Plantations: Why?

Factors responsible for development of plantations in Asia and America:

Suez Canal was opened in 1869= this reduce the distance between Asia and Europe
sail based ship were replaced with steam based ship=faster, more carrying capacity
Industrial revolution= demand for rubber as eraser, waterproofing material+ consumer demand for tea, coffee, tobacco.
imperialism:
1. cheap labour = already available in colonies
2. Capital/finance= provided by Europeans.

there is some difference in the origin of Asian vs. American plantations:

American plantations	Asian plantations
usually owned by rich families	Setup, Financed and controlled by commercial companies based in Europe.
was started with help of African slave labor.	with help of locals + indentured laborers from India, China.

Types of Plantation crops

Three types based on relative maturation time and longevity of production

type	character
tree crops	lifecycle >2 years take years to mature remain productive for long period oil palm, coconut, cocoa, rubber, coffee
field crops	Need less maintenance than tree crops. sugarcane, banana
annuals	single planting, harvested within a year cotton, jute, tobacco, groundnut

Factor: Gestation

Plantation of rubber, cocoa, coffee= need large scale investment, you will not see profit for many years, until the tree matures.
Such crops are unsuitable for small scale planter because he can't afford to keep land unproductive for more than a year.
Annual crop are better suited for smallholder, they allow greater flexibility in planting followed by a harvest the same year. Hence plantation system has almost retreated from sub-tropics: they instead grow tobacco/cotton.

Factor: Price shocks

Even when the commodity prices fall in the world market, the plantation owner must continue to operate, he cannot is rapidly switch to another crop.
On the other hand small scale farmers can grow an alternative crop to fetch them higher price. E.g. Many UP farmers have shifted to other crops.

Sugar industry

Factor: Nature of Raw material

Sugar mills are located near sugar growing areas, because of two factors

Perishable	sugarcane = contains sucrose Once you cut the sugarcane, the sucrose content starts to decline. Hence raw material must be quickly transported.
Weight-loss	sugar accounts for only ~10% of the bulky sugarcane and therefore it is prohibitively expensive to transport sugarcane over long-distance in its original form.

Sugar Mill and sugar refinery of two separate location principles

	Sugar mill	Sugar refinery
Input	sugarcane	raw Coarse brown sugar (from sugar mill)
Process	Sugarcane is crushed between rollers=sugar juice. Sugar juice+lime=boiling and crystallization.	raw sugar is refined
output	raw coarse brown sugar= need further refining bagasse => fodder, energy, paper-pulp industry, molasses=> ethanol	Brown and white sugars of various grades.
LocationPrinciple	Must be located near sugar-farming areas because sugarcane being bulky-perishable. e.g. in Uttar Pradesh, Maharahstra, South Gujarat.	In countries like Japan (which rely on imports), the sugar refineries are setup @ports or near market centers.

Let's examine the factors that led to growth Desi-videsi sugar industries

Desi-Sugar

Limiting factor=proximity to raw material. So sugar mills are located in 30-50 kms radius of sugar-cultivating areas.

State	Location (list non-exhaustive)
Maharahstra	Western Maharashtra's river valleys Sangli, Solapur, Satara Ahmednagar, Pune, Nasik
Uttar Pradesh	Western UP and Terai region Meerut, Moradabad, Muzaffarnagar Sitapur, Gorakhpur, Sharanpur
Tamilnadu	Coimbtore, Tiruchirapalli
Karnataka	Chitradurg, Shimoga Bijaipur, Belagaum, Bellary
Andhra	Hyderabad, Nizamabad

Sugar mills: Maharashtra

factor	impact
climate	For sugar, warmer climate=better yield=> Maharashtra grows thicker variety of sugarcane. Proximity to Ocean=the difference between minimum and maximum temp. During crop-maturity months=very low=>increases sugar yield. sugar crushing season is longer
soil	Black lava soil=fertile + retains water=>good for growth.
energy	Mills use bagasse as fuel (recall Bagasse cogeneration) = don't need coal.
transport	Mumbai Port = helps in export.
labour	available

Sugar: Uttar Pradesh

factor	impact
soil	potash-lime in soil=helps in growth. upper gangetic plain=rich fertile.
water	Ganga, Yamuna and their numerous tributaries
energy	use bagasse instead of coal for energy.
transport	Dense road-network, flat terrain =easy transport.
labor	Seasonal and migratory labour available=cost of production low.
market	large population=> high demand for gur, khandsari, sugar.
govt.	sugar pricing=covered in a separate article. click me

Factor: North vs South

In South India: No loo, no frost+ moderating effect of ocean=ideal for sugarcane growth.
But the sugarcane cultivate/industry in South India is not as large as UP-Maharashtra belt, Why?
1. During British-raj, North India used to cultivate indigo as cash crop but then invention of synthetic dyes=>farmers switched to sugarcane.
2. In South India, farmers have better cash-crop alternatives e.g. cotton, tobacco, coconut, groundnut etc. so you don't see a large sugarbelt unlike UP.

Ratooning technology

developed by Research insti. @Coimbatore
ratoon crop= during harvest, you don't uproot sugarcane, leave the root intact => sugarcane grows again from that root.
Advantage: time, money saved.
challenge: sugar-yield decreases on every cycle, after 1-2 years, you need to start fresh.

Cuba the Sugar bowl

factor	impact
climate	Hot climate, the north east trade winds= increase sugar yield.
sugarcane	Fertile calcareous soil= Crops are obtained twice a year.
capital	Large influx of American capital after the Spanish American war helped sugar industry of Cuba. WW1 destroyed the farms in Europe, = Americans had to rely more on Cuban Sugar= prices soared, Americans invested more money in Cuban mills and bought more area under sugar cultivation.
market	Cuba faces the USA (the greatest sugar market in the world) not very far off from the north west European countries
labor	Initially started using slave labor.
govt. policy	Until Fidel Castro took over in 1959, the main export market was USA, but afterwards most of the sugar was exported to USSR and other communist countries. Castro confiscated the American owned plantation and Estates, and redistributed land among workers = smaller landholdings= economy of scale declined=>unit production cost got higher. So, later he organized cooperative and Sugar collectives. (like we saw in earlier in Rice: China)

Now passing references

USA	sugar is grown in Louisiana and Hawaii but industry is highly mechanized because lack of labour
Mauritius, Fiji	sugarcane Grown with help of indentured labour from India.

Sugar beet

German-climate unsuitable for sugar-cultivation.
They had to rely on imports=sugar-shortage during wartime.
Therefore, Germans developed a method to extract Sugar from sugar beet, and encouraged the cultivation of sugar beet for the strategic reasons of self reliance during war-time.
Later industry spread in Belgium and France as well.
In European countries, cool autumn retains the sugar content in root= higher yields.
Sugar juice makes up to 20% of the root= significant weightloss. Therefore, just like sugarcane, sugar beet must be processed quickly at nearby factories
But sugarbeet Factories cannot be fed consistently and only operate during the harvest season= increases cost of running.

Tea

Factors	impact
raw material	Tea leaves => tea involves considerable weight loss. Hence tea processing is done in the estate/plantation itself. further blending/repacking could be done break of the bulk location (e.g. port cities like London)
Climate	frost=injures the leaves=>tea not grown beyond Northern China / Honshu very long winter=retards plant growth, decreases yield
Topography	doesn't like stagnant water=> has to be grown on highland or hill slopese.g. hills of Darjiling, Jalpaiguri or Nilgiri
Labor	Weeding, manure, pruning and plucking= tedious job: need skill+ patience=>cheap female labour force is essential. (recall the same factor for sericulture development in India, China) Since tea has to be grown in hill slopes, mechanization =not possible (like in case of wheat in Canada/corn in US) Even while drying, rolling, fermentation, grading and packaging of tea, skilled manpower needed. Therefore, tea plantation is done near areas with high population density.

Black vs Green

black tea	green tea
leave sun dried=>steam rolled =>fermented=>roasted. result=considerable weighloss hence processing done @the estate itself before exporting.	leaves heated immediately with steam, not allowed to ferment Result=tannin content is higher, gives a peculiar taste and 'kick'.
Indians and Europeans like black tea	People in far east and Japan like green tea more. They consume it without adding sugar/milk (obviously because this region doesn't a have well developed dairy industry.)

Factor: break of the bulk (London)

Break of the bulk=place where mode of transportation changes e.g. waterway to railways.

The rise of London Tea Biz

In the era of Colonization, British controlled Indian and Sri-Lankan tea estates and had 'sphere of influence' in China.
Therefore, lot of tea went to London port and from London the large consignments were broken, various blends were mixed and tea was re-exported to other European countries + USA (which was a 'colony' of Britain at that time) + local consumption.

The fall of London Tea Biz

In world history, we saw that Americans revolted against the tea-tax imposed by Britain= Boston Tea Party, and then American war of independence= Thus tea export to USA declined, product became expensive, Americans shifted to Coffee drinking.
Later Both Indian and Sri-Lanka gained independence, Communist rule in China=now tea was exported directly to the recipient country in Europe, rather than via 'middleman' London.

Tea: Darjeeling

Factors	effect
Capital	Britain had accumulated truckload of wealth from its Asian-African colonies + industrial revolution. By 1830s, monopoly over Chinese tea-trade was lost with the entry of other European players exercising sphere of influence over China. The indigo cropping in Bihar was not giving good returns. Suez Canal opened=distance reduced. All ^these factors led to British "FDI" going in the Indian tea-plantation activity.
Climate	morning fog, low temperature=high grade leaf
water	Tista, Rangreej, Mahananda, Balason+ many streams. Gradual melting of Himalayan snow=feeds water to rivers/streams even in dry season. +south-west monsoon provided sufficient water
soil	soil has good quantity of phosphorous+potash=>gives special flavor to Darjeeling Tea.
Topography	Grown in hills=no stagnant water.
Labour	Large estates have residential, school, hospital facilities=>permanent labor force working for generations.
market	Yes, local + foreign demand. Proximity to Kolkata port=good for export.

Tea: China

Mostly grown on Yangtze-Kiang and Sikiang valleys

Factors	effect
Climate	summer monsoon keeps the temp good for tea
Topography	hills
Labour	grown and used since ancient times= people are skilled @growing tea. Famers grow tea on the nearby hills as secondary crop for additional income, otherwise primary crop is rice. Compared to Indian Estates, Chinese tea Farms are smaller, usually less than 1 acre.
market	Yes local + foreign demand. Yangtze-Kiang leads to Shanghai port. And Location advantages of Shanghai port already discussed in Textile article. Although most Europeans prefer Indian black tea because it is stronger than Chinese variety.

Some passing reference to other countries and factors

country	factors
Japan	mountain slopes red volcanic soil containing a lot of iron
Sri Lanka	Cheap labour, good climate, hills British tried coffee, but a blight in 1870s wiped out coffee plantation => shifted to tea.
Indonesia	Ocean breeze and cheap supply of female labour

Coffee

factor	impact
Temperature	Coffee needs to be protected from direct sunlight, especially when plant is young. in Yemen / Ethiopia annual rainfall is less than 20 inches but still coffee grows well because thick sea mist=provides moisture and protects from excessive heat.
Topography	Coffee likes abundant moisture but hates waterlogging=>hilly slopes receiving orographic rainfall are best suited for coffee. Hill slops facing the sea=even better, because they benefit from the mist and sea breezes=cooler. (and coffee hates direct sunlight/heat)
Labor	Berry has to be picked by hand, sorting the ripe berries from leaves, twigs etc. also needs patience and skill. Since coffee has to be grown in hillslopes, large scale mechanization =not possible (unlike wheat in Canada or Corn/Cotton in US)
Market	Coffee loses flavour quickly after being roasted. Therefore, only preliminary processing done in exporting country, and roasting done in the importing country.

Factor: American Revolution

Initially the Europeans that had settled in USA, consumed tea imported from Britain.
But then King George imposed heavy tax on tea exported to USA => Boston tea party revolt + American war of independence=> tea supply halted= Americans switched to Coffee and thus USA became major market for Brazil and Columbian coffee cultivators.

Let's check some important coffee growing regions and factor responsible.

Brazil: Sao Paulo

Coffee grown in the North-Eastern region of Brazil. Brazilian Coffee plantations are called "fazendas" (because in Portuguese, Fazenda=farm)

Factor	Impact
Soil	volcanic soil known as terra roxa (red soil)= rich in minerals, potash and humus soil remains productive for many years of coffee cultivation without requiring additional fertilizers.
Temp	in Brazil tall leguminous plants are used to provide shade + enrich the soil with nitrogen fixing bacteria Brazilian current=mist=keeps temperature moderate. moderate temp= not much shade needed + lower occurrence of diseases
Transport	Special railways passing through hills and tunnels to connect plantations to port cities of Rio De Janeiro etc.
Labor	they move from one estate to another Their wages are low, but they are allowed to grow maize, vegetables, rear poultry for personal use in the fazendas.
Market	Universal demand, except where tea is the main beverage.
Competition	in 1870s, a blight disease destroyed Sri Lankan Coffee plantation, hence Brazil took the opportunity to fillup the vaccum in world market. They cleared the virgin forest and started coffee plantations. When soil started losing fertility they'd simply destroy more forest and move interior to make another plantation => low unit production cost because no fertilizer used.

Coffee: Kerala

Kerala=> Western Ghats + Nilgiri Hills region = suited for both Tea+coffee.

Factor	impact
Soil	red soil=best suited Hill areas of Kozhikode, Palakkad, Malappuram, Kottayam=no stagnant water
Temp	Coffee grown on Northern and Eastern slopes of the ghat (Because coffee hates direct sunlight) Moderating effect of Lakshadweep sea= temp stays ~25 throughout the year.
Transport	Kochi port
Market	Kochi port to (mostly) Italy+local demand in South India

Rubber Plantations

factor	impact
Raw Material	Natural Rubber is obtained from latex of rubber trees. Latex=white milky liquid, collected by making cut on rubber tree bark. Latex=contains 30-40% rubber, rest material lost during processing => preliminary processing is done near Raw material site.
climate	hates cold + likes abundant moisture=both condition met near tropics
labour	Tapper need to make cuts deep enough to chop the latex tube but without damaging cambium=need skill. Latex is collected by affixing artificial cups on the tree bark. but latex will coagulate in cup, if kept for long=> tapper needs to collect latex regularly Hence rubber collection=need lot of laborers.

Processing of Natural Rubber

Latex from tree=>diluted with water & strained to remove dirt.
Diluted latex + acid =rubber coagulates and forms slabs on top.
these slabs removed ,pressed in mill to squeeze out liquid
slabs=dried=become thin sheets= easy to pack & export

Factor: technology

Rise of Natural rubber demand

1830s: Charles Goodyear of the USA invented vulcanization process= increased the industrial applications of Natural rubber.
1890s: automobile industry= pneumatic cars=needed rubber.

Fall of Natural rubber demand

In the 1920s, USA began to develop synthetic rubber. Although natural rubber was still preferred because new technology was costly.
But WW2= Japan occupied Southeast Asia=natural rubber export to USA was cutoff.
In response, US government developed a huge synthetic rubber industry in a very short time and after WW2, sold it to private companies.

Rubber: Malaysia

Factor	impact
Climate	hot moist equatorial climate=suitable for Rubber trees.
Labour	immigrants from China + Tamils from India
Technology	Rubber research Institute in Kuala Lumpur new selective breeding methods new tapping methods to cut the labour cost
Government Policy	Replanting: A new rubber tree yields 3-4 times more latex than an old tree. Hence replanting of rubber tree=increases the yield. Malaysian government, provided active support for replanting. Quality control Government regulates the export quality by "standard Malaysian rubber (SMR)" system e.g. SMR5 grade rubbber, SMR50 grade rubber. Thus, Malaysian rubber comments respect and good prices in international market for its uniform quality.

Rubber: Kerala

In Kerala, Rubber grown on hill slops of W.Ghats in Travancore, Kozikode, Malabar, Kottayam distrcits.

factor	impact
climate	Rubber hates cold + likes abundant moisture Kerala being coastal state + hills=both condition met. tapping done in morning to avoid afternoon rains.
soil	laterite soil=good growth.
labour	Available and skiled. One tapper can go through almost 250-300 trees per day.

Kerala= lot of coconuts=their shell is used as "cup" to collect latex. Other than that, not much wisdom is given in books regarding 'location factor'.

Factors: Why decline in S.America

Rubber is originally from Brazil, their government had banned export of rubber plant to maintain monopoly However, an Englishman smuggled the seeds out of Brazil, spread Rubber plantation in Sri Lanka and other S.E.Asian countries. But today S.American countries don't figure in top Rubber producers, why?

South American Countries= prolonged struggles for independence, coups, countercoups =instability=no attention to infra/research necessary for Rubber.
Their governments did not understand the importance of replanting like Malaysians =yields kept decline after every year.
Rubber estates confiscated with change of regimes, land redistributed among peasants= small scale rubber production =cannot maintain 'uniform quality' for exported rubber + no more 'economies of scale'= unit cost of production increased.

Cocoa

Originally from Central and South America, associated with Aztec civilization.
Spanish brought it to Europe, but only after Europeans learned the art of chocolate making, cocoa demand increased.
Then Europeans introduced cocoa in West African countries.

Ghana, Cocoa Triangle

In Ghana, the triangular area between Takoradi, Kumasi and Accra towns has max. Concentration of cocoa cultivation= famous as "Cocoa Triangle".

soil, climate

cocoa tree need warm wet climate, forest protection.Ghana being in the equatorial belt. So all conditions met.

labour

need lot of cheap laborers because

cocoa fruits have to be manually cut with a machete.
Since cocoa trees grown in jungle areas= have to manually carry it near the mainroad/railway line.

Ghana has abundant supply of cocoa-labourers known as Tumbadors.

transport/market

Port of Takoradi and Tema.Mainly grown for export to US and dairy countries of Europe (Swiz, Den, Neth).

Factor: Processing

(just for information)

cocoa fruitpod=> pulp removed= you get 20-30 seeds from each pod
Seeds covered in banana leaves and allowed to ferment for a week=> sun dried.
Tropical damp climate = cocoa beans quickly lose flavor after roasting. Therefore, further processing done in the importing country (e.g. USA)
they roast the bean=>grind=> you get two products
1. Powder: mix with sugar, milk & make chocolate.
2. Cocoa-butter: used in cosmetics, cream-lipstick, pharmaceuticals etc.

So why does Ghana export cocoa-beans, why not finished products?

Unlike USA, Ghana doesn't have abundant supply of other ingredients of chocolate/confectionary items viz. milk and sugar. Even if Ghana imported milk/sugar from elsewhere to make chocolates, the final market is in US/Europe=> transport cost makes the industry @disadvantage.
Ghana doesn't have drug/cosmetic industry that can efficiently utilize by-product: cocoa-butter. (because drug/cosmetic industry require 'skilled' labour)

Ecuador used to be a major cocoa exporter but trees were plagued by fungal disease=> farmer switched to banana, coffee and sugar cane.

Bananas

Just passing reference

fruit ripens very quickly.
without refrigerated boats, impossible to ship product from tropics to US/EU market.
banana producing regions nearest to major markets have trade advantage. e.g. Caribbean islands

In the next article, we'll see the location factors for Iron-steel-heavy industries.

Mock Questions

5 marks/50 words

Explain the reason(s) for each of the following:

Sugarcane is more economical to produce cane sugar beet.
more cane sugar enters the world trader then beet sugar
The invention of chocolate making was the greatest single factor in rapid expansion of cocoa cultivation
chocolate making factories are located in importing countries rather than in cocoa-producing countries

12 marks /120 words

Explain the geographical factors responsible for large-scale commercial cultivation of any one of the following pairs:
1. Tea and Coffee
2. sugarcane and sugar beet
consider the basis of regional specialization in tropical beverages with special reference to any one major beverage crop.
for any selected area, examine the relationship between development of coffee or tea because of following factors
1. climate
2. relief and drainage
3. labour Supply
4. government policy

25 marks/ 250 words

Tropical and Sub-tropical regions are the chief suppliers of beverages to the temperate markets. Comment
Plantation agriculture is essentially limited to the tropical and subtropical areas. What are the factors responsible for this particular concentration?
Analyze the factor responsible for underdevelopment of Plantation economy near tropical regions.
Examine the factors influencing commercial production of rubber in Malaysia or Tobacco in USA.

Source : http://mrunal.org

Sunday, October 6, 2013

Location Factors: Sugar, Tea, Coffee, Rubber and Cocoa for UPSC GS Mains Paper-I[Geography]