TEA

John Keells Tea Market Report:

Another good sale for Low Growns

Unlike previous years, February has been wet and cold with heavy rainfall over many of the tea growing areas. The Western Sector in particular has had regular showers which has prevented production of teas with seasonal character. Weather conditions being experienced are now slightly drier.

Crop production figures remained low, but are expected to increase with the warmer weather now being experienced.

The 0.89 mkgs. of ex estate teas that came under the hammer met with fair demand at lower levels. A handful of Western BOP/ BOPFs sold well following quality and special inquiry, whilst others declined Rs 5 to Rs 10.

The Plainer BOPFs on offer were also at times difficult of sale. A few Nuwara Eliya BOP/BOPFs invoices appreciated substantially, particularly for some of the brighter teas registering price gains of Rs 30 to Rs 40, whilst some semi leafy teas too from this region continued to sell well with prices ranging from Rs 540 to Rs 610.

Uva BOP/BOPFs were irregular following quality. Select Best Low Grown PF1s were firm, whilst the Below Best appreciated Rs 5 to Rs 10. Others mostly maintained.

High and Medium invoices were firm to irregular at times.

There was selective buying from Russia, whilst the tea bag sector lent fair support. UK, Japan and Continental buyers operated following quality.

The 2.9 mkgs of Low Growns that were on offer this week, met with better demand.

The uncertainty that prevailed in the previous week was a thing of the past. Most out markets operated fairly strongly this week with the prices for all small leaf varieties appreciating.

In the Leafy category Pekoes and OP1s gained as the sale progressed.

The Libyan buyers too bid strongly with the BOP1A’s and also the Off Grades gaining in value.

It also appear that most Iranian buyers were looking at completing their orders prior to the commencement to their New Year holidays. All in all another good sale for the Low Growns.

Western Teas

A few Select Best BOPs were firm, other good invoices declined Rs 5 to Rs 10. Below Best sorts were firm to Rs 5 easier, plainer varieties were firm. Select Best BOPFs declined Rs 10, other good invoices shed Rs 5 to Rs 10 on average, Below Best sorts eased Rs 5 and more, plainer varieties were firm. Medium BOPs were firm to irregular. BOPFs were irregularly lower.

Nuwara Eliya Teas

Brighter BOPs advanced Rs 20 to Rs 30 on special inquiry, others gained Rs 10. BOPFs advanced Rs 40 to Rs 50, following special inquiry.

Uva Teas

Better BOPs on offer advanced Rs 20 to Rs 30, others were Rs 5 to Rs 10 dearer. BOPFs were firm to easier. Uda Pussellawa BOP/BOPFs advanced Rs 10 to Rs 15 on average.

CTC Teas

Select Best Low Grown PF1s were firm, others gained Rs 10. BP1s advanced Rs 10 to Rs 15 and more. High & Medium PF1s advanced Rs 5 to Rs 10. BP1s were firm.

Low Growns

Fair demand. Select Best OP1s appreciated Rs 10 to Rs 20, Best types advanced sharply by Rs 15 to Rs 20 and more at times, Below Best and poor types were mainly firm.

Select Best BOP1s eased Rs 20 to Rs 30, Best types too were lower by Rs 10 to Rs 20, Below Best and poor sorts too declined Rs 5 to Rs 10.

Select Best along with the Best OPs shed Rs 10 to Rs 20, Below Best and poor sorts too tended lower by Rs 5 to Rs 10 and more at times. Select Best OPAs were firm to Rs 5 to Rs 10 dearer, however the balance eased Rs 10 on average.

Select Best Pekoes declined Rs 30 to Rs 50 following quality, Best and Below Best Pekoes were lower by Rs 3 to Rs 5 at the commencement of the sale, however firmed up at last weeks levels towards the latter part.

Select Best Pekoe1s tended lower by Rs 10 to Rs 20, the balance were firm to Rs 5 to Rs 10. Improved demand for Tippy Teas.

Select Best BOP/BOP.SPs advanced Rs 5 to Rs 10, Best and Below Best types too gained by a similar margin, poorer types were dearer by Rs 5. Select Best and Best FBOP/FBOPF1s gained Rs 10 to Rs 15 Below Best and poorer sorts gained Rs 5 to Rs 8. Select Best and Best tippy varieties met with improved demand and advanced above last, Below Best and poorer sorts too gained a few rupees on last levels.

Off Grades

Select Best and Best liquoring Fngs1s appreciated Rs 10 to Rs 15, Below Best and poorer sorts were dearer by Rs 10 to Rs 15. Select Best and Best BMs were firm to dearer by Rs 10, Below Best and poorer sorts appreciated Rs 10. All BPs were irregularly dearer by Rs 10.

All Low Grown Fngs were irregularly dearer by Rs 10. Select Best BOP1As were dearer by Rs 5 to Rs 10, Best and Below Best too were firm to dearer by Rs 10 on average, poorer sorts appreciated Rs 5.

Dust

Select Best Dust1s along with the Best and Below Best types were firm, whilst the poorer sorts declined Rs 5 to Rs 10. All Secondary Dust appreciated Rs 15 to Rs 20.

Best Low Grown Dust/Dust1s maintained last levels, whilst the balance appreciated Rs 15 to Rs 20.

New Zesta pack presented to Minister

The inaugural pack of the newly re-launched popular tea brand, Zesta, by Watawala Marketing Ltd., a subsidiary of Watawala Plantations, was presented to Plantation Industries Minister Mahinda Samarasinghe.

The Minister was pleased to note the commitment of Watawala Plantation to offer a deserving quality cup of BOPF pure Ceylon tea to all Sri Lankans.

Custodian of ‘the art of tea’, Zesta has become a trusted household name over the years, having received recognition for its consistent taste, aroma and colour.

“Today marks a new era in the history of Zesta with the relaunch of the Zesta improved pack to keep up with the times of change,” said Vish Govindasamy, expressing his thoughts on the significance of the re-launch of Zesta.

Since its inception over a decade ago, Watawala Plantations has always been committed to offer a good quality BOPF Pure Ceylon Tea to the Sri Lankan market, and thus, the improvements made on the packaging will be significant in repositioning the brand and strengthening its presence across the country.

He said that in spite of these changes, Zesta would continue to offer the best Pure Ceylon BOPF Tea at the same price.

Chief Executive Officer Visal Wickramarathne said, “Zesta was at first limited to a niche market. However, today, changes have taken place, the economy is growing and we believe we can expand our target customers.

To do that, we have to reposition the brand in the consumers’ mind.

“The basic objective of the relaunch is to reach more households. It is not going to be a niche product any more, restricted to a smaller segment.”

The improved pack retains the significant elements that are associated with Zesta, including its signature strips.

However, these have been enhanced with the new addition of gold, while the company logo is also placed prominently.

Additionally, to make the packaging more attractive, a human element has been introduced, while the new design also depicts the freshness of the cup of tea.

Following the official relaunch of Zesta, the new improved pack was introduced to the general trade and supermarkets around Colombo on the same day by the company’s sales force.

By the end of the month the new Zesta pack will be made available in all outlets nationwide for all consumers to experience.

Elpitiya estates globally benchmarked for food safety

The Talgaswella and Deviturai estates of Elpitiya Plantations, owned and managed by Aitken Spence Plantations, have been awarded the ISO 22000 food safety certificate this month.

ISO 22000 specifies requirements to enable an organization to plan, implement, operate, maintain and update a food safety management system aimed at providing products that, according to their intended use, are safe for the consumer.

Elpitiya Plantations is pleased to have received this certificate as it proves that the organization has effectively communicated food safety issues to their suppliers, customers and relevant interested parties in the food chain.

Elpitiya Plantations PLC consists of 13 estates, situated in the upper, middle and low country regions. These estates cultivate tea, rubber, oil palm and coconut.

Talgaswella and Deviturai low grown estates produce more than 1.2 million kilograms of tea per annum. These plantations cater to the Middle Eastern and Russian markets and are known for producing leafy teas which are stylish and neater in appearance.

A few commendable initiatives of the estates owned by Aitken Spence Plantations would include Deviturai estate hitting a record of Rs 700 for Latex Crepe 1X in February, which was the highest economy price ever recorded for Latex Crepe 1X rubber in Sri Lankan history. The fact that Dunsinane, New Peacock and Nayapana estates have received the ISO 22000 food safety certificate is also creditable.