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Oct 13, 2020
Page 1 Tea Exporters Association Sri Lanka
Congratulations Joining Our Team…..
TEA AGM 2020 Postponed
TEA welcomes BPL Teas The committee of management of TEA approved the rejoining of M/S Bogawantalawa Tea Ceylon (Pvt) Ltd effective from 25th September 2020.
Life Time Achievement Award for Tea Trade Members
SRI LANKA TEA PRODUCTION – JANUARY TO AUGUST 2020 Sri Lanka Tea production of 22.4 million kgs in August 2020 was a decrease of 3.7 million kgs vis-à-vis 26.2 million kgs of August 2019. All elevations have shown a decrease in production compared to 2019, with Low Growns recording the highest, followed by High Growns and Medium Growns.
The Management of TEA seriously considered the new developments in the country after a number of COVID 19 positive cases were reported from Gampaha district. The management was concerned about the safety of it’s members and their employees and took the decision to postpone the AGM scheduled for 8th October 2020. The new date would be announced after evaluating the situation. All tickets issued for the AGM will be valid for the new date.
The management has decided to recognizes and honour the outstanding
persons who have made extra ordinary contributions towards the promotion
of “Ceylon Tea” and developing the tea export sector, commencing from this
year’s AGM. The selection will be based on the following criteria and a
selected party should have satisfied at least 2/3rd of the items included in the
1. Excellence in leadership, Brand development, Innovation and being an outstanding person in the tea export sector. 2. Vision for long term orientation & potential for expansion of tea export business. 3. Development of most globally outreached Sri Lanka tea brand/s. 4. Company or individual contribution for growth in tea export supply chain. 5. Implementation of sustainable policies – environment protection, resource efficiency, CSR projects etc. 6. Product and Market diversification in the last few decades. 7. Adherence to international standards to meet the global consumer requirements. 8. Tea export volumes, values and unit FOB prices in the last few decades. 9. Employment generation, contribution to national economy etc. 10. Contribution to expand Ceylon Tea market share & reputation in the global tea market. 11. Contribution made through business enterprises or stakeholder associations for betterment of Sri Lanka tea industry.
WORLD TEA CROP
Page 2 Tea Exporters Association Sri Lanka
The available tea crop figures for January-August 2020 period are appended below (in MT)
January-August 2020 cumulative production of 179.1 million kgs too, shows a decrease of 31.8 million kgs against the volume of 211.01 million kgs of January-August 2019. All elevations show a decrease against 2019 with Low Growns, once again, recording the highest deficit followed by High Growns and Medium Growns.
CTC production for August 2020 of 1.6 million kgs shows a decrease of 0.5 million kgs when compared with 2.2 million kgs of August 2019. On a cumulative basis, January-August 2020 CTC production of 15.6 million kgs records a marginal gain vis-à-vis 15.4 million kgs of January-August 2019. High Growns show a gain YOY, whilst Mediums remained static. Low Growns, however, show a decrease compared to the corresponding period of 2019.
The latest tea crop figures of some leading tea producing countries are furnished below (in million Kg).
Page 3 Tea Exporters Association Sri Lanka
SRI LANKA TEA EXPORTS - JANUARY TO AUGUST 2020
Tea exports for the month of August 2020 totalled 22.01 million kgs, recording a deficit of 4.19 million kgs vis-à-vis 26.20 million kgs of 2019. Tea Bags, Tea in Packets and Bulk tea segments have shown a decline YOY. Total revenue of Rs. 19.03 billion for August 2020 too shows a decrease of Rs. 2.10 billion against the revenue of Rs. 21.10 billion of August 2019. However, the total FOB value of Rs. 864.99 (USD 4.71) shows a gain of Rs. 58.59 vis-à-vis Rs. 806.40 (USD 4.54) of August 2019.
January-August 2020 cumulative exports totalled 174.1 million kgs recording a decrease of 22.1 million kgs against the volume of 196.2 million kgs of January-August 2019. All main categories of exports, (i.e. Tea bags, Packeted tea and Bulk tea) have shown a decrease compared to the corresponding period of 2019. Total revenue too of Rs. 149.40 billion shows a deficit of Rs. 13.10 billion vis-à-vis Rs. 162.50 billion of 2019. Meanwhile, January-August 2020 FOB value of Rs. 858.25 (USD 4.67) shows a gain of Rs. 29.87 vis-à-vis Rs. 828.38 (USD 4.68) of January-August 2019.
Turkey has emerged as the largest importer followed by Iraq and Russia. Iran, China, Azerbaijan, Chile, Libya and Syria are some of the other noteworthy importers. It is also relevant to note that destinations such as the UAE, Japan and Hong Kong have shown a fairly significant decrease in imports during the period under review.
The tea export figures for January-August 2020 are listed below (in MT).
experience with a fashionable product and integrating the gourmet quality tea into their life style. The growing retail sector is innovatively catering for new preferences through a diversity of tea origins and flavours.
Page 4 Tea Exporters Association Sri Lanka
MAJOR IMPORTERS OF SRI LANKA TEA - JANUARY/AUGUST 2020
(SL Customs- courtesy Forbes & Walker Tea Brokers)
Production in Bangladesh is understood to have returned to near normalcy since July following the setbacks in recent months.
In Rwanda, production and exports are known to be higher this year with 18 factories now manufacturing tea with some of the newer plantations generating healthy yields.
The Council of the European Union is understood to have authorized the formal signing of the China-EU agreement on geographical indications. 100 European geographical indication products in China and 100 Chinese geographical indication products in the European Union will be protected under this agreement. According to the terms of the agreement, 28 tea geographical indication products have been included within the first batch of the protection list and it is expected that the scope of this agreement will be expanded to cover 175 additional products for each party including 31 tea products four years later.
Summary of Developments in the Major Tea Producing Countries
In India, cumulative tea crop at the end of August reflects a decline of 22% in comparison with the previous year with the deficit recorded almost totally in the North. One of the reasons that prices at all auction centres in India have remained high in recent months is as a result of supply shortages in the March-June period when in-home consumption was known to have been relatively higher.
In Kenya, production continued to remain high in July though it was relatively less than last year as a result of cold spells of weather, less rainfall and pruning - the cumulative crop now reflects a growth of nearly by 40%.
(Source: International Tea Committee / Courtesy – Forbes and Walker Tea Brokers)
2. Forecast for MENA Region – 2017
Page 5 Tea Exporters Association Sri Lanka
The strong trend of the previous month continued at the first two sales for both CTC and Orthodox teas. However, there was less off take at the next sale. The last sale of the moth saw good demand, but at easier rates.
There was only fair demand at the first sale of the month whilst the better teas attracted more interest during the following week. Demand was weaker for the larger quantities on offer in Wks. 3 and 4.
All teas met with good demand at the first sale of the month at dearer rates. However, demand was somewhat selective at the following sales.
Though 22% of the quantity on offer remained unsold, there was good demand at the first sale of the month. Whilst Kazakhstan and other CIS nations showed less interest, all other major buyers remained active. Fair demand only was witnessed at the following sales but Pakistan, Egypt and UK showed more interest throughout the month.
The first sale of the month drew improved demand for teas from all elevations and overall demand remained strong at each of the following sales. Prices for leafy teas were lower at the last sale of the month whilst small leaf teas of High and Medium elevations attracted more interest resulting in improved prices.
Demand was somewhat curtailed in the first week and there was reduced demand with buyers showing less interest on all categories at the following sales but price levels remained quite high.
Market was somewhat easier at the first sale of the month, mainly for the leafy teas. With exporters remaining selective with their purchases, there was less demand at the next three sales. Significant quantities of leafy teas were withdrawn and the total average price continue