Tea Sippers

Do we need to worry about black tea prices?

OK, I’ll admit I am not the best person to understand stock and commodities markets. But the article from our source below, plus other information I read today, seems to imply we might have something to worry about this year. I am stressing “might” in that sentence.

Although the price of African Tea has fallen for the 3rd straight week, violence from ethnic clashes, which have claimed 1500 lives already, and an extreme drought are causing the tea crop in the Eastern and Western Rift Valley regions to decline. Earlier sales set a new record high, however.

These valleys are where the best quality tea leaves are grown in Africa according to the news report. Why should we care? Because Kenya is the top exporter of black tea in the world. More may be grown in India but the vast majority of it, maybe 95%, is consumed in India as well.

So, will supplies of black tea decline so we end up paying more? Who knows with the way commodity markets work? Certainly not me, but if I learn any more, I will post it here.

Source: http://www.bloomberg.com/apps/news?pid=20601116&sid=aq2eLaUXaMj0&refer=africa