Sri Lanka Passes Kenya in Tea Export Earnings in 2010

03rd February 2011, www.lankabusinessonline.com

Sri Lanka earned a record 1.37 billion US dollars in tea exports in 2010, exceeding that of Kenya, which exported more, owing to higher rices and more valued added shipments, brokers said.

The island's tea export earnings from exporting 314 million kilos were 16 percent more than in 2009.

Brokers Asia Siyaka Commodities said exports in 2010 were eight percent higher than in 2009 when drought reduced the crop.

The highest volume ever exported by Sri Lanka was 327 million kilos in 2006.

Kenya is the world's largest tea exporter, having edged past Sri Lanka a few years ago, but its earnings in 2010 were lower as its tea prices are lower than those of Ceylon tea.

"Interestingly, Kenya exported a highest-ever 441 million kilos in the year 2010," the brokers said.

"The approximate US dollar value was 859 million US dollars. Kenya produced a highest-ever 399 million kilos, a sharp improvement on the drought-crippled 2009 figure of 314 million kilos."

Kenya's export volume in 2010 therefore include at least 10 percent of other origin teas, the brokers said.

Sri Lanka restricts imports of teas for blending only to certain specialty varieties.

Asia Siyaka Commodities also said Sri Lanka's exports of value-added were around 65 percent of total exports and that a fall in exports to Russia, the biggest market, had been checked.

Exports in packets now account for 65 percent and total 143.9 million kilos. Exports in tea bags were nine percent of the total or 29.7 million kilos.

Green tea exports amounted to 5.7 million kilos, the greater proportion of which was in value added form, the brokers said.

Russia and other Commonwealth of Independent States rmained the top market for Ceylon tea buying 75.7 million kilos in 2010, an increase of 25 percent compared with 2009.

"The highest quantity exported to this region was 79 million kilos in 2006 and there followed a steady decline until the trend was reversed in 2010," Asia Siyaka said.

The United Arab Emirates was the second biggest importer of Sri Lankan tea even though buying a slightly smaller quantity of 30.2 million kilos in 2010.