The production, consumption and exporting of tea - analysis of the global tea market.

This essay hasn't yet been marked by one of our teachers

You can view 2 essays on Applied Economics that have been Marked by Teachers

The first 200 words of this essay...

Part A

1.1 The production consumption and exporting of tea

Tea Production

Table 1 Global Tea production 2007/2008

Source: Tea Market Update Volume 4 no 2

Table 2 Global Tea production 2008/2009 (Met Tons)

Source: Tea Market Update Volume 5 no 3

The first nine months of the current year witnessed a drastic drop in global production across the major tea producing countries. With the notable decline in Sri Lanka, production dropped in most of the black tea producing countries which together account for about 80 percent of the commodity's global supply. Available country data depicted in table 2 revealed that tea production had fallen during the first nine months of 2009 by 5.4 percent.

In Kenya, the largest CTC tea exporting country, production declined by 12 percent during January-September 2009 as compared to the same period in the previous year due to an unusually severe drought in many provinces. China and Vietnam is understood to maintain their usual black tea production and enjoyed the present price increase with more earnings. These two countries have initiated a crop expansion by using new lands and setting up factories to enjoy the