Tea import, export, production and consumption in Ukraine. My international marketing project, NULES of Ukraine, 2013.

1. Tea import and
export in Ukraine
Yana Yantselovska
3rd-year student, 7th group
Faculty of agrarian management
Kyiv - 2013

2. PART 1.
THEORETICAL ASPECTS
OF THE MARKET

3. Economical characteristics of Ukraine
• Ukraine has a normal economical potential.
Important branches include industry and
agriculture, both of which form the major part of
the national pension rises.
• Ukraine as an independent country meets all
requirements of economical development which
is supported not only by its natural resources but
also by its great geographical position - lying on
the trade junction.

4. Economical characteristics of Ukraine
• Ukrainian industry is very complex and contains
all diverse branches characteristic for modern
industry.
• Agriculture is in the reform stage at this time.
• Ukraine has a good developed network of all
kinds of transportation.

5. About tea in the world
• Tea is one of the oldest and the world's most
popular beverages if not to take water into
account. And perhaps it is the best thirst
quencher. The birthplace of tea is China. The
word "tea", earlier "chaa", comes from the
Chinese "ch’a" which means "young leaf".

6. About tea in the world
Today, tea is grown around 37 countries. The
main producers are China, India, Kenya, and Sri
Lanka. These four countries account for more than
50% of the total tea production. Although new
strong players are emerging in this market:
Indonesia, Vietnam and some African countries.

7. By type of tea plant three types of
tea are distinguished:
• The Chinese species (Chinese, Japanese,
Vietnamese, Indonesian, Georgian tea, etc.);
• Assamese species (India, Ceylon, Kenyan tea,
etc.);
• Cambodian species (it is grown in parts of Indo-
China)

8. Tea suppliers in UA
The main kinds of tea are black tea, green tea,
mate and others. The main suppliers of black tea
in Ukraine are Sri Lanka, India, Indonesia, of
green tea – China and Sri Lanka, of mate –
Argentina and Brazil.

9. Tea market structure in UA
• In Ukraine, in the import structure for 2005-
2010, black tea accounts for about 84%. The share of
green tea is about 16%. In the structure of exports
for 2005-2010 there is a tendency of reduction of
the share of black tea and the increase of share of
green tea exports by 14%.
• From 2005 to 2010, the price for 1 metric ton of
imported tea to the territory of Ukraine increased 2-
fold, on average increasing by 15% per year. The
largest surge of 35% was observed in 2009. While in
2010, the rise in prices was only 4%.

10. Tea consumption in the world
• According to the Food and Agriculture
Organization of the United Nations (FAO), in
2011, the consumption of tea in the world
increased to 3.85 million metric tons (growth
rate was 4.8% compared with the data for the
previous period), while production increased
only by 1.2% – to 3.78 million metric tons.

11. Cunsumer preferences in UA
• The most popular package is the cardboard and
filter bags. Moreover, in 2011, the volume of
imported bagged tea in Ukraine significantly
increased relative to previous years. (According
to the British Standards Institute standard "BS
6008: Method for preparation of a liquor of tea,"
a bag must contain 2 grams of tea leaves to brew
a single cup of tea (200 ml)).

12. PART 2.
STATISTICS OF TEA MARKET
IN UKRAINE

13. Tea production in UA
• On the territory of Ukraine, tea is not grown. All
the tea production in Ukraine is packing and
packaging of the imported raw materials.
• From 2005 to 2010, the tea outputs in Ukraine
nearly doubled.

16. Producers of tea in UA
In 2010, 18 producers of tea were present in the
Ukrainian market. The largest producer is LLC
EximTrade, which accounts for 30% of the total
tea outputs in Ukraine in 2010.
Second place goes to a joint Ukrainian-British
Ahmad Tea Factory Ukraine, with a market
share of 21%. The Ukrainian producers of tea with a
significant market share include: JV LLC
SoloMia, LLC Maisky Tea, LLC Dobrynia-Dar and
JSC Monomakh.

18. Tea imports in UA
• Ukrainian tea market is totally dependent
on imports. Generally, the trends in
production resound the trends in imports,
and are characterized by constant growth.
The only exception was crisis after which
the consumption of tea in 2009 was lower.

20. Tea import structure in UA
• In all there are about 40 countries supplying tea
to Ukraine. The main share of the imports
belongs to Sri Lanka. In 2010, the share of
imports of tea from this country amounted to
34% of total shipments of tea to the territory of
Ukraine. Second place goes to the Russian
Federation. This country does not grow tea,
but there is a large packing plant. Also, a
significant proportion (5 to 11%) in the amount
of tea imported to Ukraine belongs to China,
India, USA and Vietnam.

22. Tea exports in UA
• Ukraine is engaged in processing of imported raw
materials and supply of tea abroad. The share of
exports is low and amounts to about 1% of the total
imports of tea.
• Until 2008, there was a steady growth in exports
volumes. The highest rate of increase (48%) was
observed in 2008. Then, in 2009, a drop in exports
by 60% followed, which is connected with the
worldwide market trends of tea. In 2010, tea exports
increased and in 2012 reached pre-crisis level.

24. Ukraine as tea exporter
• The main importers of tea are neighboring
countries of Ukraine: Moldova, Russian
Federation and Belarus. The main direction
of tea exports from Ukraine is Moldova. The
share of deliveries to Moldova in 2010 amounted
to 73% of total exports volume. The second-
largest importer of tea from the Ukraine is the
Russian Federation (with a share of 21% of the
total exports of tea of all kinds).

26. Tea consumption statistics in UA
• Tea and coffee are interchangeable drinks and have
similar properties. In terms of consumption of these
beverages in the regional context, Kyiv takes
leadership confidently. Thus, the share of Kyiv in
the total amount of tea consumption in Ukraine was
12% (analyzing the consumption of tea for 100
people of the population in the region). Second place
goes to Kharkiv region with an index to 9% of
total consumption. Third place is shared by
Dnipropetrovsk and Odessa regions (7% of the
total tea consumption in Ukraine).

28. The main players on the tea
market in Ukraine:1st place
• The biggest player in the tea market in Ukraine
is LLC Unilever Ukraine. LLC Unilever
Ukraine is the office of transnational Anglo-
Dutch Unilever company in Ukraine. In the tea
market in Ukraine company is represented by
the following brands: Lipton and Brooke
Bond.

29. The main players on the tea market
in Ukraine: 2nd place
• The next-largest company in
Ukrainian tea market LLC
EximTrade is presented by the
trademarks Princess Nuri,
Princess Java, Princess Kandi
and Princess Gita. Also, company is
the only representative in Ukraine of
Greenfield and TESS premium
British brands of tea. LLC EximTrade
is the largest Ukrainian producer of
tea.

30. The main players on the tea market
in Ukraine: 3rd place
• Another producer of tea in the
territory of Ukraine is a joint
Ukrainian-British company
Ahmad Tea Factory Ukraine.
Its exclusive partner in Ukraine is a
Ukrainian-Cypriot company
Pyramid (distributor Ahmad
Tea, Grace!, TET brands).
Ahmad Tea is sold in more than 70
countries on five continents.

31. Other players on the tea market in
Ukraine
• LLC SoloMia, a member of the
Stoik Group of companies: Batik,
Askold and Domashniy tea brands
• Russian company May (Maiskiy
Tea, Lisma, CURTIS)
• OJSC Monomakh represents
Monomakh, Tri Slona, and Fruits
tea trademarks.

32. PART 3.
ANALISYS AND PERSPECTIVES
OF TEA MARKET

33. World tea market in 2013
• High quality tea is grown only in 4 countries: Sri
Lanka, India, Kenya and China. These countries
form the price of tea in world markets.
• On the one hand, unfavorable weather
conditions, political and economic instability in
importing countries could provoke a tea market
deficit, and hence increase of tea cost.
• On the other hand, the reduction of supply from one
country is compensated by increased imports from
other countries (Kenya, Sri Lanka) and allows new
players to enter the world market with relative tea
prices stability.

34. Ukrainian tea market in 2013
• 2013 is characterized by positive
dynamics of production and exports of
tea.
• However, the volume of Ukrainian tea
market in the past few years have changed
quite a bit, which indicates the saturation
of the market.
• Besides, the world's major brands are
already represented in the Ukrainian
market of tea.

35. Ukrainian tea market in 2013
• The crisis has touched on the preferences of
Ukrainians towards cheaper and convenient tea
bags, share of which tends to a constant increase
(especially in 2011).
• As for the type of tea, the dominance of black tea
over green tea remains.

36. Ukrainian tea market in 2013
• Product lines of the five main players in the tea
market in Ukraine immediately react to that.
Namely, in this segment there are more new
products, including the premium segment.
• These include tea Curtis (May Company) and
Grace! (Pyramid Company). Although today the
tea bags are mainly included to economy and
mid-price segment, in the future, this trend may
change.

37. CONCLUSIONS

38. Consumption in Ukraine
Tea consumption in UA:
• 12% - Kyiv
• 9% - Kharkiv region
• 7% - Dnipropetrovsk and Odessa regions.
Consumers prefer low-cost tea bags.

39. Import in Ukraine
• Main tea suppliers of UA are Sri Lanka (34%),
Russian Federation, China, India, USA and
Vietnam.
• Black tea in Ukraine is from Sri Lanka, India,
Indonesia, green tea is from China and Sri
Lanka, mate is from Argentina and Brazil.
• The share of black tea is about 84% and green
tea is about 16%.

40. Export in Ukraine
Ukraine is engaged in processing of imported raw
materials and supply of tea abroad. The main
importers of tea are neighboring countries of
Ukraine:
• Moldova (73%)
• Russian Federation (21%)
• Belarus (4%).

41. Main players on the tea market in
Ukraine
• LLC Unilever Ukraine (Lipton and Brooke Bond)
• LLC EximTrade (Princess Nuri/Java/
Kandi/Gita, Greenfield and TESS)
• Ahmad Tea Factory Ukraine (Ahmad
Tea, Grace!, TET)
• LLC SoloMia (Batik, Askold and Domashniy
chai), May (Maiskiy Tea, Lisma, CURTIS)
• OJSC Monomakh (Monomakh, Tri Slona, and
Fruits tea).
Premium tea segment includes tea Curtis (May
Company) and Grace! (Pyramid Company).

42. Sources of information:
• State Statistics Committee of Ukraine
• IAA "Soyuz-Inform" data
• Ukrainian business press

43. THANK YOU
FOR ATTENTION!