Production cost composition of tea enterprises

Tea enterprises are involved in various processes from tea planting, harvesting, processing, to packaging and selling. The cost accounting of tea production is characterized by a wide range of coverage, a large amount of data, and a lot of content.

Main components of production cost

According to the general economic accounting method, the total production cost of tea can be divided into three parts: material costs, labor costs, and other costs¹. Specifically, these costs include:

Tea planting costs: These include tea garden rental fees, tea seedling fees, land leveling fees, depreciation amortization, labor costs (weeding, fertilizing, shaping and fresh leaf picking), fertilizers, pesticides, oil, water and electricity, low-value consumables for daily management of tea gardens, tea garden maintenance fees, etc. In northern regions where tea planting requires wintering, the construction and maintenance costs of greenhouses should also be accounted for.

Tea processing costs: These include labor costs, fuel costs, equipment repair fees, depreciation costs, waste loss caused by excessive fermentation during processing, etc. Labor costs mainly refer to the wages and benefits of tea makers;gunpowder tea 9380.  fuel costs mainly refer to the expenses of using liquefied gas or electricity; equipment repair fees and depreciation costs mainly refer to the depreciation and maintenance costs of machinery and equipment in the production workshop.

Purchasing costs: These include the purchase of fresh leaves and freight. The purchase of fresh leaves mainly refers to the purchase of fresh leaves from cooperative farmers when self-produced tea cannot meet production needs. gunpowder tea 9380. The purchase should be classified according to bud leaf grade, freshness and variety; freight refers to the transportation costs incurred during the purchase process.

Packaging costs: These include the purchase of packaging materials and accessories, labor wages and benefits in the packaging workshop.gunpowder tea 9380.