Tea report
Bartleet Produce Marketing tea surveillance upto June
11:
Panic buying over Kenyan drop helps prices
 The
quantity of tea arriving at the Colombo Auction this week decreased to
6.886mkg from 8.101mkg traded in the previous week’s sale. Meanwhile the
Ex-estate crops showed an increase from 1.186mkg to 1.194mkg.
Market Segments:In the Ex-estate segment, very active multinational
operators were at times indulging in panic-buying which placed upward
pressure of the over all price levels. Local shippers to Japan, UK and
Hong Kong were very active in their buying patterns.
The main reasons for the demand surge can be found with reference to
an anticipated drop in the Kenyan crop which will be approximately 50mkg
this year.
Further crop drops are also anticipated due to weather patterns,
according to industry sources. Some of the ‘wait and see’ buyers too had
been seen actively buying in the auction which too hardened the prices
further.
Meanwhile, the manure prices too seemed to ascend which will probably
affect the quality and quantity of the crops in the years to come
according to industry stakeholders.
In the Tippy market segment good demand was persistent where buyers
from Iran was very active whilst CIS and Dubai were moderate in their
buying pattern.
Iran was mainly active due to the forthcoming Ramadan fasting season
which is falling in September.
The Leafy grade segment prices of bold Pekoes depreciated whilst
small shotty Pekoes appreciated.
Shippers to CIS were very selective but exporters to Europe,
particularly to Germany, were active. Bullish Prices:Sri Lankan tea
prices appear to have recovered with widespread demand returning to the
Colombo auctions which have been enjoying a strong market this year, for
the most part.
The improvement in prices at the other auction centres around the
world could perhaps also have contributed to the improved demand at the
Colombo sale.
Last week, the rise in prices came with excellent demand from Dubai,
Iran, Turkey, CIS whilst Saudi Arabia, Kuwait together with Iraq too
were reasonably active. Exports of tea have grown both in volume and
value. The total tea exports for January-April 2008 increased by
10.35mkg to 105.09mkg compared with the same period of 2007.
Export values also rose by almost 100 rupees to 421.56 rupees per kg
for the current year from a year ago.
Tea School:There is a growing market for tea in France and the rest
of Europe according to some students from France at the tea school.
The tea school started last year with only one student, as part of an
effort to promote premium Darjeeling tea globally, says the Director of
Lochan Tea Co., which runs the school.
The school was begun to facilitate in producing professionals trained
in the tea business. The company is said to have planned for 25 students
from next year with the support of experts from North Bengal
University’s Institute for Plantation Science and Management, which runs
a course in tea management.
Company News:Makers of branded packaged tea Duncans Tea Ltd has said
that they are expecting to double their market share during the next few
months. Currently the company holds one per cent market share in South
India and four per cent market share on all India.
The overall tea market size in the country is 650mkg and last year
the company sold around 12,500 tonnes, according to company sources.
Meanwhile the company had tied up with IRCTC (the catering division
of Indian Railways) and also with few other large clients.
Plantation Stocks:With reference to the weekly surveillance of the 19
plantation stocks, 13 were lower in value whilst two reported a gain and
four reported static.
Watawala and Maskeliya plantations reported a gain of seven and one
per cent respectively, week on week. |
