Token holders are voting with their wallets, and the recent decline in tea production in Sri Lanka has significant implications for the economy. The Tea Exporters Association (TEA) has requested government support for tea smallholder farmers to help increase the tea crop and subsequently, the export revenue.
The governance structure of the tea industry is complex, with smallholder farmers playing a crucial role in the production process. Community sentiment shows that these farmers are in need of assistance, having faced successive government-induced crises that have reduced their productivity. The tea smallholder farmers, who account for 75% of Sri Lanka's tea crop, have seen their yield decrease to ~150kgs of green leaf per acre per month, compared to a potential of ~600kgs per acre per month.
The Current State of the Tea Industry
The tea export revenue has been hovering at around $1.5 billion per year, due to the drop in volumes. The TEA chairman, Mr. Huzefa Akbarally, pointed out that exporters are capable of handling 400 million kg of tea per annum, but the decline in tea production has restricted export volumes. The association is seeking assistance in the form of loans or grants to help farmers infill their lands and increase their yield.
- The tea smallholder farmers need assistance in the form of infilling to get their yield closer to the potential yield.
- The one-time cost of infilling is about Rs. 200 per plant.
- After 2 years and continuing for the next 30 years, the smallholder will make more than Rs. 450 per plant per year, and the country will make more than Rs. 850 per plant per year in foreign exchange.
The Web3 Angle
While the tea industry may seem unrelated to the world of crypto and blockchain, there are potential connections to be made. The use of blockchain technology could help increase transparency and efficiency in the tea supply chain, from production to export. Additionally, the use of stablecoins and digital assets could provide a more secure and stable form of payment for tea farmers and exporters.
Community sentiment shows that there is a growing interest in the use of blockchain technology in the agricultural sector. Token holders are voting with their wallets, and investments in blockchain-based projects are on the rise. As the tea industry continues to evolve, it will be interesting to see how blockchain technology is adopted and utilized.
Our Take
As a DAO governance expert, I believe that the use of blockchain technology has the potential to revolutionize the tea industry. The governance structure of the tea industry is complex, and the use of blockchain technology could help increase transparency and efficiency. Token holders are voting with their wallets, and it will be interesting to see how the tea industry evolves in the coming years.
The future of the tea industry is uncertain, but one thing is clear: the use of blockchain technology has the potential to make a significant impact. As we move forward, it will be important to keep a close eye on the developments in the tea industry and the potential applications of blockchain technology.
