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As reported in the Asia Siyaka weekly Tea Market report, the Mombassa Tea auction in Kenya too picked up over the last two weeks. What has that got to do with the Colombo auctions? Quite some significance.
Usually buyers unable to fill their orders ex Mombassa, or Kolkota, make up their requirements ex Colombo. Naturally with nowhere else to go buyers flock to Colombo; the end result being that Colombo had a good run on prices.
Nothing... from page 1
Acceptable or not in a general sense Mombassa's failure (Apparently), had contributed to success at the Colombo auctions. As this column indicated last week good times in Mombassa would mean more or less not so good times in Colombo. Brokers have always maintained that good teas will sell, and sell well. What they told us was that standards should not be sacrificed because sales are good. They also said Planters were cautioned not to drop standards.
Reports from Argentina were that they had experienced marginal drop in production because of unfavourable weather conditions. Mid - year shipments at 41,035 tons recorded deficits of approximately 2.5 %, down from 42.104 tones the same period last year.
The US remains the largest destination for Argentina Teas .at 57.5 % absorption. Chile, Germany, the UK, and The Netherlands, follow in that order.
We asked Brokers how these teas from Argentina were so special. Also that according to accepted norms Ceylon Tea was yet the best in the world, but such 'best' did not attract the US market. Also that UK too had reverted to Argentina teas, rather than the best from Sri Lanka, or strength of the Ceylon Tea Logo.
Ceylon Tea lost the UK market quite a while back which was never regained.
Their interpretation was that Argentina being in close proximity to the US, that market was stable. And constant.. He said Sri Lanka was working on possibilities for international expansion but met with insignificant success.
The value added market, comparatively small, was thriving, but largely in limited quantities, they said. But potential was substantial.
Views expressed included vigorous marketing should be done to realize expected expansion if new markets are to be found. Sadly this was lacking they said.
Next week we would examine this subject further and could then glean on debilitating pointers. Also who should be held responsible.
The low grown tippy tea price range was Rs530. to Rs. 730. which brokers said was a viable price per kilo. Madola and Angara Factories sold these teas at upper level marks.
Of the Western high growns, Glentilt and Moray, in the Maskeliya basin, did well. Somerset on the face of the Western hills, also did well selling BOPF gardes at about Rs. 490. per kilo.
