If they could only have it their way, representatives of tea-producing countries say they are very keen to take advantage of Dubai’s strategic location as a re-exporting hub and increase the volume of their tea exports to the emirate this year.
“However, weather is one factor that we cannot control,” admits Ranjith Abeykoon, deputy director-Promotion of the Sri Lanka Tea Board, who also reported a 10-per-cent decline in their tea output last year because of a dry spell that hit many tea-exporting countries.
Ranked as the second largest export market (next to Russia) for Indian and Sri Lankan tea, Dubai keeps a stock of tea produce from 13 countries including top exporters such as Kenya, Vietnam and China, the Dubai Tea Trading Centre (DTTC) said in a statement in February.
In 2009, tea trade volumes through the DTTC reached 7.5 million kilos, experiencing a 26.5 per cent growth from the 2008 figures. However, the drought caused the overall tea trade last year in Dubai to drop by about 32 per cent to over 112 million kilos from 148.6 million kilos a year earlier, according to figures posted on the DTTC website.
Abeykoon said Sri Lankan tea production declined by 30 million kilos or about 10 per cent in 2009. “As a result, our total exports declined. Last year we exported 270 million kilos compared to 300 million kilos in 2008,” he said.
The Indian Tea Association’s (ITA) website mentioned that global tea output from January to December 2009 dwindled by 2.4 per cent or 46.3 million kilos as against the same period in 2008.
Media reports meanwhile, suggested that the worldwide pipeline tea deficit could widen to 10 per cent or 110 million kilos at the start of the second half of 2010, which could push tea prices higher.
India, Vietnam exports goes north despite dry spell
Despite last year’s drought, ITA statistics showed that tea production in India remained favourably upbeat at 978,000 kilos, posting only a minimal decline of 0.19 per cent or 1,819 kilos from the 980,818 kilos output in 2008.
These figures were confirmed by Basudeb Banerjee, Chairman of the Tea Board of India, in an interview with Alrroya.com. He added that the drought’s effect on their production was hardly felt.
“In fact, our exports to Dubai alone went up in 2009 versus the previous years. Dubai remains as one of our major export destinations. It has overtaken the United Kingdom, which used to be our number two market,” he said, without giving the exact export figures.
Aside from the erratic weather patterns, Banerjee said another factor that is beyond tea growers’ control is pest attack.
“The distribution of rainfall is a major problem, but so is pest attack. During the years that we have been experiencing changing weather patterns, we’ve also noticed a rise in the frequency of pest attacks. This gravely affects the quantity and quality of crop,” he said.
Vietnam has also been satisfied with its tea export performance in 2009. Ngo Khai Hoan, commercial attaché and head of the Vietnam Trade Office at the Embassy of Vietnam to the UAE, said their tea exports in 2009 to the Emirates went up by 20 per cent compared with 2008.
Quoting statistics released by the Vietnam Tea Association (VTA), Ngo said total tea exports to the UAE last year hit 1,773 tonnes, which was worth $3.4 million (Dh12.5m).
Nguyen Thi Anh Hong, general secretary of VTA, said Vietnam’s longest tea trading partner in the Gulf is Saudi Arabia, but last year saw a slightly higher trade volume in the UAE.
“The past five years, Saudi Arabia had been a bigger market for us. But in 2009, our tea exports to Saudi were slightly lower at 1,300 tonnes valued at $2.6m,” she said.
China eager to also take a slice of the pie
While it is considered as the largest producer of tea in the world, China only occupies the third spot in terms of major global tea exports.
Sun Yu, deputy secretary general of the China Chamber of Commerce for the Import and Export of Foodstuff, Native Produce and Animal By-Products (CFNA), said their delegation’s recent trip to Dubai has inspired them to boost their exports to the Gulf region via the emirate.
“Middle East is a significant market for China tea products and we want to further enhance our exposure to this region,” says Sun.
He added that Dubai’s logistics infrastructure and levy-free trading prove to be very attractive for exporters.
“It’s always easier for us to trade with countries from the Middle East, Europe and Asia through Dubai because of its strategic location and its reputation as an ideal re-export hub,” he said.
Consider also reading:
Dubai’s DMCC invests $3.5m on printing facility
DTTC registers 62 pct growth in tea trade
Dubai Tea Trading Centre posts 60 per cent growth
Your comments