TEA
John Keells Tea Market Report:
Averages show negative variance
The Sri Lankan averages for November once again show a negative
variance of Rs 4.50 (1.17 percent) compared to the corresponding period
of last year. The High Grown as well as Medium has recorded shortfalls
of Rs 38.71 (9.60 percent) and Rs 16.41 (4.65 percent) respectively,
whereas the Low Grown has recorded a positive gain of Rs 09.19 (2.39
percent). The Low Grown recording a positive variance for the month is
encouraging considering that Sri Lankan averages in the second half of
last year was the highest on record. On closer analysis of the November
averages, we find that CTC High and Uva High have suffered the most with
negative variances of Rs 59.30 (- 14.52 percent) and Rs 37.77 (- 10.44
percent) respectively.
Despite the negative variances the to date average of Rs 369.38 to
end November is Rs 09.87 (2.75 percent) above last year and is also the
highest on record. We could expect to see Sri Lankan Tea Sale Averages
in 2010 achieving an All Time High compared to the previous best of Rs
360.45 in 2009.
The unusual amount of rain that is being experienced is expected to
retard growth, and the December crop could be below the corresponding
month of last year. However, November production has been satisfactory,
and could reflect a slight positive variance. Given the excellent crop
in the first ten months, the yearly production at the end of December,
is estimated to reflect an all time record, in excess of 320 Mkg.
Last week’s excitement in the auction room, gave way to less vocal
bidding for the BOP grade, which witnessed price drops in the best and
below best categories. Similar varieties of BOPF however advanced Rs 5
to Rs 15. This has resulted in the reduction of the gap between the
prices of BOP and BOPF, as well as the gap between the top and the
bottom of the market.
The 3.6 Mkg of Low Growns that came under the hammer this week met
with excellent demand. In the Leafy category, BOP1s lead the way with
the select best on offer appreciating sharply with a BOP1 invoices of
Sithaka Tea Factory establishing an all time record price of Rs 710 per
kg. The buyer of this line was Messrs Regency Teas. The below best
varieties too advanced several rupees. The wiry OP1s on offer were
mainly firm, however the below best and the poorer sorts eased
marginally, particularly towards the latter part of the sale.
The OP and OPAs were mainly firm, whilst the Pekoes too maintained
previous levels.
In the small leaf category, prices for FBOPs and FF1s were mainly
dearer, whilst the Tippy varieties too appreciated in value. All in all
another excellent sale for the Low Growns as far as prices are
concerned, for the time of year.
The current inclement weather experienced in the Low grown Planting
Districts have resulted in a drastic decline in crop intakes which will
have a negative impact on the volumes on offer at future auctions.
Western Teas
Select Best BOPs declined Rs 5 to Rs 10, other good invoices shed Rs
10 to Rs 15 on average, Below Best and plainer varieties eased Rs 15 to
Rs 20. Select Best BOPFs gained Rs 5 to Rs 10, other good invoices were
firm to dearer, Below Best and plainer varieties advanced Rs 5 to Rs 10
on average. Medium BOPs shed Rs 15 to Rs 20, while the BOPFs advanced Rs
5 to Rs 10.
Nuwara Eliya Teas BOPs shed Rs 20 to Rs 30, while the BOPFs eased Rs
5 to Rs 10.
Uva Teas
BOPs were firm to marginally easier. BOPFs declined Rs 5 to Rs 10.
Udapussellawa BOPs shed Rs 5, BOPFs were firm to easier.
CTC Teas
Select Best Low Grown PF1s gained Rs 10, others advanced Rs 10 to Rs
15 on average. BP1s were firm. High and Medium PF1s advanced Rs 5 to Rs
10 as the sale progressed. BP1s gained Rs 10 to Rs 15.
Low Growns
Good demand. Select Best OP1s along with few selected OP1s in the
Best category appreciated Rs 5 to Rs 10 and more, however other Best
OP1s were irregularly lower by Rs 5 to Rs 10, clean Below Best and poor
sorts maintained last levels, poor types were lower by Rs 5 to Rs 10.
Select Best BOP1s along with the Best types advanced sharply by Rs 10 to
Rs 20 and more at times, Below Best and poor types were steady.
Select Best and Best OPs appreciated Rs 10 to Rs 15 and more
following quality, Below Best and poor types were firm. Select Best OPAs
advanced Rs 10 to Rs 20 and more at times, clean Best varieties were
irregularly dearer by Rs 5 to Rs 10, the balance were firm on last
levels. Select Best Pekoes were mainly firm, the Best and Below Best
types were irregularly dearer by Rs 5 to Rs 10, flaky types were steady.
Select Best Pekoe1s appreciated Rs 10 to Rs 20, the balance were
fully firm. Select Best BOP/BOP SP moved up Rs 5 to Rs 10, Below Best
types too followed a similar trend, poorer sorts were firm. Select Best
FBOPs advanced Rs 20 and at times more towards the latter part of the
sale, Best and Below Best types gained Rs 5 to Rs 10. Select Best and
Best FBOPF1s gained Rs 10, Below Best types were irregular, poorer sorts
were firm. Select Best and Best Tippy varieties met with improved demand
and advanced substantially above last, Below Best types too gained Rs 10
to Rs 15, poorer sorts were firm.
Off Grades
Select Best liquoring Fngs1s were dearer by Rs 5, while the Best and
the Below Best types appreciated Rs 10 to Rs 15, poorer sorts were
dearer by Rs 10 to Rs 15. Select Best and Best BMs eased by Rs 10 Best
and the Below Best types were firm to dearer by Rs 5, poorer sorts
appreciated Rs 10 All BPs were dearer by Rs 10. All Low Grown Fngs sold
at firm levels. Select Best BOP1As were firm to dearer by Rs 10 to Rs
15, while the Best and the Below Best too appreciated by Rs 10 to Rs 20,
poorer sorts too were dearer by an average of Rs 15.
Dust
Select Best and the Best Dust1s were firm, while the Below Best types
gained Rs 5 to Rs 10, poorer sorts were firm to Rs 5 easier. Clean
Secondary Dust appreciated Rs 20 to Rs 25, while the Below Best types
gained to a lesser extend, poorer sorts declined Rs 5 to Rs 10. Best Low
Grown Dust and Dust1s shed Rs 10 to Rs 15, while the Below Best types
gained Rs 5 to Rs 10, balance were irregularly lower.
John Keells Tea Report
National Business Excellence Awards 2010:
Watawala, Bogawantalawa gain national recognition
The Planters Association of Ceylon [PA] said Regional Plantation
Companies [RPCs], are proving their competence at national level in a
press release issued last week. This year two plantation companies,
Watawala Plantations Plc and Bogawantalawa Tea Estates, emerged winners
at the National Business Excellence Awards of the National Chamber of
Commerce. These awards, presented under stringent and independent
evaluations, are proof of the growth in competitiveness of plantation
companies, said the PA.
Watawala Plantations wins with people power
Plantation Industries Minister Mahinda Samarasinghe had a
discussion with Watawala Plantations Managing Director Vish
Govindasamy on exporting Watawala Tea to European countries for
the first time at the Plantation Industries Ministry premises
recently. Here, Govindasamy presenting a pack of Watawala Tea to
the Minister. |
Watawala Plantations Plc, the manufacturers of Zesta and Watawala
Kahata brands of tea, won the National Business Excellence award in the
‘Agriculture and Plantations’ category.
A spokesman from the plantation company said its achievement was due
to people power. Watawala Plantations manages 20 estates with tea,
rubber, oil palm and dendro forestry. The company also operates 15 tea
factories, two rubber factories and an oil palm mill and refinery. In
addition, Watawala Plantations also employs a workforce of 14,000
people.
The RPC which manages one of the most modern and eco friendly tea
factories in the world is also strong on technology adaptation. Watawala
Plantations’ Waltrim Tea Factory, in Lindula, has already made a name as
one of the best tea factories in the world.
The plantation company’s main tea brands, Zesta and Watawala Kahata,
are performing well overseas with strong presence in Australia and New
Zealand. To further develop international markets Watawala Plantations
has invested strongly in food safety and quality certifications that are
vital for food exports into western markets.
The factories are also recognised by the Fair Trade movement and the
Ethical Tea Partnership, ensuring not just quality of manufacturing but
also manufacturing ethics.
Bogawantalawa growing in the west
A second plantation company also made a mark at this year’s National
Business Excellence Awards. Bogawantalawa Tea Estates become a runner up
in the ‘Agriculture and Plantations’ category at the national awards.
The plantation company from the ‘golden valley’ has also achieved
international recognition. Bogawantalawa Tea Estates has been selected
to provide its golden brew for the prestigious invitees of the Nobel
Nightcap party this December, at the Stockholm School of Economics. The
Nobel Nightcap party, which follows the Nobel Prize awards, was
inaugurated in 1978. This year the party theme will be ‘fairy tales.’
Bogawantalawa Tea Estates will be among the few select brands, from all
over the world, present at this event.
To ensure the quality of its tea, Bogawantalawa Tea Estates has
invested consistently in replanting and infilling and has provided
extensive training and development for its 12,000 workforce. The company
has also invested in sustainable forestry management for timber and fuel
wood supplies. |