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Geography Year 12 > Economic Enterprise > Flashcards

Economic Enterprise Flashcards

1
Q

Nature: Ownership

A
  • privately owned commercial ag enterprise
  • operating in malanda in the Atherton tablelands of far north QLD
  • Australia’s oldest (1950) and largest (440ha) tea estate
  • Family partnership (Russell family) managed by Tony Poyner
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2
Q

Nature: production and tea crop

A
  • 3 million bi-clonal camellia sinensis plants (hybrid)
  • high density of 12000 tea plants per ha
  • 6000 tonnes of tea leaves harvested annually, producing 1500 tonnes of single origin, pesticide free black tea (750 million cups)
  • 90% of black tea grown in Aus is produced by Nerada
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3
Q

Nature: production process

A
  • capital intensive (most mechanical, vertically integrated tea producers in the world)
  • mechanically harvesting up to 4 tonnes of leaf / hr and CTC method + sorting in automated on-site factory in less than 24 hrs
  • crop to cup in 4 days for domestic consumers
  • biotechnology (biclonal hybrids) and precision agriculture (NIR leaf tests, UAVs, smart soil probes) to increase yield, quality, profits and sustainability
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4
Q

Nature: employees and visitors

A
  • staffed by 30 full time employees
  • hosts 16000 visitors per year on plantation and factory tours, tea tastings, gift shop sales
  • 10% of annual revenue comes from agri-tourism (economic sustainability through business diversification)
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5
Q

Nature: Aus business, exporting

A
  • 1 of 2 Aus tea companies
  • first business in Aus to be awarded the rainforest alliance certification (2018)
  • sells 90% of its black tea domestically (9% exported to NZ, 1% to Japan)
  • Nerada tea sales account for 9% of the Australian market share
  • generates annual sales revenue of $22 million
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6
Q

Locational Factors: overview

A

Australian production, coordinates, altitude, size, movement

Why nerada is located there:

  • ideal biophysical conditions
  • proximity to market and transport
  • benefits of the Atherton tablelands
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7
Q

Locational Factors: Aus production, location and movement

A
  • Only 1% of the Australian continent is suitable for tea production, as most of Australia is quite arid, and areas that aren’t are concentrated with urban population. There is also not enough precipitation.
  • Located in the tropics at 17o 20’S, 145o 40’E
  • Located in Malanda in the Atherton Tablelands of Far North QLD, 80km SW of Cairns
  • 770m above sea level on a plateau at the foot of Mount Bartle Frere, Queensland’s highest peak (1611m)
  • 440ha – Australia’s largest tea plantation
  • Spread across two estates: Glen Allyn (360ha) and Taraquet (80ha)

MOVEMENT

  • Nerada Tea Plantation was originally located in the Nerada Valley (1950 – 1990) on the coast.
  • Due to intense Tropical Cyclone Joy in 1990, causing wind damage, flooding and widespread crop damage, Nerada opened an 80ha tea plantation in Malanda, 700m above sea level
  • The new location offered more protection from Tropical Cyclones and better growing conditions (e.g. climate, altitude, soil)
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8
Q

Locational Factors: biophysical conditions

A
  • Temperature: diurnal temp range of 10’C, subtropical climate, average max temperature is 26’C
  • insolation: 12 hrs sunlight - 4500 annual photoperiods
  • precipitation: 1800mm rainfall
  • 75% humidity
  • deep (16m), rich, red, volcanic loam soils (ph of 4.5-6), nutrient rich
  • slope: maintained by precision agriculture, they have furrows between each row of crop

SEASONALITY

  • distinct wet (1250mm - harvest every 2 weeks) and dry (550mm - harvest every 5 weeks) seasons
  • 40km from coast, moist air
  • free from pests due to biosecurity laws - Biosecurity Act of 2014 enforced by Australian Quarantine and Inspection services
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9
Q

Locational Factors: proximity to market and transport

A
  • Nerada is able to supply tea from crop to cup in as little as 4 days, with average production timeline of 28 days
  • Compared to other countries, where tea is often purchased through an auction system, then sits on a dock for weeks before its sent for packaging
  • Nerada is strategically located close to the QLD inland freight rail line, 65km from the regional centre of Mareeba, 80km from Cairns and close to the Kennedy and Bruce highways
  • Tea is harvested and processed in Malanda, sent via rail freight from Atherton to the Brisbane packaging facility (26 hours), packaged and transported via rail, truck and ship to Australian consumers (domestic)
  • A small amount of tea (1%) is shipped internationally to Japan from Brisbane to supplement their lack of production in the dry season, and 9% is transported to NZ
  • Surplus tea is also sold directly to the highest bidder, often large multinationals, to be used in blends. This is shipped to the NH
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10
Q

Locational Factors: benefits of Atherton tablelands

A
  • Atherton Tablelands is the primary food bowl of Tropical north QLD, with 39 different agricultural industries and 1800 individual farms over a 65 000 km2 area
  • Agriculture is the largest sector of employment in the ATs, accounting for 14% of all jobs in the region
  • Agricultural training facilities include the Queensland Agricultural Training College in Walkamin (35km NW of Malanda) and James Cook University in Cairns
  • Nerada uses the services of over 90 local and regional companies for factory and plantation services, parts and supplies, transport, maintenance, packaging and supermarket distribution (external linkages)
  • Atherton Tablelands attracts 500 000 visitors each year – allowing Nerada to operate as an agritourism destination
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11
Q

Internal Linkages: Overview

A

Decisions about:
- Decision making and employment
- Methods of production
- Future direction (lemon myrtle)
- Diversification – accommodation, weddings, agritourism
Key words: employees, customers, organisational structure, technology

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12
Q

Internal Linkages: Decision making and employment

A
  • Many decisions made by Nerada are internally generated and based purely on the perspectives and experiences of the Russel family and Tony Poyner
  • Intergenerational knowledge has been passed through the Russel family
  • Internal decision making has seen the enterprise grow into the most mechanised, vertically integrated tea company in the world – generating annual sales revenue of $22 million
  • Poyner (manager) is in charge of 30 full time employees who work in the plantation, visitors centre and factory
  • Dry season: additional workers are employed on a casual basis to staff the visitors centre kitchen (increased agritourism visitation)
  • Wet season: casual farm hands are employed due to increased output requirements in the factory and plantation
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13
Q

Internal Linkages: Methods of Production - Crop choice

A

CROP CHOICE

  • bi clonal hybrid of chinese and assamica varieties
  • selectively propogated for the Nerada tea plantation by South Johnston Research Facility
  • higher yielding, stronger tasting and hardier (drought and flood tolerant)
  • produce yields of 4.7t/ha - significantly higher than Indian average of 2.1t/ha
  • plant density of 12 000 per ha
  • 3 million tea plants
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14
Q

Internal Linkages: Methods of Production - Site Preparation

A
  • Although the site is a plateau and suitable for tea cultivation without modifications, the land was mechanically levelled to an optimal gradient to maximise yields
  • Topography of the site was laser levelled (1991) and prepared by tractors for optimal drainage and to assist with mechanical operations
  • Laser levelling slows runoff by 2000L of water per ha / annum, avoiding the need for irrigation
  • Slope gradient was levelled to an average gradient of 1:100 – helps to retain soil moisture in dry season + mechanisation is much easier due to flatness
  • Drainage assisted by furrows between rows of tea plants on ridges, which were shaped by tillage machines including blade ploughs and rippers attached to tractors
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15
Q

Internal Linkages: Methods of Production - Skiffing, Irrigation, Chemical Inputs

A

SKIFFING
- skiffing = cutting back to promote new growth
- skiffing occurs every 3 -4 years, encouraging the plant to grow as a low, spreading bush
- mechanical harvester used, with trimming blades - cut plant material left on floor (mulch / organic fertiliser)
IRRIGATION
- not required due to adequate subtropical rainfall
- nursery is irrigated and utilises a shade cloth for juveniles
CHEMICAL INPUTS
- synthetic herbicides and fertilisers
- small quantities of glysophate applited to juvenile tea bushes to kill weeds in furrows (only applied on first 3 years of growth)
- only sprayed on calm days to avoid spray drift contamination (abiding by QLD DPIT guidelines)
- fertiliser programs of N, phosphorus, k and s to supplement losses in soil nutrients (representing 20-25% of total production costs - $20 per ha - costing $54 000 per year)
- smart soil probes and NIR leaf testing

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16
Q

Internal Linkages: Methods of production - harvesting and processing

A

HARVESTING
- harvested every 2 weeks in wet season and every 5 weeks in dry season
- UAVs (drones) are used to monitor fields to determine optimal harvest time
- harvested up to 15-16 times per season
- Mechanical harvester collects 4 tonnes of tea leaf each hour with the aid of a tractor towed bin
- Capital intensive method only requires 2 field workers over 450 ha
- Yield allows enough tea for 1 tonne of black tea per hour (half a million cups of tea per hour)
- Nerada makes enough tea in the 24 hour period for half of the daily needs of Australian tea consumers (Australians drink 22 million cups of tea globally)
PROCESSING
- Fresh tea leaves need to be correctly stored within 1.5 hours of harvesting and processed after 12 hours of storage, proximity to a processing facility is a key consideration for tea production – Nerada has on-site processing
- Wet tea leaf is withered mechanically with fans to reduce moisture
- CTC (cut, tear, curl) or Rotovane machine
- CTC method is processed by automated machinery (requiring 2 staff), completed in < 24hrs
- Dried leaves may be further processed by way of blending with imported (cinnamon) or locally grown ingredients (lemon myrtle) to make a range of products
- Larger size tea is packaged to be sold as leaf tea and smaller grade tea is put into teabags

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17
Q

Internal Linkages: Future Direction - Lemon Myrtle

A
  • Nerada established a trial plot of lemon myrtle in 2019 to be used in their green tea blend
  • Allows Nerada to grow an additional cash crop that can be used in existing products and surplus stock sold as a high quality domestic product (as it only grows in 5 countries)
  • Lemon myrtle is a tree that is native to the subtropical rainforests of QLD – gives a distinctive lemon-lime fragrance
  • Leaves are dried or processed to extract an essential oil, which can be achieved using the existing machinery at the Nerada processing factory
  • can be mechanically harvested using existing machinery for tea leaves
  • Intercropping with tea plantations reduces the negative impacts of a monoculture, improves soil moisture retention, reduces runoff and erosion, increases biomass and soil nutrients and increases biological pest control
18
Q

Internal Linkages: Business Diversification

A

Diversification ensures that the enterprise is not purely reliant on the biophysical environment and is more resilient to weather extremes.
AGRITOURISM
- niche tourism where visitors to a farm participate in or actively observe in its operation
- number of domestic tourists who visited a farm on their trip increased by 9% per annum on average
- Nerada plantation hosts 16000 visitors per year on plantation and factory tours, tea tastings, high teas
- 10% of annual revenue comes from agritourism

WEDDINGS AND ACCOMMODATION (FUTURE)

  • ecotourism B&B and farm-stay to the site
  • self-contained cottages and cabins built and existing kitchen and tea room will be utilised for meals
  • online tech have connected landholders to consumers in new market places
  • wedding reception venue is also to be built to hold larger functions - held during dry season
19
Q

External Linkages: Overview

A

External linkages include decisions as a result of:
- Business and production services
- Legislation
- Imported goods
- Exported goods
- Supermarket supply chain power
Keywords: competitors, government, suppliers, transport
Nerada plantation operates in an increasingly global marketplace, where legislation, regulations and trade links impact their decision making. These external linkages occur at a range of scales and can have a dominant influence on the productivity and profit of the enterprise. There are increasing external linkages that influence the flow of people, goods, services and ideas.

20
Q

External Linkages: Business and Production Services

A
  • The Atherton tablelands is a regional agricultural hub with a strong network of agricultural and horticultural expertise and support services (equipment services, wholesale suppliers, agribusiness consultants).
  • Nerada uses the expertise of the South Johnston Research Facility (operated by the QLD Department of Agriculture and Fisheries) to develop and trial suitable clones and hybrid tea seedlings for their plantation (80km SE of Malanda)
  • Nerada works with > 90 Aus companies at all stages of the production line (production, harvesting and transport, primary processing and storage, secondary processing, distribution / packaging and handling, wholesale and retail markets)
  • Factory and plantation services: serviced by local contractors including Tableland Toolmaking Supplies (partner for > 20 years), Des Brennan Electrical (contracting to N for > 25 years) and Eacam Hardware in Malanda
  • Parts and supplies: delivered through companies such as Abdy Transport
  • Transport: bulk bags of tea are transported via rail or road freight from the Atherton tablelands to Brisbane for packing by Australia’s largest privately owned transport company, Linfox
  • Maintenance: of farm machinery and vehicles comes from Central Tyre Service Malanda
  • Packaging: designed by CREATE Design (Cairns) and is printed by Platypus Print Packaging (Brisbane)
  • Tea bags: tea bag components are supplied by ABC Adhesives
  • Supermarket distribution: Royal Foods represents Nerada
  • Merchandise: designed by Master Brokers
21
Q

External Linkages: Legislation - The Food Act (2003) - Food Standards Australia NZ

A
  • FSANZ is the statutory authority responsible for protecting the health and safety of people in Aus and NZ through the maintenance of a safe food and beverage supply.
  • Specifies ‘maximum residue limits’ permitted to be present in food
  • Glysophate, the main ingredient in Round-Up, is a herbicide used by Nerada
  • Nerada is required by FSANZ to apply no more than 4L/ha over a maximum of 4x per year. Nerada uses <1L/ha 2 times a year
  • Required to control spray drift as tea plants contaminated within 7 days before harvest can be considered adulterated, and a risk to human health if consumed.
  • Nerada does not spray herbicides on commercially harvested tea (tea bushes > 3 years)
22
Q

External Linkages: Legislation - Environmental Protection Act (1970)

A
  • Discharges to the environment must be managed so that they do not adversely affect the receiving environment (land, surface water or ground water).
  • Significant considering Nerada’s proximity to the World Heritage Listed Wet Tropics Rainforest and its location to at the headwaters of the Johnston River in the Great Barrier Reef Catchment Area
  • Act is administered by the Australian Government Department of the Environment and Energy
  • The act protects matters that are of national environmental significance, including:
    Threatened plant and animal species (Cassowary),
    World and national heritage properties (Wet Tropics World Heritage Area)
    The Great Barrier Reef (indirect impacts from runoff)
  • Fines of up to $1 million apply for the most serious breaches of the Act
23
Q

External Linkages: Reef 2050 Water Quality Improvement Plan

A
  • The Great Barrier Reef Marine Park Authority (GBRMPA) is a partner in the Australian and QLD’s government’s joint commitment to a Reef 2050 Water Quality improvement plan
  • Action: halt and reverse the decline in the quality of water flowing into the GBR from catchment
  • Nerada is required to manage its sediment, nutrient loads and herbicide run-off with aim to reduce up to 80% in dissolved inorganic nitrogen and up to 50% in sediment in the North Johnstone River Catchment by 2025
  • On average, only 28.6% of horticultural land in the GBR catchment was managed, which is only a 0.3% increase
24
Q

External Linkages: Imported Goods

A
  • Nerada imports processed tea to blend with the tea produced at the Malanda estate for products such as their Australian Breakfast Tea (Australian, Assam and Chinese black tea), as well as for their ‘Organics’ range (which does not include any tea from the Malanda estate)
  • Tea imported by Nerada is sourced from organic and fair trade certified suppliers in India, China and Indonesia
  • If Nerada were to become ‘Organically certified’, it would raise operational costs by 30%. It is more viable to import processed black tea from countries where labour and production costs are cheaper
  • Nerada relies on ACO (Australian Certified Organic) and Fairtrade to audit and monitor the quality of tea leaves they are purchasing
  • Nerada is also unable to control the volume or cost of imported goods  if production drops overseas, or tariffs are introduced to imports, Nerada’s expenses increase
  • Australia has bilateral Free Trade Agreements (FTA) with India, China and Indonesia so imported tea is not subject to tariffs or quotas (e.g. ChAFTA)
  • Biosecurity and Food Standards regulations still apply
25
Q

External Linkages: Exported Goods

A
  • exports 1% (15 tonnes) of black tea to Japanese market
  • difficult to compete with Japan’s highly subsidised tea
  • subject to 17% tariff in Japan
  • JAEPA
  • 9% of tea sold to NZ
26
Q

External Linkages: supermarket supply chain power

A
  • supermarket duopoly: coles and woolies controlling 70% of market (so small suppliers cannot afford to lost their contracts)
  • slotting fees: place in the aisle (can be up to $100 000 per week) - nerada pays the minimum fee
  • mark up and profit: Nerada sells loose leaf black tea to supermarkets for $7 per kg, but then sold for $12/kg
  • Aus made certification: minimum annual licence fee of between $300 and $25000
  • Rainforest Alliance Certification: first business in Australia to be awarded it (took 2 yrs to gain and was costly), approval audited every 12 months (costing $1540 per annum)
27
Q

Ecological Dimensions: Overview

A

environmental constraints (climate cycles, natural hazards, waterlogging, frost, soil pH), human impacts and ecological sustainability

  • Habitat Destruction V Rainforest Alliance Certification, habitat conservation and wildlife corridors
  • Herbicides and bioaccumulation V IPM
  • synthetic fertilisers, soil health and eutrophication V mulch, organic fertilisers, NIR leaf testing
28
Q

Ecological Dimensions: Environmental Constraints - ENSO + Tropical Cyclones

A
  • Natural climate cycles can affect yields through variations in rainfall and temperature
  • ENSO – The El Nino-Southern Oscillation, is a recurring climate pattern: Elno involves cooler sea surface temperatures, lower rainfall in Australia.
  • In 2002 (El Nino year and Millenium drought), average yields were 3t/ha as only 1200mm of rain fell in Malanda
  • The La Nina phase results in warmer sea surface temperatures and higher rainfall in Australia. During 2006 (La Nina), yields rose to 4t/ha due to double the average rainfall: 3600mm. Waterlogging impacted yields.
  • The highest yields of 5t/ha are in the neutral phase of ENSO

CYCLONES

  • Cyclones bring strong winds and intense rainfall in the wet season – they are more frequent in La Nina years
  • They cause defoliation, leaf browning (from waterlogging) and crop death
  • On average, 4-5 tropical cyclones per year affect North QLD each year (expected to increase in frequency and intensity with climate change)
  • Most intense tropical cyclone to impact Nerada plantation was TC Yasi in 2011 with wind gusts over 115km/hr recorded on the plantation. Its former location, Nerada Valley, had wind gusts up to 285km/hr
29
Q

Ecological Dimensions: Environmental Constraints - Waterlogging, Frost, Soil pH

A

Waterlogging

  • Waterlogging is more frequent in La Nina years and during the wet season (monsoon)
  • The water table at the plantation can fluctuate over 6m between the wet and dry seasons
  • Bi-clonal tea plants used by Nerada are ‘flood tolerant’ and are able to withstand up to 3 months of waterlogging. After this period, denitrification and deoxygenation can cause leaf damage and crop death.
  • Nerada constantly monitors the depth of the water table through a piezometer
  • Deep rooted native rainforest vegetation is maintained along buffer zones and between tea fields to keep the water table lower than 2m below the surface
  • High density of tea plants (10000 plants / ha) helps to keep the water table lower as tea plants have a 3m tap root (older plants can develop tap roots up to 15m deep)

Frost

  • Can experience a frost anywhere from late May through to mid-September each year (dry season, winter)
  • Receives an average of 2 frost events / year
  • Due to Winter temperature inversions, warm air rises and cold air sinks overnight, causing frost hollows in depressions
  • BOM issue frost warnings 1-2 days in advance, however, it can take 3 weeks to harvest the whole estate so frost damage can mean widespread loss in revenue
  • June 2018: Malanda experienced a frost that destroyed 50% of the entire tea estate (around 50 tonnes of tea) only to be hit again two weeks later (losing 75% of crop)
  • Frost can be controlled by frost netting or frost sprinklers – however, this is too expensive to implement at Nerada over 450 ha

Soil pH

  • Correct soil pH allows for optimal nutrient uptake by the plant
  • Tea requires an optimum soil pH of 6.5 (slightly acidic)
  • The pH of soil can vary, particularly during the wet (slightly acidic) and dry (slightly alkaline) seasons
  • Nerada regularly tests soil pH with smart soil probes and soil sampling
  • Too acidic (low pH)  Nerada will add agricultural lime or dolomite
  • Too alkaline (high pH)  Nerada adds compost, manures and mulch. In extreme situations, powdered sulphur is used.
30
Q

Ecological Dimensions: Human Impact - Habitat Destruction

A

Habitat Destruction

  • The Nerada tea estate is boarded by the Wet Tropics World Heritage Area and sits in the Great Barrier Reef catchment at the headwaters of the Johnston river
  • 450 hectares of tropical rainforest was clear-felled for the plantation. This caused habitat destruction, habitat fragmentation, soil erosion, a loss of biodiversity and the ‘edge effect’.
  • The rainforest habitat is home to the Lumholtz tree Kangaroo – which is classified as ‘near threatened’
  • Aquatic ecosystems were impacted through increased sedimentation, turbidity, and chemical pollution.
  • The Johnston River Habitat is home to the endemic platypus and connects to the GBR

CONNECTED TO HABITAT CONSERVATION AND WILDLIFE CORRIDORS

31
Q

Ecological Dimensions: Ecological sustainability - Habitat conservation and wildlife corridors

A

Habitat Conservation and Wildlife Corridors

  • Lumholtz Tree Kangaroos are classified as near threatened under the QLD Nature Conservation Act (1992) – being at risk of feral animal predation (dogs and cats), habitat destruction and climate change
  • Nerada has revegetated watercourses and planted tree species such as the umbrella tree and the giant white fig to increase the habitats for the tree kangaroos. This also stabilises riverbanks and prevents erosion and siltation of waterways.
  • This conservation area acts as a wildlife corridor that connects the plantation to the Wet Tropics World Heritage Area via the North Johnstone River Catchment and avoids fragmentation
  • A 5m buffer zone between tea plantations reduces the ‘edge effect’ and decreases noise pollution and chemical runoff
32
Q

Ecological Dimensions:
Human impact = synthetic herbicides
Ecological sustainability = buffer zones and IPM

A

Synthetic Herbicides
- Runoff of herbicides into waterways can introduce toxins in food webs and result in bioaccumulation up the food chain

Buffer zones and Integrated Pest Management

  • 5m buffer zones between crops and waterways act to absorb toxins and prevent spray drift
  • Minimise spray drift by adhering to legislation surrounding wind speeds and spraying crops
  • Integrated Pest Management (IPM) is utilised to control weeds by using a combination of targeted herbicide treatment, manure removal, inter-row mowing and mulching. IPM has allowed Nerada to reduce its overall herbicide use and gain rainforest Alliance certification
33
Q

Ecological Dimensions:
Human Impact = Chemical Fertilisers
Ecological Sustainability = NIR, Smart Soil Probes, Organic stuff

A

Chemical Fertilisers

  • Excessive fertiliser application can cause nutrient runoff into aquatic environments and subsequent eutrophication (leading to algal growth, decline in dissolved oxygen and death of aquatic fauna)
  • Particularly relevant in the wet tropics, where high rainfall causes increased leaching of nutrients from the soil
  • The eutrophication risk is the highest in the wet season when more fertiliser is added due to nutrient leaching as a result of high rainfall

Ecological Sustainability

  • Near Infra Red (NIR) leaf testing  measures the total nitrogen content of leaves. It is used to arrive at the amount of topdressing nitrogen (fertiliser) required to achieve the optimum crop yield.
  • Smart Soil Probes monitor edaphic conditions 24 hours a day and send live results and alert to Poyner. Using these technologies, Nerada now applies 25% of less nitrogen than they would have applied without the test information.
  • Nerada also utilises pruning mulch and green manure from native perennial grasses to add nutrients to the soil, increase soil moisture and keeping soil pH slightly acidic (similar to Chagusaba method). Excess mulch is sold and is in high demand.
  • Organic fertilisers such as poulty manure are sourced from the Steggles factory in Mareeba (35km N of Malanda)  adds N, P, K to soil, increases microbial activity and improves soil permeability.
34
Q

Effects of Global Changes Overview

A

Changing Biophysical Environment

Consumer demand for ecological and socially sustainable products

competition from multinationals and developing countries

economic factors

technology and biotechnology innovations

political changes

35
Q

Effects of Global Changes: Biophysical Environment

A

Spatial patterns of production and climate change mitigation

  • Australia’s susceptibility to drought
  • Tropical cyclones: effects Nerada as they source their single origin estate from Malanda (for their black tea)  other companies source from multiple plantations which makes these multinationals less vulnerable to natural disasters.
  • For example, experiencing 2 frosts, alongside torrential rains in the past 12 months has cut Nerada’s yields of fresh black tea by 50% - almost a $1 million in losses
36
Q

Effects of Global Changes: Consumer demand

A
  • Trend of increasing social conscience surrounding ecological and socially sustainable products particularly in Australia
  • Example: Unilever has invested in premium segment of Western tea brands, buying Australia’s T2, the UK’s Pukka Organic Herbal tea brand, and Tazo (Starbucks)  indicating this trend towards ecologically sustainable beverages
  • This is beneficial for Nerada as they are ‘Australian Made’, and have ‘Rainforest Certification’, indicating extensive measures taken to increase sustainability
37
Q

Effects of Global Changes: competition from multinationals and DC

A
  • Maintaining a competitive advantage

- Supermarket supply chain

38
Q

Effects of Global Changes: economic factors

A
  • Price of tea will increase due to the potential reduction of size in the future (as a result of prioritising other crops), and the demand increases globally
  • cost of inputs
  • cost of imports
39
Q

Effects of global changes: tech and biotech

A
  • Grows 3 million bi-clonal Camellia sinensis plants (a hybrid of camellia assamica and sinensis plants)
  • Utilises biotechnology such as bi-clonal hybrids, precision agriculture (such as NIR leaf tests, UAVs, smart soil probes) to increase yield, quality, profits and sustainability
  • Nerada uses the expertise of the South Johnston Research Facility (operated by the QLD Department of Agriculture and Fisheries) to develop and trial suitable clones and hybrid tea seedlings for their plantation (80km SE of Malanda)
  • Bi-clonal tea plants used by Nerada are ‘flood tolerant’ and are able to withstand up to 3 months of waterlogging. After this period, denitrification and deoxygenation can cause leaf damage and crop death.
40
Q

Effects of global changes: political changes

A

Quotas, tariffs and free trade

  • Limit the ability for Nerada to export to other countries
  • Benefit of Maximum Residue Limits  leaves Nerada with a competitive advantage over a range of Chinese teas in terms of exporting to the EU

Geography Year 12 (13 decks)

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