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| Tuesday, 16 March 2004 |
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Tea comment: Top price for Great Western BOP by Steve A. Morrell The top seller marks continued to dominate the Colombo Tea auctions
with Western high growns selling well last week. At the March 9 and 10
auctions Great Western estate sold a Broken Mohan Jacobs, Director Eastern Brokers said that these price trends would continue and the tea trade could look forward to a good year. Notwithstanding its consistent factory standards Great Eastern particularly, garnered special interest because of its worker friendly approach and the varied social development measures it had adopted over the past few years. Foreign buyers visiting tea estates are now sensitive to welfare measures adopted, and all tea producer locations which have made progress in improved worker development and welfare have found favour in the trade. Factory standards were not to be side-lined, he said. The pick of the mid-growns was again Kenilworth. Kenilworth continued to attract brisk bidding resulting in another high price for a BOP which sold at Rs. 395 per kilo. Vellai Oya sold a BOPF at Rs. 215 per kilo. Both Estates are managed by Watawala Plantations Ltd. The performance of Kenilworth is note - worthy, because it has consistently attracted top prices during the past seven weeks. This is a good achievement, JKH Tea Brokers said. They said that consistency in maintaining factory standards have been rewarded. Commenting on all-round market improvement Jacobs said India was concentrating on their domestic market and hence they are now exporting less. Political rapport between India and Pakistan has played a major role in rejuvenating bi-lateral trade between those countries. Consequently Pakistan has reduced its tea buying from Kenya. The fall - out from these mixed market signals was that tea from Sri Lanka has gained and would continue to stabilise, because volumes exported from India to other trade destinations had reduced. Last week's 6.6 million kgs on offer were sold in 8,747 lots. The main buyers were CIS countries which have continuously supported Ceylon Tea, Japan, Germany, South Africa, and a small quantity to Pakistan. Commenting on the over-production of tea expected within the next few years, Jacobs said that if there would be over production, Sri Lanka may not be badly affected, but although it may be too early to speculate on price fluctuations then, he said the trade should be vigilant and take action to meet such an eventuality. To date 57.1 million kgs have been sold. Compared to last year this figure shows an increase of three million Kgs. However, the prevailing drought will have its ill effects shortly. Jacobs said that rainfall was now critical and if the drought continues, the industry would take a downward curve. |
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Produced by Lake House |
Orange Pekoe (BOP) for an
all-time record price of Rs. 400 per kilo. Somerset sold at Rs. 320 for a
BOP Fannings (BOPF) and Kirkoswald in the Bogo Valley sold a Pekoe FBOP at
Rs. 340. These were the most attractive teas on offer, in that elevation.
