Economy

Present tea price trend could bring strong 1Q13 results - JK

07 Jan 2013 - {{hitsCtrl.values.hits}}

If the present trend in tea prices is to continue, the industry could expect strong first quarter performance in 2013, according to John Keells Ltd, a leading tea broker in the country.

As it pointed out, although production in 2012 is likely to fall short of the all-time record set in 2010, tea sale averages have set a new all-time record of Rs.394.64 per kg, which is Rs.21.03 higher than the record year and Rs.31.75 above 2011.

“This is a commendable achievement considering the fact that the general trend of declining prices from the second half of 2011 continued into the first quarter of 2012 with all three elevations recording negative variances,” John Keells said.

They also said it was largely due to the low grown market having to contend with increased tension in the Middle East, sanctions in Iran and the Euro crisis.

“However, the global shortfall in black tea production during the year and the devaluation of the rupee against the US dollar had a significant impact on tea prices at the Colombo auctions,” the tea broker noted.

Sri Lanka’s Sale Averages for the month of December have exceeded the Rs.400 mark for the past five consecutive months, with an average of Rs.424.38, which incidentally is the second highest monthly average ever recorded, with the previous best being Rs.431 in September 2009.

“Once again, we see a strong performance coming from the High Grown Sector of Rs.439.08 which has boosted the overall average,” John Keells noted.

Economy

Present tea price trend could bring strong 1Q13 results - JK

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