World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Poor Weather Drives Tea Prices To Record High

Poor Weather Drives Tea Prices To Record High In 2009 – UN

New York, Dec 22 2009 10:10AM Tea prices reached a record high in 2009, but should ease next year as weather improves in the main tea-producing regions in Asia and Africa, the United Nations Food and Agriculture Organization (FAO) reported today.

The agency’s Tea Composite price, the world’s indicator for the price of black tea, reached a high of $3.18 per kilogramme in September as India, Sri Lanka and Kenya experienced droughts while demand surged, compared to an average price of $2.38 a kilogramme in 2008.

FAO said that there are concerns that producers could plant more crops to take advantage of the current high prices, flooding the market with tea.

“Some producing countries, such as India, have acted responsibly and announced that they would not be expanding current tea areas beyond what is required for replanting and rehabilitating existing tea gardens,” said Kaison Chang, Secretary of FAO’s Inter-Governmental Group on Tea, the world’s only tea authority.

Some of the price increases this year were reflected in rises in prices for consumers, with retail prices climbing 5 per cent in supermarkets across Europe.

That demand for tea has remained robust in the face of the global recession supports the assertion that tea consumption is “habit forming” and is relatively price inelastic for most blends, FAO noted.

Higher prices have not impacted consumers in developed countries due to intense competition in the beverages market.

However, the rise in prices will likely be transferred to those in developing nations because tea procurement costs account for a major share of the final retail price. For example in India, average retail tea prices were some 15 per cent higher in September 2009 than in the same month the previous year.


© Scoop Media

World Headlines


UN News: ‘Things Have To Change’ Canada’s Trudeau Declares Amid COVID-19 Pandemic

The COVID-19 pandemic has revealed that the world must change, as multilateral systems established decades ago are not working as they should, Prime Minister Justin Trudeau of Canada told the UN General Assembly on Friday. “The world is in crisis, and ... More>>

Assange's Hearing: Latest Observations From Court

Despite severe restrictions on observers, Reporters Without Borders (RSF) is the only NGO that has gained access to the hearing, and we’ve managed to monitor proceedings on most days. We will continue to do so whenever possible. Yesterday I was in court ... More>>

USA: Investors ‘freaking’ Over Possible Contested Outcome Of Election: Poll

A disputed result in November’s U.S. presidential election is now the number one concern for investors – even ahead of a second wave of Covid-19 – according to a new global survey. The poll carried out by deVere Group, one of the world’s largest ... More>>

ILO: Impact On Workers Of COVID-19 Is ‘catastrophic’

COVID-19 has had a “catastrophic” impact on workers, the head of the International Labour Organization ( ILO ) said on Wednesday, with lost working hours higher than originally forecast, and equivalent to 495 million full-time jobs globally in the ... More>>