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Tea Market Update
                                         V o l u m e   8   N o   1                  J a n u a r y— M a r c h     2 0 1 2


                               20th Session of the Intergovernmental Group (IGG) on Tea of Food &
  Total Production
    from all tea grow-               Agriculture Organization (FAO) 30th Jan -1st Feb 2012 and
    ing areas registered            Colombo International Tea Convention 1st – 3rd of Feb 2012.
    to 73.18 Mkgs for
    the period ended 31
                                 The year 2012 marks 145 years of the is certainly an achievement and shows world
    March 2012, which
                                commencement of Sri Lanka tea industry on recognition for Sri Lanka. Sri Lanka Tea
    is 6.6% less than
                                a commercial scale. Sri Lanka Tea Board, Board made arrangements to host the FAO/
    the previous year
                                the apex state or-
    same quarter.
                                ganization of the
                                tea industry in Sri
  Average auction             Lanka under the
    price at Colombo            purview of the
    dipped to 355.77 /          Ministry of Planta-
    kg or 9.7% below            tion Industries will
    the last year level.        be hosting the 20th
                                Session of FAO/
  Sri Lanka tea ex-           IGG on Tea in
    ports for the first         Colombo,         Sri
    quarter of 2012             Lanka in 2012
    reached 76238MT,
    a 4.3 % decrease            Selecting Sri Lanka
    over the first quar-        as the venue for one
    ter of 2011.                of the most impor-
                                tant events in the
                                global tea industry, providing a prestigious IGG Sessions which took place from 30th
                                platform for the United Nation’s Food and January to 1st February 2012 at Cinnamon
Tea Production             2
                                Agriculture Organization’s 20th Session of Grand Hotel, Colombo.
                                the Inter-Governmental Group (IGG) on Tea
                                                                                                          Cont. in page 5 ….
Tea Marketing              3

Tea Exports                4                                General Overview
Global Tea Scene           6
                               Economy
                                                                                Due to the continuity of the subsidized fertilizer
Trade Fair Participation   7
                               Drought hit weather further retarded agricul-    and power sector intervention by the govern-
                               tural output and world demand on key Sri         ment, inflation was maintained below the last
                               Lankan exports commodities declined consid-      year level to be provided to the masses enabling
Research Update            8
                               erably by 1.4 percent or US$2.63 billion in      food items and other intermediate goods at
                               value, widening balance of payments too at       affordable prices.
                               the end of first quarter compared to last year
                               same period. As a result pressure on the rupee   Tea Industry
                               mounted through out the period and govern-
                               ment eased the control of exchange rate          Lower rains and price volatility at Colombo tea
   Editor-Sampath Perera                                                        auction deprived a more positive performance
   Tea Promotion Division      expecting a narrowing of the huge trade
                               deficit of US$ 2.55 billion for the period.      to be recorded in tea industry. Corporate sector
               E-mail
                               Hence, the economy recorded a 7 percent          plantations Companies made a major setback as
 sampath@pureceylontea.com                                                      Colombo Stock Exchange recorded lower value
                               growth as mentioned in Central Bank report
              Web-site         for the period which is lower than same          per share in its history due to lower yield and
   www.pureceylontea.com       quarter of last year.                            higher COP.       Continue in page …………….5
Tea market update Volume 8. No. 1                                                                           P AG E    2


+
                                             Tea Production
Total Production from all tea growing areas amounted          It is evident from table 3, that Plantation sector tea
                                                              production recorded moderate decline while Private
to 73.18 million kilograms for the period ended 31
                                                              and Public sectors remained with less variation in first
March 2012, which is 6.6% less than the previous year         quarter as against last year same period.
same quarter. This slight decrease can be attributed to
lower rains experienced mostly in Western high and            Government sector recorded a poor performance for the
Uva regions.                                                  past as consecutive years though they witnessed
                                                              5.5Mkgs record production in 2008 first quarter as the
March production recorded a severe decline compared           highest in recent years.
to last year but ahead of the 2010 and 2009 crop.             Table 3 – Distribution of Tea Production
Hence, specialty Western High season didn’t reach                      January-March 2012/2011 (Units:MKg)
forecasted level affecting cash trapped cooperate
sector factories mostly centralized in hill country.                             2012               2011         Change
                                                                Sector
                                                                           Production   %     Production    %   Qty    %
Table 1 - Cumulative and monthly tea Production
          January-March 2008-2012 (Units :MT)                 Private          43.02 58.79        43.32 55.2 -0.3 -0.5
                                                              Plantation       27.19 37.15        32.56 41.5 -5.4 -12.9
              2012     2011      2010      2009     2008      Public            2.97 4.06          2.52 3.2 0.4 13.9
January       23198    21,141    26796     17810      26278 Total              73.18 100.00       78.40     100 -5.2   -6.7
February     22,775    22,125    24858     12764      25518   Matara and Kandy districts recorded a slight increase
March         27,208   35,134    21458     18412      30811   in production while Nuwara-eliya and Galle districts
                                                              fell remarkable decline as against last year same
Total         73,181   78,400    73,112    48,986   82,607    quarter. It is showed in table 4 below.
                                                              Table 4.- District wise tea production comparison
Intended tea planting of high grown were 41137 ha,                     as at December 2012/2011 (MKg)
which is 18.5% of total tea lands and produced nearly          ADMIN. DIS-
17 million kilograms for the period and this deficit is                          TOTAL-2012      TOTAL-2011      CHANGE
                                                                 TRICT
higher than the cumulative deficit other two regions. It      BADULLA               6.79             6.85         -0.06
is depicted in table 2.
                                                              COLOMBO               0.15             0.00         0.15
                                                              GALLE                 10.81           11.98         -1.17
Table 2 - Cumulative tea production according
to elevation and category till March (Units :Mkg)             HAMBANTOTA            0.07             0.06         0.01
                                                              KALUTARA              3.92             4.23         -0.31
                          Jan-March          Change           KANDY                 7.10             6.57         0.53
        Category
                        2012     2011      Qty      %         KEGALLE               2.47             2.62         -0.15
Elevation                                                     MATALE                0.39             1.31         -0.92
High                     16.99     20.11    -3.12 -15.50      MATARA                10.52           10.00         0.52
Medium                   11.98     12.34    -0.37 -2.97       NUWARA ELIYA          15.80           19.25         -3.45
Low                      44.22     45.95    -1.74 -3.78       RATNAPURA             15.16           15.50         -0.34
Total                    73.18     78.40    -5.22   -6.66     TOTAL                 73.18           78.37         -5.19

Processing Method
Orthodox                 67.55     70.83    -3.28 -4.63                        Tea Marketing
CTC                       4.87      6.81    -1.94 -28.46      Attributed to many external market forces the depressed
Green Tea                 0.76      0.76     0.00 -0.26       tea market that prevailed during
Total                    73.18     78.40    -5.22   -6.66     the first three quarters of 2011,
                                                              intensified this quarter too. Total
Proportionately, CTC tea production dipped severely           quantity sold through Colombo
by 28.5%, while Green Tea production figures                  auction increased marginally and
remained unchanged for the period compared to the             total average price for the quarter
last year same period..                                       …..

                                 PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
Tea market update Volume 8 . No. 1                                                                                               P AG E         3



 fell sharply compared to the same period of 2011.                     Table 7: Teas sold and prices fetched by
 Subsequently, total earnings decline slightly at                             distribution channels (Qty:Mkg, Price Rs./Kg)
 Colombo auction though total disposed quantities                                                               First Quarter
 increased compared to last year same quarter. It is                  Different Channel                  2012                    2011
 depicted in table 5.                                                                             Qty        Price         Qty          Price

 Table 5 –Teas Sold and prices fetched in                             Public Auction              81.8     355.77          77.7         394.17
        first quarter 2012/2011Unit:Qty-Mkg,Rs/Kg                     Private Sales               0.9      383.34          0.4          445.97
                       First Quarter                                  Direct Sales                0.4      462.74          0.6          391.63
 Different                                            Difference
                    2012           2011                                      Total                83.0     356.62          78.7         394.43
 Channel
             Qty       Price      Qty       Price     Qty Price        As depicted in table 7 above, Private sales average
 High        17.8       340.0      17.3      380.5     0.5 -40.5       price dropped by Rs.63 per kilogram whilst volume
                                                                       traded increased by 125% or 0.5Mkgs compared to
 Medium      13.5       317.9      11.8      357.5     1.7 -39.6       the last year same period.
 Low         51.8       372.4      49.6      408.1     2.2 -35.7       Buoyant price levels prevailed for Direct sales,
                                                                       despite volume traded decreased by 33% or
   Total     83.1       356.6      78.7      394.4     4.4 -37.8       0.2Mkgs, and average auction price at Colombo
                                                                       auction dipped to 355.77 /kg or 9.7% below the last
 Table 6– Weekly Auction sales comparison                              year level as against the correspondent period of
          during the quarter (Rs/Kg)                                   2011.
              Auc.               High                   Medium                   Low                         Average
   Month                                                                                                                           Change
               No.        2012          2011         2012     2011        2012         2011       2012 -year         2011-year
                1        326.29         376.05      300.79   353.22      367.35        406.62       347.44            387.76            -40.3
                2        332.06         377.63      306.12   353.55      367.78        412.11       350.62            391.46            -40.8
  January
                3        327.71         375.14      298.24   353.29      365.58        409.70       347.14            379.43            -32.3
                4        334.45         377.26      301.86   360.44      361.77        415.76       347.33            377.30            -30.0
                5        333.55         370.37      302.74   348.34      362.47        397.06       347.73            367.17            -19.4
                6        330.01         374.15      297.76   348.61      352.04        404.35       338.94            381.59            -42.7
  February
                7        334.78         380.10      310.01   359.21      364.44        414.66       351.41            382.61            -31.2
                8        330.41         378.95      315.94   361.86      365.15        422.45       350.45            381.01            -30.6
                9        332.79         376.90      320.87   353.50      369.79        401.73       354.29            386.42            -32.1
               10        330.19         389.11      322.07   369.77      367.76        408.93       353.08            391.95            -38.9
   March       11        342.71         389.36      324.72   371.06      375.91        407.92       360.15            393.20            -33.1
               12        348.75         384.27      339.89   378.31      395.90        402.38       375.55            383.73            -8.2
               13        356.25         374.30      346.49   366.44      424.13        394.96       396.92            363.39            33.5


 Colombo Auction                                                                                Colombo auction price

 Colombo Tea Auction were held on thirteen
 auctions during the quarter and average sale prices
 were always below those of last year correspondent
 sale and in some weeks the difference in price drop
 exceeded Rs.40/Kg.

 The main reasons for price reduction of our teas are
 the lesser inquires made for High grown quality
 season teas by the Western Nations due to economic
 crisis and instability in Persian Gulf where more                     The most significant feature of
 than 30 percent of our teas consigned.                                this quarter is sudden Rupee
                                                                       value depreciation which caused
                                                                       a check on price decline at end
                                                                       of the sale In March.


                           PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
Tea market update Volume 8. No. 1                                                                                            P AG E     4


                                                                Tea Exports
                         P AG E      4
Sri Lanka tea exports for the first quarter of 2012 reached                Hence, the sequence of events that took place in the
76238 metric tons with re-exports, a 4.3 percent decrease                  global economy shocked the world premium food
over the first quarter of 2011, following value of the                     and beverage markets with little exceptions.
shipments earned US$332.9 million, down 12.2 percent due
to lower FOB value and volume.                                             Table 10 -Top ten destinations of Pure Ceylon
                                                                                  tea from Jan– March 2012/2011 Units:Qty - MKg
Tea exports for the month of March alone show a quantity
                                                                                                                                 Total tea
increase and earnings decrease, reaching 29247 metric tons                                   2012 2011          Change
                                                                            Country                                             Exports %
valued at US$125.3 million, up 8.2 percent and down 5.2
percent, respectively, over March 2011 figures. Quarterly                              Qty            Qty     Qty       %      2012 2011
exports of value added tea like Tea bags, Packets ,RTD,                    Russia     11.16          12.67    -1.51   -11.92   14.64 15.91
and Instant tea excluding re-exports in first quarter were                 Iran       10.08          7.52      2.56    34.04   13.22 9.44
41492 metric tons, down 6 percent from first quarter 2011,                 Syria       6.81          6.18      0.63    10.19    8.93 7.76
while its export value decreased to US$189.47 million, fell                Iraq        5.29          4.89      0.40     8.18    6.94 6.14
13 percent, attributed to appreciation of dollars by 9.3                   Turkey      4.30          5.75     -1.45   -25.22    5.64 7.22
percent over last year same quarter. These details are                     Libya       3.85          1.87      1.98   105.88    5.05 2.35
shown in table 8. and 9.below.                                             Azerbaijan 2.65           2.60      0.05     1.92    3.48 3.26
                                                                           Japan       2.47          3.20     -0.73   -22.81    3.24 4.02
Table 8 - Export Statistics for each month during
                                                                           UAE         2.43          6.65     -4.22   -63.46    3.19 8.35
          first quarter 2008/2012Units : MT
                                                                           Ukraine           1.93    1.95     -0.02    -1.03 2.53       2.45
              2012        2011           2010        2009       2008
                                                                                 Total      50.97 53.28       -2.31    -4.34 66.86      66.9
January        23,239       27266        21045       18403       23659
                                                                                except re-export volume
February       23,753       25345        25116       21400       28359
                                                               Sequence of top ten destinations changed dramati-
March          29,247       27026        24049       30123       26808
                                                               cally where United Arab Emirates crashed to 9th
Total       76,238 79,638       70,210      69,926       78827 place importing its lowest level of 2.43Mkgs or a
                                                               63% decrease per quarter compared to the last year
Table 9 – Tea Exports comparison during first quarter
                                                               same period. It is depicted in table 10. A rebound of
          (2012/2011) Units:Qty-Tons, FOB-Rs/Kg Value-Millions
                                                               the ruined economy of Libya showed a significant
The major reason for the decline that recently occurred in
                            2012                                2011                             Change                     % Change
 Category
               Qty         FOB           Value       Qty        FOB      Value        Qty           FOB      Value    Qty      FOB      Value
Bulk*          29,953       492.72        13681       29,844    465.69    13,898         109         27.03 -8,538        0.4     5.80    -61.4
Packets*       35,653       481.89        17,180      37,535    484.48    18,185      -1,882         -2.59 -1,005       -5.0    -0.53     -5.5
Tea Bags*       5,374       950.58         5,360       6,200    922.29     5,718         -826        28.29    -358     -13.3     3.07     -6.3
Instant Tea      464      776.98            361         429     761.59      327             35      323.69      34       0.0     0.00      0.0
Green Tea        531      1,085.28          576         573     996.13      571           -42        89.15       5      -7.4     8.95      0.9
RTD**                1    1,873.97              37          4   905.08           4          -3      968.89      33       0.0     0.00      0.0
Sub Total      71,976       516.30        37,195      74,586    521.78    38,703      -2,610         -5.48 -1,508      -25.4    -1.05     -3.9
Re-Exports      4,261       730.42         3,112       5,052    660.61     3,337         -791        69.81    -225     -15.7     10.5     -6.7
Total          76,237       528.26        40,307      79,638    528.64    42,040      -3,401         -0.38 -1,733       -4.3    -0.07     -4.1
* Black Tea              ** Ready To Drink
                                                                           improvement of tea imports while Iraq showed
the country’s tea exports was due to a combination of
                                                                           moderate progress of its Ceylon tea imports. Ukraine
factors commencing from economic crisis in USA, Euro
                                                                           and Iran offered the highest
Zone calamity, aftermath of the Japanese tsunami, currency
                                                                           FOB price per kilogram whilst
depreciation in most major markets, accumulated with the
                                                                           Libya and Kuwait record the
uprising of Arab nations and sanctions on Iran.
                                                                           lowest FOB for the period
                                                                           among top ten            list of
                                                                           destinations.

                                   PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
Tea market update Volume 8. No. 1                                                                        P AG E   5

 ……………..………….from page 1.                                     issues related to production, marketing, pricing and
 General Overview                                             consumption of tea. Intercessional Working Groups
 Weather                                                      representing all stakeholders are held every other year
 Bright weather with few scattered rains were reported in all prior to main FAO/IGG Session and it is mandatory to
 tea growing regions.                                         seek the approval of member countries on agenda,
                                                              themes, issues and new working groups to be discussed
 Quality                                                      at the main session of FAO/IGG on tea.
 Lower production Western quality teas and general leafy The International Tea Committee (ITC) Producer/
 grades in low grown areas registered.

 Crop

 High and mid grown teas reported a lower production and
 low grown also registered a slight decrease.

  Colombo International Tea Convention .. from page 1

  Incidentally, Sri Lanka hosted the 15th Session of FAO/
 IGG on Tea in August 2003 gaining immense mileage. At




                                                               Consumer Members Forum preceded the IGG on Tea
                                                               sessions on 29th January 2012, together with a half day
                                                               meeting on “Climate Change”. The tea producing
                                                               countries also met on the sideline of FAO/IGG on Tea
                                                               Conference, to establish an International Tea Producers
                                                               Forum (ITPF) on 1st February 2012.The objective of this
                                                               gathering is to create a common platform for tea
                                                               producers and to formulate strategies for the benefit of
                                                               all tea producing nations. This informal meeting was
                                                               chaired by honorable Mahinda Samarasinghe , Minister
 The United Nations Food & Agriculture Organization            of Plantation Industries In Sri Lanka where a resolution
 (FAO)/Intergovernmental Group (IGG) on Tea which              was signed by 10 tea producing countries with agreeab-
 was established in 1969 is a forum where important            ility to set up an ITPF
 policies and strategies related to the global tea industry
 are formulated. Its Membership is open to all the mem-         In order to present the global tea fraternity who will
                                                               gather in Colombo with a total offering, Sri Lanka Tea
                                                               Board and Colombo Tea Traders’ Association (CTTA)
                                                               hosted an International Tea Convention from 1st to 3rd
                                                               February 2012 at Cinnamon Grand Hotel, Colombo.
                                                               The tea convention this year revolved around the theme
                                                               “Exclusivitea” encompassing the niche in quality that is
                                                               synonymous with “Ceylon Tea”. The event attracted all
                                                               major leaders of the global tea industry to the heart of
                                                               Colombo for the three day event. The convention
                                                               provided all stake holders, both local and international
                                                               with an ideal platform to exchange views, network,
                                                               share technologies and resources and integrate during
                                                               the span of the event. The Colombo Tea Conventions
 bers/associate members of UN who are interested in tea        have always been the best attended in the tea world and
 production/consumption/trading of tea. The FAO/IGG on         boast of an exclusive mix of international speakers on
 Tea, a subsidiary body of the committee on Commodity          themes of current and future relevance. This      mega
 Problems hold biannual sessions and is considered as the      -event was organized by the CTTA, in collaboration
 only global forum for member nations to deliberate            with the Sri Lanka Tea Board.

                               PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
Tea market update Volume 8. No. 1                                                                                  P AG E    6


                    P AG E      6
                                                                         Average auction prices at all world auction centers
                Global Tea Scene                                         fetched below the US$ 3 per kilogram price though tea
Tea Production                                                           production had relegated to a considerably low level.
                                                                         The global liquidity crisis played havoc among most
Major black tea producing countries of India and East                    major markets, as a result, the industries won’t be able
Africa registered a crop shortfall in first quarter of 2012              to grow as planned. This is likely to lead to lesser
due to the prolong dry weather in major tea producing                    employment generation, job cuts as well as stagnation
areas. Worst ever drought in fifteen years in North                      in salaries. As such are expected to dwindle the
India resulted in a crop short fall of 18 % by end March                 demand for imported hot beverages as well as local
2012 compared to last year same period.                                  consumption.

Table 11 -Global tea production comparison in                            Kenya Tea exports increased by 10 million kilograms
      first quarter 2012/2011(MT.)                                       for the period due to a surge in imports by Egypt,
PRODUCTION           Month           2012        2011          Change
                                                                         Afghanistan and Pakistan compared to the previous
                                                                         year same quarter. China maintained its previous year
N E INDIA                 3           37520        45553         -8033   tea export volume with a slight decrease due to strong
SOUTH INDIA               3           44774        48841         -4067   market position in west African countries.
BANGLADESH                3             731             998       -267
CHINA (1)                 3          356000       286000         70000   As a emerged tea exporter of Vietnam shipped 19,500
                          3                                      -6799
                                                                         tons of tea worth of US$ 27.8 million in the first two
SRI LANKA                             71,601      78,400
                                                                         months of this year, rose by 18.24 % in volume and
INDONESIA                 3           15438        14821           617
                                                                         17.25% in value term over the same period of last year.
KENYA                     3           72436        85169        -12733
                                                                         In the first two months of this year, Vietnam exported
MALAWI                    2           13721        13606           115   2,800 tons of tea worth $ 2.6 million to Indonesia,
TANZANIA                  2            6608            6835       -227   accounting for 14.7 per cent of the total. Further
UGANDA                    2            4902            7414      -2512   Vietnam shipped total of 7.5 million kilograms of tea
ZIMBABWE                  2            3189            4267      -1078   to Pakistan. Taiwan, and Russia for the first two months
TOTAL                                626920       591904         35016   of 2012.

*Till March provisional                                Source : INTTEA   All global tea producers have incurred income declines
                                                                         while traders and firms in higher stages of the value
Low rains and frost conditions in Kenya, Uganda,                         chain have escaped this death trap. In the mid 1990s
Zimbabwe, and Tanzania too have attributed to the
                                                                         earnings by tea producing countries (exports F.O.B)
decline tea production. As a result Kenyan tea crop
dropped 15% in first quarter compared to the                             were some US$ 5-6 billion and the value of retail sales
corresponding period of 2011.The severe global tea                       of tea, largely in developed countries, about US$30
crop failure was adequately compensated by increased                     billion. Now the value of retail sales exceeds US$70
green tea production from China over the period. It is                   billion with energy price increases but tea producing
depicted in table 11 above.                                              countries only receive around US$ 10-12 billion. The
Table 12- Average prices in major auction centers                        unbalanced character of power in the tea value chain
            as at 31st March 2007-2012
                                                                         helps explain the increasingly unequal distribution of
                                                                         total incomes in all tea producing countries.
Centre           2012         2011 2010 2009 2008               2007
Kolkata             2.01      2.77     2.58     2.54    2.37     1.96    Table 13. Global tea production and Exports comparison
Cochin              1.73      1.73     1.71     1.83    1.65     1.36             (1976-2012) Unit: MKgs
Chittagong          1.88      2.14     2.63     1.98    1.62     1.17
Mombasa             2.67      2.72     2.54     2.29    2.18     1.66                             2011 2005 1995 1985 1976
Jakarta             1.84      1.97     1.81     1.82    1.51     1.33    Global Production         4217 3458 2521 2263 1588
Colombo             2.99      3.26     3.28     3.14    2.87     2.53    Global Exports            1719 1566 1079  951  791
Guwahati            1.74      2.33     2.43     2.23    2.14     1.72    Sri Lanka (without re-
                                                                                                   303    299    235    198      200
Malawi              1.67      1.61     1.58     1.58    1.37     1.05    exports)
World               2.47      2.73     2.71     2.49    2.31     1.89    Sri Lanka percentage
                                                                                                  17.6   19.1   21.8   20.8   25.3
                                                                         (Global Exports)
                                                       Source: ITC

                                            PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
Tea market update Volume 8 No. 1                                                               P AG E   7


                                                              Sri Lanka Tea Board Participation at Foodex
         Trade Fair Participation                             Japan 2012 (6th to 9th March 2012)

“PRODEXPO” RUSSIA (11th - 15th FEBRUARY                 Sri Lanka Tea Board organized a National Pavilion for
2012)                                                   Ceylon Tea and participated together with Jafferjee
                                                        Brothers Ltd, Imperial Teas (Pvt) Ltd, Stassen Exports
Sri Lanka Tea Board participated at the Prodexpo – the (Pvt) Ltd and Basilur Tea (Pvt) Ltd at Foodex Japan
largest exhibition in Moscow, Russia with following tea 2012. The 60th anniversary of diplomatic relations
exporting companies.                                    between Japan and Sri Lanka is being celebrated this
Mabroc Teas (Pvt) Ltd., Natures Pride (Pvt) Ltd, Ceylon




Tea Bags (Pvt) Ltd and Ceylon Tea Land (Pvt) Ltd. Sri
Lanka coordinated and extended the necessary assistance year and a special promotional seminar for tea, tourism
                                                        and investment and a high profile net-working session
                                                        between the tea trades of Japan and Sri Lanka were
                                                        organized to coincide with Foodex Japan 2012.

                                                              Hon. Mahinda Samarasinghe, Minister of Plantation




for the successful participation of the above fair.

GULFOOD 2012 in UAE, 19th – 22nd February                Industries and Hon. Namal Rajapakse, Member of
                                                         Parliament graced the occasion. Sri Tea Board was
Sri Lanka Tea Board facilitated the participation of 09 represented by its Chairperson and Director
private sector tea exporting companies under the Ceylon (Promotion).
Tea pavilion at GULFOOD 2012 exhibition. The compa-
nies participated under Ceylon Tea pavilion are M/s. BPL HORECA 2012 in Lebanon, 20th – 23rd March
Teas (Pvt) Ltd, M/s. HVA Foods (Pvt) Ltd, M/s. Ranfer
Teas (Pvt) Ltd, M/s. Mabroc Teas (Pvt) Ltd, M/s. Vintage Sri Lanka Tea Board organized the participation of 02
Teas Ceylon (Pvt) Ltd, M/s. Ceylon Fresh Teas (Pvt) Ltd, private sector tea exporting companies at above trade
M/s. Ceylon Tea Land (Pvt) Ltd, M/s. Eswaran Brothers    exhibition that M/s Eswaran Brothers Exports (Pvt) Ltd
Exports (Pvt) Ltd and M/s. Ceylon Tea Marketing (Pvt)    and M/s. Imperial Teas (Pvt) Ltd. Sri Lanka Tea Board
Ltd. Sri Lanka Tea Board coordinated all the logistical  coordinated all the logistical arrangement of the
arrangement of the participation of the exhibitors.      participation of the exhibitors.

                         PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
Tea market update Volume 8. No. 1
                                                                                                                       P AG E     8

                                                                   In the study, 75 young male regular tea drinkers were split into
        Research Update                                            two groups and monitored for six weeks. One group, the
                                                                   control group was given a caffeinated placebo devoid of the
Black tea reduces risk of Parkinson's disease                      active tea ingredients.

"To our knowledge, this is the first prospective cohort studyThe other group was given fruit-flavored caffeinated tea mix-
of Parkinson's Disease risk factors in a non-white populationture made up of the constituents of an average cup of black tea.
living in Asia..."                                           When both groups were subjected to challenging tasks which
Asst Prof Koh Woon Puay, Department of Occupational and      induced stress, the group taking the tea mixture was found to be
Family Medicine.Findings from a collaboration between the    able to reduce their cortisol levels by an average of 47 per cent.
National Neuroscience Institute (NNI) and NUS have revealed  "We had observed an inverse association between consumption
                                                             of black tea and the risk of Parkinson's Disease in the Chinese
for the first time, that drinking black tea (but not green tea)
reduces the risk of developing Parkinson's Disease among the population residing in Singapore. Our research is a very prom-
Chinese population in Singapore.                             ising first step to identify dietary and lifestyle factors related to
                                                             Parkinson's disease in an Asian context. More studies will be
The findings, which are published in the on-line issue of needed before we can firmly establish the protective effect of
American Journal of Epidemiology (Dec 2007) suggest that black tea on the disease and understand its underlying mecha-
black tea may exhibit neuroprotective effects on Parkinson's nism. Such research will enable us to develop strategies to
Disease. The findings, presented at the 1st Asian and Oce- prevent or reduce the progression of this debilitating neurode-
anian Parkinson's Disease and Movement Disorders Congress generative condition," said Dr Louis Tan, senior consultant
(Oct 2007) won the second prize for Best Research Presenta- neurologist at NNI-TTSH who is leading the study with Dr Koh
tion Award.                                                  of NUS.


                                                                   The NNI-NUS study is unique. "To our knowledge, this is the
NICE CUPPA TEA: Dr Koh Woon Puay and Dr Louis Tan
                                                                   first prospective cohort study of Parkinson's Disease risk fac-
lead research team on the effects of black tea on Parkinson's
                                                                   tors in a non-white population living in Asia. Singapore Chi-
Disease.There has always been a lack of data from Asian
                                                                   nese are well suited for the study of coffee, green tea and black
populations on dietary and lifestyle factors associated with
                                                                   tea consumption and health outcomes since all three types of
Parkinson's Disease, said co-Principal Investigator for the
                                                                   beverages possess divergent intake profiles in this population.
research project, Asst Prof Koh Woon Puay, Department of
                                                                   Other strengths of the study are its population-based design and
Community, Occupational and Family Medicine. To fill this
                                                                   the collection of data on tea-drinking prior to disease diagno-
gap, the researchers examined these factors in relation to
                                                                   sis," said Dr Koh.
Parkinson's Disease in the Singapore Chinese Health Study
with a cohort of 63,257 Chinese men and women. This is a
                                                              Next, the team intends to dentify other factors that may affect
first community-based study of the disease's risk factors in an
                                                              an individual's risk of developing Parkinson's disease as well as
Asian population.
                                                              understand the mechanism of black tea's protective effect on the
                                                              disease. Experimental scientists have shown that black tea
Between 1992 and 2005, data was collected through in-person
                                                              extracts (oxidised polyphenols such as thearubigins and
interviews using structured questionnaires. Results from the
                                                              theaflavins ) possess neuro-protective and neuro-rescue proper-
study showed that individuals who had a higher dietary intake
                                                              ties in an animal model of Parkinson's Disease, said Dr Koh.
of caffeine were less likely to develop Parkinson's disease.
                                                              But at the moment, it is too early for the team to identify what
This result tallies with what several large population-based
                                                              the possible protective content may be.
studies in USA and Europe have shown.

However, a novel finding by the NNI-NUS team is that black
tea intake also reduces the risk for developing the disease --
and it is not just the caffeine content in black tea that is re-
sponsible. Green tea, in contrast, did not show any significant
protective effects on the disease.

Black tea magic

Black tea comes from the leaves of Camellia sinensia -- a per-
ennial evergreen shrub that is native to Southeast Asia. The
leaves are oxidised under controlled temperature and humid-
ity. Then the leaves are dried to arrest the oxidation process.                    Trade and statistics inquiries:
They are then sorted into grades according to their sizes.
                                                                                      Sri Lanka Tea Board
According to a study in 2006 by University College London,                         574,Galle Rd, Colombo – 03.
black tea also has an effect on stress hormone levels in the                   Tel :2587814,2582122 Fax : 2587341
body.

                                PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD

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First quarter 2012

  • 1. Tea Market Update V o l u m e 8 N o 1 J a n u a r y— M a r c h 2 0 1 2 20th Session of the Intergovernmental Group (IGG) on Tea of Food &  Total Production from all tea grow- Agriculture Organization (FAO) 30th Jan -1st Feb 2012 and ing areas registered Colombo International Tea Convention 1st – 3rd of Feb 2012. to 73.18 Mkgs for the period ended 31 The year 2012 marks 145 years of the is certainly an achievement and shows world March 2012, which commencement of Sri Lanka tea industry on recognition for Sri Lanka. Sri Lanka Tea is 6.6% less than a commercial scale. Sri Lanka Tea Board, Board made arrangements to host the FAO/ the previous year the apex state or- same quarter. ganization of the tea industry in Sri  Average auction Lanka under the price at Colombo purview of the dipped to 355.77 / Ministry of Planta- kg or 9.7% below tion Industries will the last year level. be hosting the 20th Session of FAO/  Sri Lanka tea ex- IGG on Tea in ports for the first Colombo, Sri quarter of 2012 Lanka in 2012 reached 76238MT, a 4.3 % decrease Selecting Sri Lanka over the first quar- as the venue for one ter of 2011. of the most impor- tant events in the global tea industry, providing a prestigious IGG Sessions which took place from 30th platform for the United Nation’s Food and January to 1st February 2012 at Cinnamon Tea Production 2 Agriculture Organization’s 20th Session of Grand Hotel, Colombo. the Inter-Governmental Group (IGG) on Tea Cont. in page 5 …. Tea Marketing 3 Tea Exports 4 General Overview Global Tea Scene 6 Economy Due to the continuity of the subsidized fertilizer Trade Fair Participation 7 Drought hit weather further retarded agricul- and power sector intervention by the govern- tural output and world demand on key Sri ment, inflation was maintained below the last Lankan exports commodities declined consid- year level to be provided to the masses enabling Research Update 8 erably by 1.4 percent or US$2.63 billion in food items and other intermediate goods at value, widening balance of payments too at affordable prices. the end of first quarter compared to last year same period. As a result pressure on the rupee Tea Industry mounted through out the period and govern- ment eased the control of exchange rate Lower rains and price volatility at Colombo tea Editor-Sampath Perera auction deprived a more positive performance Tea Promotion Division expecting a narrowing of the huge trade deficit of US$ 2.55 billion for the period. to be recorded in tea industry. Corporate sector E-mail Hence, the economy recorded a 7 percent plantations Companies made a major setback as sampath@pureceylontea.com Colombo Stock Exchange recorded lower value growth as mentioned in Central Bank report Web-site for the period which is lower than same per share in its history due to lower yield and www.pureceylontea.com quarter of last year. higher COP. Continue in page …………….5
  • 2. Tea market update Volume 8. No. 1 P AG E 2 + Tea Production Total Production from all tea growing areas amounted It is evident from table 3, that Plantation sector tea production recorded moderate decline while Private to 73.18 million kilograms for the period ended 31 and Public sectors remained with less variation in first March 2012, which is 6.6% less than the previous year quarter as against last year same period. same quarter. This slight decrease can be attributed to lower rains experienced mostly in Western high and Government sector recorded a poor performance for the Uva regions. past as consecutive years though they witnessed 5.5Mkgs record production in 2008 first quarter as the March production recorded a severe decline compared highest in recent years. to last year but ahead of the 2010 and 2009 crop. Table 3 – Distribution of Tea Production Hence, specialty Western High season didn’t reach January-March 2012/2011 (Units:MKg) forecasted level affecting cash trapped cooperate sector factories mostly centralized in hill country. 2012 2011 Change Sector Production % Production % Qty % Table 1 - Cumulative and monthly tea Production January-March 2008-2012 (Units :MT) Private 43.02 58.79 43.32 55.2 -0.3 -0.5 Plantation 27.19 37.15 32.56 41.5 -5.4 -12.9 2012 2011 2010 2009 2008 Public 2.97 4.06 2.52 3.2 0.4 13.9 January 23198 21,141 26796 17810 26278 Total 73.18 100.00 78.40 100 -5.2 -6.7 February 22,775 22,125 24858 12764 25518 Matara and Kandy districts recorded a slight increase March 27,208 35,134 21458 18412 30811 in production while Nuwara-eliya and Galle districts fell remarkable decline as against last year same Total 73,181 78,400 73,112 48,986 82,607 quarter. It is showed in table 4 below. Table 4.- District wise tea production comparison Intended tea planting of high grown were 41137 ha, as at December 2012/2011 (MKg) which is 18.5% of total tea lands and produced nearly ADMIN. DIS- 17 million kilograms for the period and this deficit is TOTAL-2012 TOTAL-2011 CHANGE TRICT higher than the cumulative deficit other two regions. It BADULLA 6.79 6.85 -0.06 is depicted in table 2. COLOMBO 0.15 0.00 0.15 GALLE 10.81 11.98 -1.17 Table 2 - Cumulative tea production according to elevation and category till March (Units :Mkg) HAMBANTOTA 0.07 0.06 0.01 KALUTARA 3.92 4.23 -0.31 Jan-March Change KANDY 7.10 6.57 0.53 Category 2012 2011 Qty % KEGALLE 2.47 2.62 -0.15 Elevation MATALE 0.39 1.31 -0.92 High 16.99 20.11 -3.12 -15.50 MATARA 10.52 10.00 0.52 Medium 11.98 12.34 -0.37 -2.97 NUWARA ELIYA 15.80 19.25 -3.45 Low 44.22 45.95 -1.74 -3.78 RATNAPURA 15.16 15.50 -0.34 Total 73.18 78.40 -5.22 -6.66 TOTAL 73.18 78.37 -5.19 Processing Method Orthodox 67.55 70.83 -3.28 -4.63 Tea Marketing CTC 4.87 6.81 -1.94 -28.46 Attributed to many external market forces the depressed Green Tea 0.76 0.76 0.00 -0.26 tea market that prevailed during Total 73.18 78.40 -5.22 -6.66 the first three quarters of 2011, intensified this quarter too. Total Proportionately, CTC tea production dipped severely quantity sold through Colombo by 28.5%, while Green Tea production figures auction increased marginally and remained unchanged for the period compared to the total average price for the quarter last year same period.. ….. PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
  • 3. Tea market update Volume 8 . No. 1 P AG E 3 fell sharply compared to the same period of 2011. Table 7: Teas sold and prices fetched by Subsequently, total earnings decline slightly at distribution channels (Qty:Mkg, Price Rs./Kg) Colombo auction though total disposed quantities First Quarter increased compared to last year same quarter. It is Different Channel 2012 2011 depicted in table 5. Qty Price Qty Price Table 5 –Teas Sold and prices fetched in Public Auction 81.8 355.77 77.7 394.17 first quarter 2012/2011Unit:Qty-Mkg,Rs/Kg Private Sales 0.9 383.34 0.4 445.97 First Quarter Direct Sales 0.4 462.74 0.6 391.63 Different Difference 2012 2011 Total 83.0 356.62 78.7 394.43 Channel Qty Price Qty Price Qty Price As depicted in table 7 above, Private sales average High 17.8 340.0 17.3 380.5 0.5 -40.5 price dropped by Rs.63 per kilogram whilst volume traded increased by 125% or 0.5Mkgs compared to Medium 13.5 317.9 11.8 357.5 1.7 -39.6 the last year same period. Low 51.8 372.4 49.6 408.1 2.2 -35.7 Buoyant price levels prevailed for Direct sales, despite volume traded decreased by 33% or Total 83.1 356.6 78.7 394.4 4.4 -37.8 0.2Mkgs, and average auction price at Colombo auction dipped to 355.77 /kg or 9.7% below the last Table 6– Weekly Auction sales comparison year level as against the correspondent period of during the quarter (Rs/Kg) 2011. Auc. High Medium Low Average Month Change No. 2012 2011 2012 2011 2012 2011 2012 -year 2011-year 1 326.29 376.05 300.79 353.22 367.35 406.62 347.44 387.76 -40.3 2 332.06 377.63 306.12 353.55 367.78 412.11 350.62 391.46 -40.8 January 3 327.71 375.14 298.24 353.29 365.58 409.70 347.14 379.43 -32.3 4 334.45 377.26 301.86 360.44 361.77 415.76 347.33 377.30 -30.0 5 333.55 370.37 302.74 348.34 362.47 397.06 347.73 367.17 -19.4 6 330.01 374.15 297.76 348.61 352.04 404.35 338.94 381.59 -42.7 February 7 334.78 380.10 310.01 359.21 364.44 414.66 351.41 382.61 -31.2 8 330.41 378.95 315.94 361.86 365.15 422.45 350.45 381.01 -30.6 9 332.79 376.90 320.87 353.50 369.79 401.73 354.29 386.42 -32.1 10 330.19 389.11 322.07 369.77 367.76 408.93 353.08 391.95 -38.9 March 11 342.71 389.36 324.72 371.06 375.91 407.92 360.15 393.20 -33.1 12 348.75 384.27 339.89 378.31 395.90 402.38 375.55 383.73 -8.2 13 356.25 374.30 346.49 366.44 424.13 394.96 396.92 363.39 33.5 Colombo Auction Colombo auction price Colombo Tea Auction were held on thirteen auctions during the quarter and average sale prices were always below those of last year correspondent sale and in some weeks the difference in price drop exceeded Rs.40/Kg. The main reasons for price reduction of our teas are the lesser inquires made for High grown quality season teas by the Western Nations due to economic crisis and instability in Persian Gulf where more The most significant feature of than 30 percent of our teas consigned. this quarter is sudden Rupee value depreciation which caused a check on price decline at end of the sale In March. PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
  • 4. Tea market update Volume 8. No. 1 P AG E 4 Tea Exports P AG E 4 Sri Lanka tea exports for the first quarter of 2012 reached Hence, the sequence of events that took place in the 76238 metric tons with re-exports, a 4.3 percent decrease global economy shocked the world premium food over the first quarter of 2011, following value of the and beverage markets with little exceptions. shipments earned US$332.9 million, down 12.2 percent due to lower FOB value and volume. Table 10 -Top ten destinations of Pure Ceylon tea from Jan– March 2012/2011 Units:Qty - MKg Tea exports for the month of March alone show a quantity Total tea increase and earnings decrease, reaching 29247 metric tons 2012 2011 Change Country Exports % valued at US$125.3 million, up 8.2 percent and down 5.2 percent, respectively, over March 2011 figures. Quarterly Qty Qty Qty % 2012 2011 exports of value added tea like Tea bags, Packets ,RTD, Russia 11.16 12.67 -1.51 -11.92 14.64 15.91 and Instant tea excluding re-exports in first quarter were Iran 10.08 7.52 2.56 34.04 13.22 9.44 41492 metric tons, down 6 percent from first quarter 2011, Syria 6.81 6.18 0.63 10.19 8.93 7.76 while its export value decreased to US$189.47 million, fell Iraq 5.29 4.89 0.40 8.18 6.94 6.14 13 percent, attributed to appreciation of dollars by 9.3 Turkey 4.30 5.75 -1.45 -25.22 5.64 7.22 percent over last year same quarter. These details are Libya 3.85 1.87 1.98 105.88 5.05 2.35 shown in table 8. and 9.below. Azerbaijan 2.65 2.60 0.05 1.92 3.48 3.26 Japan 2.47 3.20 -0.73 -22.81 3.24 4.02 Table 8 - Export Statistics for each month during UAE 2.43 6.65 -4.22 -63.46 3.19 8.35 first quarter 2008/2012Units : MT Ukraine 1.93 1.95 -0.02 -1.03 2.53 2.45 2012 2011 2010 2009 2008 Total 50.97 53.28 -2.31 -4.34 66.86 66.9 January 23,239 27266 21045 18403 23659  except re-export volume February 23,753 25345 25116 21400 28359 Sequence of top ten destinations changed dramati- March 29,247 27026 24049 30123 26808 cally where United Arab Emirates crashed to 9th Total 76,238 79,638 70,210 69,926 78827 place importing its lowest level of 2.43Mkgs or a 63% decrease per quarter compared to the last year Table 9 – Tea Exports comparison during first quarter same period. It is depicted in table 10. A rebound of (2012/2011) Units:Qty-Tons, FOB-Rs/Kg Value-Millions the ruined economy of Libya showed a significant The major reason for the decline that recently occurred in 2012 2011 Change % Change Category Qty FOB Value Qty FOB Value Qty FOB Value Qty FOB Value Bulk* 29,953 492.72 13681 29,844 465.69 13,898 109 27.03 -8,538 0.4 5.80 -61.4 Packets* 35,653 481.89 17,180 37,535 484.48 18,185 -1,882 -2.59 -1,005 -5.0 -0.53 -5.5 Tea Bags* 5,374 950.58 5,360 6,200 922.29 5,718 -826 28.29 -358 -13.3 3.07 -6.3 Instant Tea 464 776.98 361 429 761.59 327 35 323.69 34 0.0 0.00 0.0 Green Tea 531 1,085.28 576 573 996.13 571 -42 89.15 5 -7.4 8.95 0.9 RTD** 1 1,873.97 37 4 905.08 4 -3 968.89 33 0.0 0.00 0.0 Sub Total 71,976 516.30 37,195 74,586 521.78 38,703 -2,610 -5.48 -1,508 -25.4 -1.05 -3.9 Re-Exports 4,261 730.42 3,112 5,052 660.61 3,337 -791 69.81 -225 -15.7 10.5 -6.7 Total 76,237 528.26 40,307 79,638 528.64 42,040 -3,401 -0.38 -1,733 -4.3 -0.07 -4.1 * Black Tea ** Ready To Drink improvement of tea imports while Iraq showed the country’s tea exports was due to a combination of moderate progress of its Ceylon tea imports. Ukraine factors commencing from economic crisis in USA, Euro and Iran offered the highest Zone calamity, aftermath of the Japanese tsunami, currency FOB price per kilogram whilst depreciation in most major markets, accumulated with the Libya and Kuwait record the uprising of Arab nations and sanctions on Iran. lowest FOB for the period among top ten list of destinations. PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
  • 5. Tea market update Volume 8. No. 1 P AG E 5 ……………..………….from page 1. issues related to production, marketing, pricing and General Overview consumption of tea. Intercessional Working Groups Weather representing all stakeholders are held every other year Bright weather with few scattered rains were reported in all prior to main FAO/IGG Session and it is mandatory to tea growing regions. seek the approval of member countries on agenda, themes, issues and new working groups to be discussed Quality at the main session of FAO/IGG on tea. Lower production Western quality teas and general leafy The International Tea Committee (ITC) Producer/ grades in low grown areas registered. Crop High and mid grown teas reported a lower production and low grown also registered a slight decrease. Colombo International Tea Convention .. from page 1 Incidentally, Sri Lanka hosted the 15th Session of FAO/ IGG on Tea in August 2003 gaining immense mileage. At Consumer Members Forum preceded the IGG on Tea sessions on 29th January 2012, together with a half day meeting on “Climate Change”. The tea producing countries also met on the sideline of FAO/IGG on Tea Conference, to establish an International Tea Producers Forum (ITPF) on 1st February 2012.The objective of this gathering is to create a common platform for tea producers and to formulate strategies for the benefit of all tea producing nations. This informal meeting was chaired by honorable Mahinda Samarasinghe , Minister The United Nations Food & Agriculture Organization of Plantation Industries In Sri Lanka where a resolution (FAO)/Intergovernmental Group (IGG) on Tea which was signed by 10 tea producing countries with agreeab- was established in 1969 is a forum where important ility to set up an ITPF policies and strategies related to the global tea industry are formulated. Its Membership is open to all the mem- In order to present the global tea fraternity who will gather in Colombo with a total offering, Sri Lanka Tea Board and Colombo Tea Traders’ Association (CTTA) hosted an International Tea Convention from 1st to 3rd February 2012 at Cinnamon Grand Hotel, Colombo. The tea convention this year revolved around the theme “Exclusivitea” encompassing the niche in quality that is synonymous with “Ceylon Tea”. The event attracted all major leaders of the global tea industry to the heart of Colombo for the three day event. The convention provided all stake holders, both local and international with an ideal platform to exchange views, network, share technologies and resources and integrate during the span of the event. The Colombo Tea Conventions bers/associate members of UN who are interested in tea have always been the best attended in the tea world and production/consumption/trading of tea. The FAO/IGG on boast of an exclusive mix of international speakers on Tea, a subsidiary body of the committee on Commodity themes of current and future relevance. This mega Problems hold biannual sessions and is considered as the -event was organized by the CTTA, in collaboration only global forum for member nations to deliberate with the Sri Lanka Tea Board. PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD
  • 6. Tea market update Volume 8. No. 1 P AG E 6 P AG E 6 Average auction prices at all world auction centers Global Tea Scene fetched below the US$ 3 per kilogram price though tea Tea Production production had relegated to a considerably low level. The global liquidity crisis played havoc among most Major black tea producing countries of India and East major markets, as a result, the industries won’t be able Africa registered a crop shortfall in first quarter of 2012 to grow as planned. This is likely to lead to lesser due to the prolong dry weather in major tea producing employment generation, job cuts as well as stagnation areas. Worst ever drought in fifteen years in North in salaries. As such are expected to dwindle the India resulted in a crop short fall of 18 % by end March demand for imported hot beverages as well as local 2012 compared to last year same period. consumption. Table 11 -Global tea production comparison in Kenya Tea exports increased by 10 million kilograms first quarter 2012/2011(MT.) for the period due to a surge in imports by Egypt, PRODUCTION Month 2012 2011 Change Afghanistan and Pakistan compared to the previous year same quarter. China maintained its previous year N E INDIA 3 37520 45553 -8033 tea export volume with a slight decrease due to strong SOUTH INDIA 3 44774 48841 -4067 market position in west African countries. BANGLADESH 3 731 998 -267 CHINA (1) 3 356000 286000 70000 As a emerged tea exporter of Vietnam shipped 19,500 3 -6799 tons of tea worth of US$ 27.8 million in the first two SRI LANKA 71,601 78,400 months of this year, rose by 18.24 % in volume and INDONESIA 3 15438 14821 617 17.25% in value term over the same period of last year. KENYA 3 72436 85169 -12733 In the first two months of this year, Vietnam exported MALAWI 2 13721 13606 115 2,800 tons of tea worth $ 2.6 million to Indonesia, TANZANIA 2 6608 6835 -227 accounting for 14.7 per cent of the total. Further UGANDA 2 4902 7414 -2512 Vietnam shipped total of 7.5 million kilograms of tea ZIMBABWE 2 3189 4267 -1078 to Pakistan. Taiwan, and Russia for the first two months TOTAL 626920 591904 35016 of 2012. *Till March provisional Source : INTTEA All global tea producers have incurred income declines while traders and firms in higher stages of the value Low rains and frost conditions in Kenya, Uganda, chain have escaped this death trap. In the mid 1990s Zimbabwe, and Tanzania too have attributed to the earnings by tea producing countries (exports F.O.B) decline tea production. As a result Kenyan tea crop dropped 15% in first quarter compared to the were some US$ 5-6 billion and the value of retail sales corresponding period of 2011.The severe global tea of tea, largely in developed countries, about US$30 crop failure was adequately compensated by increased billion. Now the value of retail sales exceeds US$70 green tea production from China over the period. It is billion with energy price increases but tea producing depicted in table 11 above. countries only receive around US$ 10-12 billion. The Table 12- Average prices in major auction centers unbalanced character of power in the tea value chain as at 31st March 2007-2012 helps explain the increasingly unequal distribution of total incomes in all tea producing countries. Centre 2012 2011 2010 2009 2008 2007 Kolkata 2.01 2.77 2.58 2.54 2.37 1.96 Table 13. Global tea production and Exports comparison Cochin 1.73 1.73 1.71 1.83 1.65 1.36 (1976-2012) Unit: MKgs Chittagong 1.88 2.14 2.63 1.98 1.62 1.17 Mombasa 2.67 2.72 2.54 2.29 2.18 1.66 2011 2005 1995 1985 1976 Jakarta 1.84 1.97 1.81 1.82 1.51 1.33 Global Production 4217 3458 2521 2263 1588 Colombo 2.99 3.26 3.28 3.14 2.87 2.53 Global Exports 1719 1566 1079 951 791 Guwahati 1.74 2.33 2.43 2.23 2.14 1.72 Sri Lanka (without re- 303 299 235 198 200 Malawi 1.67 1.61 1.58 1.58 1.37 1.05 exports) World 2.47 2.73 2.71 2.49 2.31 1.89 Sri Lanka percentage 17.6 19.1 21.8 20.8 25.3 (Global Exports) Source: ITC PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
  • 7. Tea market update Volume 8 No. 1 P AG E 7 Sri Lanka Tea Board Participation at Foodex Trade Fair Participation Japan 2012 (6th to 9th March 2012) “PRODEXPO” RUSSIA (11th - 15th FEBRUARY Sri Lanka Tea Board organized a National Pavilion for 2012) Ceylon Tea and participated together with Jafferjee Brothers Ltd, Imperial Teas (Pvt) Ltd, Stassen Exports Sri Lanka Tea Board participated at the Prodexpo – the (Pvt) Ltd and Basilur Tea (Pvt) Ltd at Foodex Japan largest exhibition in Moscow, Russia with following tea 2012. The 60th anniversary of diplomatic relations exporting companies. between Japan and Sri Lanka is being celebrated this Mabroc Teas (Pvt) Ltd., Natures Pride (Pvt) Ltd, Ceylon Tea Bags (Pvt) Ltd and Ceylon Tea Land (Pvt) Ltd. Sri Lanka coordinated and extended the necessary assistance year and a special promotional seminar for tea, tourism and investment and a high profile net-working session between the tea trades of Japan and Sri Lanka were organized to coincide with Foodex Japan 2012. Hon. Mahinda Samarasinghe, Minister of Plantation for the successful participation of the above fair. GULFOOD 2012 in UAE, 19th – 22nd February Industries and Hon. Namal Rajapakse, Member of Parliament graced the occasion. Sri Tea Board was Sri Lanka Tea Board facilitated the participation of 09 represented by its Chairperson and Director private sector tea exporting companies under the Ceylon (Promotion). Tea pavilion at GULFOOD 2012 exhibition. The compa- nies participated under Ceylon Tea pavilion are M/s. BPL HORECA 2012 in Lebanon, 20th – 23rd March Teas (Pvt) Ltd, M/s. HVA Foods (Pvt) Ltd, M/s. Ranfer Teas (Pvt) Ltd, M/s. Mabroc Teas (Pvt) Ltd, M/s. Vintage Sri Lanka Tea Board organized the participation of 02 Teas Ceylon (Pvt) Ltd, M/s. Ceylon Fresh Teas (Pvt) Ltd, private sector tea exporting companies at above trade M/s. Ceylon Tea Land (Pvt) Ltd, M/s. Eswaran Brothers exhibition that M/s Eswaran Brothers Exports (Pvt) Ltd Exports (Pvt) Ltd and M/s. Ceylon Tea Marketing (Pvt) and M/s. Imperial Teas (Pvt) Ltd. Sri Lanka Tea Board Ltd. Sri Lanka Tea Board coordinated all the logistical coordinated all the logistical arrangement of the arrangement of the participation of the exhibitors. participation of the exhibitors. PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD
  • 8. Tea market update Volume 8. No. 1 P AG E 8 In the study, 75 young male regular tea drinkers were split into Research Update two groups and monitored for six weeks. One group, the control group was given a caffeinated placebo devoid of the Black tea reduces risk of Parkinson's disease active tea ingredients. "To our knowledge, this is the first prospective cohort studyThe other group was given fruit-flavored caffeinated tea mix- of Parkinson's Disease risk factors in a non-white populationture made up of the constituents of an average cup of black tea. living in Asia..." When both groups were subjected to challenging tasks which Asst Prof Koh Woon Puay, Department of Occupational and induced stress, the group taking the tea mixture was found to be Family Medicine.Findings from a collaboration between the able to reduce their cortisol levels by an average of 47 per cent. National Neuroscience Institute (NNI) and NUS have revealed "We had observed an inverse association between consumption of black tea and the risk of Parkinson's Disease in the Chinese for the first time, that drinking black tea (but not green tea) reduces the risk of developing Parkinson's Disease among the population residing in Singapore. Our research is a very prom- Chinese population in Singapore. ising first step to identify dietary and lifestyle factors related to Parkinson's disease in an Asian context. More studies will be The findings, which are published in the on-line issue of needed before we can firmly establish the protective effect of American Journal of Epidemiology (Dec 2007) suggest that black tea on the disease and understand its underlying mecha- black tea may exhibit neuroprotective effects on Parkinson's nism. Such research will enable us to develop strategies to Disease. The findings, presented at the 1st Asian and Oce- prevent or reduce the progression of this debilitating neurode- anian Parkinson's Disease and Movement Disorders Congress generative condition," said Dr Louis Tan, senior consultant (Oct 2007) won the second prize for Best Research Presenta- neurologist at NNI-TTSH who is leading the study with Dr Koh tion Award. of NUS. The NNI-NUS study is unique. "To our knowledge, this is the NICE CUPPA TEA: Dr Koh Woon Puay and Dr Louis Tan first prospective cohort study of Parkinson's Disease risk fac- lead research team on the effects of black tea on Parkinson's tors in a non-white population living in Asia. Singapore Chi- Disease.There has always been a lack of data from Asian nese are well suited for the study of coffee, green tea and black populations on dietary and lifestyle factors associated with tea consumption and health outcomes since all three types of Parkinson's Disease, said co-Principal Investigator for the beverages possess divergent intake profiles in this population. research project, Asst Prof Koh Woon Puay, Department of Other strengths of the study are its population-based design and Community, Occupational and Family Medicine. To fill this the collection of data on tea-drinking prior to disease diagno- gap, the researchers examined these factors in relation to sis," said Dr Koh. Parkinson's Disease in the Singapore Chinese Health Study with a cohort of 63,257 Chinese men and women. This is a Next, the team intends to dentify other factors that may affect first community-based study of the disease's risk factors in an an individual's risk of developing Parkinson's disease as well as Asian population. understand the mechanism of black tea's protective effect on the disease. Experimental scientists have shown that black tea Between 1992 and 2005, data was collected through in-person extracts (oxidised polyphenols such as thearubigins and interviews using structured questionnaires. Results from the theaflavins ) possess neuro-protective and neuro-rescue proper- study showed that individuals who had a higher dietary intake ties in an animal model of Parkinson's Disease, said Dr Koh. of caffeine were less likely to develop Parkinson's disease. But at the moment, it is too early for the team to identify what This result tallies with what several large population-based the possible protective content may be. studies in USA and Europe have shown. However, a novel finding by the NNI-NUS team is that black tea intake also reduces the risk for developing the disease -- and it is not just the caffeine content in black tea that is re- sponsible. Green tea, in contrast, did not show any significant protective effects on the disease. Black tea magic Black tea comes from the leaves of Camellia sinensia -- a per- ennial evergreen shrub that is native to Southeast Asia. The leaves are oxidised under controlled temperature and humid- ity. Then the leaves are dried to arrest the oxidation process. Trade and statistics inquiries: They are then sorted into grades according to their sizes. Sri Lanka Tea Board According to a study in 2006 by University College London, 574,Galle Rd, Colombo – 03. black tea also has an effect on stress hormone levels in the Tel :2587814,2582122 Fax : 2587341 body. PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD