Price rises stirring in tea and coffee world



Your cup of tea or coffee may be about to get more expensive.

The UN's Food and Agriculture Organisation (FAO) said black tea demand had exceeded supply since 2009, driving up the price.

Droughts in the world's main tea-exporting countries of India, Kenya and Sri Lanka have triggered a continuous shortfall in the market.

Demand has been bolstered by rapid economic "growth in per capita income levels, particularly in China and other economies", the UN agency said.

The average price of tea last year was US$2.85 per kilogram, compared with $2.33 in 2009. Total tea consumption increased 5.6 per cent to 4 million tonnes in 2010, the latest data shows.

In China, total consumption rose 8.2 per cent in 2009 from a year earlier and 1.4 per cent in 2010 to reach 1.06 million tonnes, the most in the world.

But production rose at a slower pace, at 4.2 per cent to 4.1 million tonnes for the same period. Black tea output increased by 5.5 per cent "in response to record prices" while green tea output was up 1.9 per cent.

World black tea is expected to come into equilibrium with regard to supply and demand by 2021 with a price of $2.75 per kilogram. Coffee-bean prices have also rallied. Robusta, used for making instant drinks and espresso, has gained almost 9 per cent since the start of the year amid lower crop yields and higher demand, to trade at $2,009 a tonne.

"The Robusta bean used to be very cheap because the plant didn't require much maintenance," said Hussein Awada, the owner at Lebanese Roastery in Abu Dhabi. But bad weather in Indonesia had reduced stocks for the 2012-2013 harvest, he said.

Mr Awada is hoping next year's crop will be large enough to prevent further price rises.

"Coffee is the backbone of my business. In 35 years, we have hiked our prices twice only."

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Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

In numbers: PKK’s money network in Europe

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Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

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Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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The flights

Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes. 
 

The stay

A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.

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The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East