The price of tea has jumped to a 2½-year high as poor crops in some of the world’s most important producers strain supplies.
Dry conditions, poor rains and frosts have hit tea production in Kenya, the largest exporter of black tea. A bad monsoon has reduced production prospects in India and Sri Lanka, two other major exporters.
The wholesale price of the highest quality black tea – known as broken pekoe 1 or BP1 – has surged 41 per cent higher since the start of the year, last month surpassing $4 a kg, a level seen only once before in late 2009, when prices reached $5.45.
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