Tea: Key markets contribute to Lanka’s high FOB value | Daily News

Tea: Key markets contribute to Lanka’s high FOB value

Customs data analyzed by Siyaka Research confirms that Turkey was prime destination for Ceylon tea exports in 2020. Turkey has absorbed 38.8 Million kg with an average FOB per kg of USD 4.29. Actual exports to Turkey do realize a much higher FOB value, but this country is a major transit point for shipments to other destinations. Iraq which is the no. 2 quantity in destination has an extremely low FOB value of $ 3.10. Russia follows with 29.6 Million kg and $ 4.45 with Iran 15.1 Mn kg $ 4.93 and China 14.1 Mnkg $ 4.07. They make up the top five destinations and it must be noted that China is the fasted growing market but most exports are in Bulk Form, hence the relatively low FOB. Some important countries that have exceeded the national average FOB per kilo of $ 4.67 are Azerbaijan 10.3 Mnkg $ 4.90. Syria 9.5 Mnkg $ 4.74. Saudi Arabia which is listed as 11th in quantity at 6.8 Mnkg has a very high FOB value of $ 6.89 . This converts to an absolute USD value of 46.8 Million, well above countries that have taken up higher quantity. Germany 6.4 Mnkg $ 5.00, USA5.7 Million kg $ 5.62, Japan 5.6 Million kgs $ 5.42, Jordan 4.6 Million kg $ 5.41, Ukraine 4.5 Million kg $ 5.25; all have realized figures above the national average. There are some key markets that have achieved an FOB in excess of $ 6 per kilo. Poland with a quantity of 2.9 Mnkg with FOB of $ 6.79.

Netherlands 2.8 Mnkg $ 7.43. Ireland 2.2 Mnkg $ 8.32. Kuwait $ 6.23, Australia $ 8.72, New Zealand $ 8.42, UK $ 8.38 are markets that have imported more than million kilos of Ceylon tea in 2020. Value Addition a Key aspect of high FOB realization for Ceylon Tea. For the purpose of this study Value Addition is considered tea exported in Packets, Tea Bags, Instant Tea and Green Tea. Specialty blends shipped in Bulk form are not considered Value added for this purpose.

Sri Lanka has fought hard to build these markets over time and it is critical that the country meets this well-earned demand by supplying the quantities required with the taste expected and trusted over time. The world pays a premium for Ceylon Teas because of its unique mix of tastes and orthodox style and other attributes.

It is critical therefore that we do not tinker with this winning formula. In fact much effort is needed to protect what we have achieved, by replanting, protecting our micro climate that brings out our unique taste from the agro ecological regions and through further strengthening value addition and branding.


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