0 | 0 | 0 | Manager Finance | 46183 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Medical Officer | 0 | 46183 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Staff Quarters | 0 | 66069 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Driver’s Qtrs. | 56200 | 71050 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Supervisor’s | 0 | 28417 | 28417 | 28417 | 28417 | 28417 | 0 | 0 | 0 | 0 | Quarters | | | | | | | | | | | Gen. Office | 0 | 30550 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Garage | 0 | 20952 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Manure Godown | 27702 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | General Stores | 0 | 27702 | 0 | 0 | 0 | 0 | 27702 | 0 | 0 | 0 | Field weighment | 3901 | 3901 | 3901 | 3901 | 3901 | 3901 | 3901 | 0 | 0 | 0 | Sheds | | | | | | | | | | | Washing Ramp | 0 | 4900 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Water Storage | 0 | 53284 | 0 | 0 | 0 | 52650 | 0 | 0 | 0 | 0 | Tanks | | | | | | | | | | | Dispensary 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | | | | | | | | | | | Total | 391173 | 579226 | 144570 | 78501 | 78501 | 236654 | 427638 | 0 | 0 | 0 | | | | | | | | | | | |

(II) Salary & Wages

Years | 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10 Yr | | | | | | | | | | | | Area under Tea | 200 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | 2000 | (Ha) cumulative | | | | | | | | | | | Particulars | | | | | | | | | | | Designations: | | | | | | | | | | | Gen. Manager 1 | 0 | 0 | 35519 | 35519 | 35519 | 35519 | 39069 | 39069 | 39069 | 39069 | | | | | | | | | | | | Plantation | 21303 | 21303 | 21303 | 21303 | 23085 | 23085 | 24867 | 24867 | 24867 | 24867 | Manager 1 | | | | | | | | | | | Factory Manager 2 | 0 | 21303 | 21303 | 21303 | 21303 | 23085 | 16875 | 44401.5 | 46183.5 | 46183.5 | Nursery Asstt. 1 | 10652 | 10652 | 10652 | 10652 | 12434 | 12434 | 12434 | 14202 | 14202 | 14202 | Garden Asstt. 4 | 10652 | 10652 | 42606 | 42606 | 46184 | 46184 | 46184 | 48303 | 48303 | 49707 | | | | | | | | | | | | Factory Asstt. 3 | 10652 | 10652 | 10652 | 10652 | 12434 | 12434 | 16875 | 16875 | 17550 | 17550 | Finance Manager 1 | 10652 | 10652 | 10652 | 10652 | 12434 | 12434 | 12434 | 14202 | 14202 | 14202 | Medical Officer | | 10652 | 10652 | 10652 | 12434 | 12434 | 12434 | 14202 | 14202 | 14202 | Garden | 34101 | 34101 | 34101 | 34101 | 35519 | 35519 | 35519 | 35519 | 35519 | 35519 | Supervisors 10 | | | | | | | | | | | Office Staffs 5 | 21303 | 21303 | 21303 | 21303 | 23085 | 23085 | 23085 | 24867 | 24867 | 24867 | Tractor Drivers 5 | 17051 | 17051 | 17051 | 17051 | 17753 | 17753 | 17753 | 21303 | 21303 | 21303 | | | | | | | | | | | | Car Drivers 4 | 13635 | 13635 | 13635 | 13635 | 14202 | 14202 | 14202 | 14202 | 15984 | 15984 | Factory | 17051 | 17051 | 17051 | 17051 | 17753 | 17753 | 17753 | 17753 | 21303 | 17753 | Supervisors 5 | | | | | | | | | | | Factory Workers | 11718 | 11718 | 11718 | 11718 | 11718 | 11718 | 23436 | 23436 | 23436 | 23436 | 60 (30 + 30)/day | | | | | | | | | | | Total | 178767 | 210722 | 278195 | 278195 | 295853 | 297635 | 312917 | 353201 | 360990 | 358844 | Figures “000” | | | | | | | | | | | US$ | | | | | | | | | | |

(III) Plant & Machinery

Years | 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10th Yr | Area (Ha) | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | 2000 | Cumulative | | | | | | | | | | | Particulars | | | | | | | | | | | Tea Processing Plant | 0 | 415652 | 0 | 0 | 0 | 0 | 1111955 | 0 | 0 | 0 | 50 HP Tractors 5 | 53285 | 53285 | 53285 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Bulldozer 1 | 24867 | 24867 | 24867 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5000 lit capacity | 10652 | 10652 | 21303 | 21303 | 0 | 0 | 0 | 0 | 0 | 0 | Water tanks 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Leaf Baskets | 0 | 1053 | 1053 | 1053 | 1053 | 1053 | 1053 | 0 | 0 | 0 | Leaf Trailers 6 | 0 | 7101 | 7101 | 7101 | 7101 | 7101 | 7101 | 0 | 0 | 0 | Jeep 1 | 17753 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Land Cruiser 1 | 0 | 0 | 53285 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Gen Sets 4 | 0 | 14202 | 0 | 0 | 0 | 0 | 14202 | 0 | 0 | 0 | Water Pumps 4 | 0 | 1418 | 0 | 0 | 0 | 0 | 1418 | 0 | 0 | 0 | Power Sprayers | 1485 | 2984 | 4469 | 4469 | 4469 | 4469 | 4469 | 4469 | 0 | 0 | Hand Sprayers | 851 | 1701 | 2552 | 2552 | 2552 | 2552 | 2552 | 2552 | 0 | 0 | 300 No. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Pruning Knives | 1269 | 1269 | 1269 | 1269 | 1269 | 1269 | 2538 | 2538 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Flat Hoes | 1269 | 1269 | 1269 | 1269 | 1269 | 1269 | 2538 | 2538 | 0 | 0 | 300 No. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Planting Hoes | 1269 | 1269 | 1269 | 1269 | 1269 | 1269 | 2538 | 2538 | 0 | 0 | 300 No | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Medical Equipments and | 0 | 7101 | 702 | 1053 | 1769 | 2120 | 2120 | 2120 | 2120 | 2120 | Medicines | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Office Equipments and | 0 | 10652 | 1053 | 1053 | 1053 | 1053 | 1769 | 1769 | 1769 | 1769 | Stationeries | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Total | 112698 | 554473 | 173476 | 42390 | 21803 | 22154 | 1154250 | 18522 | 3888 | 3888 | Figures “000”” | | | | | | | | | | | US$ | | | | | | | | | | |

(IV) Power, Fuel & Maintenance

Years | 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10th Yr | | | | | | | | | | | | Area (Ha) | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | 2000 | Cumulative | | | | | | | | | | | Particulars | | | | | | | | | | | Electricity | 1053 | 1410 | 1410 | 2110 | 2480 | 6030 | 6380 | 12060 | 12430 | 12430 | | | | | | | | | | | | Fuel | 14200 | 14200 | 14200 | 14200 | 15090 | 22190 | 24860 | 24860 | 24860 | 26630 | | | | | | | | | | | | Building Maintn. | | 1410 | 2110 | 3180 | 4960 | 9930 | 10650 | 12430 | 12780 | 13500 | | | | | | | | | | | | Factory Maintn. | 700 | 1053 | 2110 | 2450 | 4960 | 5310 | 8860 | 12770 | 12770 | 16330 | | | | | | | | | | | | Vehicle Maintn. | 700 | 1760 | 1760 | 3180 | 4250 | 5680 | 6380 | 6750 | 8860 | 8860 | | | | | | | | | | | | Power House | | 700 | 700 | 1760 | 1760 | 1760 | 6750 | 7100 | 8860 | 8860 | maintenance | | | | | | | | | | | TOTAL | 16653 | 20533 | 22290 | 26880 | 33500 | 50900 | 63880 | 75970 | 80560 | 86610 | | | | | | | | | | | | Figures “000” | | | | | | | | | | | US$ | | | | | | | | | | |

(C) Total Cost of Production

| | | | | | | | | | | Year | 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10th Yr | | | | | | | | | | | | Area Under Tea | 100 | 200 | 300 | 300 | 300 | 300 | 300 | 200 | 2100 | 2100 | (Ha) | | | | | | | | | | | Particulars | | | | | | | | | | | | | | | | | | | | | | Variable Cost: | | | | | | | | | | | Plantations | 146165 | 323676 | 521600 | 612900 | 704214 | 795514 | 890879 | 854753 | 523058 | 523058 | | | | | | | | | | | | Cost of Plucking | 6318 | 28431 | 82134 | 186381 | 338013 | 537030 | 773955 | 1051947 | 1355211 | 1355211 | | | | | | | | | | | | Stores | 305411 | 522520 | 941480 | 1061573 | 1200976 | 1341752 | 1481841 | 1494234 | 866030 | 825280 | | | | | | | | | | | | Total Variable Cost | 457894 | 874627 | 1545214 | 1860854 | 2243203 | 2674296 | 3146675 | 3400934 | 2744299 | 2703549 | | | | | | | | | | | | Fixed Cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Civil Construction | 391173 | 579226 | 144570 | 78501 | 78501 | 236654 | 427640 | 0 | 0 | 0 | | | | | | | | | | | | Machineries | 112698 | 554473 | 173476 | 42390 | 21803 | 22154 | 1154250 | 18522 | 3888 | 3888 | & Vehicles | | | | | | | | | | | Power, fuel & | 16659 | 20533 | 22290 | 26880 | 33500 | 50900 | 63880 | 75970 | 80560 | 86610 | Maintenance | | | | | | | | | | | Salary & Wages | 178767 | 210722 | 278195 | 278195 | 295853 | 297635 | 312917 | 335448 | 360990 | 360990 | | | | | | | | | | | | Total Fixed Costs | 699297 | 1364954 | 618531 | 425966 | 429656 | 607342 | 1958686 | 429940 | 445438 | 451488 | | | | | | | | | | | | Total Costs | 1157191 | 2239581 | 2163745 | 2286819 | 2672859 | 3281638 | 5105361 | 3830874 | 3189737 | 3155037 | (Fixed and | | | | | | | | | | | Variable) | | | | | | | | | | | Contingency | 115719 | 223958 | 216374 | 228682 | 267286 | 328164 | 510536 | 383087 | 318974 | 315504 | Provision 10% | | | | | | | | | | | TOTAL | 1272910 | 2463539 | 2380119 | 2515501 | 2940145 | 3609801 | 5615897 | 4213961 | 3508711 | 3470541 | | | | | | | | | | | |

Statement of Loan Equity
US$

Year | 1 | 2 | 3 | 4 | 5 | 6 | Total | | | | | | | | | | | | | | | | | Equity | 381875 | 713273 | 688406 | 754663.5 | 882279 | 1082943 | 4496715 | | | | | | | | | | | | | | | | | Loan | 891041 | 1664321 | 1590530 | 1760873 | 2058656 | 2526890 | 10492308 | | | | | | | | | | | | | | | | | Total | 1272915 | 2377593 | 2278935 | 2515536 | 2940935 | 3609833 | 14989023 | | | | | | | | | | | | | | | | |

(C) Details of Bank Loan, Repayment and Interest

Year | Bank Loan at during end year | Bank Loan cumulative year. | Total Bank Loan | Repayment | Interest | | | | | of Bank | @ 12% | | | | | Loan | Per | | | | | during the | Annum. | | | | | year | | 1 | 891041 | 891041 | | | 106920 | | | | | | | 2 | 1664321 | 2555361 | | | 306639 | | | | | | | 3 | 1590530 | 4145891 | | | 497502 | | | | | | | 4 | 1760873 | 5906763 | | | 708804 | | | | | | | 5 | 2058656 | 7965419 | | | 955800 | | | | | | | 6 | 2526890 | 10492308 | | | 1259024 | | | | | | | 7 | 10492308 | 9142308 | | 1350000 | 1097064 | | | | | | | 8 | | 7792308 | | 1350000 | 935064 | | | | | | | 9 | | 6442308 | | 1350000 | 773064 | | | | | | | 10 | | 5092308 | | 1350000 | 611064 | | | | | | |

(d) Statement of Profitability Years | 1st Yr | 2nd Yr | 3rd Yr | 4th Yr | 5th Yr | 6th Yr | 7th Yr | 8th Yr | 9th Yr | 10th Yr | | | | | | | | | | | | Area (Ha) | 100 | 300 | 600 | 900 | 1200 | 1500 | 1800 | 2000 | 2000 | 2000 | Cumulative | | | | | | | | | | | | | | | | | | | | | | (A.) Sales Proceeds | 53190 | 239355 | 691470 | 1569105 | 2845665 | 4521150 | 6515775 | 8856135 | 11409255 | 14068755 | | | | | | | | | | | | (B) Variable | | | | | | | | | | | Expenses | | | | | | | | | | | Plantation & | 457894 | 874627 | 1545214 | 1860854 | 2243203 | 2674296 | 3416674 | 3400934 | 2744299 | 2703549 | Stores | | | | | | | | | | | | | | | | | | | | | | (A) – (B) | -404704 | -635272 | -853744 | -291749 | 602462 | 1846854 | 3099101 | 5455201 | 8664956 | 11365206 | | | | | | | | | | | | | | | | | | | | | | | (C) Fixed Expenses | | | | | | | | | | | | | | | | | | | | | | a. Buildings | 19548 | 48505 | 55728 | 59643 | 63558 | 75384 | 96754 | 96754 | 96754 | 96754 | depreciation | | | | | | | | | | | 5% | | | | | | | | | | | b. Plant & | 5629 | 29443 | 34209 | 36328 | 37408 | 38515 | 96228 | 97146 | 97146 | 97146 | Machinery | | | | | | | | | | | depreciation | | | | | | | | | | | 5% | | | | | | | | | | | c. Power & | 16659 | 20560 | 22329 | 26919 | 33547 | 50935 | 63909 | 75991 | 80595 | 86643 | Fuel & | | | | | | | | | | | Gen. Maintenance | | | | | | | | | | | d. Salary & | 178767 | 210721 | 278194 | 278194 | 295852 | 297634 | 312916 | 335448 | 360990 | 341091 | Wages | | | | | | | | | | | Repayment of Bank Loan | | | | | | | 1350000 | 1350000 | 1350000 | 1350000 | Bank Interest | 106920 | 306639 | 497502 | 708804 | 955800 | 1259023 | 1097064 | 935064 | 773064 | 611064 | Repair & Maintenance | 9450 | 39825 | 45225 | 48600 | 51975 | 54000 | 54675 | 54675 | 54675 | 54675 | | | | | | | | | | | | Pre commencement business expneses US$ | | | 406528 | 406528 | 406528 | 406528 | 406528 | | | | Total | 336973 | 655693 | 1339715 | 1565016 | 1844668 | 2182019 | 3478074 | 2945078 | 2813224 | 2637373 | Profit Before Tax | -741677 | -1290965 | -2193459 | -1856765 | -1242206 | -335165 | -378973 | 2510123 | 5851732 | 8727833 | | | | | | | | | | | | | | | | | | | | | | | Cumulative profit in US$ | | | -2193459 | -4050224 | -5292430 | -5627595 | -6006568 | -3496445 | 2355287 | 11083120 | Yearly cash accurals | 25177 | 77948 | 89937 | 95971 | 100966 | 113899 | 192982 | 2704023 | 6045632 | 8921733 | Cumulative cash accurals | | 103125 | 193062 | 289033 | 389999 | 503898 | 696880 | 3400903 | 9446535 | 18368268 | Outsanding loan | | | | | | | 9142308 | 7792308 | 6442308 | 5092308 |

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