Tea price hits record level

The average price of tea for export in Viet Nam has reached a record high of US$1,340 per tonne.

Figures from the Viet Nam Tea Association (VITAS) showed that in the first five months of the year, the industry exported 45,000 tonnes with a turnover of $62 million, an increase of 1.3 per cent and 30 per cent in terms of quantity and value, respectively, over the same period last year.

VITAS estimates that the tea export volume this month would reach 20,000 tonnes, hitting a total volume of 65,000 tonnes for the first two quarters of this year. Export turnover, therefore, could be up to $80 million, an increase of 30 per cent in value against the corresponding period last year.

Nguyen Van Thu, a specialist in the industry, said the increasing world price had resulted in the record high.

Thu said that improved quality of domestic tea products had also contributed to the highest ever price.

He added that exports of refined tea had increased as businesses are starting to pay attention to quality and building popular brand names.

However, the association said the record price was only at 40 to 50 per cent of the price in other countries. Tea products are mostly exported as raw materials which account for 90 per cent of the industry’s total tea exports.

It said plantations should be expanded to meet the increasing demand. Currently, they are only able to supply 40 per cent of raw materials to the country’s 635 tea processing plants.

The inconsistent quality of domestic products is also a reason for the relatively low price of Vietnamese tea on the world market. — VNS

Tags: Vietnam tea, Vietnam tea prices