Factors Affecting on the Average Price Variation of Black Tea in Uva Region
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Date
2013
Journal Title
Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
Tea manufacturers produce different grades which fetch different prices at the auction. The
average price received by the factory depends on the percentage of the different grades
produced by the factory. A variation of the average prices of teas in Uva region has been
occurring over past years and the price of the same grade also varies with time due to both
controllable and non-controllable factors. It is important to analyze the fluctuation of the
average prices that occurs due to the grades mix within the year. Production of the different
factories varies in terms of total tea quantity, types of tea grades, percentage of tea produced
from each grade .The average price of the same factory fluctuates with the time and the
production in same factory also vary referring to the above factors with the time. Therefore this
research was conducted to analyze the impact of the grades mix on average price of the graded
tea and to make recommendations.
Methodology
The study was conducted separately for Uva High elevation and Uva Medium elevation.
Secondary data were collected with the aid of structured questionnaire from twenty factories for
each two elevations which were selected using random sampling technique. The relationship of
average price with six independent variables such as total quantity, main grade percentage,
number of main grades, number of off grades, season and elevation average was analyzed. The
data obtained were analyzed using descriptive statistics, correlations, simple linear regression,
and multiple linear regressions using the following empirical model in the study.
Description
Keywords
Agriculture, Export Agriculture, Crop Production, Tea Industrials, Tea Technology, Black Tea