Tea Tree Market Update
It’s been a difficult year from tea tree farmers having seen droughts and frost impact the growth of the trees. The major harvesting period was further delayed to allow for some additional growth but then suffered again due to a sharp fall in prices and snow covering some areas. ATTIA calculated a 2019 harvest of 630MT which is some 37% lower than in 2018 and leading independent agronomists suggest the 2020 crop will be no different as it will take time for the trees to recover.
In many ways it is fortunate that despite there being no carryover from producers in Australia there was some supplies in the marketplace due to a quiet period of sales early in 2019. That said there remains a stark contrast between average years sales and production forecasts for 2019 and 2020 which will alarm many and we’re already seeing prices increase.
Today some supplies are available but many producers are waiting to sell to command what they believe to be much higher prices later in the year. The advice is to cover sooner rather than later and ensure some reasonable carry overs for 2020.