McLeod Russel predicts price rebound in 2015
McLeod Russel, the world's largest tea producer, predicts that commodity-grade tea prices will rebound in 2015 due to declining inventory and output. Prices of tea used by supermarket brands have been under pressure for a while now as result of oversupply, political instability and falling consumption in markets like Russia, Pakistan, Egypt and the Middle East. However, a likely drop in production and a rise in local demand will lead to depleted inventory levels in India, which should strengthen prices by up to 9%, resulting in a price of $3.2 per kilogram. McLeod Russel owns more than 97,000 acres of tea plantations in India, Vietnam, Rwanda and Uganda.