Tea prices set to soar in face of droughts
The United Nations' Food and Agriculture Organization has forecast all-time high tea prices due to simultaneous droughts in key exporting countries. Dry weather in India, Kenya and Sri Lanka will lead to lower output, following last year's market deficit. Preliminary estimates for 2008 indicate that consumption rose to 3.85m tonnes, up 4.8% on the year, while production lagged behind at 3.78m tonnes, up 1.2%.