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Analyzing organic tea certification and traceability system within the Taiwanese tea industry
Mao-Chang Wang1, Chin-Ying Yang
1Department of Accounting, Chinese Culture University, Taipei, Taiwan.
Journal of the Science of Food and Agriculture
|July 22, 2014
Summary
Game theory reveals strategic choices in Taiwan's organic tea industry. High-revenue farmers face delivery issues, while collusion with certification agencies incurs high costs, impacting the organic tea certification and traceability system.
Area of Science:
- Agricultural Economics
- Game Theory Applications
- Supply Chain Management
Background:
- The Taiwanese tea industry faces complexities in its organic certification and traceability system.
- Strategic interactions between tea farmers and certification agencies are crucial but not fully understood.
Purpose of the Study:
- To apply game theory to analyze strategic decision-making in the organic tea certification process.
- To elucidate how key variables influence the organic tea certification and traceability system in Taiwan.
Main Methods:
- Game theory modeling applied to the Taiwanese organic tea industry.
- Analysis of strategic choices of tea farmers and organic tea certification agencies.
Main Results:
- High-revenue farmers encounter challenges with tea deliveries, cash flow, and compensation.
- Collusion or switching certification agencies results in significant costs for tea farmers.
- Potential for decreased interest in non-organic tea cultivation and reduced costs for organic farming and traceability systems.
Conclusions:
- This study introduces an innovative game theory model for the tea industry.
- The findings offer valuable insights for tea industry stakeholders, policymakers, and researchers.
- The research provides a novel analytical framework for understanding organic certification and traceability.

