STiR coffee and tea magazine

STiR coffee and tea 13 25-27 APRIL | THE ADDRESS DUBAI MARINA FROM CONSUMER TRENDS TO NEW MARKET OPPORTUNITIES GLOBAL DUBAI TEA FORUM 2023 UNPACKING THE FUTURE OF TEA: Register now for the pre-eminent tea industry gathering globaldubaiteaforum.ae (metric tons) Sri Lanka's Tea Production and Exports Drop in 2022 The domestic and international economic and political turbulence of 2022 took a toll on Sri Lanka's tea industry, as production sank 16% from 2021 to 251 million kilo- grams, while exports fell 12.5% in volume terms to 250 million kg, the lowest level in 25 years. In U.S. dollar earnings, exports dropped by 4.7% to $1.27 billion, according to figures from the Sri Lanka Tea Board. But not all news was bad. In local currency terms, tea export revenue climbed by 56% to 411 billion Sri Lankan rupees, the highest ever in a calendar year. The production and export declines showed the impact of disruptions to produc- tion and logistics from the domestic economy's troubles and related shortages of fertilizer and fuel. Challenging conditions in international markets and logistics also weighed on the sector. The Tea Exporters Association of Sri Lanka cited a report by Forbes & Walker Tea Brokers noting that because tea output declined across many producer countries in 2022, and an annual drop is typically followed by a rebound, output should grow in 2023. But rising costs for inputs like fertilizer will pressure margins. The report said that although prices are expected to rise, Sri Lanka's tea sector will be strained by rising wages, declining mechanization, and higher costs for credit. This could erode Sri Lanka's competitiveness because other tea exporting countries will benefit from lower average production costs. 2021 2,022 change Orthodox 270,571 227,117 -16.1% CTC 26,195 22,571 -13.8% Green 2,572 1,809 -29.7% Total 299,338 251,499 -16.0% 2021 2022 Bulk 125,388 110,453 Tea in Packets 128,344 110,765 Tea In Bags 24,665 21,673 Instant Tea 3,032 3,076 Green Tea 4,587 4,222 TOTAL 286,016 250,191 Sri Lanka's Tea Production in 2022, 2021 Exports of Sri Lanka Tea by Category in 2021 and 2022 (metric tons) 2021 2022 change 1 IRAQ 42,455 43,245 1.9% 2 RUSSIA 27,356 24,733 -9.6% 3 U.A.E. 23,149 22,578 -2.5% 4 TURKEY 29,741 15,595 -47.6% 5 IRAN 15,833 13,059 -17.5% 6 AZERBAIJAIN 10,591 12,091 14.2% 7 LIBYA 12,339 11,200 -9.2% 8 CHINA 14,237 11,128 -21.8% 9 GERMANY 6,402 6,572 2.7% 10 CHILE 8,834 6,513 -26.3% Top 10 Importers of Sri Lanka Tea by Volume 2021 and 2022 (metric tons) (Source – Forbes and Walker Tea Brokers) Tea Report

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