Tea Market Overview in Indonesia
In value terms, tea production reduced sharply to $ in 2018 estimated in export prices. The total output value increased at an average annual rate of +% over the period from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2017 with an increase of % against the previous year. As a result, production attained the peak level of $, and then declined dramatically in the following year.
In 2018, the average tea yield in Indonesia totaled tonnes per ha, increasing by % against the previous year's figure. Over the period under review, the yield continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2014 with an increase of % against the previous year. As a result, the yield reached the peak level of tonnes per ha. From 2015 to 2018, the growth of the average tea yield remained at a somewhat lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.
In 2018, the harvested area of tea in Indonesia shrank slightly to ha, therefore, remained relatively stable against 2017 figures. Overall, the harvested area showed a mild decline. The pace of growth appeared the most rapid in 2016 when the harvested area increased by % against the previous year. The tea harvested area peaked at ha in 2007; however, from 2008 to 2018, the harvested area remained at a lower figure.
The revenue of the tea market in Indonesia contracted rapidly to $ in 2018, dropping by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, posted noticeable growth. The pace of growth was the most pronounced in 2016 when the market value increased by % y-o-y. Over the period under review, the market reached the maximum level at $ in 2017, and then shrank markedly in the following year.