• Bangladesh Tea Rebounds


    The tea sector in Bangladesh is expected to return to near pre-pandemic production levels after setbacks in 2020. Like neighboring Assam, Bangladesh experienced a spring drought, high temperatures, aggressive pests and the onslaught of the pandemic. Despite these challenges production through July is ahead of last year’s totals and estimated to reach 86 million kilos.

    Caption: A monument known as the Tea Daughter at the entrance of Moulvibazar district at Srimangal, Bangladesh. Photo courtesy Faizi Tea Estate, credit: Shomoyeralo.com


    Pluckers at Finlay Tea’s Consolidated Tea Plantations. Photo courtesy Mohammad Musa.

    Tea Gardens Benefited from Timely Government Actions

    By Dan Bolton

    Mohammad Musa, manager at Finlay Tea’s Consolidated Tea Plantations in Habigonj, and Moulvibazar, Bangladesh, writes that “Plantation work never stopped during the Pandemic. Workers were kept isolated in the tea estates itself and there were many more safety programs. Government support was encouraging, which really enabled plantations to continue running of the tea estates activities safely during the pandemic.”

    Cyrus Anushirvan Faizi, Executive Director at Faizi Tea Estate, reports that the first seven months of the year brought favorable weather.

    “Tea production has been consistently increasing thanks to the favorable weather and initiatives undertaken by the [Bangladesh] Tea Board,” he writes. “The distribution of fertilizer at subsidized prices started in the gardens at the right time this year,” Faizi explains.

    In spite of the challenges of the COVID-19 pandemic, data from the Bangladesh Tea Board shows the nation’s 167 large and small tea gardens produced 86.4 million kg of tea last year, exceeding the 75.9 million kg targeted. During the past 10 years annual production has increased from 60 million kilos to a 166-year record of 96 million kilos in 2019.

    The International Tea Committee in London ranks Bangladesh 9th among the tea producing countries. The industry employs 100,000 permanent workers and 30,000 casual workers. There are approximately 5,000 small holders producing tea. Exports by value fell 5.7% to $3.2 million, according to World’s Top Exports which reports International Trade Center data.

    Early this year the Bangladesh Tea Board projected tea production will reach 77.8 million kilos. Halfway through the harvest year growers are optimistic they will exceed that total. “About 51% of the target has already been produced in the first seven months,” writes Faizi.

    In 2020 production was greatly hampered due to the pandemic, a severe drought and insect attacks. A nationwide lockdown was imposed by the government in March 2020 to curb the spread of COVID-19 resulting in a drop in crowds in hotels, restaurants, and tea shops as well as a precipitous decline in tea sales. 

    “However, even during the pandemic, the tea estates were fully staffed and running smoothly which helped the industry to meet its production target,” writes Faizi.

    The online tea auction at Chattogram saw good volume recently as favorable weather brought increased yields after a difficult 2020. Prices at Sale 16 in Chittagong averaged $2.25 to $2.55 per kilo for leaf grade teas, dust grades use to make tea bags reached $3.42 per kilo. “Sale averages are still tolerable for the industry considering the COVID situation,” writes Mohammad Musa. Photo courtesy Faizi Tea Estate.

    “Plantations are mostly in isolated from the city or localities,” explains Musa who oversees 8000 hectares of tea producing 12 million kilos annually. “Workers were kept isolated in the tea estates itself and there were many successful safety programs against the COVID at the tea estates. Plantation management arranged harvesting on daily basis by observing all safety measures for the workers against the COVID and continue to make sure that workers wear masks, wash hands before and after starting the work,” he writes. Safe distances were enforced during leaf weighing and in the factories all sorts of safety precautions were strictly maintained and continued manufacturing of tea, writes Musa.

    Musa writes that “logistic and supplies were interrupted during the pandemic though the plantation management somehow managed timely payments for the workers. Tea plantation really faced acute difficulties about the materials for the estates day-to-day activates.”

    Masks were mandatory at Finlay Tea, workers wash frequently and keep a safe distance during leaf weighing. Factory workers were strictly monitored.

    Tea production was also hampered by unfavorable weather and insect attacks during the first five months of the 2021, resulting in a 10% decrease compared to the previous year. 

    Musa writes that “one of the main adversities is drought. During the past couple of years tea plantations in Bangladesh experienced the equivalent of six months of rain less days every year.”

    “This tropical region climate is already hot, sometimes it goes beyond tolerance for the tea bushes,” he explains. “To tackle this situation most plantations in Bangladesh are using shade trees to block at least 40% of sunlight over the tea bushes. During the drought plantations used irrigation systems ( mostly overhead sprinkler irrigation systems of various sizes). These irrigation sets were mostly used with the perennial water.  Plantations also use mulching to reduce evaporation of water from the soil. Some are using subsoil watering to minimize damage,” writes Musa.   

    Tea producers in Bangladesh are now at a crossroads, according to Faizi. Improving their marketing performance in both the domestic and export markets has become crucial for survival and growth, he writes.

    “Old saplings have been removed and new saplings have been planted. The tea planters have increased the scope of tea cultivation by making new investments,” writes Faizi, adding “If the trend of increasing production continues like this time, then there will be no need to import tea in large quantities.”

    “The tea sector has lost its name and fame in recent years, but in light of such challenges, strategies have been adopted in the coming year to meet the demand for tea in the domestic as well as global market.”

    — Cyrus Anushirvan Faizi
    Faizi Tea Estate, Bangladesh

    Faizi Tea Estate

    Tea was first sowed in 2015 at the Faizi Tea Estate in Kulaura, a small village in Moulvibazar District in Sylhet, not far from where the first commercial tea garden was established in 1855 at Malinchhara Tea Estate.

    Faizi, the garden’s executive director, is a lawyer and consultant with a degree from the University of London. He writes that “tea is a potential export product of the country with high demand abroad. There’s a lot that can be done for the development of the tea industry and the welfare of tea workers. The production will increase if the necessary support is provided, exchanging views with entrepreneurs in the tea industry.”

    Faizi explains that “the tea industry has undergone a number of changes in the last decade. The government and tea planters have taken a number of steps to achieve record production in tea (2019). The government announced a roadmap in 2016 for the development of the tea sector, setting a production target of 140 million kilos annually by 2025.”

    He writes that “The tea industry is currently making a significant contribution to the country’s economy through export earnings, contributing to a trade balance as well as generating employment. New tea estates have been established in new areas where the climate is suitable for tea plantations. Large corporate groups have begun investing in tea plantations in response to the rise in consumer demand. Bringing large corporate groups into tea farming is helping to increase production, as well as introducing more knowledge and technology. “

    Dan Bolton


    Bangladesh is famous for its Seven Layered Tea also known as Seven Colored Tea. The recipe is a secret. Every year tourists visit the city of Srimangal in Moulvibazar just to taste this tea paying from 70 to 100 Taka ($1) a glass.

    Seven layered tea
    Bangladesh is surrounded on three sides by India and shares a border with Myanmar. Source: Banglapedia

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  • Tea Biz Podcast | Episode 33

    Tea Biz Podcast Logo

    Listen on your favorite player

    Hear the Headlines

    | Timely Tea Delivery Faces Troubled Waters
    | Tea is Thriving in the Convenience Channel
    | Iran Tea Production Increases 25 Percent

    Seven-minute Tea News Recap

    Tea Price Report
    April 28 – Sale 34

    India Tea Price Watch

    Assam’s annual floods have arrived this week with 16 districts affected. India’s Ministry of Commerce also suspended seven sections of the Tea Act, 1953. It appears several reforms are underway to lift regulations, including the recent relaxation of norms to obtain export and distribution licenses. – Aravinda Anantharaman

    Features

    This week Tea Biz puts Burmese chefs in the spotlight for their culinary contributions to tea.

    … and then we travel to London where Unilever unveiled four guiding principles of regenerative agriculture a topic currently trending in tea.

    Regenerative Agiculture

    By Dan Bolton

    Can a world that has already eroded a third of the planet’s soils feed a population of 10 billion without intensive agricultural practices that rely on heavy inputs of fertilizer, herbicides, and pesticides that sustain monoculture farming?

    To answer this question, the Tea Biz Podcast and Blog is undertaking a series of interviews with thought-leaders in tea from organizations such as the Rainforest Alliance, growers in Sri Lanka, where a nationwide ban on the import and manufacture of plant chemicals was instituted in May; and with multinationals like Unilever, a company with extensive tea holdings that recently unveiled its basic principals of regenerative agriculture. Read more…

    • Next in the series is a conversation with the Rainforest Alliance on how regenerative agriculture differs from sustainable farming.
    Listen to the Interview
    First in a series of podcasts on regenerative agriculture
    Laphet Thoke
    Laphet Thoke, fermented tea leaf salad.

    Tea Leaf Cuisine

    By Aravinda Anantharaman

    Pickled tea leaves may sound a bit out of the ordinary but not for Southeast Asian chefs. Burma, now known as Myanmar, is an ancient crossroads influenced by the cuisine of bordering Bangladesh, China, Thailand, and Laos. It is here that laphet has become a national dish that is now finding its way to US and European consumers as branded packaged goods. Learn more…

    Listen to the review
    Aravinda Anantharaman on the versatility of tea.
    Imports in TEUs are approaching 550,000 per month at Los Angeles area ports, far exceeding totals for the same January through July period during the past four years. In August idled ships numbered a high of 44.

    Timely Tea Delivery Faces Troubled Waters

    By Dan Bolton

    The disruption of global supply chains is getting worse. Container vessel reliability for tea shipments crossing the Pacific continued to decline this summer as prices reached new heights. The World Container Index for eight East-West routes rose to a composite cost of $9,613 for the week of August 19 – up 360% compared to the same period last year. Consignments of tea shipped from Shanghai to Rotterdam increased 659% to $13,698 last week. Sobhanadri Jonnalagadda at Spisys Ltd. in Telangana, India, reports that the cost of booking a container destined for Hamburg from Hyderabad increased from £3000 to £9000.

    Port congestion, backlogs at container terminals locked down to prevent the spread of the coronavirus, and rapidly increased volume dashed hopes for a return to normalcy until next spring. Logistics costs considered manageable by tea wholesalers early this year are now seen as out of control. Inflation is a growing concern, but the unpredictability of delivery dates is causing far greater problems.

    Green tea exporter Zhejiang Tea Group’s US operation, Firsd Tea, advises tea buyers to calculate projected inventory needs for at least six months and consider adding 20% to projected volumes to avoid out-of-stock conditions and transportation delays.

    This week there were a record 44 container vessels trying to offload at Southern California ports, an all-time high. And ports are getting busier as the holidays grow near. Imports in TEUs are approaching 550,000 per month at Los Angeles area ports, far exceeding totals for the same January through July period during the past four years.

    On arrival shortages of dockworkers, crane operators, warehouse staff and qualified truckers cause further delays. Driver shortages are at all-time highs forcing companies to offer incentives. Qualified drivers are now earning $27 per hour. FreightWaves reports that refrigerated carrier J.S. Helwig & Son increased pay 4 cents to 62-cents per mile for experienced drivers – that’s $1240 for a 2,000-mile round trip. New hires earn 50 cents per mile and a $1000 signing bonus.

    Biz Insight The likelihood of a ship arriving on time was better than 80% in 2019 is now “hovering around 40%”, according to logistics analysts Sea-Intelligence. Add port and trucking delays and buyers this fall (whether they are consumers ordering Christmas tea online or wholesalers booking containers) — will experience delivery times extended by four to six weeks.

    Foxtrot online for delivery nationwide and locally with a 60-minute guarantee, soon to be 30 minutes.

    Tea is Thriving in the Convenience Channel

    By Dan Bolton

    Convenience outlets thrive at locations near where people live and in 2020 people stayed close to home.

    In-store sales at US grab-and-go outlets rose for the 18th year in a row to $255 billion in 2020. Beverage sales are a top category, accounting for 20% of all sales. Ready-to-drink iced tea makes up about 5% 4.7% of that total, trailing soda, juice, energy drinks, and bottled water, according to the National Association of Convenience Stores (NACS).  

    New York-based Nielsen reports that overall, tea grew by 11.1% through April 2021.  During that period liquid tea generated $3.4 billion in sales, RTD tea earned $142 million. Green tea sales were up 72.7% during the pandemic to $18.6 million, Nielsen.

    In 2020 the dramatic decline in commuter trips, lockdowns and a consumer shift to grocery and home meals increased their spend but cut trips to convenience stores by more than 20%, according to NACS. The number of transactions declined 14% as basket sizes grew 18% compared to 2019.

    The pandemic had a huge impact on self-serve beverages. Hot dispensed sales fell 33.4%, and cold dispensed beverages declined 7.9%, reflecting the drop in footfall amid stay-at-home orders and work-from-home schedules, writes NACS. In contrast, beer saw unprecedented growth accounting for 6.3% of total convenience store sales due to the closure of bars and restaurants (only 12.4% of 150,000 US convenience stores are licensed to sell beer).

    Market research firm Technomic writes that US beverage sales overall declined 31% by volume in 2020. Spending declined 29% with cold dispensed beverage volume down 30%.

    Biz InsightFoxtrot markets, an upscale convenience chain is known for its 60-minute delivery guarantee “is the corner store reimagined” says venture capitalist David Barber. Stores feature locally baked treats, coffee, freshly brewed tea, and organic wine, craft beer, gifts, and everyday essentials.

    Foxtrot is an upscale, hyper-convenient convenience chain

    CEO Mike LaVitola told Forbes that half of the company’s transactions occur online for delivery nationwide and half in-store. He said the company intends to introduce hyper-convenient 30-minute delivery and expand its selection of private-label convenience items in larger, 4,000 square foot stores.

    The start-up has raised $65 million in January from the likes of former Whole Foods Market CEO Walter Robb and Momofuku restaurant founder David Chang. The chain, founded in 2014 in Chicago, currently has 13 locations with nine to open in 2021 and 50 within two years. New locations include Dallas and Washington DC and Austin, Tex., Boston, Miami, Los Angeles, and Houston.

    Harvesting tea in Gilan, Lahijan province, Iran

    Iran Tea Production is Up 25 Percent

    Iran’s Tea Organization (ITO) reports a 25% increase in tea production so far this year and higher export numbers as well. During the first five months of the year, Iran harvested 114,445 metric tons of raw leaf, valued at 6.5 trillion rials (about $155 million US), according to ITO. The tea organization considers 51% of the harvest premium grade, down from 79% in 2020.

    Iran is a net tea importer, No. 6 in the world, spending $236.3 million on tea in 2020, according to World’s Top Exports.

    In recent years growers began exporting increasing quantities of tea. In 2020 4,000 metric tons of teas were shipped to 12 countries regionally including Azerbaijan, Afghanistan, and Iraq, India, Tajikistan, Turkmenistan, and Georgia as well as Canada, Australia, Spain, and the Czech Republic. In 2020 tea exports averaged 86 cents per kilo. Sales totaled $6.5 million, up 2.6% compared to 2019.

    Iran’s tea industry employs 55,000 families cultivating tea on 70,000 acres [28,000 hectares].

    — Dan Bolton


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  • Regenerative Agriculture


    Can a world that has already eroded a third of the planet’s soils feed a population of 10 billion without intensive agricultural practices that rely on heavy inputs of fertilizer, herbicides, and pesticides that sustain monoculture farming?

    To answer this question, the Tea Biz Podcast and Blog is undertaking a series of interviews with thought-leaders in tea from organizations such as the Rainforest Alliance, growers in Sri Lanka, where a nationwide ban on the import and manufacture of plant chemicals was instituted in May; and with multinationals like Unilever, a company with extensive tea holdings that recently unveiled its basic principals of regenerative agriculture.

    Listen to the introduction

    First in a series of podcasts on regenerative agriculture

    The Unilever Regenerative Agriculture Principles are agricultural practices focused on delivering positive outcomes in terms of nourishing the soil, increasing farm biodiversity, improving water quality and climate resilience, capturing carbon and restoring and regenerating the land.

    Unilever’s Principles of Regenerative Agriculture

    By Dan Bolton

    In a review of the World Resources Institute’s December report on the looming “food gap” The Guardian writes that “compared with 2010, an extra 7,400 trillion calories will be needed each year by 2050. If food production increases along current lines, that would require a landmass twice the area of India.”

    As temperatures rise and rainfall becomes more erratic, attention has shifted to climate change on a grand scale and mitigation at the farm level. Tea is generally grown on hillsides at altitudes less favorable to food crops but the looming scarcity of land for food crops and the depletion of soil on existing farms present long-term challenges for the tea industry.

    Unilever acknowledges there is no accepted definition of regenerative agriculture, but the phrase is widely used to refer to practices that include minimum or no tillage, a reduction in the use of chemical pesticides and fertilizers, extensive crop rotation and well-managed grazing for animals instead of industrial feedlots.

    Regenerative agriculture is focused on the soil and the enhancement of soil organic matter – SOM is a mix of plant and animal debris, soil microbes in an enriched environment of carbon, hydrogen, and oxygen. SOM improves soil structure, reduces erosion, and retains water.

    Extensive planting of cover crops also draws carbon dioxide out of the atmosphere where it is retained in the soil.

    Unilever’s Regenerative Agriculture Principles (RAP) are focused on regenerating soils, protecting water quality, increasing biodiversity, developing climate solutions; and improving farmer livelihoods.

    The intent is to optimize the use of renewable resources while minimizing the use of non-renewable resources; while keeping resource inputs as low as possible.

    The goal of protecting topsoil from erosion and restoring existing soil finds widespread support, but some consider regenerative agriculture to be “over-hyped.”

    As NBC News reported in 2019, “one much-cited estimate of potential soil sequestration published to date suggests that if regenerative practices were used on all of the world’s croplands and pastures forever — a huge assumption — the soil may be able to sequester up to 322 billion tons of carbon dioxide from the atmosphere.” That’s a long way from the one teraton that is sometimes claimed to be possible.

    Sharon Kelly on Desmog.com writes that “A lot of studies that claim regenerative agriculture can have a huge impact “do not address scientific and practical challenges” involved in employing those practices, the World Resources Institute argues.

    She goes on to point out that “Big agrichem companies have been marketing a form of regenerative agriculture that could keep farms reliant on pesticides and other chemicals. For example, farmers may use chemicals to kill off crops at the end of a season rather than using tillage. While that may keep the soil in place, the chemicals used can damage the integrity of the soil in other ways. So while it could be good for carbon emissions, it could perpetuate other environmental problems.”

    Kelly writes that “While regenerative agriculture may be in-vogue, it’s not well defined. The term “regenerative” — unlike terms such as “organic” — isn’t defined by regulators and “regenerative agriculture” farmers are not required to show that they’ve followed any specific standards. It’s part of a wider suite of strategies that fall under the umbrella of “climate smart agriculture”, a similarly ill-defined term, which critics say can be used by companies to greenwash their images while avoiding regulation.

    Giulia Stellari, sustainable sourcing director at Unilever told FoodNavigator that the stated principles are a starting point. It’s important the industry agree on a definition. “Without consensus, it’s difficult to have alignment amongst organization and therefore difficult to track progress.”

    Beyond the Farm

    Unilever also makes it clear that “The farms in our supply chain are a key focus for our nature regeneration work. But to do all we can to protect and regenerate nature, we must look beyond the farm and consider the wider impact of agricultural and industrial practices. Where we see an opportunity, we will work with suppliers and farmers to apply regenerative principles to restore natural ecosystems too,” writes Unilever.

    “Here the opportunity is in working with local governments, technical organizations, NGOs, suppliers and peer companies to educate farmers and build capability and capacity for the protection of natural ecosystems.

    “Regenerating nature requires a whole systems approach, and we are continuing to look closely at our role in the system, and the different places we can play our part.”

    Resources

    Unilever

    Next in the series is a conversation with the Rainforest Alliance on how regenerative agriculture differs from sustainable farming.

    Unilever’s tea garden holdings span the globe.

    Unilever’s Investment in Sustainable Tea Estates

    Kenya offers a model for developing countries where smallholders generate most of the tea consumed. In 2006, Unilever pioneered Farmer Field School programs with the Kenya Tea Development Agency (KTDA). Initially supported by the UK Government, and IDH (the Sustainable Trade Initiative) provided funding from 2008. This helped scale it into a program that eventually trained nearly 100,000 farmers – around half women – on good agricultural practices to increase yields and quality.

    While the main aim was for farmers to meet Rainforest Alliance certification standards and improve incomes, they also learned how to grow other crops to diversify and protect themselves from tea price fluctuations, as well as good hygiene and nutrition practices.

    Advances in sustainable practices are most evident at the Kericho Tea Estate which covers 22,500 acres (9,000 ha) and employs 5,500 full-time workers along with thousands more temporary workers during the harvest season. Kericho also buys significant quantities of raw leaf from local smallholders.

    “We have worked hard over many years to improve pay and conditions and we now pay workers well above the industry average – about two and a half times the statutory minimum agricultural income in Kenya as well as health care, education and housing benefits,” writes Unilever. Benefits include transport allowances, paternity and maternity leave, health care, nursery and clean drinking water for the 40,000 people living in company villages.


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  • Tea Biz Podcast | Episode 32

    Tea Biz Podcast Logo

    Listen on your favorite player

    Hear the Headlines

    | Afghan Tea Market Concerns as Taliban Conquers Kabul
    | Foodservice Recovery Rates Vary Widely by Sector
    | Researchers Confirm Heart Healthy Aspects of Tea

    Seven-minute Tea News Recap

    Tea Price Report
    April 21 – Sale 33

    India Tea Price Watch

    Afghanistan is an importer of green and orthodox black tea from India and in 2020-21, about 760,000 kilos of tea was exported from there. At the moment, the movement of cargo between the two countries stands interrupted. – Aravinda Anantharaman

    Features

    This week Tea Biz visits Darjeeling, India on word of the sale of the iconic Jungpana and Goomtee tea estates to Anshuman Kanoria, principal at Balaji Agro International and chairman of the Indian Exporters Association

    … and then to London where Kyle Whittington reviews The Tea Girl of Hummingbird Lane, a novel by Lisa See.

    Anshuman Kanoria discusses his company’s acquisition of two of Darjeeling’s best-known tea gardens.

    Restoring Darjeeling’s Reputation from the Roots Up

    By Aravinda Anantharaman

    The sale of two iconic Darjeeling tea gardens focused attention on the ongoing challenges facing growers in this fabled tea-growing region. Jungpana and Goomtee were acquired by the Santhosh Kanoria Group, which owns the tea export company Balaji Agro International. The group also owns Tindharia estate in Darjeeling. We spoke to Anshuman Kanoria, Chairman of Balaji Agro and Chairman of the Indian Exporters Association about this acquisition. Read more...

    Listen to the Interview
    Anshuman Kanoria on India’s unrealized potential in tea
    Lisa See has written a “brilliantly layered book” writes Whittington

    The Tea Girl of Hummingbird Lane

    By Kyle Whittington | TeaBookClub

    New York Times best-selling author Lisa See has written several novels revealing her fondness for tea. The Tea Girl of Hummingbird Lane, however, uniquely explores the mysterious world of Pu’er. Reviewer Kyle Whittington writes that See’s novel “consists of so many brilliant layers… for the tea reader this is a wonderful story, packed with great tea content that will either develop or ignite an interest in, and a desire to explore the world of Pu’er.” Read the review

    Listen to the review
    Kyle Whittington reviews The Tea Girl of Hummingbird Lane
    A tea break for Afghan farmworkers. Afghans annually drink 1500 cups of tea per capita. Kahwa (a tea and spice blend) and green tea with mint are favorites. Photo by © Karl Allen Lugmayer | Dreamstime.com

    Afghan Tea Market Concerns as Taliban Conquers Kabul

    By Dan Bolton

    Afghanistan is a major tea-consuming nation and a smuggler’s paradise for tea. The country became a profitable middleman by clever manipulation of border regulations that were only recently reined in after decades of openly flaunting Pakistani Customs enforcement.

    Since tea trades in US dollars, money in Taliban controlled bank accounts is frozen. Bank withdrawals are limited and in-bound remittances from Western Union and MoneyGram have stopped. The East African Tea Trade Association (EATTA) reports bidding at the Mombasa auction on tea bound for Afghanistan slowed as the Taliban occupied Kabul but EATTA explained that Afghanistan gets its Kenyan tea via Pakistan where there have been no disruptions at all, according to The East African. Shipments between India, another major source of tea, and Afghanistan were halted this week.

    Afghanistan’s banks are closed, halting direct deposits for salaried workers. Interbank transfers are subject to sanctions imposed by western powers decades ago to curtail terrorist activity. The Financial Action Task Force, warned member countries they must ensure that “no funds or other assets are made available, directly or indirectly” to the Taliban or face fines and censure by the United Nations and the US along with many of its allies. During the 20 years since the Taliban was last in power, many businesses transitioned from cash and writing checks to digital banking. Prices for basic commodities like bread, oil, and tea have doubled since the government collapsed and the economy is in freefall.

    In 2020 foreign aid from the US and Europe accounted for 43% of the economy. Remittances from Afghans living outside the country were nearly $800 million last year, according to the Wall Street Journal. Given near universal sanctions due to a global blacklisting of the nation’s central bank, the Taliban will find it difficult to borrow or trade essential commodities, making taxes on citizens and local businesses the Taliban’s sole source of funds in a $22 billion economy.

    It is too soon to know how the collapse of the Afghan government and the return of the Taliban will alter the tea market, but smuggling was rampant during the 1996-2001 Taliban regime. In Helmand province, traders said that “if we smuggle 40kg (heroin), we give the Taliban 4kg.”

    Pakistan Customs lists black tea and green tea as two of the five most smuggled commodities. Tea exports to Pakistan surged in 2020, increasing 18.7% in value compared to 2019, making it the world’s highest-valued tea import market at $590 million. Kenya accounted for $497 million of last year’s import spend, growing 27% following a decision by the Indian government to no longer export tea to Pakistan.

    Afghans prefer green tea to black, yet hundreds of thousands of kilos of black tea are landed annually at the Port of Karachi, Pakistan. Until recently Pakistan charged a combined 38% tax and duties on tea making the import cost of tea 32% higher than tea imported into Afghanistan. Afghanistan is a landlocked nation so huge quantities of African tea, mainly from Kenya, are delivered to the Pakistani port tax-free, taxed at a low rate at the Afghan border, and then transported to large warehouses where it is broken into retail packets and smuggled into Pakistan. Smugglers pay a 12%-15% bribe and transportation cost, pocketing the difference.

    Biz Insight – Pakistan’s Competition Commission considers smuggling to be “the biggest threat faced by the domestic tea industry, causing loss of millions of rupees to the government and forcing legal importers out of business,” according to a 2019 report. A crackdown on violators in late 2020 led to a 55% increase in customs duties collected (a proxy for illegal trade) and evidence of a concerted effort by Pakistan to decrease the cost of legal imports, making smuggling unprofitable.

    It will take years to rebuild some US foodservice sectors to 2019 consumer spending levels.

    US Foodservice Recovery Rates Vary Widely by Sector

    By Dan Bolton

    Sales at Quick Service Restaurants (CSR) and the Supermarket Prepared Foods segment are well ahead of pre-pandemic totals but “everyone in foodservice is starting from a really different point,” reports Ann Golladay, senior project director at Datassential Research’s Baltimore office.

    Datassential calculates that — overall — consumer spending in foodservice declined from $806.7 billion in 2019 to $701.4 billion in 2021 and will not return to pre-pandemic spending levels until 2023.

    Golladay explained to webinar participants Aug. 19 that Fast Casual, once the darling of the industry with the largest real growth will not reach pre-pandemic spending levels before 2023 “and that will be nominal growth that does not include inflation,” she said. Golladay estimates inflation at 5% per year “so you will probably have to back down these projections 10% by then,” she said. Consumer spending at fast casual restaurants declined 19% in 2020. The segment is projected to generate $67.4 billion next year compared to almost $68.7 billion spent in 2019.

    A survey of the nation’s grocers found that 74% reported increased sales in 2020. The consumer spend for prepared foods at supermarkets in 2022 will be $38.8 billion, rising by 119% compared to 2019 dollars.

    Recreation, lodging, and convenience store foodservice segments will take even longer to recover. Lodging, for example, will have only achieved 71% of its 2019 consumer spend by 2022.

    Until workers return to downtown offices, the business and industry foodservice sector, projected to reach pre-pandemic sales of $6.9 billion, will never recover.

    Tea Biz Insight – Jack Li, principal at Datassential identified five “x-factors” that could disrupt the official projections. These include new variants, vaccine mandates, additional and extended lockdown, sustained inflation, and a combination of labor and supply chain bottlenecks.

    Tea flavonoids reduce risk and severity of adverse cardiovascular events.

    Researchers Confirm Heart Healthy Aspects of Tea

    By Dan Bolton

    Accumulating evidence of tea’s heart health benefits led researchers to conduct an umbrella review describing and critically evaluating the totality of medical evidence to date.

    Their findings: “It is reasonable to judge that two cups of unsweetened tea per day has the potential to decrease CVD (cardiovascular disease) risk and progression due to its flavonoid content.”

    The peer-reviewed paper authored by Abby Keller and Taylor Wallace and published in the Annals of Medicine, examines 10 years of studies, from 2010 to 2020, that identify several biological mechanisms showing a decreased risk and severity of cardiovascular disease in tea drinkers.

    The authors write that “Results of population studies commonly suggest that tea consumption is inversely associated with several health outcomes. Shorter-term clinical intervention studies provide additional evidence that tea consumption has the potential to affect intermediate outcomes and biomarkers of disease in healthy, at-risk, and diseased populations.”

    Based on this umbrella review, the researchers observed that the consumption of tea as a beverage “did not seem to be harmful to health; therefore, the benefits of moderate consumption likely outweigh risk.” 

    Miriam “Mim” Enck, president of The East Indies Coffee & Tea Company, in Lebanon, Penn., passed away Saturday, Aug. 14 after a short illness. Since 2018 Enck has operated the company founded by her late husband, Walter Progner who started the specialty tea retail business in 1976. She was 75.


    Upcoming Events

    August 2021

    POSTPONED: Beijing International Tea Expo, Beijing China
    August 27-30, 2021 | Beijing Exposition Center (the recent coronavirus outbreak forced Beijing authorities to halt all events that attract large crowds. Watch this space for new date when it becomes available.)

    September 2021

    Caffé Culture Show, Business Design Center, London
    September 2-3 | The European Speciality Tea Association will host a Speciality Tea Hub on the exhibition floor with a tea brew bar, a members’ lounge, educational seminars and small exhibitor pods.  Admission is free | Program | Register

    Level Up, Virtual
    September 29 | The Tea & Herbal Association of Canada will host a mid-year meet up from 10 am to noon. Admission $55 (CAD) Members $50. Agenda | Register

    Click to view more upcoming events.


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  • A Gastronomic Tea Contest


    Philippe Juglar is president of Paris-based AVPA (Agence pour la Valorisation des Produits Agricoles) a non-governmental, non-profit organization that judges wine, chocolate, coffee, and teas best suited to local preferences. He joins Tea Biz to discuss what it takes to be a winner in the only “gastronomic” tea competition in a major consuming country that evaluates tea solely to promote the good practices of production and trade. The deadline to enter the 4th Teas of the World International Contest is Sept. 15, 2021.

    AVPA President Philippe Juglar (Agence pour la Valorisation des Produits Agricoles)

    A Gastronomic Tea Contest

    Dan Bolton: Welcome back to the Tea Biz podcast. Will you share with listeners details about AVPA’s upcoming Teas of the World competition?

    Philippe Juglar: Last year, we received more than 200 teas from more than 20 countries all over the world and we are very happy with that result for such a young contest. We hope this year to get 300 teas from 25 countries.

    The most important participant in our competition are newcomers in the tea industry. This year, for instance, we have a tea from the UK. Great Britain is now a country producing tea in its Highlands.

    We have a lot of teas from Taiwan, from Asia, from Africa, Eastern Africa, Western Africa. What is missing up to now is China, China is a bit shy, but I suppose it will come one way or the other. Japan is now very present in our competition.

    In France, tea is a very new and dynamic industry we have very, very good tea amateurs. We are not great, great tea drinkers, but we are sharp tea drinkers. And we have very good teas in France now.

    Dan: Which teas have been most successful in previous contests?

    Philippe: Any type of tea is welcome our contest. We have categories for monocultural teas  ? Camellia sinensis and Camellia assamica  ?  and we have categories for herbal teas, blended teas, perfumed [scented] teas.

    In each category we judge aromas, taste and texture. What we are looking for is harmony, balance, and originality. We rather prefer controversial teas, a tea which may have scored 10 over 10 with three judges, yet scored maybe only a three or four over ten with two other judges. We are looking for teas with distinctive character rather than a standard tea. We prefer teas that are different from the average.

    Dan: How does the tea industry benefit from AVPA’s annual contest?

    Philippe: Agricultural product competitions are a part of the food industry. In Europe we have had contests for years, I would say for centuries, with wine, with olive oil, with cheese, and so on. When producers compete they share information and compare their own production against that of their friends and neighbors which are always different. Obviously, each producer is sure to be the best producer in the world, but it’s good to check it in front of other products. So, I will say the first point is that competitors can compare the quality of their products with other products.

    A second, interesting point from the tester’s vantage, is the opportunity to see what the industry is offering to the world. Each year, we have very important buyers – when I say very important buyers – not only for the turnover they can do [earnings] but also for the level of quality they are seeking. The competition lets them compare what they are normally buying, with what they could buy from other countries or other producers, or from gardens that are new.

    Once the judgments are returned, we try to help the happy growers that have received a medal in our competition to inform their final client [customers] of the quality of their offering to the market.

    Contest winners are announced in October at a virtual award ceremony. Winning brands may display their award on their packaging.

    Agency for the Valorization of Agricultural Products

    2020 Winners (Camellia Sinensis)
    2020 Winners (Herbal Infusions)

    Monovarietal teas are evaluated by a jury chaired by Lydia Gautier.
    Infusions (other than Camellia Sinensis) are evaluated by a jury chaired by Carine Baudry.

    ATTENTION: AVPA makes everything to valorize the producers, many of them asked to extend the deadlines to have enough time to send their teas and herbal teas as in some areas the producers are just finishing their harvest. The August deadline has been extended samples must be in Paris before the 15th of September – Ksenia Hleap


    How AVPA Elevates Origins

    Recognition, professional education programs, and contests build self-esteem and economic success that directs a larger share of the value chain to the country of origin. “This is why we cling to local transformation of agricultural products so that producers benefit from the pursuit of excellence,” says AVPA President Philippe Juglar. Read more…

    Juglar poses with winners of the 2018 contest.

    Competition Tea

    Tea competitions that “speak” for their respective markets are great for the industry. In the tea lands, skilled growers and tea makers can infinitely adjust their pluck, style, grade, and sort for export – but first, they must understand market preferences. In France AVPA judges companies from around the world for excellence “based on gastronomic rather than standardized refereeing.”
    Read more…


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