OUR TEA AND ITS PRICE.

Dominion, Volume 3, Issue 649, 28 October 1909, Page 3

OUR TEA AND ITS PRICE.

A RISE PROBABLE. OPINIONS OF MB. H. NELSON. Mr. 11. Nelson, of the firm of Nelson, Moate, and Co., who returned from a visit to Ceylon by the Mocraki yesterday, had some interesting remarks to make on tea, and tea prices. "The trade"' said Mr. Nelson, "is in a very unsettled state, owing chiefly, to. a shortage of supplies in India and Ceylon, and a largelyincreased consumption in England, America, and the Continent. Indian tea brings 25 per cent, more to-day than it did at this tinio last year, and it is higher in London than it has been for many years. Another thing affecting the position is that rubber-growing is now extremely profitable, and many erstwhile largo tea-growers are going in for rubber cultivation instead of tea. Growers can land rubber in London at about Is. lOd. per lb., and they actually receive between Ss. Bd. and 9s. 3a. per lb. for it. So you ennnot wonder at the change in their activities." Are there no difficulties in tho way of converting the \ estates ? asked the reporter; "Oh, no," replied Mr. Nelson. "The rubber can grow alongside tho tea, and an acre can hold 150 rubber tress. Tho trees are 'nonproductive for tho first year or two, but, in tho course of the third year, the grower can get about a pound of rubber per tree, in the fifth year three pounds, and'so on. Indirectly also tho rubber industry leaves its mark on the tea trade," as tho rubber trees sap the strength out of the ground. Its cultivation, however, pays.so well that the tea is neglected. The tea trade '.hroughont tho ; world, so far as the. growers are concerned, was never more prosperous, but never moro disastrous for importers and dealers. In England it is so serious that large firms are spending a great deal of money in trying to convert tho pooplo into buying higher-priced teas, and• their shop windows'aro being filled with teas marked at between 3s. and 3s. Gd. per lb. ' : ■ i ■ - . . • ■'.-.•

"In New Zealand," he continued, "tho. public have been getting a better article than anywhere olse; In fact the latest statistics show that New Zealand heads tho list, for importing tea. England comes second, Victoria third, and New South Wales fourth."

Most -likely there are other cshtributing causes to the unsettled state of the trade?— "Yes; for one thing the German Army is to use tea instead of lager Deer and coffee.' This order was only given six or eight months, ago, and its effect nas not been felt yet. This item alone. will:mako a big difference. The area under cultivation would naturally increase under normal circumstances, but labour troubles have occurred, and that difficulty is especially acute in.Ceylon. There are many acres under cultivation, but coolio labour ,is gotting very scarce. They imagine. that they ore illtreatccl and are dissatisfied. .One difficulty is. that their, employers cannot speak Tamil, their language." . ■■•• ... So we shall have to nay higher prices soon? —"If the market remains as it is the public will undoubtedly have to pay more for their tea—that is, tea fit to driiik. A sot of conditions.is also being created favourable to the importation of a commoner kind of tea than has been known hero before. It is probable that prices will increase quito twopence per lb., unless a change takes place, and-it only needs America and Germany to buy 20 . per cent, more tea for prices here to go up by 6d.. or Bd. perlb. • For about ten years many largo estates were a financial failure, as the importers were getting tea for less than cost, but now-the growers are having their day., "The output of tea from Java is increasing, but its quality is not so high. I met tho Javan Government expert, and ho assured me that the' output: in Java was per acre twic'o that of Ceylon. During the last few years tho quality of tea has been deteriorating very much as many estates have.not sufficient machinery to cope with the crops; and it is rushed through without being properly prepared. The increased demand, too, tempts the grower to pick four leaves instead of the normal three,' which is, of course, to tho detriment of the product."