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Author Topic: Tea earnings top Rs. 98.8 bn  (Read 1696 times)
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« on: October 05, 2010, 02:21:23 AM »

Tea earnings top Rs. 98.8 bn
China syndrome could negate Tea progress
3 October  2010
By Steve A. Morrell

‘ China’s efforts to boost output of black tea for export will have a major negative impact on prices’ This observation, at least we take it to be so, was quoted from the ‘Tea Economist’, by Ceylon Tea Brokers PLC., in their weekly Tea market report last week.

Taken in parallel with ‘Lanka Commodities Brokers Ltd., remarks in their penultimate market report that we could not expect the market to rise indefinitely, has strong credibility, that irrespective of our efforts to boost production, this new phenomenon of over production be seriously considered in Sri Lanka’s future contribution to world production.

Production main exporting countries , India, Sri Lanka, Kenya, Bangladesh, Uganda, Tanzania, Malawi Mozambique, and Zimbabwe, could be affected subject to China’s black Tea exports meeting world standards, and accepted as an alternative to traditional exporters, the report said. Additionally, as already demonstrated by China producing commodities far cheaper than other origins, could have retrograde repercussions in Tea producing countries. They could produce Tea too,and sell at cheaper rates than already experienced in other world trade centers.

Ceylon Tea earnings effective end August this year topped Rupees 98. 8 billion. Equated in Dollars earnings it was 889 million Dollars. All told market conditions were good Brokers said, but its continuation might now be in the balance although selling averages retained their high valuations.

Sri Lanka’s main Tea market continues to remain with Russia/ CIS countries; followed by UAE, Syria, and other Middle East countries. Germany is the only European destination for Ceylon Tea. That is,in appreciable quantity.

We also carried a report four weeks ago, that we have made some tentative entry to the US market; but apart from some knee jerk intrusions into some States, the US is largely untapped. Reasons for such reticence was money. We did not have the wherewithal to spend on demands for marketing our product effectively

Value added exports have grown 60 % as quoted by Asia Siyaka, Tea Brokers in their Tea report last week.

Quantity sold last week was 5.9 million kilos. Indicating low crops because of persistent rainy weather.

Quantity on sale this week too would be about 5.9 million kilos.

The Waltrim factory has been re-built. Although partly automated, the factory will shortly be geared to handle approximately 0ne million kilos Tea per annum. The overall concept of the factory included worker welfare adjuncts, with rest rooms , refectory, and changing cubicles. The Manager Waltrim, M.S.A.Akber said the company had spent about 290 million in its entire out- lay, and facilities available now provoke manufacture of an outstanding product. He said Waltrim would soon be a stand – alone Garden mark and in demand at most tea destinations.

Brimming with confidence he also said the historic importance of Waltrim would be maintained.

Sales averages remained relatively high at Rs. 492. Per kilo. Last year that figure read Rs.448. about Rs. 40 higher, as reported by John Keels in their market report last week.

Top sellers were Brunswick, and Glentilt in the Maskeliya hills, both Plantations overlooking the Mousakelle hydro reservoir, Additionally Nadoo Totem, and Bambarakelle, in Talawakelle. Of the Nuwara Eliyas Lovers Leap, and Mahagastota were top sellers.

An interesting feature was that Aigburth at the Bulutota Pass selling under Uva medium s also topped the market. Waltrim too had a top seller last week.

Source: TheIsland.lk http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=8130
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