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GLOBAL CONSUMER BEHAVIOUR – SUPPLY & DEMAND www.inttea.com. WORLD PRODUCTION OF TEA 1986 - 2005. WORLD PRODUCTION OF TEA IN 2005 In Million Kgs. WORLD PRICE OF TEA EX-AUCTION 1986 – 2005. APPARENT CONSUMPTION OF TEA IN 2005 BY COUNTRIES. DEMAND FOR TEA IN IMPORTING NATIONS. SUPPLY & PRICES.
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SUPPLY & PRICES • SUPPLY GROWTH OF 26% OVER LAST 10 YEARS • TIGHTER SUPPLY FOLLOWED BY HIGHER PRICE • COMBINED CROP OF INDIA & CHINA 53% OF TOTAL • SUPPLY EXPECTED TO TOP 4 M. mt BY 2016 • PRICES DISMAL AT AROUND US $ 1.50 PER KG • WEAKER CURRENCIES OF TEA PRODUCERS
DEMAND • INDIA & CHINA CONSUME 40% OF WORLD SUPPLY • GROWTH AMONGST PRODUCERS NOT MATCHED BY IMPORTERS • WIDER CHOICE OF BEVERAGES • STAGNANT POPULATION • HIGHER DISPOSABLE INCOMES • STABLE ECONOMIES & LOW INFLATION • IMPENDING CHANGES IN CONSUMER PREFERENCES IN THE MIDDLE EAST
SUPPLY & ABSORPTION • SUPPLY OVER DEMAND GAP WIDENING • DEMAND FOR LOWER PRICES CREATING OPENINGS FOR POORER TEAS • TO DEMAND BETTER QUALITY PAYING IMPROVED PRICES • EXPLORE POSSIBILITIES OF CURTAILING CROP