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In the past few months, an increasing number of households in some northern provinces are turning a quick buck by producing ‘dirty” tea.
\'Dirty’ tea production
Hoang Long, an official from the Vietnam Tea Association (VITAS), allowed reporter to view a video that showed several small-scale producers using careless and unsafe methods of production in several provinces, including Yen Bai, Tuyen Quang and Thai Nguyen.
The video was quite shocking, showing people add phosphate or muddy water with fresh tea leaves. This combination was then mixed in a way to make the leaves appear wavy, soft and green.
Another method used, in Dong Hy District in Thai Nguyen Province, was to add ore powder to the leaves and then crush the mixture before drying and packaging.
According to Mr. Long, one kilogramme of dry tea requires five kilogrammes of fresh tea leaves, but with these types of methods, one kilogramme of dry, \'dirty\' tea needs only requires just three kilogrammes of fresh tea leaves.
Most of these small-scale facilities produce tea at the household level. It costs from VND4-5 million (USD194.2-USD242.7) to buy the equipment necessary for tea production. In many cases, return on this investment can come within one week.
VITAS Chairman Dao Anh Tuan said, despite the large number of unsanitary production facilities, the tea was quickly bought up by traders intending to unofficially export it to China.
Domestic tea processors in need of materials
Equipment for producing \'dirty\' tea
Tea processing factories in Vietnam have been facing the shortage of materials for the recent months.
One tea factory in Van Chan District in Yen Bai Province only bought seven tonnes of fresh tea leaves in the first two weeks of July, while in the past it would purchase around 60 tonnes each day, which it needed to meet its processing demand.
The same is true for other factories in the district.
Mr. Tuan warned that many tea processors in the north could be faced with bankruptcy if the situation is not dealt with.
This shortage can lead to delays in operations and cancellation of contracts. According to VITAS, Vietnam is under contract to export 90,000 tonnes of dry tea in the second half of this year.
Because the \'dirty\' tea is usually sold through unofficial channels, it results in losses of tax revenue to the state. In Van Chan District, roughly 150 tonnes of fresh tea leaves are sold to traders without reporting the transactions. It is estimated that the district has been losing at least VND60 million (USD2,912) per month.
Speaking with Nguoi Lao Dong, the chairman of VITAS said that Vietnam exports tea products to 70 countries. The massive production of ‘dirty’ tea in Vietnam is a threat to the entire industry.
Each year, Vietnam produces around 180,000 tonnes of tea, including 130,000 tonnes for export, bringing in some USD180 million. Vietnam ranks the5th in the worldwide in tea export market.