Tuesday, May 10, 2011

First quarter tea exports highest since 2008, revenue tops Rs. 40bn

By Steve A. Morrell

Customs data analysis conducted by Asia Siyaka Tea Brokers Ltd., (ASTB) showed that tea exports reached 77.4 million kilos during the first quarter of this year, the highest since 2008 where the shipped quantity reached 78.9 million kilos. Earnings amounted to Rs. 40.9 billion, 17 percent above the same period in 2010, which stood at Rs. 34.9 billion. Dollar earnings were healthy at US$ 369.8 million, an increase of 21 percent from a year earlier.

Russia /CIS countries dominated prime destinations for Ceylon Tea absorbing 19.4 million kilos. Turkey imported increased quantities, taking in 6.1 million kilos. Exports to Iraq, Syria, Jordan and Kuwait also recorded growth during the first quarter of this year. Libya with its internal problems was active at the Colombo auctions, but exports to that destination declined to 1.7 million kilos.

Exports to Japan increased from 2.2 million kilos to 2.9 million kilos.

Last week the Tea Board launched ozone friendly and agro-climatic logos in order to ensure than ‘Ceylon Tea’ attained intellectual property rights for trade related aspects the ASTB report said.

This important initiative would help prevent counterfeiting and misuse of the term ’Ceylon Tea’. It would also mean delivery of an authentic product to consumers hitherto blatantly transgressed at other origins that also sell ‘Ceylon Tea’, although such locations do not produce even a milligram of tea, brokers pointed out.

The Tea Research Institute, and the Colombo Tea Traders Association, with the Tea Board and the National Ozone Unit of the Ministry of Environment, conducted an awareness programme recently for members of the Tea Trade on its significance and future salutary aspects of this move.

The Climatic Region Logos, would mean agro climatic planting Districts of Nuwara Eiya, Dimbulla, Uva, Udapussellawa, Kandy, Ruhuna, and Sabaragamuwa.

Sri Lanka became the first country to achieve recognition as a producer of Ozone Friendly Tea. These logos would be registered in 30 countries importing Ceylon Tea.

High crops reported from all planting districts depleted prices over the past two weeks. Auction offerings were about 7.5 million kilos to 8 million two weeks ago. High crop levels are likely to continue during the next few weeks, brokers said.

‘Naturally this will mean prices will be lower, but this is nothing to worry about,’ brokers said.

John Keels Holdings Tea report confirmed that current high crop levels would affect the supply and demand quotient and depleted prices may be more an acceptable sequence to enhanced crop, but that was not an indicator that prices would be destabilized. High crops could mean that quality may be affected, but cost of production too would be reduced.

Last week’s auction also included demand from the UK, and the continent. The Tea Bag sector too advanced in demand.

Top prices last week included Brunswick, in the maskeliya Valley selling a BOP ,line at Rs. 420. Per Kg, Kirkoswald Pekoe in the Bogowantalawa Valley or the popularly accepted coined phrase, the Golden Tea Valley, fetched Rs.490.

Of the low growns, there were no high prices reported, except Hingalgoda bordering the Sinharaja forest reserve, which sold a CTC, grade for Rs. 530.

source - www.island.lk

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