A Study on the Improvement of Korean Tea Distribution Structure through Sri Lanka Tea Auction System

Abstract

This study analyzed Korean tea distribution structure and Sri Lankan tea auction system, which is the main sales method, to find a way to build a tea auction center suitable for domestic reality. For the analysis, the literature on the current status and problems of the Korean tea distribution market, the advantages of the Sri Lankan auction system, and the role of the broker as the subject of the auction were reviewed. As a result of the analysis, the distribution structure of Korean tea is an integrated management method that growers manufacture and sell directly, and consumer prices are determined by producers, not market principles. The price of tea formed in this way was generally high compared to the quality, and it caused the consumer's disregard, which became an obstacle to the expansion of tea consumption. In particular, the fact that no standardization of made tea specifications and sensory evaluation made the tea valuation results ambiguous. As a solution to these problems, legislation for the installation of domestic tea auction center, standardization of Korean made tea and sensory evaluation, and a plan for fostering auctioneers who can play the role of auction brokers were presented.