STiR coffee and tea magazine

48 STiR coffee and tea / Issue 3, 2017 (June/July) T 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2,654 1,127 1,204 1,305 1,261 1,322 1,397 1,437 1,392 1,559 1,566 1,579 1,581 1,652 1,615 1,786 1,762 1,773 1,858 1,823 1,796 1,774 2,929 2,763 2,948 3,026 3,058 3,086 3,334 3,537 3,666 3,854 3,965 4,019 4,281 4,561 4,691 4,991 5,196 5,305 5,462 3,217 Millions of kilos (M.kgs) 1000 2000 3000 4000 5000 6000 Source: International Tea Committee, London Reprinted with permission ITC Annual Bulletin of Statistics 2017 By Dan Bolton Tea Totals Rise as Exports Slide Global Production 1996-2016 here was much less tea sailing the high seas last year than could be found in local market stalls. Production continued its steady growth in 2016 with a continuous upward climb dating back to 1996, based on sta- tistics compiled by the International Tea Committee (ITC). In 1996 ITC tallied global production at 2,654 million metric tons (2.6 billion kilos). Production has since more than doubled to 5,463 M.kgs. China, India, and Kenya contribute the largest share. Chi- na harvested 2,350 M.kgs. last year, accounting for 43% of all global tea. India contributed 23% of the global total and Kenya grew 9% of the world's tea. Combined they produced 75% of the global total, according to ITC. Collectively Asian countries are the greatest source of tea, producing 85%, with Africa next at 12%. South America, mainly Argentina, contributed about 2% with both Oceania and Russia bringing 9 million kilos to market in 2016 (less than 1% combined). Exports flat The amount of tea exported last year was down slightly from the previous year to 1,774 m.kg. compared to the 1,796 m.kgshipped in 2015. What is significant is that tea exports since the Great Recession have plateaued. Export totals were 1,786 m.kg in 2010 and have remained essentially unchanged since. "Tea exported as a percentage of what is produced, con- tinues to decrease and in 2016 is estimated to be 32% of total production, down from 41%, 10 years back," explains Manuja Peiris, chief executive and statistician with the International Tea Committee in London. ITC was founded in 1933 to regulate tea production, shipments, and pricing but now functions as a credible statistical body. "This means that 68% of global supply is retained at origin," said Peiris. "Inversely, consumption has been declining in countries within the developed world, where both population growth and disposable incomes are not im- proving," he said. Shipments to Russia, the world's largest importer of tea, marginally declined as consumption fell to 154 m.kg. Russians (and the nearby CIS countries) consume 4.5% of the world's tea. "The overall global demand in non-producing countries remains stagnant, with the exception of a very few countries, which means that the overall export quantities are not shifting upwards," said Peiris. "During the last 10 to 15 years, export growth has come primarily from Kenya and Vietnam," he said. China has also planted a lot of tea in recent years but that is mainly to meet domestic demand, he said. The need for more tea there is very much evident ― all destined for internal consumption," he said. New interest is driving demand with consumption increas- ing by 15% per year, according to estimates published by The Economist Intelligence Unit. Black tea is the fastest growing segment with an average rate of 40% per year since 2002. Green tea has risen more gradually. Only 35% of people in China drink tea daily. Consumption is just over 1 kilo per year per capita, which ranks 14th globally. Export data reveal that new markets for tea are emerging, with the number of countries buying tea at the major auction houses in Asia and Africa on the rise, according to The Econo- mist. Demand from these faster-growing emerging countries, is set to increase. Together these countries account for about 20% of global consumption. Global Exports 1996-2016

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