PRICE OF TEA

Otago Witness, Issue 3542, 31 January 1922, Page 57

PRICE OF TEA

A RISE FORECASTED. DUE l() REDUCED OUTPUT. The tea trade in New Zealand during the past 18 months has experienced excessive market fluctuations and exchange difficulties. A Dominion reporter obtained some intonnation recently on the subject from Mr George A. Ginn, of Wellington, who has had a lengthy experience of the tea trade in Condon, Ceylon, and the East. “Just 12 months ago,” said Mr Ginn, “when ihe general world’s, depression was severe, tea producers were suffering so acutely that many estates had to be abandoned and output all round was considerably restricted. Unfortunately for the tea drinking public, the high rate of exchange between sterling and Eastern currency balanced the drop in the tea costs, and" kept the c.i.f.e. prices high. Since about August last, when it became apparent the world’s output of tea would be considerably reduced, a firmer tone lias been manifested, and all tea drinking countries have had to meet steadily advancing prices. The Indian season closed in December, and will not reopen ...until June, so no further supplies will be available from that source until towards the end of this year, and stocks will have io be replenished from Ceylon at current values. The world’s output of tea for 1921 fell short by 125 million pounds weight, or about 20 per cent, of the normal yearly output, and stocks all over the world are below average. Pi ices now being paid for tea in the East are higher than at any time these last 20 years, and until the new season’s fndian crop is again placed on the market no decline can take place; in fact, it is likely that prices will continue to advance for at least three or four months.” Proceeding, Mr Ginn stated that a.s far as New Zealand was concerned, importations for [he past four years had been: 1918, 9;7QO,GCOIb; 1919, " 8.500,0001 b; 1920, 12,840.0001 b ; 1921, 6.000,0001 b. Rather more tea than required was imported in 1920, and consequently the 1921 imports were curtailed. Towards the end of the year, however, it was found by the large blending houses that their supplies were being steadily exhausted; but in order to replace stocks advances of from 6d to 9cl per lb would have to be paid, and as competition amongst tea dealers was extremely keen, it was not possible to get these advances from the distributing trade all at once, with the result that' imports would be particularly light until old stocks had been cleared up, and the price (o the public can be laised to enable the businos to be placed upon a profitable basis. Blenders using only pure Ceylon lea, which is the favourite growth had been more hardly hit than those adding Java and Indians to tneir blends, as the latter growths, not having the same flavour, had been purcliaseable at less money than Ceylon ten but those packers who desired to keep up their standard of quality and flavour were now faced with the alternative of either advancing their prices to the public or marketing their brand al a loss to them selves. “We anticipate,” concluded Aft- Ginn, “that by the end of February stocks of tea in New Zealand will be reduced to a minimum, and mercha.nl houses will have difficulty in meeting the demand, and consumers will have to pay more for the national beverage. ’