The Economic System of Green Tea and Matcha in Kyoto, Japan

Abstract

This paper provides a comprehensive overview of the economic system of green tea and matcha in Kyoto, Japan, namely Uji tea (Uji-cha), with a particular focus on distribution structure and quality coordination.Various statistical data and literature were analyzed while incorporating interviews with 13 business operators from producers to tea merchants, wholesale markets, and public entities.At the production stage, replanting and scale expansion have progressed since the 1970s, but new challenges have emerged, including workforce development, the preservation of traditional production methods, and adjustments to the growing commercial demand of matcha.At the distribution stage, the enhancement of public functions (such as price formation) in the tea wholesale market has made the "agricultural cooperative-tea wholesale market" route as the major distribution channel.At the same time, transactions outside the market have also played a distinctive role in ensuring a stable supply of high-quality crude tea leaves.Furthermore, along with the functions of the tea market, the technical system of gōgumi (blending) employed by tea merchants has played a crucial role in the quality coordination of Uji tea.Various economic issues remain to be addressed, including how to design a quality assurance system that accommodates the diversification of what constitutes Uji tea, and how to express its sensory characteristics and terroir.

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