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US tea imports up 10 percent Ceylon tea nowhere in sight

US is the seventh largest tea consumer in the world, Behind China, India, The Russian Federation, Turkey, Japan, and the UK. In that order. Argentina is the highest supplier of black tea to the US.

Although we tend to denigrate South American teas they still command top billing in the import sector for beverages on American retail shelves.

We spoke to some value added tea exporters on possibility to export to the US, but the universal complaint was that entering the US market was hugely costly and in large part such substantial investments were beyond reach of shippers operating from Colombo.

Our interview with joint Managing Director, Dilmah Tea, Dilhan Fernando approximately two weeks ago revealed much the same views.

Asia Siyaka weekly tea market report said the US imported 127, 202 tonnes in 2008, up 10 % from previous information.

Black tea, it was reported, is now seen to be edging out green tea and coffee. Tea with the tag line for antidote to bad health habits, seems to be gaining ground in US markets.

But panning into the local context on possibilities to export to the US nobody seems bothered that other countries arguably ‘bad’ tea makers, have stolen a march over Ceylon tea , and the slogan that Ceylon tea is the best in the world, is fast eroding. We lost Egypt, Pakistan, and it would not be long if Russian buyers too shun Ceylon tea.

Last week this column accentuated the looming debacle but sadly there has been no positive impact in the industry, and the ‘so what’ attitude continues.

The Tea Association of the US, president Joe Simrany reportedly said demand for tea was rising as people responded to health benefits of the beverage.

Specialty tea was the fastest growing segment of the industry. Tea which has always sustained the economy in good times and bad has again been relegated to ‘country cousin’; standing with no person taking responsibility for the impending down ward slide.Last week too market reports were good..

‘Tea was selling well’ they said. But what was not said was that quantities were not at viable levels. Plantation responses were that losses continued to plague the industry. Rains have arrived they said, but impact on crop would take some time to register workable alternatives.

This week too expected sale on teas would amount to 4.8 million kilos.

Brokers, irrespective of what we said indicated positive views for immediate future of the industry. But were cautious on future trends.

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