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The Plantations though, remained grim. They said they were yet not out of the woods. Their Cost of production or COP, was just at their net sales average (NSA), meaning there was no profitable impact on their bottom line. What has happened is that they narrowed their losses Their ledgers show zero differences in cost and NSA. Perhaps reason to acquire some good humour.
Eastern Brokers reported gross sales average of Rs.327.43. Comparing this performance same date last year was Rs. 325.94. Indicating increase of about Rs.2 . per kilo. In real terms this was an extremely good return on prices.
There were eight all time record prices this week mainly attributed to low growns, and two mid grown marks..
Meanwhile short fall in tea production world wide seemingly affected the British house wife. According to recent surveys, normal tea consumption in Britain was recorded at 165 million cups per day. The tea habit, and its thirst for the beverage if not quickly assuaged could possibly lead to the tea habit diminishing and swing to coffee increasing. But Executive Chairman United Kingdom Tea Council Bill Gorman, said tea still represents good value and price increases were not necessarily bad news. (As reported in the Asia Siyaka, Tea Market report).
In Britain tea has been the beverage of choice about 400 years. But this could change, experts say. Drought conditions that hit India, Kenya, and Sri Lanka have gravely impacted on world production.
Grocer Magazine calculated that Tea from Kenya cost 21 % more than it did last year. Sri Lanka is likely to have worse results. Reality has it that Ceylon tea now costs 25% extra.
Owner of recently opened Waterloo Gardens Tea House in Cardiff, Kasim Ali said high ended tea is now priced at Sterling Pounds 200. per kilo last year he said prices for similar tea was 80. sterling.
However a pot of loose leaf tea costs Sterling pounds 2. 60, which is enough for four cups., said William Griffiths, manager Angel Hotel, Abergavenny, which he said was marginal increase in price over the past ten years.
Meanwhile China exports to the US increased to 3028 metric tons up 21.84 %. Sri Lanka is of course nowhere in sight in the US markets.
Similarly Pakistan imports from Kenya 24. 73 million kilos tea each year. Again Sri Lanka is nowhere in sight.
Unless tea exports are pursued to non traditional markets, impending wage increases would have severe impact on the industry and its future. The collective agreement with labour lapsed end March this year. Negotiations are ongoing and likely hood of agreement ending conclusively is still in the balance.
