THE TEA MARKET

Evening Star, Issue 17393, 1 July 1920, Page 3

THE TEA MARKET

Confirmation of tho news about a fall in tea comes to us from a Dunedin merchant who deals only in the higher grades. “.Your news on. Monday night is all right,” he said. “We are advised that the teas which we buy are down by 7d, per lb, and wa have reduced our prices 'straight away. That means, of course, a loss oa the stock which, we bought at the higher prices; but that cannot be helped —it is incidental to wholesale marketing.” Tea merchants in Auckland decided last week to reduce the price of tea Igr 4d per pound, and the new -rate cam© into force on Friday last. That is the opening sentence in a telegraphed message, and- it goes on to state that the wholesale price of ordinary standard lines of packet tea which is used in Auckland was 3s 4d per j IK and it is now reduced 1 to 3s, the retail 1 prbe falling from 3s 8d to 5s 4d.' We have reason for thinking that tho wholesale price in Auckland l was 3s 6d, 1 not 3s 4d, but we'do not stress the point. ■ What is .important is the fact that the Auckland merchants have reduced their standard packet teas by 4d per lb. One would naturally conclude that, as Auckland can reduce, other places can do the same. But a leading‘tea expert in Dunedin has something to say on that subject, and we draw attention to his observations: “The price to which Auckland has come down is the' price that the leading Ihmedin packers have been selling at for some considerable time, so that our people in the South have tiot had to pay such high rates for this tea as have been paid in the North I am.of opinion that these prices will be maintained for some 1 time to come. One of the reasons for that | opinion is that immediately the better-. | quality teas come into the Ceylon market, about the end of July, this grade of tea • will be in very short supply, because ] growers have been picking lightly of late, | and taken tho opportunity to heavily prune and manure their trees —such operai irons having been delayed for some years I consequent on the want of supplies of I suitable manures and tho large demand 1 for the leaf. Advices from the producing I market state that the class of teas used I in New Zealand are firming in price. Tbe statement© that tea of high-grade brands is down in price are quite easily explainable. The quality of all teas is at its lowest at this time of the year! Buyers and growers understand this. It is so whatever the garden mark may be. Take any mark you like, the tea that is picked at- one season is not equal to what is picked at another season. Being down in price means, according to my reading, down in quality. There is no other rea son, within my knowledge, for a lowering of price.”