Morocco’s heightened pesticide standards may ripple through the global green tea market. Firsd Tea has been coordinating with parent company Zhejiang Tea Group to help the US tea market better understand and prepare for potential changes in market conditions.
BACKGROUND ON CHINA TEA EXPORTS
China produces 45% of global tea volume – over 2.6 million metric tons
Approx 1.8 million metric tons, or over half of China’s total tea volume produced, is green tea
Of that total Chinese green tea volume produced, 295,000 metric tons are exported.
A significant portion of China’s green tea exports go to Morocco each year.
MOROCCO, AND ITS IMPACT ON GLOBAL GREEN TEA MARKETS
Morocco is the 5th largest per capita consumer of tea, most of which is green tea.
Approximately 25% (i.e. 77,000 metric tons) of China’s total global green tea exports go to Morocco.
About 43,500 metric tons of the 77,000 metric tons of Chinese green tea that Morocco imports are consumed domestically.
With recent pesticide concerns related to mint and Chinese green tea, Morocco has applied to the WTO to raise MRLs on tea imports, whether those teas are intended for the domestic Moroccan market or intended for re-export.
Changes in Morocco’s heightened pesticide standards may ripple through the global green tea market. Firsd Tea has been coordinating with parent company Zhejiang Tea Group to help the US tea market better understand and prepare for potential changes in market conditions.
These new standards for green tea imports to Morocco may mean more EU and organic standard teas usually destined for other international markets may now be diverted to Morocco. In the short term, this increased demand for green teas with lower pesticide levels may impact supply and pricing of Chinese green tea exports.
Zhejiang Tea Group, parent company of Firsd Tea North America, is the world’d largest green tea exporter. Firsd Tea will work closely to monitor the developments of talks between China tea trade representatives and the Moroccan government as they continue to determine how these new pesticide standards will impact the global trade of Chinese green tea.