Russia is looking to significantly increase exports of its tea within the next several years, according to recent statements made by representatives of some leading local producers and independent analysts.
So far, some progress in this field has already been achieved. According to data by Agroexport Center – an analytical and operational center responsible for agricultural exports from Russia – 2020 tea exports from Russia grew by 3.4 percent to 21,000 tonnes in volume terms. While the results for 2021 have not yet been disclosed, analysts expect further growth, as compared to 2020.
According to preliminary data from the Federal Tax Service of Russia, in 2021 the growth will be equivalent to 44 percent on year-on-year basis.
In value terms, the growth of exports from Russia in 2020 was equivalent to 2.1 percent, up to US$106 million. The biggest growth was observed with green tea, with shipments growing by 19 percent to 3,100 tonnes. At the same time, exports of black tea amounted to 17,000 tonnes, being valued at US$89 million.
Among the major importers of Russian tea are primarily CIS states (The Commonwealth of Independent States), such as Belarus, Kazakhstan and Ukraine. Other importers or Russian tea include Israel, Qatar, Latvia and Germany.
One of the reasons for the growth of tea imports from Russia in recent years is a significant increase in the number of tea processing facilities within the territory of the country.
According to analysts of the Ministry of Agriculture of the Russian Federation, because of this increase – as well as well-established logistics system – Russian tea manufacturers have been able to significantly increase their share in the global market, including in far abroad states, in the last several years.
Analysts also expect tea exports from Russia will continue to grow during the period of 2022-2023, as the demand for it will grow. Growth of supplies will be also contributed by the ability of local producers to supply it at competitive prices.
So far, a number of leading Russian tea manufacturers have announced their plans for the increase of exports and diversification of their supplies during the next one to two years.
One such company is Matsesta Tea, Russia’s full-cycle tea producer, based in the Krasnodar region, a center of Russian tea production.
Currently, Matsesta Tea produces more than 100 types of tea products, while its plantations are located in the Matsestinskaya valley of the Caucasus ridge.
Irina Novikova, a spokesperson for Matsesta Tea, told World Tea News that the company has no plans to increase its exports at any cost, but it currently supplies its tea to various countries throughout the world.
Novikova commented: “Currently, Matsesta Tea operates 170 hectares of tea plantations and we do not use fertilizers and pesticides, which means that the yield from our plantations is not as high as in tropical countries. While we receive export offers from different countries, our main task is to provide quality tea to domestic citizens. Tea growing is a unique industry for Russia, which has existed since 1947 with the city of Sochi being a center of such production, and we are now doing everything to revive and preserve it.”
Currently the company exports its tea to Japan, the U.K. and Serbia. Deliveries to the United States and Canada are not planned by the company in the short term, due to the high cost of supplies, particularly in regard to logistics. However, such a possibility could be considered later.
While Novikova and other interviewed producers do not believe in the ability of Russia to secure a big share in the global tea market with its own-grown tea in the short-term, there’s a possibility that could be achieved with the beginning of more active supplies of tea from Russia, which is produced from imported raw materials.
World Tea News contributor Eugene Gerden is an international freelance writer, specializing in covering the global coffee and tea industries for numerous industry publications.
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