The Study On Current Situation And Development Countermeasure Of Xinchang’s Tea Industry

Xinchang County is one of the ten major tea-producing Counties.Tea Industry is the lending industry in Xinchang and with a long history. It plays a pivotal role in economic development in the County. In recent years, Xinchang country has been granted as "China famous tea township","national standardization of tea demonstration counties "and so on. The famous brand--"Buddha Dragon Well tea" has been announced as "the top ten famous teas in Zhejiang ","China’s top ten geographical regions logo","china’s famous agricultural products brand"."China’s top ten regional public brand of tea".China’s largest tea markets--"China chashi" has been built in Xinchang.Tea industry has made-great achievements. Xinchang has laid a solid foundation for the development. tea market drives development of tea industry and public brand makes great contribution to sales of tea.However, there is a large gap between development of Xinchang tea industry and the famous tea producing area. Problems remained in tea industry:variety structure is unreasonable; organization degree of industry structure is not high; disaster defense capability of tea garden is week; the labor shortage phenomenon has appeared; tea quality is hard to control; public brand does not have much benefit. These factors have side effects on the income of tea planters. and hinder the sustainable development of Xinchang tea industry. On the other hand, the "Buddha dragon well tea" is ushered in a crucial period of transition from product management to brand promoting; there are many difficulties in accelerating industrial transformation and upgrading. It presents new challenges to Xinchang in achieving maximum profits, expanding the market and perfecting industrial chain. So, analysis of Xinchang tea industry is necessary.This paper selects Xinchang tea industry as sample. We try to point out its salient issues and develop countermeasures. Hope to resolve the current bottlenecks, promote the development of the tea industry and increase income of tea planters. Detailed analysis from the following:The first part is putting forward the questions. Analyze the background of Xinchang tea industry, facing problems and select the direction of research, clear the study significance. Then review some domestic and foreign literature in order to classify research achievements basis; anatomize SWOT theory; determine the key issues and research content.The second chapter introduces current development and features of Xinchang tea industry. Firstly, We analyze Zhejiang tea industry’s production, distribution of tea-producing regions, marketing trade and so on. Studies show that:Tea production in Zhejiang get a sharp increase. Zhejiang has rich tea varieties and obvious advantages. It creates a favorable environment for development of Xinchang tea industry. On this basis, the paper analyzes current development of Xinchang tea industry. Descriptive statistics indicated that there is a rapid growth in Xinchang tea production especially in famous green tea. Both the price and the production of famous green tea rise steadily. The features of Xinchang tea industry can be summarized as:Tea production continues to increase; Industrial structure adjustment makes results. Basis of tea industry becomes more solid. Competition ability of tea industry strengthens. Tea production trends to be modernized. The science and technology is used widely. Brand achieves remarkable results. Xinchang tea industry’s social popularity increases rapidly. Marketing network continues to improve. Market coverage continues to grow. Tea culture is becoming richer. Industrial function continuously expands.The third part is the analysis of strength(S), weakness (W), opportunity (O) and threat (T) of Xinchang tea industry by using SWOT method. Combing with survey data, results showed that:four strength of Xinchang tea industry are humid warm climate and appropriate geological conditions, prolong tea culture history, Buddha Dragon Well tea’s popularity, China Chashi’s powerful distribution. Four weaknesses are unreasonable variety-structure, lack of leading enterprise and low level of organization of tea production, shortage of labor and increasing production cost, unreasonable variety-structure and production distribution, lag in processing techniques and tea quality. Three threats are intensified international trade barriers, changes of tea consumption, rapid development of tea industry, increased market competition. Three opportunities are increasing in green tea export and in domestic consumption and enabling changes in preference of consumer, strong government’s support, technology development of tea production. According to the SWOT matrix study, strength and opportunity strategy (SO), strength and threat strategy (ST), weakness and opportunity strategy (WO) and weakness and threat strategy (WT) are put forward. The forth part aims at programming the goal of Xinchang tea industry and optimizing the distributions. According to the development path of Xinchang tea industry, we put forward the development goal of Xinchang tea industry. Combined with regional features of Xinchang, we divided the tea-growing areas into one demonstration area and three advantages of production area. The medium-term and long-term plans are made for tea garden localization, standardizing tea factories, marketing network, new production cultivation.Part five is relevant policies and suggestions. According to the existing problems, threats, internal advantages and external opportunities in the development of tea industry, we put forward some relevant policies and suggestions mainly from the following aspects: adjust the structure of development of tea industry, promote tea industrialization, accelerate tea market upgrading, promote tea brand building and strengthen development of tea culture.