WORLD’S PRODUCTION
AND
CONSUMPTION.
--------------
The first direct importation of tea into England was in 1669, and
consisted of but “100 pounds of the best tea that could be procured.” In
1678 this order was increased to 4,713 pounds, which appears to have
“glutted the market;” the following six years the total importations
amounting to only 410 pounds during that entire period. How little was
it possible from these figures to have foreseen that tea would one day
become one of the most important articles of foreign productions
consumed.
Up to 1864 China and Japan were practically the only countries producing
teas for commercial purposes. In that year India first entered the list
as an exporter of tea, being subsequently followed by Java and Ceylon.
In 1864, when India first entered the list of tea-producing countries,
China furnished fully 97 per cent. of the world’s supply and India only
3, the latter increasing at such a marvelous rate that it now furnishes
57, China declining to 43 per cent. of the total.
TABLE 1.
ESTIMATED TEA PRODUCTION OF THE WORLD.
Countries. Production Exportation
(Pounds). (Pounds).
China, 1,000,000,000 300,000,000
Japan, 100,000,000 50,000,000
India, 100,000,000 95,000,000
Ceylon, 50,000,000 40,000,000
Java, 20,000,000 10,000,000
Singapore, 20,000 10,000
Fiji Islands, 30,000 20,000
South Africa, 50,000 20,000
————————————— ———————————
Total, 1,270,100,000 495,050,000
From these estimates it will be noted that China ranks first in
tea-producing countries, followed by Japan, India, Ceylon and Java in
the order of their priority; the total product of the other countries
having little or no effect as yet on the world’s supply.
This most important food auxiliary is now in daily use as a beverage by
probably over one-half the population of the entire world, civilized as
well as savage, the following being the principal countries of
consumption:—
TABLE 2.
ESTIMATED TEA CONSUMPTION OF THE WORLD.
Countries. Consumption Per capita
(Pounds). (Pounds).
Austria, 1,000,000 0.03
Australia, 18,000,000 4.50
Belgium 130,000 0.03
China, 800,000,000 3.00
Canada, 23,000,000 4.00
Central Asia, 13,000,000 ...
Denmark, 850,000 0.37
France, 1,250,000 0.03
Germany, 4,000.000 0.09
Holland, 5,000,000 1.20
Italy, 60,000 0.01
India, 5,000,000 ...
Japan, 50,000,000 4.00
Java, 5,009,000 1.00
Norway, 165,000 0.09
New Zealand, 4,500,000 7.50
Portugal, 600,000 0.12
Russia, 100,000,000 1.70
Spain, 275,000 0.02
Sweden, 150,000 0.03
Switzerland, 150,000 0.08
South Africa, 600,000 0.80
South America, 12,000,000 0.03
Straits Settlements, 1,000,000 ...
United States, 82,000,000 1.50
United Kingdom, 180,000,000 5.94
West Indies, 300,000 0.03
————————————— ————
Total, 1,308,039,000 1.67
From these estimates it will be observed that England ranks first in the
list of tea-consuming countries, the United States second, and Russia
third, the Australian colonies and Canada coming next in order,
comparatively little tea being used in France, Germany and the other
European countries. It is rarely used in some parts of the globe, and is
practically unknown in a great many other countries. It is also apparent
that 90 per cent. of the world’s supply is chiefly consumed by
English-speaking people, fully 75 per cent. of this being used by
England and her dependencies alone, the United States being next in
importance as a tea-consuming country. And it may here be noted that
while the world’s production of tea has been very largely increased
during the last quarter of a century in greater ratio than that of any
other of the great staples of commerce, the production of China and
Japan having increased at least 50 per cent. in that period, to which
must be added that of India and Ceylon, from which countries little or
none was received until a few years ago. Yet it cannot be said that the
consumption has increased in anything like the same proportion, which
will account for the great decline in price in later years, and to
prevent prices from going still lower it is evident that new markets
must be opened up for its sale in other countries where it has not yet
been introduced.
TABLE 3.
SUMMARY.
World’s Production, 1,377,600,000
“ Consumption, 1,307,130,000
————————————
Surplus, 70,470,000
or
Quantity exported, 503,100,000
Consumption in non-producing countries, 432,630,000
——————————
Surplus, 70,470,000
In England, particularly, the increase in the consumption of tea in late
years borders on the marvelous, the figures for 1890 reaching upwards of
195,000,000 pounds, which, at the present rate of increase, will, in all
probability, exceed 200,000,000 in 1892, as in the quarter of a century
between 1865 and 1890 the consumption rose from 3½ to 5 pounds _per
capita_ of the population. But as in the latter half of that period
strong India teas were more freely used, being increased appreciably by
the similar Ceylon product in the closing years of that time largely
displacing the lighter liquored teas of China, a larger consumption is
indicated by the number of gallons of liquid yielded. This is calculated
on the moderate estimate formed in a report to the Board of Custom to
the effect that if one pound of China leaf produces five gallons of
liquor of a certain depth of color and body, one pound of India tea will
yield seven and a half gallons of a similar beverage. Then by allowing
for an apparent arrest of the advancing consumption when the process of
displacement was only commencing, the increase in the consumption of tea
in the British Islands has not only been steady but rapid; thus, from 17
gallons per head in 1865 to 24 in 1876, 28 in 1886, reaching 33½ gallons
per head per annum in 1890, the figures of last year almost exactly
doubling that of the first year of the series, so that in consequence of
the introduction of the stronger products of India and Ceylon the people
of Britain have been enabled to double their consumption of the
beverage, although the percentage of increase in the leaf has been only
from 3½ to 5 pounds during the same period. Ceylon tea, which a decade
ago was only beginning to intrude itself as a new and suspiciously
regarded competitor in the English market with products so well known
and established as the teas of China and India, has recently made such
rapid progress that its position in the British market in 1890, rated by
home consumption, occupying third place on the list. India teas 52 per
cent., China 30 per cent., Ceylon 18 per cent.
TABLE 4.
Showing relative positions of kinds of Tea consumed in England, and
increase in pounds of same since 1880:—
Kind. 1880. 1885. 1890.
China, 126,000,000 113,500,000 60,000,000
India, 34,000,000 65,500,000 95,000,000
Ceylon, 3,000,000 24,000,000
In 1868, when the price of tea was reduced in England to an average of
36 cents per pound, the consumption increased to the heretofore
unprecedented figures of 107,000,000 pounds, while in 1888, when the
average price was again reduced to 20 cents, owing to the enormous
increase in the production of India and Ceylon teas, the total
consumption became augmented to 185,000,000 pounds, comprised as
follows, in round numbers:—
Kinds. Pounds.
China teas, 80,000,000
India and Ceylon teas, 105,000,000
———————————
Total, 185,000,000
The latter, for the first time on record, exceeding that of China teas,
being an almost exact inversion of the figures of 1886 in favor of India
and Ceylon teas, by which it will be seen that China is year by year
becoming of less importance as a source of tea supply to English
consumers. And as the demand becomes greater the importations from India
and Ceylon are constantly expanding, prices being correspondingly
reduced to an unprecedentedly low figure, being now so cheap in the
United Kingdom as to be in daily use in almost every household. The
relative positions of China, India and Ceylon teas in England at the
present writing being
Kind. Consumption,
Pounds.
India (estimated), 105,000,000
China “ 50,000,000
Ceylon “ 35,000,000
——————————
Total, 180,000,000
The proportion of Black tea consumed in England is about as 5 to 1, the
_per capita_ consumption ranging from 5 to 6 pounds for the entire
population.
Ceylon teas continue to grow in public favor to a marvelous extent in
England and beyond anticipating in the natural growth of consumption,
they help fill up the yearly displacement of China teas. The total
production for 1890 was nearly 38,000,000 pounds against over 30,000,000
pounds for 1889, and 18,500,000 pounds for 1888, thus showing an
increase of 19,500,000 pounds for the two years. The supply for 1891 is
about 40,000,000 pounds, the stock being increased 3,000,000 pounds,
which may be considered very moderate and quite steady considering the
steady all-round demand there is for Ceylon teas in that country. But
there is not the slightest doubt but that the check which the
consumption of China tea appears to have sustained in England is
entirely due to the _forced_ use of India and Ceylon teas in that
country and her dependencies, there being a positive revulsion of taste
in many sections in favor of the truer, purer and more delicate and
richer of China teas. Medical opinions have been recently given to prove
that the excessive quantity of tannin contained in India and Ceylon teas
is very injurious to health, and a revival of the Chinese tea-trade may
be confidently expected in the future.
So far as the English tea-trade is concerned the market for China and
Japan teas is now but a tame affair to what it was only a few years ago,
little interest being taken there in the tea product of these countries.
Year by year since 1885 China and Japan teas has had less hold upon the
English market, and it is remarkable to note how continuously the
consumption of these varieties have been on the decline there from that
time, notwithstanding their superior merits in drawing and drinking
qualities over both India and Ceylons. In that year their consumption in
the British isles amounted to over 113,000,000 pounds, but fell off to
less than 105,000,000 pounds in 1886, to about 90,000,000 in 1887, to
80,000,000 in 1888, to 60,000,000 in 1889. The quantity of China and
Japan teas consumed in the whole United Kingdom declining to about
50,000,000 pounds in 1890, although the prices for them were exceedingly
low during that period. There are two main causes for this serious
reduction which have been in operation simultaneously and for a length
of time. The first was the great competition of India teas stimulated
for the reasons already named, and the second cause the extraordinary
favor that Ceylon teas found with English consumers in 1888, when the
quantity imported for use from that island amounted to 18,500,000
pounds, or nearly double of what it was the preceding year, the
quantities cleared for 1889 and 1890 being respectively 28,500,000
pounds and 34,500,000 pounds, showing an astonishing increase within the
short space of three years, and which fully accounts for the decadence
of the English demand for China and Japan teas. The consumption of the
latter varieties has retrograded there, while that for India and Ceylon
teas has increased proportionately, so that, although the market for the
former descriptions has occasionally given signs of revival, they have
been only spasmodic efforts at recovering, the much expected and
promised reaction soon subsiding. And instead of the phenomenal
cheapness of China and Japans being regarded as a recommendation to
consumers it has been used as an argument by British dealers as an
evidence of their unpopularity, and so completely has the demand been
transferred from China and Japan teas to Indias and Ceylons that it has
been no uncommon occurrence for the latter kinds to be selling at
improving rates whilst the former descriptions have been disposable only
at drooping prices.
The enormous size of the tea estates in India and Ceylon as compared
with the small gardens of China and Japan give the growers in the former
countries several advantages over those in the latter as they can be
worked more systematically and with less expense in larger areas. The
use of machinery in curing and firing also lessens the cost of
preparation for market, together with a saving in freight and quicker
sale consequent to English preferences giving a speedier return for the
money invested. The advantages which India and Ceylon tea-growers have
over those of China are greater command of capital, as in both India and
Ceylon tea estates are generally owned by companies consisting of
shareholders whose living is not dependent on the product of the
plantations. The companies can consequently afford to carry on the
business at a loss for several years, can purchase extensive tea lands,
and can spend large sums on machinery, labor and experiments as well as
on agents to introduce and distribute them. The India and Ceylon
tea-growers can obtain loans at a lower rate of interest, borrowing
money at from 4 to 5 per cent., while their Chinese competitors have to
pay from 20 to 30 per cent. for the same accommodations, in addition to
a command of better chemical and agricultural knowledge. But against
these admitted advantages of India and Ceylon, China possesses one great
advantage, that is, that the Chinese grower, working for himself instead
of wages, brings greater care and more industry to the task. Experience
with him takes the place of science, and he is thus enabled to produce a
finer flavored tea than has yet or ever will be produced in either India
or Ceylon. Again the great decline in the consumption of China teas in
England and her dependencies cannot be attributed, as is so loudly
proclaimed by her statisticians, to any falling off in the quality of
China teas or any inherent merit possessed by those of India or Ceylon,
but simply to the narrow and contracted policy of her merchants of
favoring and forcing the product of her colonies to the prejudice if not
positive exclusion of that of the older tea-growing countries.
In 1865 China exported over 120,000,000 pounds of tea, in 1870 nearly
170,000,000 pounds, in 1880 over 214,000,000 pounds, reaching the
enormous total of 221,000,000 pounds in 1890, thus China’s export has
also been increasing in a proportionate degree. But although the figures
for 1870 and 1890 show that in twenty years it has nearly doubled, still
it is not such a remarkable increase relatively when compared with that
of India, which during the same period has increased nearly fourteen
fold in quantity. In estimating the probability of a recovery in the
position of China teas in the markets of the world the following
considerations are of interest on the subject: First, it is well known
that the heavy _Likin_ (grower’s tax) _Kutang_ (transit dues) and export
duties levied on tea have contributed in a great measure to the
decadence of the tea-trade in that country and to the development of
that of India and Ceylon, where the article, at least, starts free and
unencumbered. The Chinese laboring under this disadvantage, at the
outset, have endeavored to compete with India and Ceylon by reducing the
cost of production and lowering their standard of quality with a
consequent deterioration in the grade of the leaf. This changed
condition of the tea-trade may be attributed to these specific causes.
Fifty years ago India and Ceylon produced no tea, as it was not until
1840 that the export from the former began with a small venture of 400
pounds, since that year, however, the increase has been both rapid and
striking. Thus, commencing in 1840, the export has steadily increased
year after year until now, when the average annual production reaches
100,000,000 pounds, of which England consumes some 97,000,000 pounds,
the balance going to Australia and other of her colonies. It is
contended by the Chinese themselves that if the Likin and export duties
were removed entirely or the export duty alone reduced to an _ad
valorem_ charge of 5 per cent. it would greatly help those engaged in
the China tea-trade in their competition with the growers and shippers
of India and Ceylon, others holding that a simple reduction of the duty
will not permanently benefit the China tea-trade unless it enables China
to lay down teas in Europe and America at a less price than can be done
by either India or Ceylon.
Russia is now regarded as the main hope of Chinese Congous and sorts,
the British islands consuming Indias and Ceylons almost exclusively, the
United States favoring Oolongs and Japans principally. The trade in
China teas with Russia is increasing annually, while it is decreasing
with England. In former years tea was first shipped to England and
thence to Russia, the Russian tea-dealers now purchasing direct from
China. The Russian demand seems, in fact, to grow as fast as that from
England declines, constituting a total which is hardly suspected by
those who are interested in the trade, so that, although ousted from her
monopoly, China has still a great market for her produce.
Great quantities of tea are consumed in the domains of the Czar and it
is believed that the Russians use as much tea _per capita_ as the
Chinese themselves. The “Samovar” or tea-urn is always steaming and the
natives never cease sipping tea while there is water left to make it. It
is served at all hours of the day, in palace as well as hovel, being
regarded as much a necessary of life there as bread or tobacco. Shops
abound for its sale in the principal cities; bargains made and business
transactions sealed over steaming tumblers of tea.
TABLE 5.
The earliest official record of the importation of Tea into the United
States is in 1790, the order of increase for its importation, value and
consumption in the country by decades since that year being as follows:—
Year. Imports, Value. Consumption Average
Pounds. per capita. Import
Price.
1790, 3,022,983 . . . . . ... ...
1800, 5,119,341 . . . . . ... ...
1810, 7,708,208 . . . . . ... ...
1820, . . . . . . . . . . ... ...
1830, 8,609,415 $2,425,018 0.53 22.3
1840, 20,006,595 5,427,010 0.99 24.1
1850, 29,872,654 4,719,232 0.87 27.9
1860, 31,696,657 8,915,327 0.84 26.3
1870, 47,408,481 13,863,273 1.10 29.4
1880, 72,162,936 19,782,631 1.39 27.2
1890, 84,627,870 13,360,685 1.40 20.0
The first duty levied on tea by the United States was in 1789, when a
tax of 15 cents was imposed on all Black teas, 22 cents on Imperial and
Gunpowder, and 55 cents on Young Hyson. But in order to stimulate
American shipping these duties were reduced to 8, 13 and 26 cents
respectively, the following year, when imported from Europe in American
vessels, and to 6, 10 and 20 cents when imported direct from China in
the same manner. In 1794, however, the rates were increased 75 per cent.
on direct importations, and 100 per cent. on all teas shipped from
Europe, but again reduced to 12,18 and 32 cents in 1796, the latter
rates being doubled during the War of 1812. In 1828 this tax was again
reduced, being entirely removed in 1830, except when imported in foreign
bottoms, when a duty of 10 cents per pound was collected. The latter
rate continued in force up to the outbreak of the Rebellion in 1861,
when a uniform duty of 15 cents per pound was placed on all teas, which
was eventually increased to 20 cents and finally to 25 cents per pound.
In January, 1871, this duty was reduced to 15 cents, being entirely
removed in July, 1872, since which year tea has been uninterruptedly on
the free list in the United States.
TABLE 6.
Showing net imports, value and per capita consumption of tea in the
United States, from 1885 to 1891, inclusive:—
Year. Net Imports, Value. Per Capita,
Pounds. Pounds.
1880, 69,894,760 $18,983,368 1.39
1881, 79,130,849 20,225,418 1.54
1882, 77,191,060 18,975,045 1.47
1883, 69,597,945 16,278,894 1.30
1884, 60,061,944 12,313,200 1.09
1885, 65,374,365 13,135,782 1.18
1886, 78,873,151 15,485,265 1.37
1887, 87,481,186 16,365,633 1.49
1888, 83,944,547 13,154,171 1.40
1889, 79,192,253 12,561,812 1.28
1890, 83,494,956 12,219,633 1.33
1891, 82,395,924 13,639,785 1.32
TABLE 7.
Estimated average annual Quantity and Value of tea imported into the
United States:—
Countries. Quantity, Value.
Pounds.
China, 43,000,000 $7,000,000
Japan, 38,000,000 5,500,000
India, 100,000 20,000
Java, 200,000 30,000
Ceylon, 100,000 20,000
England, 3,000,000 650,000
Ireland, 1,000 500
Scotland, 12,000 2,500
Germany, 10,000 2,000
Russia, 200 60
Belgium, 50 25
Canada, 300,000 50,000
————————— ——————————
Total, 85,000,000 $13,000,000
The average annual exports range from 1,000,000 to 5,000,000 pounds.
TABLE 8.
Showing varieties most in demand in the United States:—
Varieties. Kinds. Quantity, Pounds.
Oolong, (Formosa), 10,000,000
“ (Amoy and Foochow), 8,000,000
Green Teas, (all kinds), 10,000,000
Japans, “ 38,000,000
Pekoes and Congous, (China), 10,000,000
India, Java and Ceylon, 6,000,000
——————————
Total, 82,000,000
During the fiscal year ending June 30, 1890, there was imported into the
United States, at all ports, 84,627,870 pounds of tea, of which
43,043,651 pounds were received from China and 37,627,560 pounds from
Japan, the balance consisting of imports from India, Java and Ceylon,
received _via_ England and Holland. The United States official reports
show that tea represents 27 per cent. of the total value of imported
merchandise into this country. The gross trade in the article, however,
even at retail prices, does not exceed $35,000,000, the total annual
value of all food products being about $220,000,000, of which tea only
represents a value of $13,000,000, equivalent to about 6 per cent. of
the whole.
In round numbers the consumption of tea in the principal importing
countries has increased from 350,000,000 pounds in 1880 to upwards of
400,000,000 pounds in 1892. To which may be added for the minor
consuming countries another 60,000,000 pounds, in which case we get a
grand total of 460,000,000 pounds. Tea consumption in India and Ceylon
is scarce worth computing, and it is also claimed that the consumption
in China has been greatly exaggerated, for although the Chinese drink
tea constantly much of the liquor is little different from hot water, so
that to credit China and her feudatories with another 500,000,000 pounds
would be an extravagant estimate. But, admitting it to be near the mark,
we may then take in round numbers 1,000,000,000 pounds of leaf, or say
6,000,000,000 gallons, as the world’s annual consumption of tea. But it
is confidently predicted that if peace be preserved and wealth and
civilization continues to advance that much greater increase during the
closing years of the present century and the whole of the twentieth
century—for large portions of mankind are at length discovering that
alcohol with its “borrowed fire” is a deceiver and a curse. If the
civilization of an age or a community can be tested by the quantity of
sulphuric acid which it uses, much more certainly can the moral status
of a time and a people be judged by a comparison of the quantities of
alcoholic and non-alcoholic stimulants it uses.
All teas have declined one-half in value during the past ten years,
owing to the increased production of India and Ceylon, the position of
the market at the present time is, however, unique and unusual.
Heretofore the rule has been for the supply to exceed the demand,
particularly of China tea, it being the custom to claim that the market
would never run short of the latter, as the production could be
increased to meet any sudden or excessive demand. Now, however, the
position is entirely different, the shortage in China tea the past year
reaching some 21,000,000 pounds, to which must be added the increase in
consumption of 11,500,000 pounds, due in a measure to the reduction of
the duty in England, against which deficit is to be placed the increase
of production in India of 3,000,000 pounds, and that of Ceylon of
15,000,000 pounds, but still leaving a shortage of 14,000,000 pounds.
This position has led to an advance in China common grades, part of
which is undoubtedly due to speculation. With decreased imports and
increased consumption in the market, however, appears to have all the
requisite of strength to sustain it, and it will be years before it
reaches its late low point again.
With the great reduction in importation price and keener competition the
retail prices have been brought down to a very low figure, and as the
dealer has educated the public to the purchase of poor teas at low
prices it is not likely that the retail prices of teas will ever reach
any higher figure unless war or other cause should lead to a duty being
placed on the article. Yet, notwithstanding these unprecedented low
prices, the _per capita_ consumption of tea is comparatively very low in
this country at the present time, one of the chief causes being
traceable to the custom prevalent among dealers of charging exorbitant
profits in order to make up for the losses made in other goods. This
impolitic practice may be forgiven were it not for the greater mistake
they make of sacrificing quality to profit, which in articles of daily
use like tea is an important consideration. By rectifying this error,
and giving more attention to the careful selection of their teas, there
is no valid reason why the consumption of tea in this country could not
at the least calculation be doubled, more particularly in the present
state of the coffee market, as it is generally calculated that one pound
of good tea equals four pounds of coffee in amount and strength of its
extract, besides being cheaper and more convenient to prepare. Under
these circumstances it may be assumed that there is no probability of
any material change in the cost of tea to the dealer and there should be
no further reduction in the selling price to the consumer, any further
reduction in the retail price involving a diminution of profit which the
trade can ill afford to bear at the present time.
------------------------------------------------------------------------