Tea prices collapse but pistachio and avocado offer promise for Camellia

The second biggest private tea producer in the world, Camellia, said tea prices have collapsed in the last two months, though macadamia nut and avocado prices are holding up and hopes are high for pistachios.

Camellia, which has tea plantations in Kenya, Malawi, Bangladesh and India, said excellent growing conditions so far in three of its four estates in 2016 has resulted in a substantial increase in tea production.

As a result there has been a significant reduction in tea sale prices since the beginning of April, particularly in Kenya where at times the company has been selling at close to cost of production.

Listed on London's AIM junior market, though with a 76,000-plus global workforce that beats some FTSE 100 companies and a history that dates back to the cessation of the East India Company, Camellia said it was "too early to give any indication of the likely results" for the 2016 financial year.

Camellia's interests have widened markedly since its origins as the Sephinjuri Bheel Tea Company Limited (SBTC) in the 19th century and happily the stormy tea market has been counterbalanced by buoyant prices for Kenyan avocados and macadamia nuts, though production in the latter will be down due to droughts in Malawi.

2016 will be an 'on' year for pistachio production, the company said in a statement ahead of its annual shareholder meeting, and a good crop is expected, though a sprinkling of rain in the winter months in California has not been sufficient to replenish the ground water reserves.

The food services division, which includes importing and distribution of deep frozen prawns, crab sticks and other seafood, has continued to eke out marginal profits in a market described as "very difficult".

Outside of food, while the group's Scottish engineering companies continue to suffer from lack of demand from the North Sea oil industry, aerospace engineering has remained busy.

Private bank Duncan Lawrie Limited has made a successful start with a new strategy of expanding the customer base with new lending and deposit accounts added.

Shares in Camellia were up 25p to 8,050p by late afternoon on Thursday.