Tuesday, November 16, 2010

Sri Lanka and Kenya record plus factors in black tea production

By Steve A. Morrell

Major black Tea producing countries have recorded minus production levels 3rd quarter 2010. Excess over 2009 production will now be just about 90 million kilos globally. This information was gleaned from John Keels PLC., weekly Tea market report end last week. The report further said Sri Lanka and Kenya were major crop- contributors but other Black Tea producing countries, India, Bangladesh, and Indonesia, recorded negative returns.

All told euphoria that existed throughout the year all but evaporated because weather conditions have dictated otherwise. Some quoted the tsunami in the South East Asian Islands bordering Sumatra , and volcanic eruptions in Indonesia. But such phenomena did not affect global Tea production, the report said.

To make matters worse coffee prices in New York recorded increases based on rejuvenated demand for Arabica. Comparatively Cocoa too was ahead of Tea till about September this year, but thankfully negative impacts of that beverage negated sales dangers for Tea. These factors were reported by Asia Siyaka Tea Brokers Ltd., last week.

Colombo Tea auctions went on and ‘business as usual’, was the norm. Freak weather upheaval in Colombo last week did not disrupt any part of the industry, these sources said.

Crop intakes in Kenya are about 31 % above 2009. Sri Lanka too recorded increased production. Our Tea reports over the past few weeks indicated sustained increases but monthly comparison figures for September were not all that promising.

Low growns and specifically, the small holder sector continues to prop the Industry. But insistence on good leaf standards from that sector, notorious for their nonchalance to ensuring leaf standards are met, could result in crops taking drastic down turn.

Small holders are now big money makers. Tea is their main source of income. And they would not want that ‘ green gold’, source to dry up. Expectations are that some degree of tightening – up, is now necessary and could be enforced in that sector.

A Tea brokering source said ‘gone are the days when the accepted norm was at least 75 % fines and plucking rounds were five per month’. They further said, ‘You cannot make good Tea from bad leaf’.

Although Tea continues to be a major propping factor of the economy there has to be alround product discipline to maintain the ‘Ceylon Tea ‘ brand at its highest level.

The market too took on an up-ward spiral. Japan, UK , and Continental buying featured midst improved shopping from Russia. High growns and Nuwara Eliyas sold well, as did Uva High growns as well.

Best on offer maintained averages between Rs. 490/ to about Rs. 500. Per kilo.

Total averages todate recorded this year Rs. 368. Per kilo. 2009 was Rs.359. that figure in dollar cents stood at 322 this year, and 312 last year.

Quantity sold was 5.8 million kilos last week. This week 6.8 million kilos will be sold.

source - www.island.lk

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