Tea Report
John Keells Tea Market report:
Russian buyers forceful
Tea production in Kenya and Sri Lanka have recorded all time high
quantities in 2010.
Kenya has recorded a significant crop increase of 27 percent over
2009, to end the season at 399 mkgs. where as Sri Lanka registered a
13.67 percent to reach 329.3 mkgs.
A tea plucker from the hills |
Boosted by the high production and fairly strong demand during the
year, export earnings too are at an all time high. Kenya tea export
earnings in 2010 overtook horticulture as the leading export earner.
Kenya is the world’s leading exporter of black tea.
Sri Lanka’s production of 329.4 mkgs in 2010 comprises 59.11 percent
from the Low Growns followed by 23.77 percent from High and 16.82
percent from Medium Grown.
Today’s 1.3 mkgs of Ex Estate teas on offer met with fair demand with
prices for BOPFs being firm to Rs 5 to Rs 10 dearer at the commencement,
however ended up more or less firm towards the later part of the sale.
BOPs on the other hand which were firm to irregular, declined Rs 5 to Rs
10 towards the end.
A few bright Nuwara Eliya BOPs appreciated substantially, others were
mostly firm. BOPFs too were irregular following quality.
The Uva BOPs were mostly firm, whilst BOPFs appreciated Rs 5 to Rs
10.
Low Grown PF1s declined Rs 20 to Rs 25, whilst High and Medium types
shed but to a lesser extent. There was fair demand from the tea bag
sector, whilst Russia was selective. UK, Japan and Continental buyers
operated following quality.
The Uva highlands |
The 3.6 mkg of Low Growns that were on offer this week, met with
excellent demand. In the Leafy category, OP/OPAs advanced sharply.
Pekoes too met with widespread demand with prices appreciating.
BOP1/OP1s too maintained previous levels. Although the Small Leaf
started at fully firm levels, prices could not be sustained and declined
as the sale progressed, particularly for Tippy varieties and FBOPs.
However, the price levels are still quite attractive.
The main Russian buyers were very forceful, whilst Middle East too
bid strongly. The sale of 8/9 February that closed last week saw the
volumes on offer dropping to 6.1 mkg which is around 1.4 mkg lower than
the previous week.
The sale of 14th February scheduled to close this Friday, is a one
day auction with restricted volumes.
Here too the quantity on offer will decline to around 5.5 mkgs. The
strong demand witnessed this week could primarily be due to the lower
volumes on offer in the ensuing weeks.
Western Teas
A few Select Best BOPs advanced following special inquiry, other good
invoices were barely steady, Below Best sorts eased Rs 5 and more,
plainer varieties shed Rs 5 to Rs 10 on average. Select Best BOPFs were
barely steady, other good invoices shed Rs 5 to Rs 10 following quality,
Below Best sorts advanced Rs 5, plainer varieties were Rs 5 to Rs 10
dearer. Medium BOPs declined substantially, whilst BOPFs were
irregularly dearer.
Nuwara Eliya Teas
A few bright BOPs advanced following special inquiry, others were
firm. BOPFs were firm to Rs 5 easier.
Uva Teas
BOPs declined Rs 5 to Rs 10, whilst BOPFs were firm. Uda Pussellawa
BOPs were firm to marginally easier. BOPFs gained Rs 5 to Rs 10.
CTC Teas
Low Grown PF1 declined Rs 20. BP1s were firm to Rs 5 dearer. High and
Medium PF1s shed Rs 5 to Rs 10. BP1s were firm to irregular.
Low Growns
Good demand. Select Best OP1s appreciated Rs 20 to Rs 30, Best OP1s
were irregularly dearer by Rs 5 to Rs 10, Clean Below Best varieties too
gained Rs 10 to Rs 15, however stalky invoices were neglected.
Select Best along with the Best BOP1s were firm to Rs 10 to Rs 15
dearer, Below Best and poor sorts were firm.
Select Best OPs shed Rs 10 to Rs 20, however the Best varieties
appreciated Rs 10 to Rs 15, Below Best and poor sorts were mainly firm.
Select Best OPAs maintained last levels, Best types gained Rs 10 on
average, Below Best and poor sorts were firm to Rs 3 to Rs 5 lower at
times.
Select Best Pekoes advanced Rs 10 to Rs 20, Best types were steady,
bold Pekoe varieties were irregularly dearer by Rs 5 to Rs 10, flaky
types too maintained last levels.
Select Best Pekoe1s advanced Rs 20 to Rs 30, however the balance were
firm on last levels. Select Best BOP/SP were firm to dearer at times,
Below Best types maintained last levels, poorer types too were firm.
Select Best and Best FBOPs were firm, however Below Best types and
poorer sorts eased Rs 6 to Rs 8. Select Best and Best FBOPF1s maintained
last levels, however Below Best and poorer sorts were lower by Rs 5 to
Rs 8.
Select Best Tippy varieties advanced a few Rupees above last, Best
types were firm, Below Best and poorer sorts were slightly lower to
last.
Off Grades
Select Best and Best liquoring Fngs 1s were firm to dearer by Rs 5 to
Rs 10, Below Best and poorer sorts sold at firm levels at the start of
the sale, whilst appreciated at the end of the sale. Select Best and
Best BMs were dearer by Rs 10, whilst the Below Best and poorer sorts
appreciated Rs 10 to Rs 15. All Low Grown Fngs appreciated Rs 10. All
BPs were irregularly dearer by Rs 10. Select Best BOP1As were firm to
dearer by Rs 10 to Rs 15 and more at times with good demand, Best and
Below Best BOP1As too were dearer by similar margin, poorer types
however, were lower to last by Rs 5 on average.
Dust
Select Best Dust1s along with the Best and Below Best types were
firm, poorer sorts declined Rs 5 to Rs 10. Clean secondaries were firm,
whilst the balance appreciated Rs 5 to Rs 10. Best Low Grown Dust/Dust1s
gained Rs 5 to Rs 10 and more at times, whilst the balance were
irregularly dearer.
Imperial opens speciality tea shop in Melbourne
Imperial Tea exports opened a Specialty Tea Shop in Prahran an up
market suburb of Melbourne on January 17. It aims to cater to the niche
segment of the tea market with specialty teas such as single estate
teas, teas identified on an elevation and district basis, organically
grown green and black Tea, silver tips, golden tips, white teas, herbal
infusions, teas with natural fruit pieces catering to the younger
generation tea drinker.
At the Impra opening in Australia recently. |
Additionally Imperial has made available the popular varieties of
flavoured teas using only nature identical flavours. Although it is
primarily a Specialty Tea Shop, they also provide a limited range of
take home teas as well, so that a customer requiring both specialty and
regular take home tea can purchase both types under one roof without
having to go elsewhere.
Australia being a market dominated by tea bags, Imperial has made
available all sizes and types of tea bags including pyramid tea bags
which could even attract the traditional tea drinker used to the finest
quality loose tea in the pot under their flagship brand Impra.
Imperial Management states that being a Specialty Tea Shop location
was an important factor.
That is why they decided to locate the shop down High Street, Prahran,
so that they could attract the right type of customer - the customer who
is looking for a point of difference in the type and quality of tea
being offered. |