Climate change leaves the tea market steeped in supply shortages and rising prices.

From Kenya to India, climate change is squeezing the global tea market harder than an overused teabag. Erratic rainfall, droughts and rising temperatures are reducing tea yields and damaging quality, shifting the supply curve left while demand for Britain’s beloved brew remains stubbornly strong. The result? Higher prices and mounting pressure on producers already battling rising costs. With Kenya supplying around half of UK black tea imports, even minor disruptions create significant market volatility. For consumers, the humble cuppa may soon become less of a daily ritual and more of a luxury good — a rather bitter outcome for the nation’s kettle addicts.

Trouble brewing? Climate change puts tea drinkers in hot water | Science, Climate & Tech News | Sky News

1. Using a supply and demand diagram, explain how climate change could affect the equilibrium price and quantity in the global tea market.

2. Assess the likely impact of climate change on the income distribution of tea producers in countries such as India or Kenya.

3. Discuss two possible government interventions that could help tea producers deal with the economic effects of climate change.