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FAITTA AGM – 28th Aug, 1
Global Tea
Market Review
FAITTA – 28th Aug, 2010 New Delhi
SACHEN VERMA
Senior Vice President Marketing – JV Gokal &
Co. Pvt Ltd
GLOBAL BLACK TEA PRODUCTION
• From the global perspective, World tea output has significantly
recovered from lower production trend occasioned by drought
experienced across the major tea producing countries in 2009 and
2008
• For the period up to May 2010, the three key producers of Black
tea (India, Kenya and Sri Lanka), which account for about two-
thirds of the world’s Black tea production, registered increased
production of 115 Million Kgs compared to the same period of last
year
• Kenya accounted for the highest increase of 61% (69 Million Kgs),
while Sri Lanka registered an increased production of 25% (26.9
Million kg)
3
Major producing countries
( Jan to June’10 )
COUNTRY
2010 2009 [+/-] mkgs 2010 2009 [+/-] mkgs
Bangladesh 6.30 6.70 -0.40 13.81 14.34 -0.53
India 104.04 118.05 -14.01 338.97 333.90 5.07
Kenya 29.82 25.34 4.48 213.01 139.28 73.73
Sri Lanka 29.50 20.50 9.00 166.90 132.20 34.70
Combined 169.66 170.59 -0.93 732.69 619.72 112.97
COMPARATIVE GLOBAL CROP : JUNE
During June Upto June
World Crop
Auction Prices for tea Across Major Tea
Producers (USD/Kg)
Period To Date
2010
To Date
2009
% Variance
Kenya June 2.60 2.23 17 %
Sri-Lanka June 3.24 2.82 15%
India June 1.99 1.95 2 %
5
MOMBASA AUCTIONS
( Weekly Price comparison )
MOMBASSA AUCTION AVERAGE
150
170
190
210
230
250
270
290
310
330
1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
Week
USCents/Kg
2008
2009
2010
KENYA EXPORTS (Jan-June 10)
Destination Quantity in Million Kg
EGYPT 49 m Kg
UK 38 m Kg
PAKISTAN 31 m Kg
AFGHANSTAN 29 m Kg
SUDAN 13 m Kg
UAE 9.50m Kg
RUSSIA 7.4 m Kg
KENYA PRODUCTION (Jan-June)
134.1
198.7
157.3
139.2
213.0
0
50
100
150
200
250
2006 2007 2008 2009 2010
Production(MillionKgs)
Year
SRI LANKA PRODUCTION
SRI LANKA CROP FOREACAST
10
COLOMBO AUCTIONS
( Weekly Price comparison )
SRILANKA AUCTION AVERAGE
200
250
300
350
400
450
500
1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
Week
Cents/Kg
2008
2009
2010
11
World Auction Average
Currency 2010 2009 +/- 2010 2009 +/- 2010 2009 +/-
INR 118.82 108.47 10.35 118.82 108.47 10.35 2.6 2.21 0.39
INR 97.82 102.21 -4.39 97.82 102.21 -4.39 2.14 2.08 0.06
INR 75.49 86.85 -11.36 75.49 86.85 -11.36 1.65 1.77 -0.11
BDT 172.97 128.41 44.56 114.19 91.62 22.57 2.5 1.86 0.63
US Cents 186.21 161.83 24.38 85.15 79.6 5.55 1.86 1.62 0.24
US Cents 278 243 35 127.13 119.53 7.6 2.78 2.43 0.35
US Cents 162.53 148.35 14.18 74.32 72.97 1.35 1.63 1.48 0.14
SL Rs 370.09 324.6 45.49 148.41 139.94 8.47 3.25 2.84 0.4
India Bang SL
Jan-Jun US$ 1 = 2010 45.73 69.27 114.04
2009 49.19 68.94 114.1
Januaryto June (per Kg)
Centre
In Countrywise Currency In INR (Approx.) In US $ (Approx)
(approx)
WORLD AVERAGE TEA AUCTION PRICES
Kolkata
Guwahati
Cochin
Chittagong
Jakarta
Mombasa (Kenya)
Limbe
Colombo
Exchange Rates :
Auction Average
12
India - Production
( Crop Jan – June )
Price outlookCrop 2010
District / States
2010 2009 [+/-]mkg [+/-]% 2010 2009 [+/-]mkg [+/-]%
AssamValley 47.20 59.10 -11.90 -20.14 122.60 132.60 -10.00 -7.54
Cachar 3.50 4.50 -1.00 -22.22 15.10 16.50 -1.40 -8.48
TotalAssam 50.70 63.60 -12.90 -20.28 137.70 149.10 -11.40 -7.65
Darjeeling 1.20 1.10 0.10 9.09 3.60 3.70 -0.10 -2.70
Dooars 15.90 16.70 -0.80 -4.79 45.50 44.40 1.10 2.48
Terai 8.30 9.50 -1.20 -12.63 23.80 23.10 0.70 3.03
TotalWest Bengal 25.40 27.30 -1.90 -6.96 72.90 71.20 1.70 2.39
Others 0.70 0.90 -0.20 -22.22 1.70 2.10 -0.40 -19.05
TotalNorthIndia 76.80 91.80 -15.00 -16.34 212.30 222.40 -10.10 -4.54
TamilNadu 20.80 18.20 2.60 14.29 89.80 76.90 12.90 16.78
Kerala 6.00 7.40 -1.40 -18.92 33.70 31.80 1.90 5.97
Karnataka 0.50 0.60 -0.10 -16.67 3.10 2.70 0.40 14.81
TotalSouthIndia 27.30 26.20 1.10 4.20 126.60 111.40 15.20 13.64
Cumulative Total 104.10 118.00 -13.90 -11.78 338.90 333.80 5.10 1.53
DuringJune UptoJune
13
Production comparison
( India crop Jan – June )
Crop
Variance %
Region 2010 2009 2008 2010/2009 + / (-)
North India 212.3 222.4 225.9 -10.1 -4.5
South India 126.7 111.4 119.7 15.3 13.7
All India 339.0 333.8 345.6 5.2 1.6
* Qnty. in mil. Kgs
0 50 100 150 200 250
2010
2009
2008
South India
North India
14
2010 – Auction Prices
( North India )
Price outlook
Months * CTC leaf & all Dust
2010 2009 2008 2007
Jan 98.45 87.98 72.20 63.80
Feb 94.07 81.35 63.72 59.18
Mar 79.41 78.01 62.29 61.19
Apr 106.56 115.96 97.46 81.82
May 113.55 133.48 91.14 73.95
Jun 116.66 127.10 101.02 82.79
Jul 118.77 112.92 92.90 77.38
Aug 116.00 115.05 94.57 71.61
Sep 114.00 115.10 103.90 74.96
Oct 112.00 120.06 105.58 72.82
Nov 115.00 121.61 100.03 74.43
Dec 113.00 114.05 94.18 78.45 * Estimates for Aug to Dec'10
North India ( Auc.Avg. )
PRICE COMPARISION ( NORTH INDIA AUCTIONS )
40
50
60
70
80
90
100
110
120
130
140
150
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Avg.(Rs/Kg)
2010
2009
2008
2007
15
All India Exports
( A Comparison – Jan to June’10 )
Export outlook
2010 / 2009
2010 2009 2008 2007 Variance
Jan 17.0 12.0 16.9 13.7 5.0
Feb 12.2 12.1 16.1 11.1 0.1
Mar 18.0 14.2 17.9 19.2 3.8
Apr 12.7 11.3 11.9 9.0 1.4
May 11.2 9.8 13.0 9.3 1.4
June 12.8 15.0 14.8 13.6 -2.2
July 19.4 18.5 10.3
Aug 18.7 21.4 17.1
Sept 18.4 19.5 15.3
Oct 18.7 21.0 13.5
Nov 19.2 15.6 12.7
Dec 22.2 20.5 11.9
Total 83.9 191.0 207.1 156.7 9.6
INDIAN EXPORTS ( A Comparision )
5
10
15
20
25
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Month
Qnty.(Mil.Kgs)
2010
2009
2008
2007
16
Region wise exports from India
Export outlook
Jan to June Jan to June Variance Variance
Region 2010 2009 + / (-) %
North India 36 38.4 -2.4 -6.25
South India 47.9 36.2 11.7 32.32
All India 83.90 74.60 9.30 12.47
0 10 20 30 40 50 60
2010
2009
Year
Qnty. (Mil. Kgs)
South India
North India
17
Market review 2010
• Like the Previous 3 months August crop in
North India is expected to be down. Pest
attack has been contained but not eradicated
• Industry likely to see another year of buoyant
prices.
• Domestic demand expected to surge ahead.
• Exports have been good on higher Orthodox
production.
Market review 2010
• Excepting North India all others regions are
showing substantial increases globally
• If prices are at the current levels then a price
hike is expected in the fourth quarter.
• Global production is expected to be more by
135 m kg
• Sri Lanka and Kenya are showing much higher
crops but global demand is strong and prices
are moving up
19

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Global tea market review faitta presentation

  • 1. FAITTA AGM – 28th Aug, 1 Global Tea Market Review FAITTA – 28th Aug, 2010 New Delhi SACHEN VERMA Senior Vice President Marketing – JV Gokal & Co. Pvt Ltd
  • 2. GLOBAL BLACK TEA PRODUCTION • From the global perspective, World tea output has significantly recovered from lower production trend occasioned by drought experienced across the major tea producing countries in 2009 and 2008 • For the period up to May 2010, the three key producers of Black tea (India, Kenya and Sri Lanka), which account for about two- thirds of the world’s Black tea production, registered increased production of 115 Million Kgs compared to the same period of last year • Kenya accounted for the highest increase of 61% (69 Million Kgs), while Sri Lanka registered an increased production of 25% (26.9 Million kg)
  • 3. 3 Major producing countries ( Jan to June’10 ) COUNTRY 2010 2009 [+/-] mkgs 2010 2009 [+/-] mkgs Bangladesh 6.30 6.70 -0.40 13.81 14.34 -0.53 India 104.04 118.05 -14.01 338.97 333.90 5.07 Kenya 29.82 25.34 4.48 213.01 139.28 73.73 Sri Lanka 29.50 20.50 9.00 166.90 132.20 34.70 Combined 169.66 170.59 -0.93 732.69 619.72 112.97 COMPARATIVE GLOBAL CROP : JUNE During June Upto June World Crop
  • 4. Auction Prices for tea Across Major Tea Producers (USD/Kg) Period To Date 2010 To Date 2009 % Variance Kenya June 2.60 2.23 17 % Sri-Lanka June 3.24 2.82 15% India June 1.99 1.95 2 %
  • 5. 5 MOMBASA AUCTIONS ( Weekly Price comparison ) MOMBASSA AUCTION AVERAGE 150 170 190 210 230 250 270 290 310 330 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week USCents/Kg 2008 2009 2010
  • 6. KENYA EXPORTS (Jan-June 10) Destination Quantity in Million Kg EGYPT 49 m Kg UK 38 m Kg PAKISTAN 31 m Kg AFGHANSTAN 29 m Kg SUDAN 13 m Kg UAE 9.50m Kg RUSSIA 7.4 m Kg
  • 9. SRI LANKA CROP FOREACAST
  • 10. 10 COLOMBO AUCTIONS ( Weekly Price comparison ) SRILANKA AUCTION AVERAGE 200 250 300 350 400 450 500 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week Cents/Kg 2008 2009 2010
  • 11. 11 World Auction Average Currency 2010 2009 +/- 2010 2009 +/- 2010 2009 +/- INR 118.82 108.47 10.35 118.82 108.47 10.35 2.6 2.21 0.39 INR 97.82 102.21 -4.39 97.82 102.21 -4.39 2.14 2.08 0.06 INR 75.49 86.85 -11.36 75.49 86.85 -11.36 1.65 1.77 -0.11 BDT 172.97 128.41 44.56 114.19 91.62 22.57 2.5 1.86 0.63 US Cents 186.21 161.83 24.38 85.15 79.6 5.55 1.86 1.62 0.24 US Cents 278 243 35 127.13 119.53 7.6 2.78 2.43 0.35 US Cents 162.53 148.35 14.18 74.32 72.97 1.35 1.63 1.48 0.14 SL Rs 370.09 324.6 45.49 148.41 139.94 8.47 3.25 2.84 0.4 India Bang SL Jan-Jun US$ 1 = 2010 45.73 69.27 114.04 2009 49.19 68.94 114.1 Januaryto June (per Kg) Centre In Countrywise Currency In INR (Approx.) In US $ (Approx) (approx) WORLD AVERAGE TEA AUCTION PRICES Kolkata Guwahati Cochin Chittagong Jakarta Mombasa (Kenya) Limbe Colombo Exchange Rates : Auction Average
  • 12. 12 India - Production ( Crop Jan – June ) Price outlookCrop 2010 District / States 2010 2009 [+/-]mkg [+/-]% 2010 2009 [+/-]mkg [+/-]% AssamValley 47.20 59.10 -11.90 -20.14 122.60 132.60 -10.00 -7.54 Cachar 3.50 4.50 -1.00 -22.22 15.10 16.50 -1.40 -8.48 TotalAssam 50.70 63.60 -12.90 -20.28 137.70 149.10 -11.40 -7.65 Darjeeling 1.20 1.10 0.10 9.09 3.60 3.70 -0.10 -2.70 Dooars 15.90 16.70 -0.80 -4.79 45.50 44.40 1.10 2.48 Terai 8.30 9.50 -1.20 -12.63 23.80 23.10 0.70 3.03 TotalWest Bengal 25.40 27.30 -1.90 -6.96 72.90 71.20 1.70 2.39 Others 0.70 0.90 -0.20 -22.22 1.70 2.10 -0.40 -19.05 TotalNorthIndia 76.80 91.80 -15.00 -16.34 212.30 222.40 -10.10 -4.54 TamilNadu 20.80 18.20 2.60 14.29 89.80 76.90 12.90 16.78 Kerala 6.00 7.40 -1.40 -18.92 33.70 31.80 1.90 5.97 Karnataka 0.50 0.60 -0.10 -16.67 3.10 2.70 0.40 14.81 TotalSouthIndia 27.30 26.20 1.10 4.20 126.60 111.40 15.20 13.64 Cumulative Total 104.10 118.00 -13.90 -11.78 338.90 333.80 5.10 1.53 DuringJune UptoJune
  • 13. 13 Production comparison ( India crop Jan – June ) Crop Variance % Region 2010 2009 2008 2010/2009 + / (-) North India 212.3 222.4 225.9 -10.1 -4.5 South India 126.7 111.4 119.7 15.3 13.7 All India 339.0 333.8 345.6 5.2 1.6 * Qnty. in mil. Kgs 0 50 100 150 200 250 2010 2009 2008 South India North India
  • 14. 14 2010 – Auction Prices ( North India ) Price outlook Months * CTC leaf & all Dust 2010 2009 2008 2007 Jan 98.45 87.98 72.20 63.80 Feb 94.07 81.35 63.72 59.18 Mar 79.41 78.01 62.29 61.19 Apr 106.56 115.96 97.46 81.82 May 113.55 133.48 91.14 73.95 Jun 116.66 127.10 101.02 82.79 Jul 118.77 112.92 92.90 77.38 Aug 116.00 115.05 94.57 71.61 Sep 114.00 115.10 103.90 74.96 Oct 112.00 120.06 105.58 72.82 Nov 115.00 121.61 100.03 74.43 Dec 113.00 114.05 94.18 78.45 * Estimates for Aug to Dec'10 North India ( Auc.Avg. ) PRICE COMPARISION ( NORTH INDIA AUCTIONS ) 40 50 60 70 80 90 100 110 120 130 140 150 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Avg.(Rs/Kg) 2010 2009 2008 2007
  • 15. 15 All India Exports ( A Comparison – Jan to June’10 ) Export outlook 2010 / 2009 2010 2009 2008 2007 Variance Jan 17.0 12.0 16.9 13.7 5.0 Feb 12.2 12.1 16.1 11.1 0.1 Mar 18.0 14.2 17.9 19.2 3.8 Apr 12.7 11.3 11.9 9.0 1.4 May 11.2 9.8 13.0 9.3 1.4 June 12.8 15.0 14.8 13.6 -2.2 July 19.4 18.5 10.3 Aug 18.7 21.4 17.1 Sept 18.4 19.5 15.3 Oct 18.7 21.0 13.5 Nov 19.2 15.6 12.7 Dec 22.2 20.5 11.9 Total 83.9 191.0 207.1 156.7 9.6 INDIAN EXPORTS ( A Comparision ) 5 10 15 20 25 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Month Qnty.(Mil.Kgs) 2010 2009 2008 2007
  • 16. 16 Region wise exports from India Export outlook Jan to June Jan to June Variance Variance Region 2010 2009 + / (-) % North India 36 38.4 -2.4 -6.25 South India 47.9 36.2 11.7 32.32 All India 83.90 74.60 9.30 12.47 0 10 20 30 40 50 60 2010 2009 Year Qnty. (Mil. Kgs) South India North India
  • 17. 17 Market review 2010 • Like the Previous 3 months August crop in North India is expected to be down. Pest attack has been contained but not eradicated • Industry likely to see another year of buoyant prices. • Domestic demand expected to surge ahead. • Exports have been good on higher Orthodox production.
  • 18. Market review 2010 • Excepting North India all others regions are showing substantial increases globally • If prices are at the current levels then a price hike is expected in the fourth quarter. • Global production is expected to be more by 135 m kg • Sri Lanka and Kenya are showing much higher crops but global demand is strong and prices are moving up
  • 19. 19