Commodity Trade:

TEA

Kateřina Lančová3MO523 International Trade

Spring 2012/2013

Content

Facts About Tea The History Of Tea Manufacturing And Varieties Potential Health Benefits Of Tea

Production Logistics Organizations Where can we trade it? The Price of Tea Major Players in Trade with Tea

The Facts about Tea

70,000 cups drunk per second Tea plantations: India, Sri Lanka, East Africa 50 million people involved in Tea industry

Leaves and buds of the Camellia Sinensis plant

The History of Tea

Tradition and Rituals An act, an experience

Legends Eyelids of Bodhidharma The Emperor´s accidental Brew

The History in shortage4th century China – originally as medicine8th century Very popular and widely spread in China780 AD The very first Tea Tax5th century Turkish traders brought tea along the Silk Road to Europe6th century Accompanied Buddhist monks to Japan – a big part of

Japanese lives1516 Portuguese finding a sea route to China – trade with Europe

can fully start17th century Dutch entering the trade1660 British entering the trade through the largest monopoly in

world history – East India Company1679 Tea traded on London Tea Auction1767 Boston Tea Party1820 The establishment of large scale commercial tea production in India1904 Discovery of Ice Tea 1908 Discovery of a Tea Bag1990 The tea trade is moved to the London Chamber of Commerce

Manufacturing Grown in literally thousands of gardens and estates

throughout the world China, Japan, India, Sri Lanka (Ceylon), and Taiwan

(Formosa) --- > unique character and flavor

Manufacture Orthodox CTC (crust-tear-curl)

Varieties

• „True Tea“ --- > Any leaf, root, fruit or flower that comes from a different plant is considered an herbal tea.

• 4 categories --- > own individual appearance, taste and aroma

• Oxidation

Potential Health Benefits of Tea

• Essential Oils - source of tea’s delicious flavor and aroma• Polyphenols - antioxidants• Phytonutrients - small amounts of vitamins, minerals, and

amino acids including L-theanine• Enzymes• Methylxanthines - which are a family of alkaloids that

include caffeine.

--- > cardiovascular health, cancer risk reduction, boosts immunity, inhibit plaque formation

Tea and caffeine

Beverage Amount of caffeine in 200 ml of beverage

Espresso 50 – 150

Filter coffee 60 – 80

Instant coffee 40 - 70

Black tea 40 – 60

Oolong tea 30 – 50

Green tea 15 - 20

Red tea 0

Herb and fruit infusions 0

A healthy individual - 350 mg of caffeine per day without any concern

Production Globally, tea is cultivated in 36,591,938 ha with an annual production of 4.518.060.000 Kg

Global market for hot beverages (coffee and tea) forecasted to reach US$69.77 billion in value and 10.57

million tons in volume year 2015 (GIA, 2011).

The world production of Tea

World Tea Production (FAO 2008)

Logistics

Packaging• Tea Bags • Loose tea • Compressed tea • Instant tea • Bottled and canned tea

Transportation• in light plywood chests• by ship, truck, railroad, aircraft

Organizations

International Tea Committee• valuable statistical information for 75 years

Fair Trade International• 4 important benefits:• Stable prices• Fairtrade Premium• Partnership• Empowerment of farmers and workers

Where can we trade tea? Not traded on the exchange market Auctions --- > makes it possible to distribute a large quantity of tea within a

shortest period and with an organized manner.

The most famous auctions• London Tea Auction• Guwahati Tea Auction Centre• The Chittagong Tea Auction• Siliguri Tea Auction Centre

The three main modes preferred for the disposal of tea are:• through auction • ex-factory or ex-garden sale • Forward contract

Price of Tea (past 6 months)

Source: www.indexmundi.com/commodities

Price of Tea (past 30 years)

Source: www.indexmundi.com/commodities

Tea Exporters

Source: www.trademap.org

Tea Importers

Source: www.trademap.org

Top Tea Companies

Source: Euromonitor International

Sources www.tea.co.uk www.arborteas.com www.wtea.com www.octaviatea.com www.inttea.com www.teaboard.gov.in www.blog.euromonitor.com www.indexmundi.com

THANK YOU FOR YOUR ATTENTION!AND PLEASE

KATERINA