Market Update

Volume 14 No 3 J u l y — September 2018

Government may Intervene in Estate Worker Wage Hike

The Government is likely to intervene in the Inclusive increase up to Rs. 940. discussion between the estate workers unions and the Regional Plantation Companies The RPCs had offered two proposals, (RPCs) on a new collective agreement for a i.e. an increase up to Rs. 940 and an- wage hike. The best the RPCs could afford is other proposal to pay from the first kilo an all-inclusive Rs. 940 for its workers, but onwards after the norm Rs. 46 up to 22 Kg that would ensure they obtain Rs. the unions representing the labour workforce have asked the Government to intervene. 1000. However, both these proposals were rejected. Hayleys Plantations had offered the unions a wage hike of Rs. 940 all inclusive with a CWC spokesman state that based on past experience, workers were certain basic wage increase of 20 percent. However they would not be able to earn this Rs. the unions were not interested in discussing 1,000 as they would not be able to meet and had simply walked off saying it was not the requirements for attendance and sufficient. productivity incentives.

CWC spokesman informed that during the The collective agreement period has meeting with the RPCs, the CWC leader had lapsed and workers have been cam- called the Prime Minister and requested for paigning on the estates for a Rs. 1,000 an intervention in the wage hike discussions wage hike, insisting that the high cost of living was taking a toll on them. as they were not in agreement with an all Tea Production 2 General Overview Tea Marketing 3 Economy Tea Industry

Tea Exports 4 High import growth and capital outflows, The average tea production crosses over in the context of a strengthening US dol- 300 Mkgs. annually from total lands of Trade Fair Participation 5 lar, exerted significant pressure on the 203,000 hectares in the country. According

Global Tea Scene 6 exchange rate. Accordingly, in line with to the Ministry of Plantation Industries, several other peer countries such as In- from the total hectare of tea lands, 60% is Research Update 7 dia, Philippines and Indonesia, the Sri under small holdings lands and 40% is un- Lankan rupee depreciated at a faster pace der estates. After completing the first three of 9.7 per cent against the US dollar dur- quarter in 2018, cumulative tea production ing the year up to 01 October 2018. recorded 223MKgs. This conveys a mar- ginal deficit of 09MKgs against 232MKgs Editors: Further upward price revisions to domes- during the same period in 2017. Tharanga Abeysekara tic petroleum products and other admin- Nalaka Sanjeewa Tea Promotion Division istered prices as well as imported infla- Comparatively, the total exports has rec- orded 212.3MKgs from Jan-Sep 2018, E-mail tion arising from the impact of the cur- [email protected] rency depreciation could exert some which also reflects a marginal deficit of 3.5MKgs against the exports from Jan-Sep pressure on inflation in the coming Web-site 2017. This www.pureceylontea.com months. Continue in page …….5

Tea market update Volume 14. No. 3 P A G E 2

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Tea Production

Tea Production Table 2 - District wise tea production comparison as at September 2018 (MKgs) rd The crop and Tea production in the 3 quarter of the year conveys 14.47% negative growth which resulted in 10.96 Admin District 2018 2017 Growth Growth %

Mkgs negatively impacted to the aggregative production Badulla 19.94 22.13 -2.19 -9.89

during the period compared to the previous year. The Colombo 0.58 0.56 0.02 3.27

negative impact had remained almost similarly in each Galle 32.02 33.82 -1.80 -5.32 Hambantota 0.08 0.14 -0.06 -44.99 months of the quarter. While the Orthodox production of Kalutara 15.57 15.41 0.16 1.05 falls 10.96 Mkgs., the impact of CTC & Kandy 25.93 25.81 0.12 0.46 Kegalle 7.83 6.70 1.13 16.84 production had merely affected the negative growth from July – September 2018. Matale 1.05 1.00 0.05 5.28 Matara 26.45 28.90 -2.46 -8.50

Table 1 - Tea production during the third quarter Nuwara Eliya 43.21 44.33 -1.12 -2.53 Ratnapura 50.57 53.77 -3.20 -5.95 2018/2017 (Unit: Million kg) Total 223.22 232.56 -9.35 -4.02

July-September (MKg.) Change When comparing the tea production in district wise, Category Ratnapura ranked the first place with 50.57MKgs 2018 2017 Qty (MKg) % which conveys a marginal drop compared to last year Elevation figure of 53.77MKgs. Nuwara Eliya registered as the

High 11.51 13.71 -2.21 -16.09 second highest tea production which recorded a 43.21MKgs tea production for the first nine months in Medium 9.83 10.65 -0.82 -7.66 2018. Low 43.44 51.38 -7.94 -15.46

Total 64.78 75.74 -10.96 -14.47 Chart 1 - Cumulative Tea Production Comparison Processing Method January - September 2018/2017

Orthodox 59.19 69.55 -10.36 -14.89

CTC 5.05 5.59 -0.54 -9.71 Green Tea 0.54 0.60 -0.06 -10.60

Total 64.78 75.74 -10.96 -14.47

A significant 4% negative growth of tea production in 3rd quarter 2018 had resulted, a negative growth in most of the Tea growing districts. The sum of the positive

growth in Colombo, Kalutara, Kandy, Kegalle and Matale were insignificant to recover the negative growth in the other districts. Moreover, the production fall in Ratnapura (3.2 Mkg.), Matara (2.46 Mkg.) and Badulla

(2.19 Mkg.) have impacted massively to the total 9.35 The positive effort in production in early months up to Mkg. negative growth in production during the period of May in 2018 had not sustained in the 3rd quarter. The July – September 2018. crop during the period was in declining mode com- pared to the previous year. The years’ lowest produc- tion has recorded in the 3rd quarter and it was in the month of September.

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD Tea market update Volume 14 . No. 3 P A G E 3

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Tea Marketing

The prices decline witnessed during third quarter in Table 5 –Most Traded Grade wise quantity sold and price comparison during the 3rd quarter 2018 2018 which attributed to the less demand in major markets. The average price was declined to Rs.536.45/ Grades Sold Qty (Kgs) Avg. Price Kg in third quarter 2018. ORTH-FBOPF1/FBOPF 7,234,810.00 578.50 Table 3 - Teas Sold and prices fetched in third quarter ORTH-FOP/OP1/OP 6,761,154.00 575.96 2018/2017 (Unit: Qty-Mkg, Rs/Kg) ORTH-OPA 6,344,564.00 488.23 ORTH-BP/BM 5,805,267.00 374.82

2018 - July to September 2017 - July to September ORTH-FP/PEK 5,136,373.00 633.41 Price Price Elevation Qty Price Qty Price (SL (SL ORTH-BOPF 5,125,413.00 555.38 (MKg) (US$) (MKg) (US$) Rs) Rs) ORTH-FBOP1/FBOP 5,062,737.00 607.49 High 12.98 556.49 3.45 13.65 590.64 3.85 ORTH-PEK1 4,346,286.00 713.43 Medium 12.16 478.16 2.96 12.40 540.62 3.53 ORTH-BOP1A 3,772,549.00 376.79 Low 47.66 545.86 3.38 51.72 632.41 4.13 ORTH-BOP 3,041,433.00 607.43 Total 72.79 536.45 3.32 77.77 610.45 3.98 ORTH-DUST1 3,029,809.00 582.63 CTC-PF1 2,545,926.00 515.12 During the third quarter 2018, the drop in tea export earn- ORTH-BOP1 1,912,301.00 647.21 ings has affected the FOB prices. The prices in all three elevations are lower than in 2017. The total national aver- CTC-PD 1,349,069.00 519.33 age price of teas sold at Rs.536.45 per kilogram in the third CTC-BP1/BPS 590,970.00 434.39 OTHERS 10,730,995.55 454.56 quarter 2018, comparatively the price was at Rs.610.45 in the same period in 2017. Total 72,789,656.55 536.45 In respect of a grade wise price analysis, prices of leafy Table 4 – Sub district Auction average comparison dur- grade offerings improved significantly. ing as at September 2018/2017 (Rs/Kg)

January to September 2018 Table 6 - Teas Sold and prices fetched in Trading Price Sub District Change Channels (Unit: Qty-Mkg, Rs/Kg) 2018 2017 change % per kg Third Quarter Nuwara Eliya 581.5 578.06 3.44 0.60 Different 2018 2017

Westerns (8 areas) 583.38 598.68 -15.30 -2.56 channels Qty Price Qty Price Mediums (9 areas) 520.64 556.54 -35.90 -6.45 (MKg.) (Rs./Kg.) (MKg.) (Rs./Kg.) Uda Pussellawa (2 areas) 511.68 551.07 -39.38 -7.15 Public Auction 71.04 533.49 76.67 609.47 Uvas (8 areas) 534.55 574.84 -40.29 -7.01 Private Sales 1.18 667.66 0.65 687.24

Low Growns (10 areas) 605.12 639.52 -34.40 -5.38 Direct Sales 0.57 634.16 0.45 665.43 Total 72.79 536.45 77.77 610.45 Average price 581.92 613.68 -31.77 -5.18 In addition to the average price in first nine months 2018, According to the table 6, 72.79MKg of tea were sold

sub district of Nuwara Eliya recorded slight improvement during the third quarter which is lower than the previ-

while other sub district’s prices have dropped. It is depicted ous year. The average price per kg was significantly in the above table. drop up to Rs.533.49 at the auction. Average tea price Nanuoya Lindula Talawakele (Rs.632.30/Kg) for Western for the private sales and the direct sales also specify the

sub Districts, Koslanda Haldumulla (Rs.609.79/Kg) for decreases compare to the previous year. Out of this 98 Uva sub Districts and Deniyaya (Rs.649.68/Kg), Galle (Rs. percent sold through public auction 625.94/Kg), Matara (Rs. 654.08/Kg) Morawake (Rs. whilst other two sales channels de- 633.64/Kg) for Low Growns sub districts registered the noted two percent period under re-

highest average prices beyond Rs.600/kg mark for the view. third quarter of year 2018.

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD

Tea market update Volume 14. No. 3 P A G E 4 Tea Exports P A G E 4 Table 7 - Export comparison for each month during the Table 9 - Top ten destinations of Ceylon tea from Jan third quarter (Units: Qty-MT, FOB - Rs. /Kg) –Sep 2018/2017 (Units: Qty – MKg)

Total Exports 2018 2017 Change Change % Category Qty Qty Qty Country 2018 2017 FOB FOB FOB Qty % 2018 2017 (MT) (MT) (MT) July 25,212.41 791.40 25,710.19 816.07 -497.78 -24.67 Iraq 30.27 24.18 6.09 25.21 14.8 11.62 Turkey 26.37 27.91 -1.54 -5.52 12.9 13.42 August 23,855.16 780.19 23,758.69 799.52 96.47 -19.33 Russia 23.27 25.47 -2.20 -8.65 11.4 12.24 September 25,681.07 784.40 24,684.20 810.47 996.87 -26.07 Iran 17.07 20.10 -3.03 -15.08 8.4 9.66 Total 74,748.65 785.42 74,153.09 808.90 595.56 -23.49 UAE 8.33 11.75 -3.42 -29.11 4.1 5.65 Libya 8.27 9.54 -1.27 -13.29 4.0 4.59 The average FOB price during the 3rd quarter 2018 had come Azerbaijan 7.96 9.20 -1.24 -13.49 3.9 4.42 down by Rs. 23.49 while quantity of exports remained almost Syria 7.34 5.10 2.24 43.97 3.6 2.45 equal compared to the same period in 2017. The export quanti- China 7.26 6.88 0.38 5.47 3.6 3.31 ties for August and September have exceeded the previous Chile 5.67 5.52 0.15 2.73 2.8 2.65 year by showing a marginal growth. But exports for July has Total 141.81 145.65 -3.84 -2.64 69.40 70.01 come down from last year quantities. Exports Except re-export volume

Table 8 – Tea Exports comparison during Jan –Sep of the year (2018/2017) (Units: Qty-MT, FOB—Rs/Kg, Value– Rs. Iraq had taken over the Turkeys’ position and remained Millions) as a largest importer of Ceylon Tea after the completion Table 8 reveals that there was marginal improvement of FOB of the 3rd quarter 2018 with the remarkable 25.21% vol-

2018 2017 Change % Change Category Qty FOB Value Qty FOB Value Qty FOB Value Qty FOB

Bulk 123,536 719.48 88,882 125,602 718.55 90,251 -2,066 0.94 -1,369 -1.65 0.13

Packets 64,147 797.09 51,131 65,558 791.12 51,864 -1,410 5.97 -733 -2.15 0.75

Tea Bags 13,028 1,442.54 18,793 13,506 1,379.45 18,631 -479 63.09 162 -3.54 4.57

Instant Tea 1,888 1,295.34 2,446 1,644 1,240.55 2,039 244 54.79 406 14.85 4.42

Green Tea 1,731 1,689.36 2,924 1,744 1,573.31 2,745 -13 116.05 180 -0.76 7.38

Sub Total 204,331 803.49 164,177 208,055 795.61 165,530 -3,724 7.88 -1,353 -1.79 0.99

Re-Exports 8,005 1,058.35 8,472 7,767 1022.27 7,940 238 36.08 532 3.06 3.53

Total 212,335 813.09 172,648 215,822 803.76 173,470 -3,487 9.33 -822 -1.62 1.16

ume increase. Except Syrian market which show an im- price in direct tea exports by Rs. 7.88 whilst the re-export price pressive growth, all the other major Ceylon Tea markets had gone up by Rs. 36.08 compared to the last year. The total like Turkey, Russia, Iran, UAE, Libya, Azerbaijan had volume of exports conveys a slight negative growth by 1.79% shown a negative growth during the period. The Ceylon compared to the previous year. The only positive indication in Tea imports to the Chinese market remained positive over recent years and carried the same performance with terms of volume exports were the growth of re- exports by a positive growth after the completion of the 3rd quarter 3.06% and instant tea by 14.85%. Further, the categories of 2018 as well. Bulk Tea Exports had fallen by 1.65%, Packets Tea Exports by Improved situation in Syria has seen quantities rise to 2.15% & Tea Bags Exports by 3.54% respectively. 7.34 Mnkg from 5.10 Mnkg last year up a sharp 44%. Chile remained steady at 5.67 Mnkg but exports to Japan had declined.

PUBLICATION OF TEA PROMOTION DIVISION — SRI LANKA TEA BOARD

Tea market update Volume 14. No. 3 P A G E 5

Table 9 - Top ten destinations of Ceylon tea from Jan Tea Industry………………………...from page 1. participating at ―Hong Kong International Tea Fair‖ –Sep 2018/2017 (Units: Qty – MKg) with Sri Lankan exporters as one of strategic tools to resulted in a negative growth of tea exports in Bulk, Pack- penetrate Hong Kong and China. The Sri Lanka Tea et and Tea bags forms as well as revenue deficit compared Board was awarded the Loyal Exhibitor Award for its th to the same period in 2017. 10 consecutive participation. This time Sri Lanka Tea Board arranged a national pavilion with nine exporters Iraq continues to be the largest importer of Ceylon Tea namely Sunshine Tea (PVT)Ltd , Gemi Teas Colombo followed by Turkey and Russia during the first 3 quarters (Pvt) Ltd, Lions Management (Pvt) Ltd, ExpoTeas Ceylon (Pvt) Ltd, Enrich Tea & Food Exports (Pvt) in 2018. Meanwhile, Iran has secured their fourth position Ltd, Anverally and Sons(Pvt) Ltd, Shine Tea (Pvt) this year as well. Other noteworthy Ceylon Tea importers Ltd, Bogawantalawa Tea Ceylon (Pvt) Ltd, , Venture are UAE, Libya, Azerbaijan, Syria and China. Tea (Pvt) Ltd. Addition to the tea fair, there were other related events such as International tea competition, tea In the global scenario, tea auctions in major producing arts, seminars to promote different tea cultures among countries experienced difficulties due to lower average visitors. prices attributed by weak demand. The world’s largest tea exporter Kenya who operates the World Food Moscow, Russia from 17th - 20th Except re-export volume September, 2018 Mombasa auction reflected an average price of (US$ 2.50/ Kg) while the Tea auction averaged (US$ Iraq had taken over the Turkeys’ position and remained Ceylon Tea pavilion at 27th edition of World Food 2.94/Kg). as a largest importer of Ceylon Tea after the completion Moscow exhibition, 17th -20th September 2018. of the 3rd quarter 2018 with the remarkable 25.21% vol- Sri Lanka Tea Board facilitated five Tea Exporting companies to participate. Trade Fair Participation Participants of World Food Moscow Trade Exhibition

Hong Kong International Tea Fair – 2018 1. Jafferjee Brothers 2. Femrich Lanka 3. Ceylon Tea Land Hong Kong International Tea Fair takes place annually and 10th edition was held from the 16th to 18th August 4. Ceylon Tenny Tea 5. Premier Natural Teas

ume increase. Except Syrian market which show an im- pressive growth, all the other major Ceylon Tea markets like Turkey, Russia, Iran, UAE, Libya, Azerbaijan had shown a negative growth during the period. The Ceylon Tea imports to the Chinese market remained positive over recent years and carried the same performance with a positive growth after the completion of the 3rd quarter 2018 as well. Improved situation in Syria has seen quantities rise to 7.34 Mnkg from 5.10 Mnkg last year up a sharp 44%. 2018 at the Hong Kong Convention & Exhibition Centre Chile remained steady at 5.67 Mnkg but exports to Japan in Hong Kong. The Fair was organized by the Hong Kong had declined. Trade Development Council (HKTDC) and the Chinese International Exchange Association. Since 2008, Sri Lanka Tea Board has been

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD Tea market update Volume 14. No. 3 P A G E 6

P A G E 6

Global Tea Scene

Table 10 -Global tea production up to September com- Colombo continued to lead among tea auction centers pared with 2018/2017 (MT.) that fetched the best prices during the first nine moths due to its quality and variety of teas available. The average Growth PRODUCTION Month 2018 2017 (Kg) price was above US$ 3.00 per kilogram. It is evident from N E INDIA 9 779,430 767,790 11,640 the above table that the price difference between Co- SOUTH INDIA 9 161,750 176,170 (14,420) BANGLADESH 9 54,868 51,863 3,005 lombo and Chittagong which is in second place is more SRI LANKA 9 223,217 232,563 (9,346) than 76US Cts. Mombasa average price drop to US$2.50/ KENYA 9 346,237 303,558 42,679 MALAWI 9 40,634 36,354 4,280 Kg due to over supply backed by favorable weather. TANZANIA 9 24,736 22,664 2,072 UGANDA 4 6,638 14,728 (8,090) Table 12 - Global tea Exports Comparison (2018-2017) TOTAL 1,637,510 1,605,690 31,820 (Unit: MT) Kenya has achieved a considerable growth in the tea Period Change production by 42,679kg. In addition to that North India, Country of 2018 2017 Growth % Malawi, Bangladesh and Tanzania also obtained a months growth in tea production. South India registered a Kenya Sep 349,153 320,739 28,414 8.86 14,420kg drop in tea production than the previous year. China Mar 84,858 85,942 (1,084) (1.26) Sri Lanka Sep 204,330 208,055 (3,725) (1.79) Favorable Weather has boosted East Africa’s tea produc- Taiwan Sep 6,321 6,578 (257) (3.91) Bangladesh Sep 469 2,307 (1,838) (79.67) tion during current year, even as prices have dropped in Indonesia Jul 29,465 31,829 (2,364) (7.43) the wake of oversupply and enforcement of aflatoxin Malawi Sep 28,638 25,379 3,259 12.84 testing rules last year, which have halved exports to Pa- Tanzania Aug 18,790 19,547 (757) (3.87) kistan, the region’s largest export destination. India Sep 173,800 173,520 280 0.16 Uganda Mar 8,407 10,282 (1,875) (18.24) Total 904,231 884,178 20,053 2.27 Tanzania is looking to raise tea production over the next five years and boost its industrialization plan. The Tea As shown in table 12 above, Malawi has gained 12.84% of Board of Tanzania (TBT) targets five regions Iringa, export growth than the previous year. Kenya and India Njombe, Mboya, Panga and Kagera. Currently, Tanzanian have also obtained a growth. A slighter reduction of ex- tea is sold at the Mombasa auction. ports was obtained by Sri Lanka while others received a Table 11- Average prices in major auction centers as at considerable decrease in their exports. East Africa is be- 30th September ginning to feel the impact of global politics as Kenya and Tanzania stop importing oil and gas from Iran in the face Change 2018 / of United States sanctions against countries that Auction 2018 2017 2017 continue to trade with Tehran. Kenya emerged as a Centers Qty US$/ Qty US$/ Qty consistent buyer of Iran’s LPG since early 2016, but (MT) Kg (MT) Kg (MT) US$/Kg Kolkata 105,999 2.48 109,148 2.41 (3,149) 0.08 imports have stopped since July, "according to Cochin 34,857 1.83 36,880 1.83 (2,023) (0.00) tracking data‖. But the pain of stopping trade with Chittagong 50,835 2.94 52,212 2.27 (1,377) 0.66 Iran will be two way as East African countries that Mombasa 345,865 2.50 287,500 2.80 58,365 (0.30) Jakarta ------export tea to Iran which accounts 20 percent of their Colombo 222,961 3.70 228,881 4.05 (5,920) (0.34) market will have to seek alternative markets. Kenya Guwahati 109,896 2.17 104,954 2.12 4,942 0.05 also sold more than $280 million worth of tea ex- Malawi 7,373 1.85 7,387 1.80 (14) 0.05 ports to Tehran and this is now set to be affected by World 877,786 2.76 826,962 2.92 50,824 (0.17) the additional sanctions next month. Rwanda, Tan- * Jakarta 2018 figures not made publicly available by KPB, sole zania, Uganda and Burundi also have Iran as a key market auction seller of state owned estates. for their tea.

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD Tea market update Volume 14 . N o. 3 P A G E 7

Trade Fair Participation Research Update

With collaboration of Sri Lanka Tea Board, Tea Promotion may help with weight loss, too Unit (TPU) in Moscow conducted the first session of Cey- lon Tea sampling at Auchan Hypermarket at Marfino in The UCLA research could help explain the difference between Moscow from 17th to 19th August 2018. how black tea and green tea change energy metabolism. Credit: University of California, Los Angeles

Summer Fancy Food, New York - USA

UCLA researchers have demonstrated for the first time that black tea may promote weight loss and other health

benefits by changing bacteria in the gut. In a study of mice, the scientists showed that black tea alters energy metabolism in the liver by changing gut metabolites.

The research is published in the European Journal of Nu-

trition.

The study found that both black and green tea changed the ratio of intestinal bacteria in the animals: The percent- Ceylon Tea – The Official Co-Clothing Partner of age of bacteria associated with obesity decreased, while Asian Netball Champions 2018 bacteria associated with lean body mass increased.

A press conference was held on 20th September 2018 at Previous studies indicated that chemicals in green tea the Sri Lanka Tea Board chaired by the Hon. Navin Dis- called polyphenols are absorbed and alter the energy me- sanayake, the Minister of Plantation Industries to appreci- tabolism in the liver. The new findings show that black ate and congratulate to Asian Netball Champions. During tea polyphenols, which are too large to be absorbed in the the press conference he has officially declared that the Cey- small intestine, stimulate the growth of gut bacterium and lon Tea is offering the sponsorship for the Sri Lanka Net- the formation of short-chain fatty acids, a type of bacteri- ball team on behalf of World Netball Championship 2019 al metabolites that has been shown to alter the energy going to be held in Liverpool, UK. metabolism in the liver.

"It was known that green tea polyphenols are more effec- tive and offer more health benefits than black tea poly- phenols since green tea chemicals are absorbed into the blood and tissue," said Susanne Henning, the study's lead author and an adjunct professor at the UCLA Center for Human Nutrition, which is part of the David Geffen School of Medicine at UCLA. "Our new findings suggest

PUBLICATION OF TEA PROMOTION DIVISION—SRI LANKA TEA BOARD Tea market update Volume 14. No. 3 P A G E 8

Research Update

that black tea, through a specific mechanism through According to Henning, the molecules in green tea are the gut microbiome, may also contribute to good smaller and can more readily be absorbed into the body health and weight loss in humans." and reach the liver directly, while black tea molecules are larger and stay in the intestine rather than being ab- "The results suggest that both green and black teas are sorbed. When black tea molecules stay in the intestinal prebiotics, substances that induce the growth of good microorganisms that contribute to a person's well- tract, they enhance the growth of beneficial bacteria and being,". the formation of microbial metabolites involved in the regulation of energy metabolism. In the study, four groups of mice received different diets—two of which were supplemented with green tea More information: Susanne M. Henning et al. Decaf- or black tea extracts: feinated green and black tea polyphenols decrease  Low-fat, high-sugar weight gain and alter microbiome populations and func-  High-fat, high-sugar tion in diet-induced obese mice, European Journal of  High-fat, high-sugar and green tea extract Nutrition. DOI: 10.1007/s00394-017-1542-8  High-fat, high-sugar and black tea extract

After four weeks, the weights of the mice that were given green or black tea extracts dropped to the same levels as those of the mice that received the low-fat diet throughout the study.

The researchers also collected samples from the mice's large intestines (to measure bacteria content) and liver tissues (to measure fat deposits). In the mice that con- sumed either type of tea extract, there was less of the type of bacteria associated with obesity and more of Sri Lanka Tea Board the bacteria associated with lean body mass. 574,Galle Rd, Colombo – 03. Tel :2587814,2582122 Fax : 2587341 However, only the mice that consumed black tea ex- tract had an increase in a type of bacteria called Pseu- dobutyrivibrio, which could help explain the differ- ence between how black tea and green tea change en- ergy metabolism.

Dr. Zhaoping Li, director of the UCLA Center for Hu- man Nutrition, chief of the UCLA Division of Clinical Nutrition and the study's senior author, said the find- ings suggest that the health benefits of both green tea and black tea go beyond their antioxidant benefits, and that both teas have a strong impact on the gut microbi- ome.

"For black tea lovers, there may be a new reason to keep drinking it,".

The findings build on a 2015 UCLA study that demon- strated that both green tea and black tea helped prevent obesity in mice that consumed a high-fat, high-sugar diet.

The new study also concluded that both green tea and black tea have different effects on liver metabolism.

PUBLICATION OF TEA PROMOTION DIVISION— SRI LANKA TEA BOARD