A presentation about Commodity Trade - TEA. Describing history, different kinds of tea and its world production.

1. Commodity Trade:
TEA
Kateřina Lančová
3MO523 International Trade
Spring 2012/2013

2. Content
 Facts About Tea
 The History Of Tea
 Manufacturing And Varieties
 Potential Health Benefits Of Tea
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Production
Logistics
Organizations
Where can we trade it?
The Price of Tea
Major Players in Trade with Tea

3. The Facts about Tea
 70,000 cups drunk per second
 Tea plantations: India, Sri Lanka, East Africa
 50 million people involved in Tea industry
 Leaves and buds of the Camellia Sinensis plant

4. The History of Tea
 Tradition and Rituals
 An act, an experience
 Legends
 Eyelids of Bodhidharma
 The Emperor´s accidental Brew

5. The History in shortage
4th century
8th century
780 AD
5th century
6th century
1516
17th century
1660
1679
1767
1820
1904
1908
1990
China – originally as medicine
Very popular and widely spread in China
The very first Tea Tax
Turkish traders brought tea along the Silk Road to Europe
Accompanied Buddhist monks to Japan – a big part of
Japanese lives
Portuguese finding a sea route to China – trade with Europe
can fully start
Dutch entering the trade
British entering the trade through the largest monopoly in
world history – East India Company
Tea traded on London Tea Auction
Boston Tea Party
The establishment of large scale commercial tea production in
India
Discovery of Ice Tea
Discovery of a Tea Bag
The tea trade is moved to the London Chamber of Commerce

6. Manufacturing
 Grown in literally thousands of gardens and estates
throughout the world
 China, Japan, India, Sri Lanka (Ceylon), and Taiwan
(Formosa) --- > unique character and flavor
 Manufacture
 Orthodox
 CTC (crust-tear-curl)

7. Varieties
• „True Tea“ --- > Any leaf, root, fruit or
flower that comes from a different plant is
considered an herbal tea.
• 4 categories --- > own individual
appearance, taste and aroma
• Oxidation

8. Potential Health Benefits of Tea
• Essential Oils - source of tea’s delicious flavor and aroma
• Polyphenols - antioxidants
• Phytonutrients - small amounts of vitamins, minerals, and
amino acids including L-theanine
• Enzymes
• Methylxanthines - which are a family of alkaloids that
include caffeine.
--- > cardiovascular health, cancer risk reduction, boosts
immunity, inhibit plaque formation

9. Tea and caffeine
Beverage
Espresso
Amount of caffeine in 200
ml of beverage
50 – 150
Filter coffee
60 – 80
Instant coffee
40 - 70
Black tea
40 – 60
Oolong tea
30 – 50
Green tea
15 - 20
Red tea
0
Herb and fruit infusions
0
A healthy individual - 350 mg of caffeine per day without any concern

10. Production
 Globally, tea is cultivated in 36,591,938 ha with
an annual production of 4.518.060.000 Kg
 Global market for hot beverages (coffee and tea)
 forecasted to reach US$69.77 billion in value and 10.57
million tons in volume year 2015 (GIA, 2011).

11. The world production of Tea

12. World Tea Production (FAO 2008)

13. Logistics
 Packaging
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Tea Bags
Loose tea
Compressed tea
Instant tea
Bottled and canned tea
 Transportation
• in light plywood chests
• by ship, truck, railroad, aircraft

14. Organizations
 International Tea Committee
• valuable statistical information for 75 years
 Fair Trade International
• 4 important benefits:
• Stable prices
• Fairtrade Premium
• Partnership
• Empowerment of farmers and workers

15. Where can we trade tea?
 Not traded on the exchange market
 Auctions --- > makes it possible to distribute a large quantity of tea within
a shortest period and with an organized manner.
 The most famous auctions
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London Tea Auction
Guwahati Tea Auction Centre
The Chittagong Tea Auction
Siliguri Tea Auction Centre
 The three main modes preferred for the disposal of tea are:
• through auction
• ex-factory or ex-garden sale
• Forward contract

16. Price of Tea (past 6 months)
Source: www.indexmundi.com/commodities

17. Price of Tea (past 30 years)
Source: www.indexmundi.com/commodities

18. Tea Exporters
Source: www.trademap.org

19. Tea Importers
Source: www.trademap.org

20. Top Tea Companies
Source: Euromonitor International

21. Sources
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www.tea.co.uk
www.arborteas.com
www.wtea.com
www.octaviatea.com
www.inttea.com
www.teaboard.gov.in
www.blog.euromonitor.com
www.indexmundi.com

23. THANK YOU FOR YOUR ATTENTION!
AND PLEASE
KATERINA