GLOBAL CONSUMER BEHAVIOUR – GLOBAL CONSUMER BEHAVIOUR – SUPPLY & DEMAND SUPPLY & DEMAND

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WORLD PRODUCTION OF TEA 1986 - 2005

1000

1500

2000

2500

3000

3500IN '000 METRIC TONS

WORLD PRODUCTION OF TEA IN 2005In Million Kgs

WORLD PRODUCTION OF TEA 2005In '000 Metric Tons

870329

315

135109100

7359

45

3830

2118161515

876

2310

4

164

38

928

0 100 200 300 400 500 600 700 800 900 1000

INDIACHINAKENYA

SRI LANKAINDONESIA

TURKEYVIETNAM

J APANARGENTINABANGLADES

IRANMALAWIUGANDA

TANZANIATAIWAN

MYANMARCIS

ZIMBABWERWANDA

NEPALP.N. GUINEASTH AFRICAO. AFRICAO. STH. AM

OTHERS

WORLD PRICE OF TEA EX-AUCTION 1986 – 2005

0

50

100

150

200

250

300IN US $ CTS. PER KG

APPARENT CONSUMPTION OF TEA IN 2005 BY COUNTRIES

'000 METRIC TONS

580168

64151

133127126

102817263

4348

33463933332727

170140

9354

19

747

0 200 400 600 800

INDIACHINA

RUSSIAN FEDERATIONREST OF CIS

JAPANTURKEY

PAKISTANUNITED KINGDOM

USAIRAN

EGYPTINDONESIA

IRAQMOROCCO

AFGHANISTANBANGLADESH

TAIWANPOLAND

VIETNAMSYRIA

SRI LANKAOTHER ASIA

OTHER AFRICAOTHER EUROPE

OTHER AMERICAOTHERS

In '000 Metric Tons

0

50

100

150

200

250

300

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

EGYPT

CIS

PAKISTAN

USA

MIDDLE EAST

UNITED KINGDOM

DEMAND FOR TEA IN IMPORTING NATIONS

W O R L D S U P P L Y A N D A B S O R P T I O N O F T E A

IN THOUSAND METRIC TONS

1500

1600

1700

1800

1900

2000

2100

2200

2300

2400

2500

96 97 98 99 00 01 02 03 04 05

SUPPLY ABSORPTION

SUPPLY GROWTH OF 26% OVER LAST 10 YEARS

TIGHTER SUPPLY FOLLOWED BY HIGHER PRICE

COMBINED CROP OF INDIA & CHINA 53% OF TOTAL

SUPPLY EXPECTED TO TOP 4 M. mt BY 2016

PRICES DISMAL AT AROUND US $ 1.50 PER KG

WEAKER CURRENCIES OF TEA PRODUCERS

SUPPLY & PRICES

DEMAND

INDIA & CHINA CONSUME 40% OF WORLD SUPPLYGROWTH AMONGST PRODUCERS NOT MATCHED BY

IMPORTERS

WIDER CHOICE OF BEVERAGESSTAGNANT POPULATION

HIGHER DISPOSABLE INCOMESSTABLE ECONOMIES & LOW INFLATION

IMPENDING CHANGES IN CONSUMER PREFERENCES IN THE MIDDLE EAST

SUPPLY & ABSORPTION

SUPPLY OVER DEMAND GAP WIDENING

DEMAND FOR LOWER PRICES

CREATING OPENINGS FOR POORER TEAS

TO DEMAND BETTER QUALITY

PAYING IMPROVED PRICES

EXPLORE POSSIBILITIES OF CURTAILING CROP