8
Economy Drought hit weather further retarded agricul- tural output and world demand on key Sri Lankan exports commodities declined consid- erably by 1.4 percent or US$2.63 billion in value, widening balance of payments too at the end of first quarter compared to last year same period. As a result pressure on the rupee mounted through out the period and govern- ment eased the control of exchange rate expecting a narrowing of the huge trade deficit of US$ 2.55 billion for the period. Hence, the economy recorded a 7 percent growth as mentioned in Central Bank report for the period which is lower than same quarter of last year. Tea Market Update Volume 8 No 1 January—March 2012 Editor-Sampath Perera Tea Promotion Division E-mail [email protected] Web-site www.pureceylontea.com The year 2012 marks 145 years of the commencement of Sri Lanka tea industry on a commercial scale. Sri Lanka Tea Board, the apex state or- ganization of the tea industry in Sri Lanka under the purview of the Ministry of Planta- tion Industries will be hosting the 20 th Session of FAO/ IGG on Tea in Colombo, Sri Lanka in 2012 Selecting Sri Lanka as the venue for one of the most impor- tant events in the global tea industry, providing a prestigious platform for the United Nation’s Food and Agriculture Organization’s 20th Session of the Inter-Governmental Group (IGG) on Tea is certainly an achievement and shows world recognition for Sri Lanka. Sri Lanka Tea Board made arrangements to host the FAO/ IGG Sessions which took place from 30 th January to 1 st February 2012 at Cinnamon Grand Hotel, Colombo. Cont. in page 5 …. Tea Production 2 Tea Marketing 3 Tea Exports 4 Global Tea Scene 6 Trade Fair Participation 7 Research Update 8 Due to the continuity of the subsidized fertilizer and power sector intervention by the govern- ment, inflation was maintained below the last year level to be provided to the masses enabling food items and other intermediate goods at affordable prices. Tea Industry Lower rains and price volatility at Colombo tea auction deprived a more positive performance to be recorded in tea industry. Corporate sector plantations Companies made a major setback as Colombo Stock Exchange recorded lower value per share in its history due to lower yield and higher COP. Continue in page …………….5 General Overview Total Production from all tea grow- ing areas registered to 73.18 Mkgs for the period ended 31 March 2012, which is 6.6% less than the previous year same quarter. Average auction price at Colombo dipped to 355.77 / kg or 9.7% below the last year level. Sri Lanka tea ex- ports for the first quarter of 2012 reached 76238MT, a 4.3 % decrease over the first quar- ter of 2011. 20 th Session of the Intergovernmental Group (IGG) on Tea of Food & Agriculture Organization (FAO) 30 th Jan -1 st Feb 2012 and Colombo International Tea Convention 1 st – 3 rd of Feb 2012.

First quarter 2012

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: First quarter 2012

Economy Drought hit weather further retarded agricul-tural output and world demand on key Sri Lankan exports commodities declined consid-erably by 1.4 percent or US$2.63 billion in value, widening balance of payments too at the end of first quarter compared to last year same period. As a result pressure on the rupee mounted through out the period and govern-ment eased the control of exchange rate expecting a narrowing of the huge trade deficit of US$ 2.55 billion for the period. Hence, the economy recorded a 7 percent growth as mentioned in Central Bank report for the period which is lower than same quarter of last year.

Tea Market Update V o l u m e 8 N o 1 J a n u a r y — M a r c h 2 0 1 2

Editor-Sampath Perera Tea Promotion Division

E-mail

[email protected]

Web-site www.pureceylontea.com

The year 2012 marks 145 years of the commencement of Sri Lanka tea industry on a commercial scale. Sri Lanka Tea Board, the apex state or-ganization of the tea industry in Sri Lanka under the purview of the Ministry of Planta-tion Industries will be hosting the 20th Session of FAO/IGG on Tea in Colombo, Sri Lanka in 2012 Selecting Sri Lanka as the venue for one of the most impor-tant events in the global tea industry, providing a prestigious platform for the United Nation’s Food and Agriculture Organization’s 20th Session of the Inter-Governmental Group (IGG) on Tea

is certainly an achievement and shows world recognition for Sri Lanka. Sri Lanka Tea Board made arrangements to host the FAO/

IGG Sessions which took place from 30th January to 1st February 2012 at Cinnamon Grand Hotel, Colombo. Cont. in page 5 ….

Tea Production 2

Tea Marketing 3

Tea Exports 4

Global Tea Scene 6

Trade Fair Participation

7

Research Update 8

Due to the continuity of the subsidized fertilizer and power sector intervention by the govern-ment, inflation was maintained below the last year level to be provided to the masses enabling food items and other intermediate goods at affordable prices. Tea Industry Lower rains and price volatility at Colombo tea auction deprived a more positive performance to be recorded in tea industry. Corporate sector plantations Companies made a major setback as Colombo Stock Exchange recorded lower value per share in its history due to lower yield and higher COP. Continue in page …………….5

General Overview

Total Production from all tea grow-ing areas registered to 73.18 Mkgs for the period ended 31 March 2012, which is 6.6% less than the previous year same quarter.

Average auction

price at Colombo dipped to 355.77 /kg or 9.7% below the last year level.

Sri Lanka tea ex-

ports for the first quarter of 2012 reached 76238MT, a 4.3 % decrease over the first quar-ter of 2011.

20th Session of the Intergovernmental Group (IGG) on Tea of Food & Agriculture Organization (FAO) 30th Jan -1st Feb 2012 and Colombo International Tea Convention 1st – 3rd of Feb 2012.

Page 2: First quarter 2012

+

Tea Production

P A G E 2 Tea market update Volume 8. No. 1

It is evident from table 3, that Plantation sector tea production recorded moderate decline while Private and Public sectors remained with less variation in first quarter as against last year same period. Government sector recorded a poor performance for the past as consecutive years though they witnessed 5.5Mkgs record production in 2008 first quarter as the highest in recent years. Table 3 – Distribution of Tea Production January-March 2012/2011 (Units:MKg)

Matara and Kandy districts recorded a slight increase in production while Nuwara-eliya and Galle districts fell remarkable decline as against last year same quarter. It is showed in table 4 below. Table 4.- District wise tea production comparison as at December 2012/2011 (MKg)

Tea Marketing Attributed to many external market forces the depressed tea market that prevailed during the first three quarters of 2011, intensified this quarter too. Total quantity sold through Colombo auction increased marginally and total average price for the quarter …..

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD

Total Production from all tea growing areas amounted to 73.18 million kilograms for the period ended 31 March 2012, which is 6.6% less than the previous year same quarter. This slight decrease can be attributed to lower rains experienced mostly in Western high and Uva regions.

March production recorded a severe decline compared to last year but ahead of the 2010 and 2009 crop. Hence, specialty Western High season didn’t reach forecasted level affecting cash trapped cooperate sector factories mostly centralized in hill country. Table 1 - Cumulative and monthly tea Production January-March 2008-2012 (Units :MT)

Intended tea planting of high grown were 41137 ha, which is 18.5% of total tea lands and produced nearly 17 million kilograms for the period and this deficit is higher than the cumulative deficit other two regions. It is depicted in table 2. Table 2 - Cumulative tea production according to elevation and category till March (Units :Mkg)

Proportionately, CTC tea production dipped severely by 28.5%, while Green Tea production figures remained unchanged for the period compared to the last year same period..

Sector 2012 2011 Change

Production % Production % Qty %

Private 43.02 58.79 43.32 55.2 -0.3 -0.5 Plantation 27.19 37.15 32.56 41.5 -5.4 -12.9 Public 2.97 4.06 2.52 3.2 0.4 13.9

Total 73.18 100.00 78.40 100 -5.2 -6.7

ADMIN. DIS-TRICT TOTAL-2012 TOTAL-2011 CHANGE

BADULLA 6.79 6.85 -0.06 COLOMBO 0.15 0.00 0.15 GALLE 10.81 11.98 -1.17 HAMBANTOTA 0.07 0.06 0.01 KALUTARA 3.92 4.23 -0.31 KANDY 7.10 6.57 0.53 KEGALLE 2.47 2.62 -0.15 MATALE 0.39 1.31 -0.92 MATARA 10.52 10.00 0.52 NUWARA ELIYA 15.80 19.25 -3.45 RATNAPURA 15.16 15.50 -0.34 TOTAL 73.18 78.37 -5.19

2012 2011 2010 2009 2008 January 23198 21,141 26796 17810 26278

February 22,775 22,125 24858 12764 25518

March 27,208 35,134 21458 18412 30811

Total 73,181 78,400 73,112 48,986 82,607

Category Jan-March Change

2012 2011 Qty % Elevation High 16.99 20.11 -3.12 -15.50 Medium 11.98 12.34 -0.37 -2.97 Low 44.22 45.95 -1.74 -3.78

Total 73.18 78.40 -5.22 -6.66

Processing Method Orthodox 67.55 70.83 -3.28 -4.63 CTC 4.87 6.81 -1.94 -28.46 Green Tea 0.76 0.76 0.00 -0.26

Total 73.18 78.40 -5.22 -6.66

Page 3: First quarter 2012

P A G E 3

Tea market update Volume 8 . No. 1

Table 7: Teas sold and prices fetched by distribution channels (Qty:Mkg, Price Rs./Kg)

As depicted in table 7 above, Private sales average price dropped by Rs.63 per kilogram whilst volume traded increased by 125% or 0.5Mkgs compared to the last year same period. Buoyant price levels prevailed for Direct sales, despite volume traded decreased by 33% or 0.2Mkgs, and average auction price at Colombo auction dipped to 355.77 /kg or 9.7% below the last year level as against the correspondent period of 2011.

The most significant feature of this quarter is sudden Rupee value depreciation which caused a check on price decline at end of the sale In March.

fell sharply compared to the same period of 2011. Subsequently, total earnings decline slightly at Colombo auction though total disposed quantities increased compared to last year same quarter. It is depicted in table 5.

Table 5 –Teas Sold and prices fetched in first quarter 2012/2011Unit:Qty-Mkg,Rs/Kg

Table 6– Weekly Auction sales comparison during the quarter (Rs/Kg)

Colombo Auction Colombo Tea Auction were held on thirteen auctions during the quarter and average sale prices were always below those of last year correspondent sale and in some weeks the difference in price drop exceeded Rs.40/Kg. The main reasons for price reduction of our teas are the lesser inquires made for High grown quality season teas by the Western Nations due to economic crisis and instability in Persian Gulf where more than 30 percent of our teas consigned.

Month Auc. High Medium Low Average

Change No. 2012 2011 2012 2011 2012 2011 2012 -year 2011-year

January

1 326.29 376.05 300.79 353.22 367.35 406.62 347.44 387.76 -40.3 2 332.06 377.63 306.12 353.55 367.78 412.11 350.62 391.46 -40.8 3 327.71 375.14 298.24 353.29 365.58 409.70 347.14 379.43 -32.3 4 334.45 377.26 301.86 360.44 361.77 415.76 347.33 377.30 -30.0

February

5 333.55 370.37 302.74 348.34 362.47 397.06 347.73 367.17 -19.4 6 330.01 374.15 297.76 348.61 352.04 404.35 338.94 381.59 -42.7 7 334.78 380.10 310.01 359.21 364.44 414.66 351.41 382.61 -31.2 8 330.41 378.95 315.94 361.86 365.15 422.45 350.45 381.01 -30.6

March

9 332.79 376.90 320.87 353.50 369.79 401.73 354.29 386.42 -32.1 10 330.19 389.11 322.07 369.77 367.76 408.93 353.08 391.95 -38.9 11 342.71 389.36 324.72 371.06 375.91 407.92 360.15 393.20 -33.1 12 348.75 384.27 339.89 378.31 395.90 402.38 375.55 383.73 -8.2 13 356.25 374.30 346.49 366.44 424.13 394.96 396.92 363.39 33.5

Different Channel First Quarter

2012 2011

Qty Price Qty Price

Public Auction 81.8 355.77 77.7 394.17

Private Sales 0.9 383.34 0.4 445.97 Direct Sales 0.4 462.74 0.6 391.63

Total 83.0 356.62 78.7 394.43 Different Channel

First Quarter Difference 2012 2011

Qty Price Qty Price Qty Price

High 17.8 340.0 17.3 380.5 0.5 -40.5

Medium 13.5 317.9 11.8 357.5 1.7 -39.6

Low 51.8 372.4 49.6 408.1 2.2 -35.7

Total 83.1 356.6 78.7 394.4 4.4 -37.8

Colombo auction price

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD

Page 4: First quarter 2012

P A G E 4

P A G E 4

Tea Exports Hence, the sequence of events that took place in the global economy shocked the world premium food and beverage markets with little exceptions. Table 10 -Top ten destinations of Pure Ceylon tea from Jan– March 2012/2011 Units:Qty - MKg

except re-export volume Sequence of top ten destinations changed dramati-cally where United Arab Emirates crashed to 9th

place importing its lowest level of 2.43Mkgs or a 63% decrease per quarter compared to the last year same period. It is depicted in table 10. A rebound of the ruined economy of Libya showed a significant

improvement of tea imports while Iraq showed moderate progress of its Ceylon tea imports. Ukraine and Iran offered the highest FOB price per kilogram whilst Libya and Kuwait record the lowest FOB for the period among top ten list of destinations.

Tea market update Volume 8. No. 1

Sri Lanka tea exports for the first quarter of 2012 reached 76238 metric tons with re-exports, a 4.3 percent decrease over the first quarter of 2011, following value of the shipments earned US$332.9 million, down 12.2 percent due to lower FOB value and volume. Tea exports for the month of March alone show a quantity increase and earnings decrease, reaching 29247 metric tons valued at US$125.3 million, up 8.2 percent and down 5.2 percent, respectively, over March 2011 figures. Quarterly exports of value added tea like Tea bags, Packets ,RTD, and Instant tea excluding re-exports in first quarter were 41492 metric tons, down 6 percent from first quarter 2011, while its export value decreased to US$189.47 million, fell 13 percent, attributed to appreciation of dollars by 9.3 percent over last year same quarter. These details are shown in table 8. and 9.below. Table 8 - Export Statistics for each month during first quarter 2008/2012Units : MT

Table 9 – Tea Exports comparison during first quarter (2012/2011) Units:Qty-Tons, FOB-Rs/Kg Value-Millions The major reason for the decline that recently occurred in

the country’s tea exports was due to a combination of factors commencing from economic crisis in USA, Euro Zone calamity, aftermath of the Japanese tsunami, currency depreciation in most major markets, accumulated with the uprising of Arab nations and sanctions on Iran.

2012 2011 2010 2009 2008

January 23,239 27266 21045 18403 23659

February 23,753 25345 25116 21400 28359

March 29,247 27026 24049 30123 26808

Total 76,238 79,638 70,210 69,926 78827

Category 2012 2011 Change % Change

Qty FOB Value Qty FOB Value Qty FOB Value Qty FOB Value

Bulk* 29,953 492.72 13681 29,844 465.69 13,898 109 27.03 -8,538 0.4 5.80 -61.4

Packets* 35,653 481.89 17,180 37,535 484.48 18,185 -1,882 -2.59 -1,005 -5.0 -0.53 -5.5

Tea Bags* 5,374 950.58 5,360 6,200 922.29 5,718 -826 28.29 -358 -13.3 3.07 -6.3

Instant Tea 464 776.98 361 429 761.59 327 35 323.69 34 0.0 0.00 0.0

Green Tea 531 1,085.28 576 573 996.13 571 -42 89.15 5 -7.4 8.95 0.9

RTD** 1 1,873.97 37 4 905.08 4 -3 968.89 33 0.0 0.00 0.0

Sub Total 71,976 516.30 37,195 74,586 521.78 38,703 -2,610 -5.48 -1,508 -25.4 -1.05 -3.9

Re-Exports 4,261 730.42 3,112 5,052 660.61 3,337 -791 69.81 -225 -15.7 10.5 -6.7

Total 76,237 528.26 40,307 79,638 528.64 42,040 -3,401 -0.38 -1,733 -4.3 -0.07 -4.1

* Black Tea ** Ready To Drink

Country 2012 2011 Change Total tea

Exports % Qty Qty Qty % 2012 2011

Russia 11.16 12.67 -1.51 -11.92 14.64 15.91 Iran 10.08 7.52 2.56 34.04 13.22 9.44 Syria 6.81 6.18 0.63 10.19 8.93 7.76 Iraq 5.29 4.89 0.40 8.18 6.94 6.14 Turkey 4.30 5.75 -1.45 -25.22 5.64 7.22 Libya 3.85 1.87 1.98 105.88 5.05 2.35 Azerbaijan 2.65 2.60 0.05 1.92 3.48 3.26 Japan 2.47 3.20 -0.73 -22.81 3.24 4.02 UAE 2.43 6.65 -4.22 -63.46 3.19 8.35 Ukraine 1.93 1.95 -0.02 -1.03 2.53 2.45

Total 50.97 53.28 -2.31 -4.34 66.86 66.9

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD

Page 5: First quarter 2012

issues related to production, marketing, pricing and consumption of tea. Intercessional Working Groups representing all stakeholders are held every other year prior to main FAO/IGG Session and it is mandatory to seek the approval of member countries on agenda, themes, issues and new working groups to be discussed at the main session of FAO/IGG on tea. The International Tea Committee (ITC) Producer/

Consumer Members Forum preceded the IGG on Tea sessions on 29th January 2012, together with a half day meeting on “Climate Change”. The tea producing countries also met on the sideline of FAO/IGG on Tea Conference, to establish an International Tea Producers Forum (ITPF) on 1st February 2012.The objective of this gathering is to create a common platform for tea producers and to formulate strategies for the benefit of all tea producing nations. This informal meeting was chaired by honorable Mahinda Samarasinghe , Minister of Plantation Industries In Sri Lanka where a resolution was signed by 10 tea producing countries with agreeab-ility to set up an ITPF In order to present the global tea fraternity who will gather in Colombo with a total offering, Sri Lanka Tea Board and Colombo Tea Traders’ Association (CTTA) hosted an International Tea Convention from 1st to 3rd February 2012 at Cinnamon Grand Hotel, Colombo. The tea convention this year revolved around the theme “Exclusivitea” encompassing the niche in quality that is synonymous with “Ceylon Tea”. The event attracted all major leaders of the global tea industry to the heart of Colombo for the three day event. The convention provided all stake holders, both local and international with an ideal platform to exchange views, network, share technologies and resources and integrate during the span of the event. The Colombo Tea Conventions have always been the best attended in the tea world and boast of an exclusive mix of international speakers on themes of current and future relevance. This mega-event was organized by the CTTA, in collaboration with the Sri Lanka Tea Board.

……………..………….from page 1. General Overview Weather Bright weather with few scattered rains were reported in all tea growing regions. Quality Lower production Western quality teas and general leafy grades in low grown areas registered. Crop High and mid grown teas reported a lower production and low grown also registered a slight decrease. Colombo International Tea Convention .. from page 1 Incidentally, Sri Lanka hosted the 15th Session of FAO/IGG on Tea in August 2003 gaining immense mileage. At

P A G E 5

Tea market update Volume 8. No. 1

The United Nations Food & Agriculture Organization (FAO)/Intergovernmental Group (IGG) on Tea which was established in 1969 is a forum where important policies and strategies related to the global tea industry are formulated. Its Membership is open to all the mem-

bers/associate members of UN who are interested in tea production/consumption/trading of tea. The FAO/IGG on Tea, a subsidiary body of the committee on Commodity Problems hold biannual sessions and is considered as the only global forum for member nations to deliberate

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD

Page 6: First quarter 2012

P A G E 6

P A G E 6

Average auction prices at all world auction centers fetched below the US$ 3 per kilogram price though tea production had relegated to a considerably low level. The global liquidity crisis played havoc among most major markets, as a result, the industries won’t be able to grow as planned. This is likely to lead to lesser employment generation, job cuts as well as stagnation in salaries. As such are expected to dwindle the demand for imported hot beverages as well as local consumption. Kenya Tea exports increased by 10 million kilograms for the period due to a surge in imports by Egypt, Afghanistan and Pakistan compared to the previous year same quarter. China maintained its previous year tea export volume with a slight decrease due to strong market position in west African countries. As a emerged tea exporter of Vietnam shipped 19,500 tons of tea worth of US$ 27.8 million in the first two months of this year, rose by 18.24 % in volume and 17.25% in value term over the same period of last year. In the first two months of this year, Vietnam exported 2,800 tons of tea worth $ 2.6 million to Indonesia, accounting for 14.7 per cent of the total. Further Vietnam shipped total of 7.5 million kilograms of tea to Pakistan. Taiwan, and Russia for the first two months of 2012. All global tea producers have incurred income declines while traders and firms in higher stages of the value chain have escaped this death trap. In the mid 1990s earnings by tea producing countries (exports F.O.B) were some US$ 5-6 billion and the value of retail sales of tea, largely in developed countries, about US$30 billion. Now the value of retail sales exceeds US$70 billion with energy price increases but tea producing countries only receive around US$ 10-12 billion. The unbalanced character of power in the tea value chain helps explain the increasingly unequal distribution of total incomes in all tea producing countries.

Table 13. Global tea production and Exports comparison (1976-2012) Unit: MKgs

Tea market update Volume 8. No. 1

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD

Global Tea Scene Tea Production Major black tea producing countries of India and East Africa registered a crop shortfall in first quarter of 2012 due to the prolong dry weather in major tea producing areas. Worst ever drought in fifteen years in North India resulted in a crop short fall of 18 % by end March 2012 compared to last year same period. Table 11 -Global tea production comparison in first quarter 2012/2011(MT.)

*Till March provisional Source : INTTEA Low rains and frost conditions in Kenya, Uganda, Zimbabwe, and Tanzania too have attributed to the decline tea production. As a result Kenyan tea crop dropped 15% in first quarter compared to the corresponding period of 2011.The severe global tea crop failure was adequately compensated by increased green tea production from China over the period. It is depicted in table 11 above. Table 12- Average prices in major auction centers as at 31st March 2007-2012

Source: ITC

Centre 2012 2011 2010 2009 2008 2007

Kolkata 2.01 2.77 2.58 2.54 2.37 1.96 Cochin 1.73 1.73 1.71 1.83 1.65 1.36 Chittagong 1.88 2.14 2.63 1.98 1.62 1.17 Mombasa 2.67 2.72 2.54 2.29 2.18 1.66 Jakarta 1.84 1.97 1.81 1.82 1.51 1.33 Colombo 2.99 3.26 3.28 3.14 2.87 2.53 Guwahati 1.74 2.33 2.43 2.23 2.14 1.72 Malawi 1.67 1.61 1.58 1.58 1.37 1.05 World 2.47 2.73 2.71 2.49 2.31 1.89

PRODUCTION Month 2012 2011 Change

N E INDIA 3 37520 45553 -8033

SOUTH INDIA 3 44774 48841 -4067 BANGLADESH 3 731 998 -267 CHINA (1) 3 356000 286000 70000 SRI LANKA 3 71,601 78,400 -6799 INDONESIA 3 15438 14821 617 KENYA 3 72436 85169 -12733 MALAWI 2 13721 13606 115 TANZANIA 2 6608 6835 -227 UGANDA 2 4902 7414 -2512 ZIMBABWE 2 3189 4267 -1078

TOTAL 626920 591904 35016

2011 2005 1995 1985 1976 Global Production 4217 3458 2521 2263 1588 Global Exports 1719 1566 1079 951 791 Sri Lanka (without re-exports) 303 299 235 198 200

Sri Lanka percentage(Global Exports) 17.6 19.1 21.8 20.8 25.3

Page 7: First quarter 2012

P A G E 7

Tea market update Volume 8 No. 1

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD

Trade Fair Participation “PRODEXPO” RUSSIA (11th - 15th FEBRUARY 2012) Sri Lanka Tea Board participated at the Prodexpo – the largest exhibition in Moscow, Russia with following tea exporting companies. Mabroc Teas (Pvt) Ltd., Natures Pride (Pvt) Ltd, Ceylon

Tea Bags (Pvt) Ltd and Ceylon Tea Land (Pvt) Ltd. Sri Lanka coordinated and extended the necessary assistance

for the successful participation of the above fair. GULFOOD 2012 in UAE, 19th – 22nd February Sri Lanka Tea Board facilitated the participation of 09 private sector tea exporting companies under the Ceylon Tea pavilion at GULFOOD 2012 exhibition. The compa-nies participated under Ceylon Tea pavilion are M/s. BPL Teas (Pvt) Ltd, M/s. HVA Foods (Pvt) Ltd, M/s. Ranfer Teas (Pvt) Ltd, M/s. Mabroc Teas (Pvt) Ltd, M/s. Vintage Teas Ceylon (Pvt) Ltd, M/s. Ceylon Fresh Teas (Pvt) Ltd, M/s. Ceylon Tea Land (Pvt) Ltd, M/s. Eswaran Brothers Exports (Pvt) Ltd and M/s. Ceylon Tea Marketing (Pvt) Ltd. Sri Lanka Tea Board coordinated all the logistical arrangement of the participation of the exhibitors.

Sri Lanka Tea Board Participation at Foodex Japan 2012 (6th to 9th March 2012) Sri Lanka Tea Board organized a National Pavilion for Ceylon Tea and participated together with Jafferjee Brothers Ltd, Imperial Teas (Pvt) Ltd, Stassen Exports (Pvt) Ltd and Basilur Tea (Pvt) Ltd at Foodex Japan 2012. The 60th anniversary of diplomatic relations between Japan and Sri Lanka is being celebrated this

year and a special promotional seminar for tea, tourism and investment and a high profile net-working session between the tea trades of Japan and Sri Lanka were organized to coincide with Foodex Japan 2012.

Hon. Mahinda Samarasinghe, Minister of Plantation

Industries and Hon. Namal Rajapakse, Member of Parliament graced the occasion. Sri Tea Board was represented by its Chairperson and Director (Promotion).

HORECA 2012 in Lebanon, 20th – 23rd March Sri Lanka Tea Board organized the participation of 02 private sector tea exporting companies at above trade exhibition that M/s Eswaran Brothers Exports (Pvt) Ltd and M/s. Imperial Teas (Pvt) Ltd. Sri Lanka Tea Board coordinated all the logistical arrangement of the participation of the exhibitors.

Page 8: First quarter 2012

P A G E 8

In the study, 75 young male regular tea drinkers were split into two groups and monitored for six weeks. One group, the control group was given a caffeinated placebo devoid of the active tea ingredients. The other group was given fruit-flavored caffeinated tea mix-ture made up of the constituents of an average cup of black tea. When both groups were subjected to challenging tasks which induced stress, the group taking the tea mixture was found to be able to reduce their cortisol levels by an average of 47 per cent. "We had observed an inverse association between consumption of black tea and the risk of Parkinson's Disease in the Chinese population residing in Singapore. Our research is a very prom-ising first step to identify dietary and lifestyle factors related to Parkinson's disease in an Asian context. More studies will be needed before we can firmly establish the protective effect of black tea on the disease and understand its underlying mecha-nism. Such research will enable us to develop strategies to prevent or reduce the progression of this debilitating neurode-generative condition," said Dr Louis Tan, senior consultant neurologist at NNI-TTSH who is leading the study with Dr Koh of NUS.

The NNI-NUS study is unique. "To our knowledge, this is the first prospective cohort study of Parkinson's Disease risk fac-tors in a non-white population living in Asia. Singapore Chi-nese are well suited for the study of coffee, green tea and black tea consumption and health outcomes since all three types of beverages possess divergent intake profiles in this population. Other strengths of the study are its population-based design and the collection of data on tea-drinking prior to disease diagno-sis," said Dr Koh. Next, the team intends to dentify other factors that may affect an individual's risk of developing Parkinson's disease as well as understand the mechanism of black tea's protective effect on the disease. Experimental scientists have shown that black tea extracts (oxidised polyphenols such as thearubigins and theaflavins ) possess neuro-protective and neuro-rescue proper-ties in an animal model of Parkinson's Disease, said Dr Koh. But at the moment, it is too early for the team to identify what the possible protective content may be.

Trade and statistics inquiries:

Sri Lanka Tea Board

574,Galle Rd, Colombo – 03. Tel :2587814,2582122 Fax : 2587341

Tea market update Volume 8. No. 1

Black tea reduces risk of Parkinson's disease "To our knowledge, this is the first prospective cohort study of Parkinson's Disease risk factors in a non-white population living in Asia..." Asst Prof Koh Woon Puay, Department of Occupational and Family Medicine.Findings from a collaboration between the National Neuroscience Institute (NNI) and NUS have revealed for the first time, that drinking black tea (but not green tea) reduces the risk of developing Parkinson's Disease among the Chinese population in Singapore. The findings, which are published in the on-line issue of American Journal of Epidemiology (Dec 2007) suggest that black tea may exhibit neuroprotective effects on Parkinson's Disease. The findings, presented at the 1st Asian and Oce-anian Parkinson's Disease and Movement Disorders Congress (Oct 2007) won the second prize for Best Research Presenta-tion Award. NICE CUPPA TEA: Dr Koh Woon Puay and Dr Louis Tan lead research team on the effects of black tea on Parkinson's Disease.There has always been a lack of data from Asian populations on dietary and lifestyle factors associated with Parkinson's Disease, said co-Principal Investigator for the research project, Asst Prof Koh Woon Puay, Department of Community, Occupational and Family Medicine. To fill this gap, the researchers examined these factors in relation to Parkinson's Disease in the Singapore Chinese Health Study with a cohort of 63,257 Chinese men and women. This is a first community-based study of the disease's risk factors in an Asian population. Between 1992 and 2005, data was collected through in-person interviews using structured questionnaires. Results from the study showed that individuals who had a higher dietary intake of caffeine were less likely to develop Parkinson's disease. This result tallies with what several large population-based studies in USA and Europe have shown. However, a novel finding by the NNI-NUS team is that black tea intake also reduces the risk for developing the disease -- and it is not just the caffeine content in black tea that is re-sponsible. Green tea, in contrast, did not show any significant protective effects on the disease. Black tea magic Black tea comes from the leaves of Camellia sinensia -- a per-ennial evergreen shrub that is native to Southeast Asia. The leaves are oxidised under controlled temperature and humid-ity. Then the leaves are dried to arrest the oxidation process. They are then sorted into grades according to their sizes. According to a study in 2006 by University College London, black tea also has an effect on stress hormone levels in the body.

Research Update

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD