14 STiR coffee and tea | 2022 Issue 5 (October/November)
Source:
International
Tea
Committee,
courtesy
Ian
Gibbs.
The Stubbornly
Stagnant Price
of Tea
Prices in some of the world's tea auction
houses rose during recent disruptions
such as the pandemic, Russia's invasion
of Ukraine and Sri Lanka's political and
economic upheaval. But this uptick
obscures a long-term — and troubling
— global trend of price stagnation, if
not decline.
International Tea Committee chair
Ian Gibbs says consumers pay much less
than they should. "It's terrifying. The
industry is at the limit and has been for
far too long," Gibbs told attendees at
the North American Tea Conference in
September.
"If you look at prices over the last 20
years, there is no movement. Tea prices,
in real terms, are less than what was paid
100 years ago," said Gibbs.
Based on data from the top three
auction houses, a composite of all
auction prices averaged $2.85 per
kilogram during the past decade. During
2022 through August, the average stood
at $3 per kilogram, reflecting higher
prices in Sri Lanka and India.
Sri Lanka's tea market has been
affected by the nation's recent economic
and political upheaval and related decline
in production. Average prices at the
Source:
International
Tea
Committee,
courtesy
Ian
Gibbs.
Source:
International
Tea
Committee,
courtesy
Ian
Gibbs.
Tea Report
