Tea Time-q4-09

Tea eyed in mudslides

Taiwan

Oolong tea plants that replaced larger trees in Alishanmay may have contributed to fatal mudslides as Typhoon Morakot dumped two meters of rain last August, according to researchers from Taipei universities.

Alishanmay oolong tea sells for up to US$160/lb in the US, but the newly-planted tea plants on the local hillsides replaced older growth that might have slowed down or prevented mudslides that devastated the area and killed many people.

"It’s too much for the land to take," said James Wang, a professor at the Graduate Institute of Environmental Education, National Taiwan Normal University in Taipei, quoted by Bloomberg. "Our ecological system has collapsed."

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Longrun expansion

Hong Kong

Tea manufacturer Longrun Tea Group is embarking on a major expansion program. The Hong Kong-listed company has announced that it plans to add to the number of franchise and chain stores to reach 200 by next March. It currently operates 120 such outlets.

The company also plans to invest in tea companies in Fujian, Zhejiang, Hunan and Yunnan.

Longrun intends to become to be the brand management company for over 70,000 Chinese tea enterprises.

According to the company, tea manufacturers that it acquires will keep their existing brand names and products. Longrun’s involvement will be mainly in "accelerating business development." Longrun has entered into cooperation with Rocket Capital to assist it in raising funds to the tune of HK$53 million (US$6.84 million).

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Domestic use hits exports

Bangladesh

Increased domestic consumption in Bangladesh has seen its tea exports plummet. Analysts believe the country may soon become a net importer of tea within 4-5 years as Bangladeshis drink more tea.

Currently, the country produces around 56 million kg, of which 50 million kg is consumed domestically. Actual tea production has not increased over the last 10 years, typically hovering between 53 million kg and 56 million kg annually. The exceptional years were 2005 (60 million kg) and 2008 (58 million kg). Tea production this year is projected to be 56 million kg.

As Bangladesh used to export up to 90% of its tea crop from 1985 to 1990, this is a significant shift for the tea industry. It currently exports around 5-6 million kg of tea, primarily to Pakistan, Kazakhstan and Uzbekistan.

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Tea prices recovering?

Sri Lanka

Although the prices for low-grown tea slumped somewhat, prices for estate teas rose during Ocotber auctions in Colombo.

"Prices ruled firm to dearer particularly as the sale progressed," according to tea brokers Forbes & Walker quoted in Sri Lanka’s press, describing the recovery as "an encouraging feature" following a recent dip in prices and despite the weak market in Mombasa, Kenya, Sri Lankan tea’s principal rival.

Drought affecting tea cultivation in Sri Lanka, Kenya and India has helped to kep prices "buoyant" in Sri Lanka, according to analysts.

Price increase seen

India

McLeod Russel, the largest tea producer in the world, has said that it anticipates the price of tea to increase to an average of Rs135/kg (US$2.96/kg) during this fiscal year, a Rs25 increase over last year’s Rs110/kg.

The company believes that an estimated global shortfall of around 60 million kg in March 2010 will help to push prices up in 2010-2011.

"Global tea prices are trading at US$3.25 or Rs.160/kg so we see more upside in prices," according to Aditya Khaitan, the company’s managing director, quoted in the Indian press.

Tstix wins Award

Australia

The WorldStar WPO World Packaging Organisation awards attracted more than 224 entries from 32 countries around the world. A jury of 25 representatives then selected just six ‘best of the best‘ packages to be nominated for the President’s Award.

This year, the awards were presented by president Keith Pearson from South Africa at a glittering award ceremony in Mexico City, with the WorldStar Packaging Bronze Award being awarded to the patented Tstix package.

Tstix is the ‘no mess’ alternative to teabags, pods and pyramids – made in the form of a stick pack with over 1,100 micro perforations in its sides, and eliminating the need for a spoon for stirring. There’s no strings, tags or staples involved. The directions are also very simple – ‘just stir it’!

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Teepack strengthens

Germany

Teepack of Düsseldorf strengthens its sales team with a new senior sales manager. Effective immediately, Roland de la Pille is responsible for the international marketing of the Zenobia bag machines. This innovative packaging machine for bulk goods such as rice or noodles supplements the product range of this traditional manufacturer of teabag machines. The vertically aligned bag machine allows the production of ‘air free’ block bottom as well as pillow bags in both intermittent and continuous operation on just one machine.

De la Pille previously held the position of sales director at Andritz Küsters, a paper machines specialist in Krefeld, where he was responsible for service and capital sales in France, Spain, Benelux, Korea, Indonesia, Australia and South Africa.

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Climate change havoc

UK

According to a report issued by Fairtrade company Cafédirect, climate change "is already wreaking havoc on the livelihoods of small-scale tea and coffee farmers in some of the world’s poorest countries."

The company, together with with the state-funded German Technical Corporation, conducted a three-year research program covering Kenya, Mexico, Peru and Nicaragua. It has now published results that indicate that tea and coffee growers are already planting at increasingly elevated sites, on average at between to 3-4 meters higher annually, to compensate for rising temperatures,

"A huge number of growers are now experiencing increased instances of pestilence and disease from rises in temperature," according to Anne MacCaig, chief executive of Cafédirect. "They are also facing prolonged drought and changing weather patterns."

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