Prolonged drought can lead to tea price increase

Noam Stiekema

The prolonged drought in East Asia dried up some of the best regions for growing tea, as it can lead to increased cost of the plant. The drought in Sri Lanka in the first quarter of 2014 has caused a decline in tea production with 50% quarter on quarter, according to the industry representatives. Most […]

Tea production droughtThe prolonged drought in East Asia dried up some of the best regions for growing tea, as it can lead to increased cost of the plant. The drought in Sri Lanka in the first quarter of 2014 has caused a decline in tea production with 50% quarter on quarter, according to the industry representatives. Most affected are 400 thousand small producers in areas of Ratnapura, Kalutara, Galle and Matara, according to the Tea Association of Sri Lanka.

Sri Lanka is the second largest producer of tea in the world with an annual production of 300 thousand tons. The price of tea falls in recent years, as during the last year it decreased with 40%. if we have in mind the both facts most probably in the current situation it will increase.

The producers in Malaysia are also hit by the drought. The production of the Boh plantations in Cameron Highlands decreased with 50% in February compared to the results in January, but already there are facts which indicate that the weather patterns are becoming more unstable, commented the CEO of the plantations Carolyn Russell.

“We see some worrying signs about the climate change in the long term. It is expected that the frequency of precipitation in the tropics will be very upset. There will be more moist and very dry periods. The levels of annual precipitation may not change dramatically, but their distribution will be, which will lead to very serious consequences for us”, said Carolyn Russell. “During dry periods will see a reduction of the crop, but the concern over wetlands that can lead to instability of the soil because we grow tea on fairly steep slopes. Of course, under such conditions occur incidents of landslides, but immediately after a dry period, the probability of them is particularly high”, added she.

“The excessive agricultural land management in Cameron Highlands could also affect the taste of the tea Boh. Many forests were cut down to clear more land for farming. This undoubtedly affected the temperature in the region. The observations show a rise in temperatures in the Cameron Highlands, and while it has no immediate effect on us is likely to have such a long term. So in the end might be expected the taste of the tea to be influenced”, finished the CEO of the Boh plantations.

Read this next

Digital Assets

DappRadar report: NFTs volume below $1 billion for the first time since June 2021

DappRadar’s July 2022 industry report found that blockchain games and their NFTs remain resilient amid a crypto winter accentuated by the debacle of Terra.

Digital Assets

Blockchain.com registers to operate crypto business in Italy

Blockchain.com had registered as a digital asset provider in Italy, following in the tracks of rivals who joined a special registry with brokerage regulator Organismo degli Agenti e dei Mediatori (OAM).

Digital Assets

Binance rolls out crypto card in Argentina with 8% cashback

Binance is launching its crypto debit card in Argentina, the first country in Latin America to have the product thanks to a partnership with Mastercard.

Digital Assets

Greece sends BTC-e operator Alexander Vinnik to US

Alexander Vinnik, an alleged Russian hacker accused of laundering $4 billion of criminal proceeds through BTC-e, has been extradited from Greece to the United States.

Retail FX

Saxo Bank reports weakest FX volume in 6 months

As many traders were away on annual summer leave, currency markets saw a relatively quiet period in July. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

Market News

The Week Ahead: 5 August from David Madden, Market Analyst at Equiti Group

It has been an interesting week and despite a lot of negative news, equity markets enjoyed a positive run. US House Speaker, Nancy Pelosi, defied the warnings from the Chinese government and carried out a visit to Taiwan. The Beijing authorities moved military hardware close to the self-governed island to flex its muscles. Stock markets came under a little pressure as a result and risk-off assets like the Japanese yen and gold found themselves in high demand.

Opinion

Alina Strogonova of Muvon Payments: How Can Fintech Optimise Payments

Financial services in their conventional form are obsolete, according to fintech startups. New-age finance is constantly redesigning electronic money transactions and testing innovative solutions.

Digital Assets

No need for CFDs: BitMEX introduces leveraged FX perpetual swaps

Previously retail FX trading was mostly possible via CFDs (contract for difference). BitMEX’s FX perps allow both retail users and institutional traders to access FX markets through an exchange-traded contract.

Digital Assets

BEQUANT launches index measuring dollar against crypto

“Our research team has worked hard to quantify and capture the latest economic story into the broader crypto market.”

<