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  • QUESTION

     The Geography of a Commodity    

    Project: The Geography of a Commodity
    The objective of this assignment is to get you to examine the geography of a commodity. To begin, select one particular commodity and explore the patterns of its origin and its consumption by identifying this commodity’s main exporters and importers. Then examine the geographical patterns of paths that this commodity takes from examples of its main points of origin and consumption. You are free to select a commodity of your choice among a wide range of agricultural products. In selecting a commodity you should avoid something as broad as ‘fruit’ or ‘beverages’ and narrow your focus to a particular product such as sugar, tea, bananas, or coffee.
    In completing the assignment you should be sure to address the following questions:
    1. Where is the commodity produced?

    Describe the geography of production. What are the major places, countries and world regions where the commodity is produced?

    For question 1, refer to production data from the U.N. Food and Agriculture Organization (FAO): http://www.fao.org/faostat/en/ – rankings/countries_by_commodity and

    http://www.fao.org/faostat/en/ – data/QC/visualize
    2. Where is the commodity consumed?
    Where are the major markets for the commodity?.

    For question 2, refer to trade data from the U.N. Food and Agriculture Organization (FAO): http://www.fao.org/faostat/en/ – rankings/countries_by_commodity_imports and http://www.fao.org/faostat/en/#data/TP/visualize
    3. What are the major trade flows exhibited by the commodity?
    What does the pattern of trade in the commodity look like? Which countries and regions of the world are the most significant exporters and which are the major importers?
    For question 3, use the FAO Detailed World Agricultural Trade Flows visualize data tool:
    http://www.fao.org/faostat/en/ – data/TP/visualize and

    http://www.fao.org/faostat/en/ – rankings/countries_by_commodity_exports
    4. How can we best explain or account for the geographic patterns displayed by the trade of this commodity? What economic characteristics of the countries that serve as main points of origin and consumption, and of the production of the commodity itself, that help explain these geographic patterns?

    In order to answer this question, you will need to draw on both the popular press – newspapers and periodicals such as the Wall Street Journal, the New York Times, and the Economist – and academic sources. Drawing on these sources will enable you to construct an argument concerning the geographies of the commodity you chose and to provide the empirical evidence to support it. List at least three academic sources, whether in book or journal article form.
    40% or your grade is based on your description of the commodity’s production and consumption. 40% of your grade is based on your explanation of the geography of the commodity’s production and consumption. What accounts for the fact that the commodity is concentrated in certain regions and countries and not others? 20% of your grade is based on the presentation of the material. The paper should be text based but, where appropriate, you might incorporate maps, tables and figures into the text. The length should be 3-4 double-spaced pages.

    In seeking to explain the geographic patterns displayed by the origin and consumption of the commodity you chose you should investigate the various factors associated with the production and exchange (trade) of the commodity. What are the labor costs involved in producing the commodity and how important are they in determining the geography of production? In other cases the geography of the commodity’s production may well be tied to questions of climate. And in some instances, certain trade or foreign investment policies may a factor in shaping the geography of its production. The location of the major markets commonly, but not always, has a bearing on the geography of commodities. You should also examine whether, and to what extent, political factors shape the global geography of the commodity.

    In short, there is no one standard explanation of the geography of economic activity and you will find that different commodities exhibit quite different geographic patterns.

    NOTE: Be sure to cite the sources that you use.

]

Subject Agriculture Pages 4 Style APA

Answer

The Geography of Tea

The commodity of interest of this assignment is tea. Tea is major component of drinking tea which is valued in several cultures globally since it is known to refresh the mind, the body as well as soothes the soul. It is derived from a plant Camellia sinensis L. Kuntze, which is cultivated in several countries in small scale farming while in few countries in large scale farming. Tea is produced in several countries; however, the major countries include China, India, Indonesia, Kenya, and Sri Lanka. As such it is mainly produced in Asia particularly, East Asia and some regions of Africa predominantly East Africa. According to the data the largest producers of tea is China, followed by India, then Indonesia, Kenya and lastly Sri Lanka. The plant grows in higher altitude that may ranges from 800m to 2000m. According to Jin, (2019), not all the tea types are the same. Each and every country produces tea that has got different taste and flavor and it is the reason why the consumers identify the type to import based on their needs. For example, Kenyan tea has a remarkable strong and spicy aroma, partly with a slight “lemon flavor”.

While there are several consumers of tea globally, the main countries that import majority of tea are Pakistan, Russia, and the United States at $550 million, 525$million, and $487 million respectively (FAOSTAT, 2020).  However, it is important to note that a significant amount of tea is also consumed domestically.  For example, in the year 2017, the amount of tea consumed in China, India, and Turkey were more than the amount of the tea consumed by major tea importers. Currently the growth of tea consumption is being driven by the rapid growth in per capita incomes, especially in most developing countries of Asia Pacific. According to the study conducted by Lei (2019), the increasing young urbanization segment that enters the middle class is ready to consume large amount of tea and also ready to pay for the premium prices. As such presently, Asia Pacific has the highest market for the consumption of tea with their robust economic growth.

The production and consumption of tea continues to change depending on the demand of the commodity. While the black tea has been domination the market, the increasing health benefits of green tea has made it to compete fairly with the black tea.  Basically, the major producers of tea are from East Africa which is Kenya. Tea is the main commodity that the county exports and forms one of the largest drivers of its economy hence at all cost the country works towards maximum export of this commodity. Another region that is a significant exporter of the commodity is East Asia. The fact that these regions lie in cool and wet places with an altitude of more than 1000 provides favorable weather conditions for the growth of the commodity.  The leading and potential consumer or importer include the United States and several countries in Asia pacific. According to the study conducted by Lei (2019) the green tea has got several health benefits that have been identified by several countries hence they are prepared to pay for the maximum prices. On the same note, Asia Pacific region is one of the paces that has got high economic growth hence they have the purchasing power of the commodity irrespective of the prices.

It is quite difficult to tell if the geographic patterns displayed by the trade of tea in these countries is determined by their economic characteristics. For example, Kenya, one of the leading countries that produces tea is a low-income state, India is a middle-income country while China and Sri Lanka are developed countries.  However, it is important to note that irrespective of the economic status of the country, tea form a significant part of their economies. For Kenya, tea is the major driver of the economy alongside other agricultural produce. For other countries such as China that has invested so much in industrialization it forms part of the economy but not the main factor that drives the economy. One of the factors that determine the production of the commodity is weather condition. In all the regions where tea grows, there is wet and cool weather and they lie on high altitudes. On the other hand, the pattern of consumption is highly associated with economic characteristic of the importing countries.  A study conducted by Das and Zirmire (2018), reveals that the commodity is mostly consumed in Asia Pacific, Russia, and the United States. These countries or regions are either developed or developing at a faster rate. As such, they have the purchasing powers and are ready to buy the commodity irrespective of the prices.

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References

 

  • Das, P., & Zirmire, J. (2018). Tea Industry in India: Current trends and future prospective. Journal of Pharmacognosy and Phytochemistry7(1), 407-409.

    Fao.org. 2020. FAOSTAT. [online] Available at: <http://www.fao.org/faostat/en/> [Accessed 4 November 2020].

    Jin, X. (2019, August). Analysis of Comparative advantages of tea trade between China and Countries along the “Belt and Road Initiative”. In IOP Conference Series: Earth and Environmental Science (Vol. 310, No. 5, p. 052056). IOP Publishing.

    Lei, L. (2017). Effects of standards on tea exports from developing countries: comparison of China and Sri Lanka. Institute of Developing Economies (IDE), Discussion Paper642.

     

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