Monday, 12 January 2004  
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Bright tea projections consolidated

by Steve A. Morrell

Following the last sale for 2003, the market strengthened, and all indications point to a successful western quality season this year. The bright projections were consolidated last week during the first sale for the year where over all 6.70 million Kilos were on offer.

Director Bartleet & Co., Tea Brokers, Bryan Baptist told the Daily news that this was the trend, and added this was a healthy position. He however cautioned that we should not be too optimistic because the crucial agreement between Countries of the South Asian Association for Regional Cooperation (SAARC), on tea was not discussed. The agreement in its raw form meant that Sri Lanka exports tea to Pakistan at zero duty rates. According to Baptist this was part of the agenda for a positive decision but seemed to have eluded the decision makers.

Pakistan with population of over 134 million consume 134 million kilos tea every year. Sri Lanka's share of this market is 5% or 6.7 million, which should be increased, to capture the entirety of this market potential.

At present, Kenya has supply rights over Sri Lanka primarily because of dynamic projections of their product, which has surpassed Ceylon Tea. Ceylons comprised the main supply line to Pakistan which now, has slipped back to alarming proportions. 'All is not lost though', he said.

He emphasised the market potential for Ceylon Tea in the Philippines and Thailand. These countries have a joint population of over 130 million and consume 130 million kilos tea each year. Their main supplies are from Kenya, Malawi and some of the other African countries. Ceylon Tea has been virtually ignored due to lack of dynamic promotion and the cost factor.

Ceylons are produced at high costs and some of the potential markets cannot match the price sought at international as well as local auctions. 'Kenya and Malawi for example produce their CTCs (Cut Twist and Curl) teas at relatively low cost which make it attractive for buyers to shop for their requirements from those countries. He said that tea is now acknowledged to be an international health drink. More so Ceylon Tea. But in this instance too other countries have stolen a march over Sri Lanka's mainly because of poor marketing and inadequate exposure in most parts of Europe, the United States and South East Asian countries.

Responding to a suggestion that The Tea promotion Bureau, The Tea Trade, The Tourist Bureau, and the Tea Producing Companies, should pool their resources to enhance the image of Ceylon tea, he said this was exactly what should be done, but it needed energetic stimulation, and more so dynamic leadership, which should include image building from the time a foreigner steps off the plane. When a visitor arrives (he) could be welcomed by an Airport stewardess with a steaming cuppa, poured in the traditional way. This in itself would be a powerful medium of personal inducement.

More importantly, on tasting the well brewed cuppa (he) is offered, the prospect of this person straying away from Ceylons, would be remote. Remote because of its exclusive taste and quality, he said.

'Sri Lanka is a one stop shop for variety in choice of teas available'.'Our plantations produce a valuable collection of 'Diversitea' that we can cater to varying tastes and moods.

The planters in all elevations produce over 80 different teas subject to each Estate's location and its topographical placing within that climatic mountain range. Ceylons would have a bright future? Baptist said.

There was good demand for Westerns with leafy grades commanding good prices. Colombo continued to be supported by CIS countries, Iran too was a prominent bidder. Tippy teas showed an upward trend which was a healthy sign.

Low grown again commanded the bulk of the sales. This lead to some speculation in tea circles who concluded that the onset of the quality season correlated to dry cold days and nights with clear skies at day and night. This was normal, he said.

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