The Dubai Tea Trading Centre (DTTC), an initiative of the Dubai Multi Commodities Centre (DMCC), has announced a record 7.5 million kg of tea traded through the centre in 2009, despite adverse weather conditions reducing global production.
Although the DTTC's trade volumes witnessed a favourable growth of 26.5 per cent between 2008 and 2009, the overall tea trade through Dubai witnessed a drop in the same period in 2009. This was a direct consequence of the global decline in tea production, which has generally been affected due to drought and delayed rainfall in major tea-producing countries.
The drought resulted in a global black tea crop deficit of 56.6 million kg, equating to a decline of 3.2 per cent compared to 2008.
With the recent trend of higher production and favourable climatic conditions in the major producing countries, tea prices have been extremely volatile in the past few weeks.
However, the general trend still continues to remain buoyant as carry forward stocks are low. Average 2009 auction tea prices in Sri Lankan tea auction was at $3.32 (Dh12.2) per kg, Kolkata at $2.90 and Mombasa at $2.72, with overall average world tea auction prices increasing by 12.4 per cent compared to the same period in 2008.
"In the initial few months of 2009, the global tea industry has witnessed an unavoidable production decline due to major drought in many tea-producing countries," said Ahmed bin Sulayem, Executive Chairman, DMCC.
"Despite the global decline and the challenges that have risen because of it, DTTC has registered a record amount of tea trade in 2009. We work closely with tea producers, merchant exporters and buyers to further grow the volume of trade through the region, and we are committed to strengthening Dubai's position as a major hub for global tea trade."
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.