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Tea Consumption

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CCP:TE 12/CRS 7 January 2012

E

COMMITTEE ON COMMODITY PROBLEMS
INTERGOVERNMENTAL GROUP ON TEA Twentieth Session Colombo, Sri Lanka, 30 January - 1 February 2012 CURRENT SITUATION AND MEDIUM TERM OUTLOOK FOR TEA

I.

INTRODUCTION

1. This document constitutes an overview of the current market situation and medium term outlook to 2021 for tea. The analysis is based on data received by the Secretariat from member countries, supplemented by data from other sources including the International Tea Committee. Macro-economic data were sourced from the IMF, World Bank and OECD, particularly for those used in the medium term projections. 2. A deviation from past practices, is the inclusion of market commentaries from IGG member countries that had provided theirs. The Secretariat is extremely grateful to contributions from Argentina, India, Indonesia, Kenya, Mauritius, Sri Lanka, Tanzania and Vietnam. If delegates find this useful, they may wish to adopt it as a standard practice for the Group in its evaluation of the world tea market, and include contributions from importing countries as well. This would go a long way in improving the spirit of cooperation among members and promote marketing priorities of the Group in the areas of:    Improving market transparency; Fostering market expansion; and Value chain enhancement.

3. Finally, delegates are requested to review the information presented, and amend and supplement these where necessary, pertaining to their countries.

II.

HIGHLIGHTS

4. World black tea prices remained firm in 2010 and 2011 as market fundamentals were strong. After long periods of sustained growth, black tea production actually declined in 2009, and although consumption also declined marginally, demand for black tea exceeded supply. This trend continued in 2010 and 2011 as consumption continued to exceed production. 5. Therefore, as

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