(Daily FT) Tea exports in November lowest since May

Customs data analysed by Asia Siyaka Research confirms that Sri Lanka exported 23.6 Mnkg in November this year, up a sharp 16% on last year’s low drought-restricted figure of 20.4 Mnkg.

The current year’s November quantity is however the lowest since the May figure of 24.3 Mnkg.  Going back five years from 2015 exports have been in the region of 26-28 Mnkg in November.

Exports for the period January-November 2017 have reached 265 Mnkg, a figure even lower than last year’s drought-restricted quantity of 266.1 Mnkg. The figure is the lowest since 2000.

Rupee earnings are at a record high of Rs. 213.8 billion, approximately $ 1.4 billion. These earnings convert to an approximate FOB value of a highest ever $ 5.29 per kg and a record rupee value of Rs. 807.12 per kg.

Sri Lanka exported 57% of all teas in value added form, a proportion equal to last year. Contributing to the value-added segment, packet tea comprised 46%, tea bags 8%, instant tea 1% and green tea 2%.

Russia/Commonwealth of Independent States (CIS) is the leading cluster of markets with imports of 49.2 Mnkg accounting for 19% of all tea exports from Sri Lanka. Last year‘s figure was marginally higher at 49.4 Mnkg (19% share).

Within this cluster Russia imported 31 Mnkg and accounted for 12% of all imports. Russia/CIS is also the second largest market for tea bags, with imports of 1.19 Mnkg, whilst Australia is the prime destination with absorption of 1.75 Mnkg.

Exports through Turkey have risen sharply to 35 Mnkg (13%), up 43% on last year’s quantity of 24.7 Mnkg. This market is followed closely with exports to and through Iraq, 31.3 Mnkg against 30.8 Mnkg a year ago.

Direct shipments to Iran have dropped sharply by 20% YoY 2016 from 31.3 Mnkg to 24.9 Mnkg. The UAE handled 14.5 Mnkg and Libya 11.5 Mnkg. Exports to China have grown to 8.9 Mnkg from 6.9 Mnkg.  Japan has increased to 7.15 Mnkg from 7.03 Mnkg. Syria has declined 40% from 11.1 Mnkg to 6.6 Mnkg this year. Chile has grown from 5.9 Mnkg to 6.4 Mnkg and is followed by Germany at 6 Mnkg, down from 6.4 Mnkg last year. Hong Kong has grown from 4.1 Mnkg to 4.6 Mnkg.