- Sri Lanka Tea Board

Tea Market Update
V o l u m e
7
N o
3
J u l y — S e p t e m b e r
2 0 1 1
EXTERNAL FACTORS IMPACT TEA INDUSTRY
Tea Production
2
The year 2011 commenced with optimism for the tea
Kenya still shows a 30 million kilo crop decline but
industry after five long years of buoyant tea prices is expected to bridge the gap by end of the year with
which was unprecedented in the history. Due to pro- estimated shortfall of 15 million kilos. Sri Lanka is
duction shortfalls , particularly in Kenya, Sri Lanka expected to show a decline of around 8 million kilos
and India up to end of first half 2011, global tea by end of December. China is forecasted to show a
prices were expected
growth of at least 100
to hold at generally
million kilos. Indonesia
strong levels . Even
apparently will be 10
the strong domestic
million kilos down.
consumption
in
When the global
countries such as
production figures are
China and India forec om put e d,
it
is
casted bright tea
estimated that the tea
prices for producers.
volumes for the year
However the volatile
2011 would be showing
situation in the Mida surplus of almost 100
dle East, Gulf and
million kilos. India for
North Africa, the
the first is expected to
tsunami and other up
reach the one billion
-heavels in Japan, the Specialty tea of the year—Moscow
kilos mile stone. Simieconomic sanctions
larly China is bound to
on Iran as well as the depreciation of local currency create the largest ever production figure reaching
in many consumer countries reacted adversely to close to 1.5 billion kilos. Therefore a deficit global
boost tea prices. The deficit in tea production in production equation it is projected to reach a surplus
India was wiped off by the third quarter and is show- situation putting further pressure on tea prices by end
ing a surplus of 37million kilos as at end September.
of the year.
Cont. in page 5 ….
General Overview
Tea Marketing
3
Tea Exports
4
Economy
Tea Industry
Global Tea Scene
5
Trade Fair Participation
6
News in Brief
6
Escalation of cost of production per kilogram of
made tea due to wage hikes and prolonged drought
made huge blow to plantation companies specially
plantations spread at High and Mid grown region in
third quarter. Regime change turmoil in Middle
East and European debt crisis continued to weigh on
Asian export markets. Following Colombo tea auction prices behave disgusting for all three regions,
despite offering
decreased during third quarter.
Research
8
According to the General Statistics of Central Bank
releases, Sri Lanka’s textile and garments, rubber
based products, and food and beverages exports
contributed more to the national GDP with double
digit growth for the fist eight months of 2011. While
services sector followed similar pattern of growth
for the period.
Both earnings from exports and expenditure on
imports increased further on a year-on-year basis till
August 2011. This resulted 50 percent imports
increased compare to the last year same period.
Worker remittances of $3.3 billion and International
Sovereign Bonds of $ 3.1 billion helped the government to cover up the huge balance of trade balance
($6 billion) for the period. Hence exchange rate
remained steady as average of Rs 109.75 for the third
quarter 2011 also.
The twelve month moving average of inflation
ended at 7.2 percent in September 2011.
Update
Editor-Sampath Perera
E-mail
[email protected]
Web-site
www.pureceylontea.com
Tea exports volume growth comes after two quarters of contraction, and indicates an annualized rate
of growth of 1.5%. Exports grew in the third quarter, greatly buoying the Agriculture exports share,
which relies in sales to foreign trading reflecting a
return to normality.
Continue in page …………….5
Tea market update Volume 7. No. 3
+
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2
Tea Production
During third quarter 2011, the total crop volume stood at 74.6 Million Kgs, which was marginally lower by 5.5% compared to 78.9
Million Kgs recorded during same period of 2010.For the period,
under review only low grown production was recorded a marginally higher at 49.3Mkgs. It is depicted in table 1.
Private, and Plantation Management sectors followed
similar pattern in distribution of tea production based on
ownership, production come down compared to last year
same period and further drop recorded in government
estate sector as shown in table 2.
Table 1 - Tea production during the third quarter
2011(Million kg).
Table 2 – Distribution of Tea Production (JanSep) according to the Ownership (MKg)
July - Sep
Change
Sector
Category
2011
2010
Qty
%
Elevation
High
14.7
17.0
(2.3)
(13.5)
Medium
10.6
13.2
(2.6)
(19.7)
Low
49.3
48.7
0.6
1.2
Total
Processing
Method
74.6
78.9
(4.3)
(5.4)
Orthodox
69.2
73.6
(4.4)
(6.0)
CTC
4.8
4.5
0.3
6.7
Green Tea
0.6
0.8
(0.2)
(25.3)
(4.3)
(5.5)
Total
74.6
78.9
CTC is the next leading manufacturing method after Orthodox for
Ceylon tea having producing 4.8 Million Kgs for the quarter,
which recorded a slight increase . Green tea production showed a
marginally drop though it improved by 5% in first quarter and by
(8%) in the second quarter.
Chart 1 - Cumulative tea Production comparison
Jan-September 2011/2010
Total Jan
Feb
Total - 2010
Mar Apr May Jun
Total - 2011
Jul
2010
Aug Sep
2011
Tea plantations across the high and mid grown recorded a lower
production, while low grown fields experienced a moderate pickup
in production in first nine months to mark 241Mkgs. Although low
grown sector showed a continues improvement , it did not compensate for the drops recorded in other two elevations. It is significant to note that, after May production pattern recorded a continues decline in 2011 and 2010 due to prolonged drought.
2010
%
Production
%
Production
%
Change
Private
135.9
55.4
136.9
54.9
-0.8
Plantation Co.
101.2
41.3
102.2
41.3
-1.0
8.1
3.3
9.2
245.2
100.0
248.3
Public
Total
3.7 -12.1
100
-1.3
Tea manufacturing in Central hills and Western region,
the country’s main tea producing districts, have dropped
9 percent in the first nine months, attributed to poor
weather in third quarter. Following Badulla and Kandy
districts recording poor crop in corporate sector is facing
difficulties.
Table 3.- District wise tea production
as at Sep 2011 (Mt)
ADMIN. DISTRICT
HIGH
MEDIUM
COLOMBO
0
HAMBANTOTA
MATALE
LOW
TOTAL
0
0
0
0
158,786
158,786
0
3,830,678
332,725
4,163,403
KEGALLE
0
504,046
7,799,693
8,303,739
KALUTARA
0
0
13,349,622
13,349,622
546,792 13,840,559
7,359,549
21,746,900
12,806,017 10,503,134
0
23,309,151
KANDY
Monthly
Prod.
(MKg) 40
35
30
25
20
15
10
5
Total Prod.
(MKg)
246
245
244
243
242
241
240
239
2011
BADULLA
0
MATARA
0
103,559
31,341,440
31,444,998
GALLE
0
0
38,092,455
38,092,455
127,542
1,815,629
47,795,001
49,738,171
46,269,245
7,970,826
610,803
54,850,875
RATNAPURA
NUWARA
ELIYA
Total
59,749,596 38,568,430 146,840,072 245,158,098
Tea Marketing
The sharp decrease in the Colombo Tea Auction average
prices which started from the
last two sales of second quarter
continued particularly hurting
plantation companies with low
production due to poor weather.
The figures depicted in table 4
revealed that quantity marketed
in third quarter
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
Tea market update Volume 7. No. 3
P AGE
able 6 –Grade wise quantity sold and price
comparison as at September 2011
than that in 2010, but the average sales price in all
disposal channels was decrease by Rs 18 per kilogram
attributed to Middle East crisis. All three elevations had
recorded comparatively low prices following medium
grown affected mostly than that in third quarter 2010.
Grade
Table 4 –Teas Sold and prices fetched in
third quarter 2011
2011
Elevation
High
Medium
Qty
(MKg)
19.5
Price (SL
Rs)
Price
(US$)
300.29
13.7
Qty
(MKg)
2.73
298.2
18.9
2.71
14.5
FBOP1/FBOP
25131604.38
10.02
BOPF
23461903.64
9.35
FOP/OP1/OP
OPA
21385921.04
17940072.8
8.53
7.15
17108632.7
6.82
PF/FNS/FNS1
6681371.6
2.66
27220154.03
10.86
412.10
414.08
340.20
385.71
328.68
373.27
269.15
357.30
268.07
268.43
328.57
411.31
359.69
445.36
385.70
250,811,411.69
100
362.27
15659551
6.24
15101878.2
6.02
BP/BM
12814768
5.11
BOP1A
11855613
4.73
DUST1
10330560
4.12
9343339.26
3.73
8553965
3.41
BOP
2.8
PEK1
Low
Total
51.1
84.3
373.67
3.40
344.45
51.2
3.13
84.6
393.9
362.2
3.5
PF1
BOP1
3.2
OTHERS
Total sales
Table 5– Weekly Auction sales comparison
during the quarter (Rs/Kg)
High
Month
26
27
28
29
30
31
August
32
33
34
35
September
Based on particle size and liquor quality tea grades fetched
varied price level at the Colombo Auction in its way to
Medium
Low
Average
Auc. Num
Difference
2011
July
Avg. Price
11.25
Price (SL Price
Rs)
(US$)
2.7
%
28222077.04
FP/PEK
319.7
Qty (Kg)
FBOPF1/FBOPF
2010
309.1
36
37
38
3
291.71
291.70
292.41
295.93
296.28
292.04
293.70
297.63
293.41
303.63
305.21
301.95
302.18
2010
287.55
285.36
288.36
293.77
293.89
298.64
307.57
307.77
313.55
324.64
339.39
336.49
332.94
2011
294.09
295.10
295.95
304.83
305.74
306.30
297.76
297.25
299.42
300.57
293.79
292.08
290.91
2010
2011
2010
2011
2010
358.08
370.81
288.46
330.25 338.30
-8.05
368.69
374.57
297.08
334.25 341.08
-6.83
372.80
376.19
301.82
340.08 343.60
-3.52
387.22
387.51
308.06
351.36 353.47
-2.11
376.31
377.25
307.84
345.85 347.57
-1.72
374.98
392.17
314.17
344.46 357.69
-13.23
373.41
406.18
322.10
342.39 369.73
-27.34
378.42
413.10
329.46
345.77 377.49
-31.72
386.82
419.74
328.77
353.47 385.70
-32.23
367.65
403.50
333.27
344.05 376.28
-32.23
372.01
407.13
331.58
346.11 381.23
-35.12
368.93
402.03
323.31
343.98 375.88
-31.9
371.69
397.31
316.52
347.45 370.99
-23.54
blending or straight line exports. Hence, longer experience of
Thirteen auctions were held for the quarter at Colombo Table 7: Teas sold and prices fetched by
auction and sharpened the price decrease during the
distribution channels (Qty:Mkg, Price Rs./Kg)
August and September months though winter season’s
buying activated this period usually.
Third Quarter
Different
At 30th sale , there was a one time slight narrow the gap
2011
2010
Channel
in the average tea price at the Colombo Tea Auction
Qty
Price
Qty
Price
compare to the last year same period. The price falls in
the world market then led to the domestic average price Public Auction
83.4
343.55
83.4
361.7
decrease to below Rs 350 per kilogram after the unpre0.4
448.31
0.8
370.9
dicted price hike of above the Rs 350/kg level at 34th Private Sales
sale though gap increased remained to Rs 32/ kg com- Direct Sales
406.51
445.4
0.5
4.1
pare to corresponding sales to the last year.
84.3
344.45
84.6
362.2
Total
The decrease in medium and high grown prices continues to be a worrying phenomenon, particularly for Plan- higher demand and favorable price in
tation companies and region’s tea small holders, in light the auction, manufacturers offered larof the possible cash flow limitations for re-planting, fac- ger share of most Flowery Peko grades
tory upgrading and socioeconomic impact on domestic this year too. Table 6. depicted the first
nine months details of grades wise
inflation.
sales.
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
Tea market update Volume 7. No. 3
P AGE
4
Tea Exports
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4
The total value of tea exported in third quarter was $392 million,
up by $23 million (6.2 per cent) from third quarter of 2010. Tea
packets exports made a large contribution to this increase, after
the bulk export value. During the third quarter, exports surged
slightly by 0.4 per cent to 87.2Mkgs and the average FOB price
of tea also rose 3.1 per cent to Rs.495.56 per kilogram against the
same period of last year. It is depicted in table8.
Table 8 - Export Statistics for each month during
the third quarter Units: FOB-Rs./Kg, value-million
2011
2010
Change
Category
Qty(Mt)
FOB
Qty
FOB
Qty(Mt)
FOB
July
29,339
482.91
28,837
473.43
502
9.48
August
31,347
499.10
28,742
482.32
2,605
16.78
September
26,528
505.36
29,248
484.91
-2,720
20.45
87,214
495.56
86,827
480.24
387
15.32
Total
In first nine months of 2011, tea exports reached 233.7 Mkgs
with re-exports earning $1 billion. Tea export prices for Ceylon
tea currently stand at the highest of the world average prices.
Table 9 - Tea Exports during Jan –Sep of the year
(2011/2010)Units : FOB - Rs./Kg, Value –Rs. million
2011
Table 10 - Top ten destinations of Ceylon tea
from Jan-Sep 2011 Units : Qty - MKg
Country
2011
29.4
18.3
18.7
21.7
12.6
8.3
7.3
6.5
8.6
11.0
Qty
4.9
2.5
2.1
-5.4
2.4
6.6
1.1
1.9
-1.9
-5.5
151.1 142.4
8.7
Russia
Iran
Syria
U.A.E
Turkey
Iraq
Japan
Azerbaijan
Kuwait
Jordan
Total
Change
2010
34.3
20.8
20.8
16.3
15.0
14.9
8.4
8.4
6.7
5.5
Exports %
% 2011 2010
16.7 15.7 14.5
13.7
9.5 9.0
11.2
9.5 9.2
-24.9
7.4 10.7
19.0
6.8 6.2
79.5
6.8 4.1
15.1
3.8 3.6
29.2
3.8 3.2
-22.1
3.1 4.3
-50.0
2.5 5.4
6.1
69.0 70.4
Russia emerged as the top export destination with 15.7
percent, followed by Iran with 9.5 percent, Syria with 9.5
percent, UAE with 7.4 percent. As revealed in table 10
top ten destinations of Ceylon tea represents 70 percent of
the total tea exports of the country , continuing the same
trend of last year.
The figures indicated in the table above shows that Iraq
imports of Ceylon tea is reaching a level of normalcy after
longer period of war and disturbances in the country’s
food and beverage market. As such , the Dubai hub for
transshipment to neighboring countries like Iraq is ex-
2010
Change
% Change
Category
Qty (kg)
Bulk
Packets
Tea Bags
Instant Tea
Green Tea
Other Tea
FOB
Value
Qty
FOB
Value
Qty (Kg)
FOB
Value
Qty
FOB
Value
91,589,066
445.48
40,801
80,156,530
438.72
35,166
11,432,536
6.76
5,635
14.3
1.5
16.0
106,439,370
477.05
50,777
94,108,552
452.07
42,543
12,330,818
24.98
8,234
13.1
5.5
19.4
18,061,843
928.85
16,777
16,245,456
761.17
12,365
1,816,387
167.68
4,412
11.2
22.0
35.7
3,160,885
637.21
2,014
1,172,510
761.50
893
1,988,375
-124.29
1,121
169.6
-16.3
125.5
0
0.00
0
693,199
991.45
687
-693,199
-991.45
-687
-100.0
23,851
544.59
13
9,935,267
699.85
6,953
-9,911,416
-155.26
-6,940
-99.8
-22.2
-99.8
Sub Total
219,275,015
503.40
110,382
202,311,514
487.41
98,609
16,963,501
15.99
11,773
8.4
3.3
11.9
Re-Exports
14,498,900
641.55
9,302
28,095,729
522.39
14,677
-13,596,829
119.16
-5,375
-48.4
22.8
-36.6
233,773,915
511.96
119,684
230,407,243
491.68
113,286
3,366,672
20.28
6,398
1.5
4.1
5.6
Total
Shipment of tea packets and tea bags rose by 13 and 11 percent
from 94Mkgs and 16Mkgs kilograms in 2010 to 106Mkgs and
18Mkgs kilograms in 2011 reflecting a growth in value addition.
The value addition in export of tea bags reflects a notable growth
of 35 percent compare to the last year.
-100.0 -100.0
pected to deride
Ceylon tea exports to Jordan declined by 50 percent from
(11Mkgs in 2010 to 5.5MKgs in 2011) which impacted on
country’s value added exports share because of ninety
percent of Jordan’s total imports represented tea packets
and tea bags.
The country’s re-export tea quantity, dipped by 48 percent but
average FOB price rose 23 percent as at September 2011 from the
same period of last year and is depicted in table 9. The average Iran offered the best FOB value per
kilogram and Kuwait recorded
FOB value have risen by Rs. 20per kilo (4%).
lowest average FOB price at top
ten destinations list for the review
period .
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
Tea market update Volume 7. No. 3
P AGE
5
……………..………….from page 1..
Crop
General Overview
Weather
Production was declining month by month and came to lowest level at the end of the quarter. Westerns and Uva regions
especially, showed moderate declining in crop intake whilst
low grown reported slight decrease.
Bright weather prevailed in through out the days followed strong
winds in most areas of the tea growing districts. This resulted by
prolonged drought condition withering most fields in High and Mid
grown plantations.
Quality
Quality of teas produced irregular throughout quarter.
GLOBAL TEA ……from page 1
The global economic crisis, the Middle East and Arab world instability, and the weak currencies in consumer nations may not augur
well for the global tea fraternity.
The Colombo tea auction prices which averaged at Rs. 376/Kg for
high grown, Rs 355/Kg for medium grown and Rs 411/Kg for low
grown with a National Sale Average Rs.394/Kg in January 2011
declined significantly to Rs 304/Kg for high grown, Rs 296/Kg for
medium grown, and Rs. 370/Kg for low grown by end of September reflecting a NSA of Rs.345/Kg. In comparison, the high grown
averaged Rs335/Kg in September 2010, Medium grown Rs.328/
Kg, and low grown Rs. 403/Kg last year. The corresponding NSA
in 2010 was Rs377/Kg. On the contrary, cost of production in Sri
Lanka due to increase in labor wages and other related costs have
spiraled upwards resulting in a threat to the viability of the industry.
Trade Fair Participation
Thus, replanting and infilling to increase yields and there by
productivity has been identified as a priority factor along
with the global promotion and marketing of Ceylon tea in
value added form linked to the lion logo and Sri Lanka own
brands.
In the mean time, the Russian federation and USA are both
expected to import record levels of tea volumes in 2011.
Even in 2010 USA purchased 127 million kilos of tea.
During the current year they expect tea volume to increase
by a 2-3 %. The very strong health message is a positive
contributory factor. The Russian Federation will also import
more volumes in 2011 probably inching closer to a record
180 million kilos. The civil commotions in Pakistan and the
disaster in Japan will result in lower off-takes by those
countries.
Sri Lanka Festival- 2011 - 10th - 11th SEPTEMBER
2011.
Sri Lanka Tea Board participation at Hong Kong International Tea Fair 2011, Hong Kong from 11th to 13th This is an annual event and this year it was held for 08th conAugust 2011
sequent year under the theme of “land of peace and tranquilThis is the third time Sri Lanka Tea Board participated at this
event.
The event provided an excellent opportunity for local and international businessmen in Tea and other related products to guarantee new avenue for business in Hong Kong as well as
Mainland China and its neighboring countries like Taiwan, Macao and Southeast Asia countries.
12 Tea Companies were participated at the fair along with Sri
Lanka Tea Board namely; Vintage Teas (Pvt) Ltd, Jafferjee
Brothers, Stassen Exports (Pvt) Ltd, DSS Teas (Pvt) Ltd, Sindbad (Pvt) Ltd, Senok Tea (Pvt) Ltd, Millennium Teas (Pvt), Ceylon Tea Lands (Pvt) Ltd, Michael White & Co. (Pvt) Ltd, Eswaran Brothers (Pvt) Ltd, Empire Teas (Pvt) Ltd and Maskeliya
Tea Gardens.
Sri Lanka Tea Board has organized Tea Tasting Session at the
event with the support of our co-exhibitors.
ity” at the popular Yoyogi Park in the heart of Tokyo City,
Japan.
This event has expanded year on year and this year there were
100 stalls from private and public sectors including Sri Lanka
Tea Board, Tourist Board, Bank of Ceylon, Sri Lankan Air
lines.
GIDA 2011 in Istanbul, Turkey, 22nd – 25th
September
Sri Lanka Tea Board organized the participation of 03 private
sector tea exporting companies at GIDA 2011 trade exhibition
that M/s Imperial Teas (Pvt) Ltd, M/s. Jafferjee Brothers and
M/s. Ceylon Tea Marketing (Pvt) Ltd. Sri Lanka Tea Board
coordinated all the logistical arrangement for the participation
of the exhibitors.
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
P AGE
6
Tea market update Volume 7. No. 3
P AGE
6
Polagra Food Fair – Poland – 12th to 15th September
2011
Sri Lanka Tea Board Organized a country pavilion at the
Polagra fair 2011 with 4 Tea exporting companies, namely
Ranfer Teas (Pvt.) Ltd, Delmege Teas (Pvt.) Ltd, Stassen Exports (Pvt.) Ltd and BPL Teas (Pvt.) Ltd .
World Food, Russia – 13th to 16th September 2011
Sri Lanka Tea Board organized the participation of 08 private
sector tea exporting companies at World Food 2011 in Moscow, Russia namely Asia Teas (Pvt.) Ltd, Ceylon Tea Land
(Pvt.) Ltd, Stassen Exports (Pvt.) Ltd, Empire Teas (Pvt.) Ltd,
Millennium Teas (Pvt.) Ltd, Imperial Tea Exports (Pvt.) Ltd,
Kelani Valley Plantations and George Steuart (Teas & Marketing) Pvt. Ltd
Global Tea Scene
Despite the production increase of Kenya in third quarter,
the excess amount did not compensate to cover the huge
crop losses in first six months in East African region. China
and North India reported month on month progress in production and ended up with 76 Mkgs adding to the cumulative figure of world tea production compared to the last year
same period.
Overall average prices during first nine months behaved
unsatisfactorily though higher cost of production in every
tea producing countries suffered heavily. This happened
due to demand stagnation in recession affected economies
and regime changing conflicts in most tea consuming countries.
World tea exports by producer countries is led again by
Kenya and China is at second place, with Sri Lanka placed
at third the third position with a deficit of 12MKgs behind
China as at end Of June 2011.
NEWS in brief
Global Tea Production
It is reported that three percent increase in world crop attributed to favorable weather prevailed in tea plantations located
Table 10 -Global tea production up to September
compared with 2010/2011(Mt.)
Country
Months
2010
2011
Change
NE India
South India
Bangladesh
China
9
9
9
9
512645
180352
38138
1004000
554040
175753
40603
1094000
41395
-4599
2465
90000
Sri Lanka
Kenya
Malavi
Uganda
Zimbabwe
Indonesia
Tanzania
Total
9
9
9
9
9
9
9
248272
289473
42140
41741
10544
55445
23487
2,446,237
245,159
-3113
-29704
-4999
-5230
-268
-9165
-49
76733
259769
37141
36511
10276
46280
23438
2,522,970
* Till August
Source : INTTEA
at far from the equator performed well compared to last year
same period.
CEYLON TEA REACHES ITS ZENITH AT
PRESTIGEOUS TRADE EXHIBITION
Ceylon Tea created history recently when the Sri Lanka
Group Stand for tea was adjudged by the official Committee
as the best country pavilion during the International food &
drink exhibition, World Food in Moscow. Russia is one of
the most competitive growth markets and World Food attracted products of over 1,420 exhibitors from more than 60
countries around the globe. The World Food is a premier
international trade exposition held once a year for the food
& beverage industry where the world leading organizations
compete for business in Russia and CIS countries. Under
the able guidance of Hon. Mahinda Samarasinghe, Minister
of Plantation Industries, Sri Lanka Tea Board, the apex state
organization for the Tea Industry reviewed its strategy of
participation at International Forums. From a low key passive role, the Tea Board ably backed by a team of professionals from the industry has initiated a high profile active
role for the promotion of Ceylon Tea in important target
markets. The results were instantaneous and the famous
green gold of the island nation reached a pinnacle at the 20th
Chart 3 - Average prices in major auction centers
2011
Auction
Kolkata
Cochin
Chittagong
Mombasa
Jakarta
Colombo
Guwahati
Malawi
World
2010
Change
Qty sold (MT)
US $/Kg
Qty sold (MT)
US $/Kg
Qty (MT)
US $/Kg
112663
45586
33470
249273
25169
250811
81111
11431
809514
2.9
1.8
2.3
2.7
2.0
3.3
2.4
1.6
2.8
106181
46168
37561
273797
31062
248934
80293
13513
837509
2.8
1.7
2.5
2.5
1.8
3.2
2.4
1.6
2.7
6482
-582
-4091
-24524
-5893
1877
818
-2082
-27995
0.1
0.1
-0.3
0.2
0.2
0.1
0.1
0.0
0.1
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
P AGE
7
Tea market update Volume 7. No. 3
Session of the prestigious World Food exhibition when the
country tea pavilion was awarded as the best group stand.
the decorative tea boiler which had special windows at the
base to display winning teas from the competition.
“This year we took the World Food Exhibition by storm with a
sterling performance and a Tea Pavilion which all our competitors envied” says Hasitha de Alwis, Director (Promotion)
Sri Lanka Tea Board who led the delegation to Russia.
Tea Tasting session at exhibition
Sri Lanka Tea Board and the private sector tea exporting
companies had been participating at World Food Exhibition
in Moscow on an annual basis for the past so many years.
The participation at 2011 exhibition held recently had special
significance due to several other promotional events lined up
by the Sri Lanka Tea Board in collaboration with Colombo
Tea Traders’ Association to support Ceylon Tea in Russia.
The Ceylon Specialty Estate Tea of the Year Competition
final round and the Charity Tea Auction were special features
which attracted the attention of all participants to the exhibition and drew Russian tea
connoisseurs and gourmet tea
buyers to the Sri Lanka pavilion. A presentation on Sri
Lanka tea industry supported
by audio visual screening
strengthened the position of
Ceylon Tea.A majestically
constructed Sri Lanka tea pavilion covering 90 square meters placed in a prime location
at Pavilion two of World Food
was the centre of attraction to
many visitors.
He also observed that “all in all, many of the other stall holders
also prominently displayed Ceylon tea packs. This resulted in
Ceylon teas’ dominance of the entire tea & coffee hall at the
exhibition”. A Sri Lanka architect who graduated from Moscow, Sanath Abeysekera designed and constructed the pavilion
for Ceylon Tea under the supervision of Ambassador for Sri
Lanka, Udayanga Weeratunga winning the award for the best
national Group Stand at World Food 2011. The achievement
gained at this important exhibition in Russia is a tribute to the
successful work done by the Sri Lanka tea exporters over the
years.
For the first time ever, Ceylon Tea was auctioned in Russia at
the World Food exhibition. Five kilos each of 09 gold winners, 07 silver winners and 07 bronze winners totaling 115
kilos of award winning teas were sold at the Charity Auction
in Moscow generating nearly US$ 16,000 (Rs. 1.7 million). It
works out to an average price of US$ 140 (Rs.15,000/-) per
kilo which is a record achievement under any circumstances.
The highest bid was by Mlesna Russia at US$ 6000 for a five
kilo lot of FBOPF Extra Special sold under the “Tea Bank”
mark which won the gold
award from Ruhuna agroclimatic region. The performance of the Sri
Lanka auctioneer Anil
Cooke, President of Asia
Siyaka
Commodities
(Pvt) Ltd., Colombo was
extra ordinary and not a
single winning lot at the
competition went unsold.
Incidentally, the Charity
Tea Auction commenced
with subdued bidding for
the first few lots but the
environment
kept-on
heating-up with fun-fare
escalating and bidding
getting stronger.
The stalls were well decorated
with Lion logo, seven GI logos and Ozone logo prominently highlighted in gigantic
placards while rotating boxes Sri Lanka Pavilion at Trade Fair –Moscow
His Excellency Udayanga
in the shape of tea chests were
Weeratunga, Ambassador
mounted on top of the pavilfor Sri Lanka to Russia,
ion.
the Chief Guest of the
event himself, actively bid in support of Charity. The experiA 20 feet tea boiler at the entrance to the pavilion created a ence of the market and the knowledge of the Russian language
unique atmosphere which was the hallmark of the Tea Board of the Sri Lanka Ambassador added great impetus to the probooth which visitors would remember for a long time. Many ject. The Mlesna Moscow office emerged as the most successRussians and prospective customers from the CIS, the land ful being able to out bid the audience and win six lots at the
traditionally famous for Soviet Samovars were intrigued by
auction. Special thanks should go to all the active participants
at the Charity Tea Auction.
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD
Tea market update Volume 7. No. 3
P AGE
The Russian Federation continues to remain as the single,
largest buyer of “Ceylon Tea” with off-takes in the region of
45 to 50 million kilos per annum. “Despite the discriminative tariff and non-tariff barriers for exportation of Ceylon
Teas in value added branded form, more than 15% of all teas
8
fully fermented or fully natural aeration process). About 78%
percent of the global tea drinkers prefer to consume black tea.
Whereas, Sri Lankan black tea accounts for about 20% of
global tea consumption. During the past, majority of the researches have concentrated the antioxidant power in green tea
but limited work on black tea.
A collaborative study of the scientists in the Sri Lanka Tea
Board, Tea research Institute of Sri Lanka and the University of
Colombo reveled that, Sri Lankan black tea possesses dosedependent antioxidant activity both in-vitro (in laboratory trials) and in-vivo (in animal experiments). In this study examined the polyphenols content in black tea and their hot water
extract under standard brewing method.
Participants at Charity tea auction -
Research Update
from Sri Lanka still goes to Russia” according to Director
(Promotion) at Tea Board.
It is also significant, that 30% of the tea market requirement
in this former Soviet Union country is supplied by Sri Lanka
despite severe competition from new entrants such as Kenya,
Vietnam, China and Indonesia while traditional supplier during Communist era, namely India is making strong in-roads
to reclaim market share. Today, Russia is the undisputed
leader in tea imports to the world and purchases 180 million
kilos every year, constituting 10% of the global tea import
trade.
Sri Lankan Black Tea (Camellia sinensis
L.) as Antioxidant Supplement to Control
Heart Disease
And evaluated the antioxidant activity using BOPF grade
(produced in a tea factory situated in 1382m, average mean sea
level) with two different methodologies (DPPH assay and
TBARS assay) in rat model. However, it is of interest to note
that, in the experimental settings, the antioxidant activity (in
terms of antioxidant index) of the extracted tea solids was comparable to that of vitamin E on wt/wt basis.
In-vivo antioxidant activity was studied in rat blood serum using DPPH assay. All the doses showed time-dependant (low
dose by 12th week, mid dose by 8th week and high dose by 4th
week) and dose-dependent antioxidant activity. This antioxidant activity appeared to be present as long as tea was administrated. In the concluding remarks, Sri Lankan black tea could
be used as biologically safe natural antioxidant supply.
Therefore, daily consumption of black tea may be a remedial
solution to prevent appearing of heart disease, the people unaware of the disease. And also the treatment while having refreshment and affordable to many of population categories.
Reference: Abeywickrama, K.R.W., Amarakoon, A.M.T. and Ratnasooriya, W.D. (2005). In-vitro and in-vivo antioxidant activity
There are a number of clinical studies suggesting that the
antioxidants in daily consumed foods and beverages are the
main factors for the observed efficacy in reducing the incidence of chronic diseases including heart disease and some
cancers. The main characteristic of an antioxidant is its ability to trap free radicals or highly reactive oxygen radicals
present in biological systems (i. e., body) generate from wide
variety of sources. If present, these free radicals may oxidize
nucleic acids, proteins, lipids, or DNA and can initiate degenerative diseases. Phenolic acids, polyphenols and flavonoids are known to act as effective antioxidant compounds
found in some daily consumed food and beverages naturally.
of high grown Sri Lankan black tea (Camellia sinensis). Sri Lanka
The black tea brew, world popular daily consumed beverage
after water is known to contain appreciable amount of polyphenols ( 15 - 30%, on a dry weight basis) which vary according to the origin of produce. There are three main types
of made tea categorized base on the manufacturing process:
green tea (produced by unfermented process), oolong tea
(produced by partially process) and black tea (produced by
Sri Lanka Tea Board
574,Galle Rd, Colombo – 03.
Tel :2587814,2582122 Fax : 2587341
Email : [email protected]
Journal of Tea Science, 70 (2): 57 – 68.
PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD