Green Tea Market Report – Week 20

Kenya – Fair Demand with Mixed Price Trends

The Mombasa auction saw fair general demand with most teas trading irregularly steady to easier.

• Auction Volume: 188,000 pkgs (down from 190k)

• Unsold: 38% (71,000 pkgs)

• Average Price: Down by 10 US cents, now USD 1.88/kg

Grades:

• BP1: KTDA East of Rift and West of Rift types sold dearer or firm; plainer BP1s faced reduced demand.

• PF1: KTDA EoR saw easier prices, while KTDA WoR met selective demand. Medium PF1s traded firm to easier.

• Dust Grades: Best PD/D1 saw firm support, especially from Yemen. Plainer types were weaker.

Key Buyers: Yemen, Kazakhstan, Egypt, PakistanLess Active: Afghanistan, Bazar, RussiaAbsent: North & South Sudan

Weather: Heavy rainfall continues; daytime temps rising, nights cooler. Crop harvest increasing.

Malawi – Poor Demand

The Blantyre auction witnessed low interest with only seedling PF1s gaining slightly.

• Weather: Chiperoni season returns (cool and wet), with significant rainfall in Mulanje & Thyolo.

• Crop: Declining due to pruning.

• Outlook: Steady.

Uganda, Tanzania, Rwanda, Burundi

• Uganda & Tanzania: Selective demand at steady to easier prices.

• Rwanda: BP1s sold firm to dearer; others irregular.

• Burundi: Supply increased, but demand collapsed due to poor quality and producer pricing resistance.

Sri Lanka – Less Demand Despite Higher Volumes

Ex-Estate offerings rose 5.7% to 0.976 Mn kg.

• BOP/BOPF: Lower across regions (Nuwara Eliya, Uva, High & Medium Grown)

• Low Grown Teas: Mixed. Select Best OP1s rose USC 70–80, while many others declined.

• Small Leaf & Premium: FBOP/FF1/BOPs dearer; Premium grades firm to USC 15 higher.

• Off Grades & Dusts: Mostly lower.

India – Strong Demand

• North India: CTCs sold firm to dearer due to domestic demand. Orthodox eased slightly due to quality drop.

• South India: Gaining ground, especially Orthodox. CTCs remained strong.

• Driver: Strong buying from Iraq for high-quality orthodox teas.

Indonesia – Good Demand

• Auction: 4,260 packages; only 12% unsold

• Java/Sumatra Orthodox: Steady to firm.

• CTC (Secondary grades): Well absorbed.

• Key Buyers: Local packers active; Malaysia still strong.

China – Tight Spring Season, Prices Up

Weather challenges (2024 drought & spring cold) reduced quality & volume.

• Price Increases:

  • Pan-fried green tea: +10%

  • Gunpowder tea & green fannings: Up due to limited production

  • Matcha: Demand and prices rising; sencha output falling

• Exports:

  • Top Buyer: Morocco (22% of volume)

  • Others: Ghana, Uzbekistan, Senegal, Russia, Japan

📊 Global Production Update (Jan–Apr 2025)

• Kenya: 99M kg (↓13% YoY)

• Sri Lanka: 37.1M kg (↓4%)

• India (North): 11M kg (↑383%)

• India (South): 31.8M kg (↓1%)

• Malawi (Apr only): 6.8M kg (↑13%)

🔍 Market Outlook

• Kenya: Volumes stable (~190k pkgs), but lower than past years.

• Production: Expected to rise with long rains.

• Demand: Selective but improving, though Sudan’s absence continues to weigh on the market.