May d, 1887.J THE TROPICAL AGRICULTURIST. 



i4i 



NlLGHERKIES AND TlUVANCORE. 



1886 Chop.— Only a limited quantity has been re- 

 ceived, and this generally of the worst description. 

 It is said that most of the best Tea made in the 

 former district is used for local requirements. From 

 the latter some very desirable parcels have come 

 to hand, similar in Havour to Ceylons. 



1885 Crop. — Supplies only moderate, and as a 

 rule of undesirable quality, far behind that sent 

 Bome - five or six years ago. A good portion of the 

 crop Bold locally. 



1884 Crop. — In short supply and quality with a 

 few exceptions below the average. These Teas, like 

 Kaugras, command very full prices when really fine. 



Ceylon. 



1886 Cuop.— On the wh®le the quality has been 

 «ood, and full prices have been realized. The aver- 

 ago being about 2id. per lb. above that of Indian 

 crowth, proves the estimation in which these are 

 held. Thin and undesirable shipments have sold 

 badly, and should discourage garden owners from 

 going in for qiunitity. 



1885 Crop. — Still in favour with consumers, and 

 whenever supplies have fallen off, there has been 

 a strong demand and full rates obtained. These Teas 

 have made a great name for themselves which will 

 probably be maintained if the quality is kept up. 



1884 Crop. — Still in favour owing to their useful 

 qualities. Some undesirable shipments however have 

 realized low averages. Demand likely to continue 

 for all parcels with full flavour. 



Java. 



1886 Crop. — Some really useful Teas have come to 

 hand, and they are gradually gaining favour with 

 home and export buyers, especially where attention 

 has been paid to manufacture. The quality, how- 

 ever, must be kept up and in some ea.ses improved 

 if they are to take further hold on consumers. 



1885 Crop. — Since the introduction of seed from 

 India, and English machinery for manufacture, there 

 has been a marked improvement in quality, many 

 of the teas having full rich flavour. 



1884 Crop. — These teas have gradually increased 

 in favour, both with home trade and shippers, as 

 more care has been bestowed in the preparation. 

 Only a portion of the crop, howover, is shipped 

 direct to Great Britain. 



GEO. WHITE & Co., Tea Brokers. 



TEA PROFITS. 

 C0mmunicated.) 



lu an ably written communique in your issue of the 

 1st February, under the heading " Tea Profits," the 

 writer makes the perplexed planter ask, " AVhy is it 

 that while the retail price of tea to the individual con- 

 sumer remains the same, my price realised is becoming 

 Bmall by degrees and beautifully less, &,c,," and then, 

 after showing who do not make money out of the sale 

 of tea, he asks, '' Who makes out ot lea in this present 

 jubilee year of grace ."^ Who absorbs the ditference be- 

 tween the admittedly poor average prices realized by 

 the producer, and the steady rates paid by the con- 

 sumer?" He adds in conclusion, " The reason of the 

 failure of the many attempts on the part of the planter 

 to place his tea directly in the hands of the consumer 

 and so realize the intermediate profits for himself seems 

 very obscure, and affords a fruitful field for discussion." 



1. — It is assuming too much to say that "the retail 

 price of tea to the individiLil consumer remains the 

 same." A short time back when the retail tea trade 

 was entirely confined to what would, in an age now 

 rapidly passing away, have been calle<l " legitimate 

 chaanels," to wit grocery stores, &c., the price to the 

 consumer certainly did remain the same and for a con- 

 siderable period even after market prices had come 

 down heavily. In those days the reason why the price 

 to the consumer did not come down pro tanto was this ; 

 The grocer trusted to his tea sales as to the sheet-an- 

 chor of his business, his profit on his tea sales was enor- 

 mous, ami to encourage customsrs to buy tlieir tea 

 from iiim he used to sell his sugar to them at a positive 

 loss. That, of course, msans that tea had to mikt^ twu 

 profits to the retailer the pfotit on sugar aa well as its 

 owo profit, lii>urally so loog as the grocer bad the 



tea trade in his hands as a monopoly, the retail price 

 to the individual consumer remained the same under 

 those circumstances. But these huge profits leaked out, 

 as huge profits always will, and then commenced the 

 outside competition to be expected in all similar cases 

 in these latter days, when "legitimate trading" as 

 formerly understood by the adage, " let the shoemaker 

 stick to his last," is ancient history Drapery shops, 

 haberdashers, small newspapers and stationery vendors 

 et hoc rjenus began to dabble in packet tea. Then came 

 reduced ladies, with a wide circle of acquaintance, who 

 were not above personally canvassing for customers 

 for their " really delicious tea supplied direct, 

 so much cheaper and fresher you know than nasty, 

 musty shop tea with a mixed flavour of cheese, 

 tallow candles and bacon." For a time prices still kept 

 fairly well supported, as it was owing to the temptation 

 of the huge profit that so many entered the field — all 

 equally interested in keeping up the profit as long as 

 possible. Then began a new era, that of the big 

 advertizers. These men had to trust to being able to 

 win customers from the classes above enumerated who 

 were already in the field. They had to offer induce- 

 ments superior to those offered by those in possession of 

 the field. Quality everybooly boasted about, so that was 

 used up cry. Economy was left them, on this they 

 " banked " and two shilHng teas suddenly burst upon us 

 in all directions. Ubiquitous advertising is a most 

 serious expense, and it is of course impossible to say 

 how much a pound it adds to the cost of the tea to the 

 retailer as that depends upon 1 he number of pounds sold 

 as compared with the exjjenditure on advertising. It 

 might easily amount to peuco per lb. even in a large 

 business. For a time the reduction to 2s per lb. held 

 its own, till the profits even at this lower rate, per- 

 mitted by the further decline in market prices, tempted 

 other new advertisers into the field, and we have now a 

 Tea Company largely advertising teas at Is 3d, Is 6d, and 

 Is 9d per lb. " worth a shilling more at any shop." 

 Now, aa your correspondent points out that at Is -Sfd 

 exchange, a 6-anna per lb. pekoe souchong would cost 

 delivered in London Is 2^A per lb if we add the cost of 

 advertising, rent, insurance, ofiice and staff expenses, 

 loss in turn of the scales, making up into packets &c. &c. 

 the above rates as last quoted, do not suggest either 

 steady rates being paid by the consumer, or that any 

 very serious difference will soon remain to be absorbed 

 by the retailer. I do not mean to say that grocers in 

 many cases and the older advertising houses too, do not 

 still make from 3d to 8d per lb. on the actual book cost 

 of their teas according to quality, — and in the case of 

 some grocers, be it added, according to the customer's 

 ability to pay — but when advertising and other ex- 

 penses are deducted this profit is considerably reduced ; 

 and it will not be long before the new advertisers of 

 these, now sti 1 cheaper teas cut down the popular rates 

 once again. 



2. — The reason of the failure of the many attempts 

 on the part of the planter to place his tea directly in 

 the hands of the consumer is explainable upon several 

 grounds to meet different cases. In the first place the 

 qualities that go to make an excellent planter do not 

 necessarily qualify him to make an excellent retail sales, 

 man, up in all the tactics necessary here now-a-days. In 

 the second place to open up a connection uow-a-days 

 means indefatigable personal canvassing for customers, 

 a sphere in which a planter would feel very much more 

 abroad than he did in ludia and which would prove 

 much more distasteful to him, than all the worries of 

 planting; or else, it means tens of thousands spent on 

 advertising, and as planters who have started so faf 

 have been without the capital to indulge in the lattef 

 alternative they have entered the business only td 

 retire from it in disgust when the nature of and the 

 necessity for canvassing became apparent to them, of 

 else to drag on in a one-horse ;sort of way without hojie 

 or prospects. I do not forget two or three noteworthy 

 exceptions, one in Belfast, one in Dublin and perhaps 

 another there may be, but the rule has been as above 

 stated, and the exceptiqus had exceptional advantages 

 in their favour —at all events one of the exceptions Jiad 

 —which conduceil to success, but which advantages 

 ■were purely local and out of the notvaSki.^Indmi 

 rimters' Gautte. 



