Management Status and Development Plan of Green Tea Processors in Korea

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Management Status and Development Plan of Green Tea Processors in Korea Regular Article pISSN: 2288-9744, eISSN: 2288-9752 J F E S Journal of Forest and Environmental Science Journal of Forest and Vol. 36, No. 2, pp. 156-162, June, 2020 Environmental Science https://doi.org/10.7747/JFES.2020.36.2.156 Management Status and Development Plan of Green Tea Processors in Korea Hagmo Kang1, Junho Park2, Sooim Choi3, Chongkyu Lee4 and Hyun Kim4,* 1Department of Forest Environmental Science, Jeonbuk National University, Jeonju 54896, Republic of Korea 2Gyeongsangnam-do Forest Environment Research Institute, Jinju 52612, Republic of Korea 3Department of Forest Resources, Sunchon National University, Suncheon 57922, Republic of Korea 4Department of Forest Resources, Gyeongnam National University of Science and Technology, Jinju 52725, Republic of Korea Abstract This study was conducted to analyze the current management status of green tea processors in two regions (Hadong-gun and Boseong-gun) in Korea and to suggest directions for the development of the green tea industry based on an understanding their difficulties in management. This study showed that the number of green tea farms and the cultivation area had decreased, while the average unit sales price of green tea in Boseong-gun was approximately three times higher than that in Hadong-gun. Also, this study found that Hadong-gun mainly provided green tea products to wholesalers, whereas Boseong-gun sold it directly to the local retail stores targeting tourists, and this results in generating relatively higher unit prices. Meanwhile, we discovered that both regions had difficulties in management which were caused by the demand for low delivery unit costs from large corporations and small food companies. Therefore, in order to develop the green tea industry in both regions, the size of green tea fields and the scenery satisfaction should be improved to draw more tourists and boost tourists’ intention to revisit. In addition, it is necessary to enhance guidance and accessibility of related tourist sites, to expand green tea experience activities, and to improve product satisfaction by developing various goods. By inducing more tourists in these ways, it could change the sales type of green tea from wholesale to retail and help activate the management of green tea processors. Key Words: experience activities, green tea, tourism, type of sales, unit sales price Introduction ern tea fields in Jeju Island, and it launched the brand called “Sulloccha” which popularized green tea drinking Tea tree is a small perennial evergreen tree belonging to and industrial base. Along with this trend, income increase the family of Theaceae (Lee and Kang 2014). Moreover, from economic growth has raised the public interest in the green tea made of tea tree (Camellia sinensis L.) leaves health since the 1990s, and green tea has been recognized as is one of the favorite foods. The green tea industry started a healthy drink. As a result, the cultivation area and pro- in the late 1960s under the government-led initiative by es- duction amount of green tea have continuously increased tablishing three large-sized tea fields (Boseong, Goheung, until the late 2000s (Yoo 2010; Kim et al. 2014). and Youngam in Jeollanam-do, Korea). In the early 1980s, The current major green tea cultivation areas in Korea Jangwon Industry of Pacific Corporation established mod- are Boseong-gun in Jeollanam-do and Hadong-gun in Received: January 28, 2020. Revised: February 26, 2020. Accepted: February 26, 2020. Corresponding author: Hyun Kim Department of Forest Resources, Gyeongnam National University of Science and Technology, Jinju 52725, Republic of Korea Tel: 82-55-751-3244, Fax: 82-55-751-3241, E-mail: [email protected] 156 Journal of Forest and Environmental Science http://jofs.or.kr Kang et al. Gyeongsangnam-do. The number of green tea farm house- difficulties in management. holds decreased from 4,030 farms in 2013 to 2,597 farms in 2018 and the cultivation area of green tea also decreased Materials and Methods from 2,926 ha in 2013 to 2,744 ha in 2018. On the other Background of survey area selection hand, green tea production was 2,700 tons in 2013, but it increased to 3,878 tons in 2018 by 44 % (MAFRA 2019). The survey was conducted on green tea processors in The market for tea and coffee in 2014 was about 2.8 tril- Hadong-gun in Gyeongsangnam-do and Boseong-gun in lion won, and coffee accounted for about 2 trillion won, Jeollanam-do of Korea, which are Korea's representative 71% of the total. Actually, coffee plantations support the lo- green tea growing and producing regions. Hadong-gun in cal economies of some coffee production countries with Gyeongsangnam-do is widely known to people as the first short-term returns (Manik and Sidle 2018). Green tea tea plantation in Korea and as the production area for luxu- amounted to about 35 billion won, accounting for 1.3%, ry teas with its long history of cultivation and the clean im- followed by black tea with 0.6% (18 billion won), fruit tea age of Jiri mountain. Hadong-gun holds nine festivals to and others with 27% (about 7.7 billion won). However, var- revitalize the local economy through green tourism and ious diseases such as obesity, hypertension, and heart dis- hosts the “Wild Tea Culture Festival” and “Hadong Green ease have been increased due to the rise in income level and Tea, Yellow Mullet Festival” on the theme of green tea. In the westernization of dietary habits. In accordance with this addition, Hadong-gun operates Hadong tea culture center phenomenon, consumers' interest in health has grown and and the tea party, promotes Hadong green tea, supports for the consumption of green tea with numerous effects has participation in the fair, and manages the Hadong green tea been increased (Park 2013). The green tea is being pro- familiarization tour to promote “Hadong green tea” duced all over the world, and the market is also expanding through the active visit of tourists (Hadong-gun 2012). rapidly (Shin 2007). Boseong-gun in Jeollanam-do takes advantage of the A number of past studies have been conducted on the beautiful terraced tea fields to promote tourism in order to present status and prospect of green tea industry (Park increase green tea sales and develop green tea related 2011; Kim et al. 2014), consumer preference and purchase industries. Also, Boseong-gun offers green tea meal serv- propensity (Kim and Han 2011; Park 2013), green tea dis- ices and green tea related experiences to schools across the tribution and sales (Piao 2011; Yin 2012), green tea proc- whole country and makes efforts to increase the number of essing and product development (Cho and Kim 2013; Park stay-type visitors by developing a variety of foods using 2015), green tea tree cultivation and growth (Cho et al. green tea. Besides, Boseong-gun promotes businesses such 2010; Hwang et al. 2010), green tea component analysis as the operation and management of “Botjae” which is the and function (Lee et al. 2015), and the efficacy of green tea green tea landmark, improvement of facilities and environ- (Kim 2014). In addition, the studies on the effect of green ment for Korean tea cultural park, activation of Korean tea tea industry on the satisfaction of tourists in the region (Cho museum operation, and tea (food) making experience tour and Park 2004) and the strategies for revitalizing festivals through Boseong Green Tea Establishment to foster pre- by analyzing visitors from local cultural tourism festivals mium Boseong tea. In 2017, Boseong-gun prepared new through green tea (Suh and Ko 2008) have also been projects such as managing of tea fields for stay-type tourism conducted. and creating a healing space for Korean Tea Culture Park However, there is little research on the development plan (Boseong-gun 2017). of the green tea industry through the management status of Contents of survey the green tea processors and the difficulties in management, which are a big part of the production, processing, and sales A face-to-face questionnaire survey was conducted on of green tea. Therefore, this study was carried out to sug- the management status of green tea processors in gest the development plan of the green tea industry through Hadong-gun and Boseong-gun to establish the develop- the management status of the green tea processors and the ment plans of processors in the survey areas. The contents J For Environ Sci 36(2), 156-162 157 Development Plan of Green Tea Processors of the survey were the general status of green tea pro- on the differences in farm household number, cultivation duction, sales of green tea, difficulties in management and area, harvest area, amount of harvest, production amount, opinions on the development of green tea industry. and an average unit price for two green tea producing The survey was conducted on five companies in regions. Also, the sales types of green tea processors located Boseong-gun and seven companies in Hadong-gun. The in two regions were divided into wholesale and retail, which survey period was from early January to the end of were compared with each other. This study analyzed the February 2014 in Boseong-gun and from early January to characteristics of sales types through the positioning map of the end of February 2013 in Hadong-gun. Both green tea sales by sales types using Multidimensional Scaling processors were randomly selected because they didn’t want (MDS). All statistical analyses were carried out in SPSS to disclose information to protect personal information such Version 21. A significance level of 5% was used for all as the number of green tea sales and processing volume of analysis.
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