Lanka among Big Four to export 80% of world tea in 2005

by Elmo Leonard

The Big Four tea exporters, Kenya, Sri Lanka, China and India accounted for 80 percent of world exports during 2005. Sri Lanka conceded its top slot as the leading exporter of tea to Kenya, for the second year in 2005, having held the top spot from year 2000. Kenya's exports increased by 5 percent, over 2004 to record, 350 million kilograms of shipments, according to the International Tea Committee (ITC). Sri Lanka's tea exports were 298.766 million kilos for the year past.

For 2005, 2,430,000 tonnes of tea were supplied to the global market, of which 2,312,000 tonnes had been absorbed, leaving a surplus of 118,000 tonnes. This was an increase in surplus at end-2005, compared to 21,000 tonnes surplus at end-2004, according to the Forbes and Walker tea review 2005. However, of consequence would be the teas which would be stagnant, being poor quality teas.

Global tea production during 2005 recorded an increase of approximately 1.5 percent to reach 3,376 million kilos. The largest contributions were from China and the African region. As a greater part of tea produced in China comprises green tea, the increase in black tea production essentially would be from the African region. Sri Lanka has been yet another contributor to the global increase although not to the same extent.

Global tea production has been increasing by around 3 to 4 percent while global tea exports have been growing by 2 percent, over the past two years. Thus, it is evident that there is an excess or surplus of tea and it would be reasonable to conclude that this surplus comprises fair average quality teas.

Asia's total exports of tea for 2005, comprised 983,803 tonnes, against 967,427 tonnes in 2004. Asia's exports of tea have been growing, since 1996, when it was 721,943 tonnes.

Sri Lanka was Asia's leading tea exporter for 2005, with shipments of 298,766 tonnes. Sri Lanka's exports of tea include teas imported for blending and reexported and green tea, but excludes instant tea.

China is Asia's second largest exporter of tea, with 286,341 tonnes shipped. China's exports include green tea, oolong, jasmine and pure tea. India was the third largest exporter, with shipments of 180,000 tonnes and her foreign sales are categorised as the same types as Sri Lanka's tea exports. Indonesia is Asia's fourth largest tea exporter, with foreign sales of 101,000 tonnes, categorised similar to Sri Lanka and India.

Vietnam, a new entrant to tea exports is in fifth place, with shipments of 88,000 tonnes while her export types have not been categorised. In 1996 Vietnam exported 20,800 tonnes, in year 2000, 55,660, tonnes and in 2004, 70,000 tonnes.

Bangladesh, is the sixth largest exporter, with shipments of 9,000 tonnes (not categorised); Turkey - 7,000 tonnes (not categorised); Iran - 6,500 tonnes (not categorised); Nepal - 3,300 tonnes (year begins July 15); Taiwan - 2,500 tonnes (includes pouchong, green and other teas; Japan - 1,096 tonnes (including green and other teas and Malaysia - 300 tonnes (not categorised).