tea time

Williamson Tea HQ sold

Kenya

Williamson Tea, an agricultural firm majority-owned by Ngong Tea Holdings of United Kingdom, has announced the sale of Williamson House, its former headquarters office, for an estimated sum of SH500 million (US$5.14 million) to Lion of Kenya Insurance Company.
Lion of Kenya is the minority shareholder in Williamson Development, the company that owns the 10-storey office block. The deal that saw Williamson Tea’s head office relocate to Karen Office Park on Langata Road is expected to yield a special dividend that will be paid out to shareholders this fiscal year.

Brewing trouble

Kenya

Although tea is a major source of revenue for the tea picking workers from the Nandi tribal community, they face an increasingly uncertain future following the arrival of mechanized tea picking. Mechanization has been introduced in the region by several multi-national companies, which, according to the workers unions resulted in more than 2,000 workers being downsized in Kericho, Nandi and Sotik areas.

Tea from Sochi

Russia

The world’s northernmost tea plantations located just a few kilometers from the Black Sea near the city of Sochi, the site for the 2014 Sochi Winter Olympics, have successfully completed their tea harvesting season.
Although Russia has been cultivating tea since the 19th century, now tea production is on the rise. Farmers operating tea plantations in the area hope to eventually harvest up to 1,000 tons of tea leaves per year in order to be able to supply all the competitors and visitors of the 2014 Olympics.

Tea sales on the rise

Rwanda

According to the weekly report from the tea division of the National Agriculture Export Development Board (NAEB), Rwanda’s tea sales generated some Rwf2.1 billion (US$3.5 million), which corresponds to a 12.7% increase from Rwf1.8 billion (US$3.1 million) on the previous week of trading. The sales jump comes despite a 10.3% drop in sales volume from 110,952 kg last week to 99,510 kg this week.
The NAEB figures indicate that out of the 99,510 kg on offer, some 91,133.5 kg were sold.

A Second Cup of “sustainable” tea

US

US national chain Second Cup has introduced a new line of whole-leaf tea products containing new and reformulated teas in new packaging. Following on the heels of its last year’s successful introduction of Rainforest Alliance Certified coffee, Second Cup confirms that the new line of teas has also received a seal of approval from the Rainforest Alliance.
According to Second Cup, all of its espresso beans and 80% of the chain’s total coffee portfolio consists of Rainforest Alliance Certified coffee and the new whole-leaf teas, sold in “silken pyramid bags” instead of the regular paper sachets, will attempt to recreate the success of its coffee line in line with its comprehensive strategy to promote sustainable products and sustainability in general.

One bln kg of tea

US

Total tea output in India is expected to surpass one billion kg in 2011 according to industry experts. This would mark a new high for Indian tea manufacturers. The highest production ever recorded in India was reached in 2008, when total output rose to just a little short of a billion, surpassing 984 million kilograms. Yet, if the latest figures released by the Indian Tea Association (ITA) are correct, tea production in August was higher by 33 million kilograms and should the trend continue unabated, the 2008 record is very likely to be broken.

Price fluctuations cause conflicts

US

Wild fluctuations in green leaf prices in the state of Assam became the reason for a dispute between tea growers and tea processing companies.
A part of the problem stems from the fact that the prices of processed tea and auction prices have stayed relatively unaffected while green leaf prices kept fluctuating. This year, the green leaf price dropped to Rs8(US$ 0.16) per kilogram, the lowest it has been for several years. Such situation also creates a domino effect where the lowering of the green leaf price in one district causes a price drop in neighboring districts.

Nepal is import leader

US

According to an analysis of the latest estimates published by the Indian Tea Board, of the 9.42 million kilograms of tea imported by India between January and July this year, as many as 3.50 million kg – or 37.15%, more than a third of all imports – came from Nepal.
Although the figure represents a decline of 19% per volume compared to 11.64 million kilograms during the same period last year, the price of imported tea rose from Rs89.38 (US$1.78) to Rs 96.89 (US$1.93) per kilogram.

Climate change affects tea

US

The state of Assam has been one of the world’s largest tea producing regions for decades, yet recent trends demonstrate a gradual decline of the industry as a result of climate change.
Tea growers and industry experts alike have indicated that productivity has been steadily declining in Assam for the past decade. A recently published Economic Survey of Assam 2009-10 clearly demonstrates that the production of tea has declined over the last 10 years from 1,685 kg per hectare in 2001 to below 1,500 kg in 2010.

Bubble tea mania

Malaysia

Malaysia is rediscovering a trend that was thought to be a fad and was originally dismissed by the tea drinking crowd. Yet, the bubble tea craze has stood the test of time. The country is being overrun by various bubble tea stalls and tea shops with their ubiquitous “black pearls” – the gummy tapioca “bubbles” – proudly on display.
The drink came originally from Taiwan, where there are currently over 8,000 bubble tea cafes. It first arrived in Malaysia about 10 years ago when Starbucks Frappucinos and sidewalk cafés were all the rage.

Printed Edition

Quarter 4, 2011

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