Business Times

Tea prices, production and exports seen strong in 2011:Forbes report

Tea production and exports last year is seen at record levels while the prognosis for 2011 is seen as ‘strong’, according to tea broker Forbes & Walker Ltd. In its annual report for 2010 and outlook for 2011, the veteran broking firm said production in 2010 is expected to an all time high of over 320 million kgs, up from the previous highest crop of 318.6 million kgs in 2008.

In looking ahead, the report said world tea prices are holding firm in all major producer countries despite excess production due to increasing consumption around the world. This includes particularly absorption of tea by producing countries themselves and to a great extent the increasing consumption in India and China. Other larger tea importing nations such as Russian Federation, Iraq, Egypt, Pakistan, Japan etc. are also consuming more, the report added. “In addition, the low inventory levels maintained by most importing countries in 2009 would also have helped to absorb the increased volumes. Yet another factor that needs due consideration is the steady growth in oil prices which would have a positive impact particularly on Sri Lankan tea prices,” it said.

Tea export volumes from China for the first nine months of the year totalled 220 m/kgs vis-a-vis 233 million during the corresponding period of last year, around 6% lower compared with the first nine months of 2009. This could be attributed to higher domestic consumption, Forbes said adding that similarly, tea consumption in India is expected to rise to 870 million kgs in 2010 compared to 850 million in 2009, thereby reducing the surplus for exports.

It said these factors combined with the customarily lower volumes during the 1st quarter would ‘brew up a strong story for tea in 2011’. Forbes said nevertheless the optimism for the tea market in 2011 must be linked with the accent on maintaining a reasonable and consistent quality throughout the year.
On tea output in 2010, it said low growns accounted for approximately 59% of the annual crop this year whilst high growns accounted for 24% and mediums, 17%.

Export revenue would also reach a new record in 2010 and possibly touch the $1.5 billion mark while tea prices peaked at a Colombo auction, all time, average of Rs.370.61 per kg against the previous all time high of Rs.360.45 per kg in 2009. Thi was a gain of Rs.10.16 per kg (approximately 3%) despite the appreciation of the Sri Lanka Rupee against the US dollar. High growns have moved up from Rs.319.70 per kg in 2009 to Rs.337.82 per kg in 2010, a gain of Rs.18.12 per kg (5.7%).

Medium growns moved up from Rs.315.47 per kg in 2009 to Rs.330.88 per kg in 2010, a gain of Rs.15.41 per kg (5%) while low growns rose from 388.16 per kg in 2009 to Rs.393.40 per kg in 2010, a gain of Rs.5.24 per kg (1.5%). The report said out of the main importers of Sri Lankan tea, some 72% of the business came from the Russia/CIS and the Middle East. The top 10 destinations account for almost 78% which includes 8.9 million kgs from Japan.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Dollar seen weakening to Rs 106-108 in 2011
Erroneous New Year lottery incurs heavy loss for NLB
No big names for Kalpitiya, Govt. may issue fresh bids
Seylan Bank’s top three officials resign
Grand Oriental Hotel deal in fizzled out mode
Order reserved in oil hedging arbitration
Comment - Roadmap to prosperity
Feature - US GSP for over 130 countries expires, likely to re-start in next few months
Feature - Crisis in coconut: Long term perspective for development of coconut needed
20,000 MFIs to be regulated under Micro- Finance regulations: CB Governor
Indian experts to share insights at ICASL workshop
Laugfs to offer non Acetylene metal cutting gas
Coca Cola gives permanent jobs to 25 top salesmen
City tour for tourists
Central Bank predicts 8-9% economic growth for Sri Lanka
Budget and the Deemed Dividend Tax
Overseas employment prog. should be pro-active: NWC
Markss Healthcare helps in courses to educate ‘budding’ surgeons
Communications’ specialists to share expertise at Feb. 3 seminar
No control over share price movements : PCH
New MD at Ceylon Tobacco Company
SLASSCOM elects new board for 2011
Efutures provides support services to Wall Street firms
ODEL builds 20 houses to mark 20th anniversary
Pelwatte milk foods to enter the market shortly
East coast - hot destination for heli flights
Aitken Spence Printing at Galle Literary Festival
ICASL to introduce new ICT enabled products to its students and members
20 mln shares on offer in Marawila rights issue
Former Nestle SL MD to head Kotmale
‘SURE’ rewards from Seylan Bank to all customers
Emirates sponsors popular authors to Galle Literary Festival
CB Governor on ITN's "Rupees and Sense"
Colombo bourse half day on Jan. 14
SLIC pays Harry’s DCSL Rs. 6.7 bln as per SC order
HVA set to consolidate HELADIV brand through IPO
Lankan PR firm launches website
Ray of hope for GK depositors under new payment proposals
New port city being built at $450 mln cost
Commercial Bank reaches milestone 400th ATM
Proposed 5-day week for those seeking flexible working hours: EFC
Mobitel reached 3.8 million subscribers by Nov. 2010
Tea prices, production and exports seen strong in 2011: Forbes report
SEC may revisit price band
Lanka Bell may not be sold
Sri Lanka rubber prices seen rising
Oman Air CEO speaks on in-flight entertainment
Sri Lanka is next Asian economic miracle :ex-Pakistan bureaucrat


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution