Tea prices are set to jump to an all-time high after damage to production in the world's key exporting countries from simultaneous droughts, the United Nations' Food and Agriculture Organisation and industry executives have forecast.
Kaison Chang, a tea specialist at the FAO in Rome, said dry weather had led to low yields in India, Kenya and Sri Lanka. “Prices should go up,” he said.
The output fall in the three countries, which account for half the world's exports, will exacerbate last year's market deficit.
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