and Magazine of the Ceylon Agricultural Society.— July, 1911. 81 



W. J. & H. THOMPSON'S ANNUAL 

 REPORT ON THE TEA TRADE. 



38, Mincing Lane, June, 1911, 



The publication of the official statistics for 

 the twelve months ending May 31st affords an 

 opportunity of reviewing the history of the past 

 season, recording its results, and of surveying 

 the position and outlook. The period under 

 review has proved a successful one for produ- 

 cers in the aggregate, although those who make 

 common and medium tea have increased their 

 profits to a greater extent than others. The 

 most important factor has been the increased 

 consumption in countries other than the United 

 Kingdom ; notably in Russia, where the greater 

 purchasing power consequent upon prolific har- 

 vests has resulted in an increased demand for 

 tea. The amount of British grown tea taken 

 outside the United Kingdom during the past 

 12 months exceeded last year's by 16 million lb. 

 The majority of this increase was purchased 

 locally, with a result that from India, despite 

 an increase of about 6j million lb. in the 

 total shipments, receipts in London have been 

 smaller by over 8 million lb. From Ceylon 

 the increased offtake amounted to over 1.} 

 million lb., coincidently with very liltle 

 alteration in the quantity of China tea pur- 

 chased. The result here was felt iu smaller im- 

 ports, which, coupled with a continuance of 

 a good rate of Home Consumption, conduced to 

 the buoyant and rising market experienced from 

 autumn onwards, culminating in the early 

 months of 191 1 in a higher level of value for 

 common and low medium teas than has been 

 reached during recent years. 



In our last Annual Review we stated that, as- 

 suming a continuance of the increased consump- 

 tion both at Home and Abroad, and in the 

 absence of any sign that China tea was regaining 

 favour, the question to be considered was 

 whether there would be sufficient tea from India 

 and Ceylon to supply requirements. This belief 

 has been fully justified, and although Home 

 Consumption has been little more than 

 stationary for over a year— the increased quan- 

 tity used being ouly equal to the estimated rate 

 of growth of our population — the large increase 

 taken by other markets, Russia and Australasia 

 in particular, ha-! created a shortage here, 

 from which the healthy state of the London 

 market has been the direct outcome. An 

 examination of the movements during the year 

 reveals the reason for the present basis of 

 values. Common and low medium grades 

 have not been offered in unduly largo 

 quantity here, as the Dooars and Assam have 

 furnished a smaller amount than usual of tea 

 coming under this category. As these grades 

 are used by all the great distributors in their 

 blends— the efforts on the part of those inter- 

 ested to induce the public to use finer tea having 

 had as yet very little success— demand increases 

 to an extent that affects quotations, keeping the 

 price of fair Pekoe Souchong between 7£d and 

 8d Der lb. As is always the case when the at- 

 tention of the trade is concentrated on the lower 

 priced varieties, better class teas receive less 

 support, and it is to be regretted that, during 



11 



the past year, good and fine grades, particularly 

 those from India, have hardly been appreciated 

 to the extent of their worth, although choice 

 tea has not failed to find a ready sale. 



Indian Tea. 

 The crop despatched from India has again 

 created a record by exceeding that of last sea- 

 son by about 6$ million lb, At the beginning 

 of the season weather conditions were favour- 

 able, but afterward, heavy rainfall experi- 

 enced in many localities made later flushes 

 rather indifferent in quality. In Assam, the 

 early flushes were the best and a number of good 

 teas were received, but the autumnal crop again 

 proved disappointing, and only a few flavoury 

 invoices were marketed. Cachar and Sylhet, 

 which in 1909-10 sent a large crop of good use- 

 ful tea, fell away slightly, both as regards out- 

 put and make oi leaf. Continental enquiry has 

 been consistently good for leaf teas from these 

 districts, as well as for suitable teas from the 

 Dooars, which has furnished a larger quantity 

 of tea fully equal, if not preferable, on the whole, 

 to that made last season. Autumnal teas from 

 this district possessed good colour and flavour, 

 and fully deserved the high prices paid for them. 

 The Terai has been more fortunate this season, 

 and while climatic conditions have been some- 

 what adverse, the yield, both in quantity and 

 quality, has shown an advance on the previous 

 one. In Darjeeling more tea than in 1909-10 

 was made, but in character the majority of in- 

 voices were inferior, Nevertheless, the ex- 

 panding demand for this growth, for home and 

 Russian use, has ensured high prices for all with 

 distinctive flavour. Following the shortage in 

 Ceylons the attention of the trade here has been 

 diverted to Southern Indian varieties to make 

 up the deficiency, with the result that the 

 increase from Travancore and the neighbouring 

 districts has been well received, and with quality 

 on the whole excellent, remunerative prices have 

 willingly been paid. The average of public 

 sales in London on growers' account is about 

 8 3-5d against 8 1 -3d the previous season, and 

 7 7-8d in 1908-9. 



Ceylon. 



In contrast to the record crop in 1909 of 

 nearly 192 million lb, the output from the Is- 

 land, during 1910, showed a deficit of over 10 

 million lb, viz., 181 J million lb. To what ex- 

 tent this heavy falling oft is to be attributed 

 to the effect of interplanted Rubber is difficult 

 to determine, but as in many gardens where no 

 Rubber is grown there has been a shortage in 

 output, it is safe to put adverse climatic condi- 

 tions, as the principal cause. The quality of 

 the teas received here has been ud to the aver- 

 age, the proportion of commonest grades 

 being smaller than usual. Of the entire crop 

 gathered, 108 million lb, or 60 per cent, was 

 marketed in London, and realised an average 

 price of 8"20d per lb as compared with 8'15d 

 per lb in 1909-10, and 7"86d in 1908-9. The appre- 

 ciation of and demand for Ceylon tea, as a distinct 

 variety, continue to be shown in all quarters. 

 China. 



The quantity of China tea used here has 

 shown some expansion, owing to the high prices 

 ruling for common teas from India and Ceylon. 



