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World Tea Production Declines Drive Up Prices

Japanese tea setThe state of the global economy could be compared to a roller-coaster. Because:

  • there are a lot of unexpected twists and turns that you can never really prepare for,
  • sometimes there is even the mind-boggling loop-de-loop that leaves you suspended,
  • and then there’s always that shocking drop where all you can do is hold on for dear life.

More recently, one of the frequent passengers of this economic rollercoaster has been the tea industry and it’s consumers.

Along with global conflicts, such as the current tensions and terrors in Libya and the recent natural disasters in Asia, imports and exports are also along for the challenging journey.

The tea world has been affected by these factors and recently the tea productions in Asia have slowed as well as in Africa, but tea experts aren’t too worried about the decline. The first two months of 2011 has seen an almost 16 percent decrease compared to record highs in January and February 2010.

Tea experts don’t see these slumps as long lasting. According to the Asian Tribune, “world tea prices are expected to remain moderately high in 2011 due to the rise in world tea consumption.”

But when there is a bad batch of tea, there is nothing that can be done to save it from becoming another discounted product. It is the reality in the business/consumer world that when a product is not at it’s peak performance then it is not sold at full price.

African tea workerReuters Africa recently reported that a less than stellar batch of tea in India resulted in low tea prices at the week’s tea auction. Many aren’t too worried about the low quality since the season has yet to reach its peak and not all batches will be seen as “the best.”

These production decreases and price increases aren’t bringing down the tea consumers and experts, though. Despite the recent conflicts in Libya, the country is purchasing tea exports again which is helping to ensure tea keeps its high stance in the global market.

While business is all relative, as long as Mother Nature stays in a good mood and people’s desire for their herbal refreshments remain high, production and pricing will not hold tea down!

Sources: Asian Tribune & African Reuters

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