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

Authors Avatar

Part A

  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 advantage of new price hike. Tanzania which usually produce about 35 000 tons annually is maintaining their manufacture at the same levels.

Tea Consumption

The FAO estimated the global tea consumption to grow at an annual rate of 1.7% to reach 2.8 billion kilograms in another ten years. India is expected to be the largest consumer of tea with an annual consumption of over 900MKg followed by Russia (328MKg), Turkey (189MKg).

Exporting of Tea

Table-3 Exports comparison during January–September period in 2009—Unit: MT

Source: Tea Market Update Volume 5 no 3

World black tea exports are projected by the FAO to reach 1.39 billion kilograms in another ten years. It has also been projected that Sri Lanka remains as the largest exporter with an export volume of 395 million kilograms followed by Kenya (325MKg), India (265MKg) and Indonesia (95MKg). Tea exports data released by major exporting countries in million kilograms and their status as compared to the corresponding month in the previous year are as follows.

Sri Lanka (up to June) 156.3 – growth of 8.6%

China (up to June) 151.3 – growth of 5.5%

Kenya (up to May) 146.2 – drop of 8.6%

Bangladesh (up to May) 3.6 - growth of 240 %

India (up to April) 55.1 – growth of 3.4 %

Vietnam (up to April) 34.3 – drop of 9.3%

This reveals that Sri Lanka is leading the main exporters list with 156.3MKg closely followed by China with151.3MKg of which 80% are green teas.

Join now!


Table 4 Average tea prices (US $/kg)

Source: Tea Market Update Volume 4 no 2

Going through the table 1 and 4 it is clearly identified the relationship between individual growers and price of tea market of the world. As an example Sri Lanka and India has provided the largest production in the year of 2008 and it has directly influenced of the price of the tea. As an example India has done 345.7 with Sri Lanka respectively on 171.3 with a significant increase compared to 2007 which has resulted and ...

This is a preview of the whole essay