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The tea sector in Laos still is a small industry. Tea is mostly grown in the Northern Provinces. A substantial part is exported to Yunnan, China. Besides, tea is grown in the Southern Province of Champasack. There is little specialization on tea; mostly farmers have additional small tea gardens to their crops. Most of the tea is processed by farmers in the villages on a very small scale. Also some tea processing and exporting companies exist. Generally, the Lao tea is said to be of high quality. International interest may be aroused with expansion. The major challenge for the Lao tea sector to develop is the improvement of processing practices to improve the quality of the processed tea and also improvements in farm management.

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