Thu, 02 September 2010  21:49:14
Leaf Levels
21 Aug, 2009 06:31:40
Sri Lanka July tea crop down 11-pct
Aug 21, 2009 (LBO) - Production of Sri Lanka's main export commodity, tea, remain well below last year's level with the July output at 25.1 million kilos being 11 percent lower than the same month a year ago, brokers said.
The outlook for August is also not much better and the supply shortfall is likely to continue, they said.

"Sri Lanka’s cumulative shortfall for the year therefore is a massive 42.56 million kilos," brokers Asia Siyaka Commodities said in a report.

"All elevations have recorded sharp crop losses."

Cumulative production so far this year is 157.03 million kilos against 199.59 million kilos last year.

Total production of low grown teas up to July this year is down by almost a quarter to 88.9 million kilos from 115.6 million kilos in the same 2008 period, Forbes & Walker Tea Brokers said.

Low grown teas account for the bulk of the crop. They are cultivated mainly by small farmers in the south of the island and are much in demand in the Middle East.

Total production of high grown teas, grown mainly by plantations companies, fell almost 14 percent to 42.4 million up to July this year from a year ago.

Teas grown at medium elevations showed the highest percentage drop of 26 percent and are down to 25 million kilos this year from a year ago.

"The outlook for August is also not very bright," Asia Siyaka Commodities said.

"In 2008 Sri Lanka had a crop figure of 25.07 million kilos. This year we project August production to be in the region of 23 to 24 million kilos."

Tea production in other exporting countries is also down this year with the global shortfall during the first half of 2009 around 80 million kilos, excluding the crop from Argentina, the brokers said.

"Sri Lanka had a poor July and a probable low August (production). Supply will continue at low levels therefore, during this period of accelerated pre-winter buying."

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