Green Tea Processing in Nigeria and its Economic Implications

Aroyeun, S.O*, Shittu, T. R,   and Yahaya, A. T, Sowunmi F.A, Odumbaku L.A, Okelana, F.A and Akoroda M.O.

Cocoa  Research Institute of Nigeria, Ibadan. PMB, 5244, Ibadan

Correspondence author Email: aroyeun2000@yahoo.co.uk

Accepted 23 August 2012

Abstract

In this study, attempt was made to process Green Tea using local processing Technology as recommended by the Chinese method. Fresh tea   leaves were plucked, fixed, rolled and dried under the sun. Physical and Chemical   analysis of the processed green tea were carried  out using standard methods. Economic Analysis of the Green Tea were also carried out using the method involving Investment Decision model comprising Net Present Value (NPV), Benefit-Cost Ratio (BCR) and internal Rate of Return (IRR). Our results showed that the green tea produced conformed to ISO standard for  good quality Green Tea. The range of moisture content was 4.11-7.00%, Crude Fibre (4.37-20%), water extracts (21.7-43.6%) and the caffeine in the range of 1.00 - 1.29%. The economic Analysis carried out indicated the profitability as shown in the values of the  NPV, IRR, and BCR which were N13,928,856.02, 27.19% and 2.25 respectivelyIn conclusion, the diversification into Green Tea processing will create a new opening for tea farmer who has hitherto relied on  more capital intensive black tea processing with lesser profitability.

Keywords: Green Tea, Investment decisions, Benefit cost ratio, Net present value, IRR