Tea producers predict another gloomy year<\/p>\n
JAKARTA (JP): Local tea producers have predicted another
\ngloomy outlook this year as overwhelming supply in the world
\nmarket would continue to depress tea prices.<\/p>\n
The Indonesian Tea Association's chairman, Rachmat Badruddin,
\nsaid on Friday that tea output was currently exceeding its demand
\nand would result in weakening prices.<\/p>\n
\"Since 1998, world tea output has exceeded demand, mainly due
\nto an increase of 70,000 metric tons from Kenya, the world's
\nfourth-leading tea producer, while the world's carry-over stock
\nis still abundant due to the drop in demand,\" he said during a
\nbreaking of the fast gathering.<\/p>\n
\"It is predicted that in 1999, world tea production will
\noutstrip demand for the second year running, helped by likely
\nrecord supplies from major producing countries such as India,
\nChina and Kenya.\"<\/p>\n
Rachmat predicted that Indonesia's tea production would reach
\n160,000 tons this year, the same level as last year's, 128,000
\ntons, 80 percent, of which would be exported.<\/p>\n
Indonesia is currently the world's fifth-biggest tea producer,
\nafter India, China, Sri Lanka and Kenya. The country produces
\naround 150,000 tons annually.<\/p>\n
Indonesia's main tea producing areas are West Java, East Java
\nand North Sumatra.<\/p>\n
Last year, Indonesia exported 101,532 tons of tea worth US$120
\nmillion, 97,200 tons of which was black tea and 4,332 tons green
\ntea.<\/p>\n
The country exported most of its tea to Pakistan, the United
\nStates, the United Kingdom and Russia. The rest was sent to other
\nEuropean countries and the Middle East.<\/p>\n
According to the association's data, tea plantations in
\nIndonesia currently cover 160,529 hectares: 61,464 hectares are
\nowned by small plantations, 54,795 hectares by state plantations
\nand 44,270 hectares by private estates.<\/p>\n
Rachmat said that local tea producers enjoyed a windfall
\nincome from increasing tea prices in the domestic market last
\nyear due to a weakening of the rupiah against the U.S. dollar.<\/p>\n
Low quality tea is currently traded at between Rp 5,000 and Rp
\n6,000 per kilogram, he said.<\/p>\n
The price is considered good, although it is still lower than
\nlast year's price which reached Rp 10,000 per kilogram, he said.<\/p>\n
Rachmat said that a windfall in exports could not be enjoyed
\nby local tea producers due to their low productivity and
\nefficiency.<\/p>\n
The productivity rate of state tea estates has been an average
\n2.3 tons a hectare per year since 1992, against the small
\nholders' productivity rate of less than 0.5 tons per hectare.
\n(gis)<\/p>",
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