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Tea Auction

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Nipun Wisnagalage
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Tanzania launches tea auction to compete with regional giant Kenya

Tea is a way of life in East Africa. Rich soil, tropical climate makes African CTC teas ideal to sip after adding milk. Kenya, Malawi, Burundi, Uganda and Tanzania is among main tea growers in Africa. As TV4 Official instagram page had reported, Tanzania held its first ever tea auction on November 13 in Dar es Salaam, in an event that was aimed at transforming the tea industry in the country.

Image Credit: Michigan State University

As a result, Tanzania has revealed plans to stop exporting its tea through the port of Mombasa in Kenya. The auction is expected to open markets for over 65 tonnes of tea at the ports of Dar es Salaam and Tanga in Tanzania. This move aimed at boosting farmers’ earnings and increasing the value of its tea on the global market.

Media outlet The Standard quoted Tea Board of Tanzania director general Mary Kipeja as saying that the tea auction would establish the country as a central hub for neighbouring tea-producing countries to trade their goods.

“Apart from minimising market costs, the tea auction is going to be a part and parcel of the implementation of the local content agenda, therefore empowering Tanzanians economically,” she said.

Kipeja added that the auction is going to significantly change the income of large and small-scale growers because costs incurred for tea transporting to Mombasa will now be used for strengthening and improving productivity.

The auction is expected to open markets for over 65 tons of tea at the ports of Dar es Salaam and Tanga in Tanzania.

Ten processors have already signed contracts with brokers with seven others being in the process of finalising agreement documents.

In recent years, Tanzania has recorded a decline in tea exports and earnings after raking in $12.2mn after exporting 7,875 tons in the 2022/23 financial year. During the 2020/21 financial year, the country exported 24,000 tons earning $39mn.

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References

  1. Main Source: https://www.intellinews.com/tanzania-launches-tea-auction-to-rival-that-of-regional-giant-kenya-301750/

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Nipun Wisnagalage
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Colombo Tea Auction to be Held on e-platform for First Time ?

Tea was first grown commercially in Sri Lanka (Ceylon) by the Scottish planter James Taylor in 1867. Eventually Ceylon Tea became one of the finest tasting teas in the world thanks to her overall, well balanced tasting profile with ideal strength, body, aroma and flavour. In a time when the whole world is been affected by COVID 19 Virus, The Colombo Tea Auction, the world’s largest single-origin tea auction and the oldest operational auction, plans to conduct its next auction for the first time on an e-platform, aiming to avoid public gathering, to slow the spread of COVID-19 virus in Sri Lanka (Ceylon): Nishel Fernando Wrote to Daily Mirror.

Colombo Tea Traders Association (CTTA) Chairman Jayantha Karunaratne mentioned “We are trying to change the way of conducting the auction. From the traditional outcry system, we are changing it to an e-platform, without getting people together physically. The platform is being currently developed; we hope it will be ready by this Thursday, so we could finish the auction this week,”

Image Credit: Business Today

As Mr. Karunaratne mentioned further, the e-platform, which is currently being developed, would enable buyers to bid for teas remotely from their respective offices, although the specifics of the platform are yet to be revealed. 

The Regional Plantation Companies (RPCs) earlier worried that the buyers might not turn up to the tea auction because of COVID-19 fears, leaving much of tea stocks unsold. The Colombo Tea Auction is now likely to be held this Friday. 

The RPCs, with permission granted by the government authorities, have already transported their teas to warehouses for the upcoming auction. 

It’s reported that both RPCs and smallholders are seeing substantially lower tea yield due to prevailing drought in the key tea growing regions of Ceylon, in particular the western region. “The drought is unprecedented this year – that means we will get 30 percent of the usual crop in the coming months,” Hayleys Plantations Managing Director and the Planters’ Association (PA) of Ceylon past President Dr. Roshan Rajadurai mentioned.

Dr. Rajadurai feared the potential scenario leading to unsold teas at the Colombo Tea Auction, which could adversely impact the cash flows of RPCs. “It’s going to be a difficult time. If we are not able to sell tea and receive money, we are not going to be able to sustain,” he said.

However, Asia Siyaka Commodities PLC MD/CEO Anil Cooke  opined that the demand would rebound for Ceylon tea in medium to long term, although there could be some adverse impact in the immediate term.

Even overseas, most of the shelves are cleared of stocks. At some point, importing countries will keep asking for teas. They are already beginning to ask for tea now. Therefore, we are optimistic of the future,” he elaborated. 

Sri Lanka tea exports increased slightly by 3.8 percent year-on-year to 292.6 million kilos in 2019, bringing an export revenue of Rs.240.6 billion, compared to Rs.231.7 billion in 2018. 

View More Tea Articles + Latest News: https://www.teawithnipun.com/

References

  1. Article By Nishel Fernando: http://www.dailymirror.lk/print/business__main/Colombo-Tea-Auction-to-be-conducted-on-e-platform-for-first-time/245-185947