Less buoyant 1Q for tea industry

Tuesday, 26 May 2015 01:06 - - {{hitsCtrl.values.hits}}

The Sri Lankan tea industry’s first quarter of 2015 was not as buoyant as the same period in 2014, according to John Keells Plc.

“This is mainly attributed to instability in the political environment of tea-consuming countries resulting in economic downturns,” the produce broker added.

It said the quarterly auction average was Rs. 419.04 in comparison to Rs. 486.65 (-Rs. 67.61) for the same period last year.

Furthermore, tea production for the first quarter of 2015 was recorded as 79.08 kg million was a positive variance of 5.21 kg million in BUP_DFT_DFT-7_02-02 comparison the same period last year.

“The quality of teas during this period was to some extent compromised due to climatic changes which affected the production of ‘Western Seasonal’ teas,” John Keells added.

It said that with the stabilisation of the ruble and the shifts in foreign policies in the Middle East, the industry however hopes to recover some of the lost momentum in the second and third quarters of the year. Among the emerging markets, China appears to be increasing their market share in Sri Lankan tea imports.

“This could positively provide future benefit to the Sri Lankan tea industry,” John Keells said.

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