• Tea Biz Podcast | Episode 17

    Listen to the Tea Biz Podcast on iTunes | Spotify | Sounder | Stitcher | Alexa

    Hear the Headlines for the Week of May 14

    Hear the Headlines


    | Kenya’s Becoming Unbearably Hot for Tea
    | Brexit Disrupts UK Tea Trade
    | Colombo Tea Auction Transformed
    | China Tea Price Watch | India Tea Price Watch
    | INDIA IN-DEPTH: Q|A Raj Barooah, Director, Aideobarie Tea Estate

    This week’s India Tea Price Watch

    Features

    Tea Biz travels to Los Angeles this week where Art of Tea founder Steve Schwartz, a graduate of the Ayurvedic Institute in New Mexico, describes tea as a powerful conduit for health and wellness…

    … and then to Hawaii to interview tea adventurer and Jalam Teas Founder Jeff Fuchs who is sheltering there during the pandemic. Jeff shares stories about tea and tea culture and the tranquility it brings to all.

    Jeff Fuchs
    Jeff Fuchs with an old Newari tea and commodity trader in Kathmandu.

    The Tranquility of Tea

    By Jessica Natale Woollard

    Author, adventurer, and tea lover, Jeff Fuchs has walked the Ancient Tea Horse Road, been featured in TV documentaries, and traveled extensively in the tea lands sourcing rare teas. His affinity for high-altitude treks equals his affinity for tea. He tells Jessica Natale Woollard, “I’ve had some of my best tea times in the mountains without necessarily having had the best teas.” Read more…

    Related: Countenance: Travelers Along the Tea Horse Road by Jeff Fuchs

    Jeff Fuchs on his travels in the tea lands and the tranquility of tea.
    Steve Schwartz
    Art of Tea Founder Steve Schwartz

    Tea is a Powerful Conduit for Health and Wellness

    By Dan Bolton

    Tea is a powerful conduit for health and wellness, says Steve Schwartz, founder of Art of Tea in Los Angeles and a graduate of the Ayurvedic Institute in New Mexico. In this segment, he discusses the challenging role for tea retailers amid the pandemic. Retailers are wise to offer counsel on the comfort and health benefits of tea, educating themselves in both the traditional and science-based properties and then sharing that knowledge with customers. Learn more…

    Steve Schwartz advises retailers to educate customers on the health and wellness properties of tea.

    Tea News you Need to Know

    Kenya is Becoming Unbearably Hot for Tea

    The red volcanic soils of Kenya’s Rift Valley, long sunny days and tropical rainfall are perfect for growing tea. At 2,000 meters [6,500 feet above sea level], the temperature is between 16 oC and 29 oC,  generating new leaves at a fast pace making Kenya one of the most productive tea growing regions on earth.

    All that is changing, according to Christian Aid, a charity that this week published 14 pages of troubling research into the future of tea in growing regions essential to Kenya’s status as the world’s largest black tea exporter.

    The report highlights the work of Sadeeka Layomi Jayasinghe and Lalit Kumar, researchers who predicts that “climate change is going to slash optimal conditions for tea production by 26.2% by 2050.”

    Tea grown in less favorable regions will experience 39% declines.

    Lower quality leaf and less appealing taste will affect all growers. Kenyan farmers the most productive in the world harvesting an average of 1,500 to 3,300 kilos per hectare of made tea per year. Smallholders harvest an average 2,300 kilos per hectare.

    Torrential rain and extreme temperature are the two biggest concerns. The combination encourages plagues of locusts and devastating floods. Temperatures will rise 2.5 oC to an average 23.5 oC with spells hot enough to kill mature tea plants.

    Biz Insight – Researchers concluded that it will be very difficult for tea growers to move to new, higher altitude, previously uncultivated regions, they wrote. Tea is an example of how we are all connected, wrote one farmer. “We grow it here in Kenya and it’s enjoyed by people around the world. But if we are to carry on growing it we need those other, richer countries, to cut their emissions and to think about how we are affected as tea farmers.”

    Click to download the report.

    Brexit impact on UK Tea

    Brexit Disrupts UK Tea Trade

    By Dan Bolton

    Brexit disrupted the UK tea trade in significant ways. It is too early to assess the financial impact, but long-term change is apparent along with howls from tea lovers on the continent.

    EU grocers specializing in British foods say their shelves are bare following the January 31 start of the EU-UK Trade and Cooperation Agreement ratified in May.  The immediate shortages are the result of customs delays due to additional paperwork and transport bottlenecks caused by COVID. The 500,000 British ex-patriates living in EU countries that complained the loudest are some of the best customers for tea brands including Yorkshire Gold, PG Tips, Tetley, Twinings, and Typhoo.

    The Brexit vote and drawn-out resolution of disputes unsettled traditional trade in tea. Kenya, the UK’s top tea trading partner at 62,000 metric tons, began selling tea direct to Europe, bypassing British tea packers for those in Germany and Poland. Brexit also realigned UK’s previous focus on non-EU markets.

    Tea imports to the UK

    The United Kingdom re-exports 2.2% of the world’s tea by value. About 17% of the tea that arrives at its ports is packaged shipped to Europe. Volume in 2019 was 19 million kilos with 10 million kilos of that delivered to EU countries. The 2019 total reversed a steady decline in volume beginning in 2010 when tea exports totaled 30.5 million kilos.

    Tea exports to non-EU countries increased to 8.8 million kilos in 2019 and continue to rise. UK tea export totals are in decline overall, but 2021 marks the third consecutive year that the UK recorded growth in overseas shipments to non-EU countries.

    Biz Insight – Sales of goods exported to the EU declined steeply in January as Brexit rules were enforced. In February goods exported to the EU increased 4.5% and in March grew a solid 8.6%. Meanwhile, imports from non-EU member countries exceeded EU imports for the first quarter since 1997. While it is too soon to assess the full impact, UK residents remain skeptical of Brexit. The most recent YouGov poll showed that 51% of respondents think it was a wrong decision and 38% a right one, the largest gap since 2016, according to the Wall Street Journal.

    COVID Relief Fund

    Last Day to Reach Emergency Relief Fund Goal

    A COVID-19 Emergency Relief Fund initiate by Vahdam India is nearing its goal with donations of 6.4 million rupees ($91,660) but needs an additional $15,000 boost to reach a 7.5 million rupees ($107,000) in five days. Donations to #RiseTogetherForIndia assist the non-profit Doctors for You deliver oxygen and relief services across India. Learn more and find a Ketto crowdfunding link to donate on the Tea Biz blog.

    Digital Auction
    Colombo Tea Traders’ Association conducting first digital auctions in April 2020. Photo Daily News.

    Colombo Auction Transformed

    By Dan Bolton

    Last year Sri Lanka confronted its past and raced beyond, scrapping a 127-year tradition, and transforming the Colombo Tea Auction into a digital workplace.

    Tea generates 10% of the country’s wealth earning $1.2 billion on exports and employing two million people. Last year the pandemic closed not only the auction floor but prevented the hundreds of face-to-face interactions involved in storing, sampling, shipping, and presenting tea to buyers who rightly insist on sipping before bidding thousands of rupees for a lot. Shutting down the auction jeopardized the livelihoods of many more than the traders who attend.

    A task force led by Anil Cooke, CEO of Asia Siyaka Commodities, worked with CICRA Holdings, a local information technology venture, coordinating with the Sri Lanka Tea Board to develop a training program while simultaneously customizing the auction software. Within days the digital platform earned the endorsement of auctioneers, brokers, technicians, and government officials.

    Simulations enabled 300 key users to master the system which went live in early April 2020.  A year later tea prices are stable, exports revived, trading is lively with many improvements in transactions thanks to a quick decision that took 20 years to contemplate.

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    https://teabiz.sounder.fm/episode/news-01212021

    Subtext

    Avoid the chaos of social media and start a conversation that matters. Subtext’s message-based platform lets you privately ask meaningful questions of the tea experts, academics and Tea Biz journalists reporting from the tea lands. You see their responses via SMS texts which are sent direct to your phone. Visit our website and subscribe to Subtext to instantly connect with the most connected people in tea.

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  • Tea Biz Podcast | Episode 16

    Listen to the Tea Biz Podcast on iTunes | Spotify | Sounder | Stitcher | Alexa

    Hear the Headlines for the Week of May 7

    Hear the Headlines


    | Drought Eases in Assam
    | COVID Wave Sweeps Over Nepal, Bangladesh, and Sri Lanka
    | Are Tea Auctions Still Relevant?
    | Major Grocery Chains to Carry Flash-Frozen Tea Leaves
    | China Tea Price Watch | India Tea Price Watch
    | INDIA IN-DEPTH: Q|A Raj Barooah, Director, Aideobarie Tea Estate

    This week’s India Tea Price Watch

    Features

    May is tea month. The United Nations-designated International Tea Day is celebrated on May 21 this year and you can once again participate from the comfort of your home. The second virtual Sofa Summit is hosted by Shabnam Weber, president of the Tea & Herbals Association of Canada.

    … and then we visit London where Kyle Whittington, founder of the Tea Book Club reviews The Story of Japanese Tea, a fascinating book by Tyas S?sen covering cultivation, manufacturing, history and culture.

    SofaSummit 2021
    Join the SofaSummit on International Tea Day

    SofaSummit Returns for Second Year

    By Jessica Natale Woollard

    The all-day SofaSummit begins at 8 am Eastern Standard Time (EST) on Friday, May 21. It is a lively virtual chat that introduces tea enthusiasts to dozens of tea experts, scholars, growers and tea professionals from around the globe. Initiated of necessity during the pandemic, the popular event is again hosted by the Tea & Herbal Association of Canada. Read more…

    Shabnam Weber Describes the day long SofaSummit
    Raj Barooah, director, Aideobarie Tea Estate
    Raj Barooah, director, Aideobarie Tea Estate

    Climatic Swings, Now Too Dry, Now Too Wet, Threaten Assam

    By Aravinda Anantharaman | Bengaluru, India

    A drought was declared in Assam in April, a month that saw only four days of rain in north India’s tea-growing regions.  Fewer rain days since January and a rainfall deficit of 205 millimeters compared to the long-term average, meant that tea bushes were badly hit. Raj Barooah discusses the erratic weather and what it has meant for tea production. Barooah’s Aideobarie Tea Estate, located near Jorhat, consists of two farms with a combined 645 acres under tea. The estate produces 700 metric tons of CTC tea and artisanal whole leaf tea marketed under the Rujani Tea brand. Read more…

    Tyas Sosen
    Located in Kamigy?-ku, Kyoto, the Tea Crane specializes in artisan Japanese tea..

    The Story of Japanese Tea

    By Kyle Whittington | London

    Whether you already love (and think you know) Japanese tea or are just getting into it, The Story of Japanese Tea is definitely a must read! Tyas S?sen takes us on a fully immersive look at Japanese tea through history, cultivation and production, customs and the different types of Japanese tea. As well as advice on preparing and drinking Japanese tea. From the traditional and historical right through to the bang up to date. This is a fully rounded and thorough book.

    Read more…

    Tea Book Club founder Kyle Whittington reviews The Story of Japanese Tea by Tyas S?sen.

    Tea News you Need to Know

    Drought Eases in Assam

    The Tocklai Tea Research Institute last week issued a special bulletin describing adverse growing conditions in western India. Rainfall is down by half and temperatures are “comparatively higher” than normal. There were only four days of rain in April. Rainfall since January is down 205 millimeters, “a substantial deficit compared to the long term normal,” according to the 10-page bulletin. Temperatures averaged 1.6oC above norms.

    Rains late in the week provide some relief to tea estates on the north bank from Tezpur to Gohpur while the Naharkatia Circle got only drizzle. Meteorologists predicted Meghalaya, Nagaland, Manipur, Mizoram, Assam, and Tripura will experience isolated very heavy falls.

    The entire country recorded 31 mm rainfall during April — 21% less than its Long Period Average (LPA) of 39.3 mm — East and Northeast India collectively registered 64.2 mm precipitation, which is almost half of what these regions receive on average (124.8 mm) in the month of April, according to the Weather Channel.

    Tocklai warns that these variations favor pests that prey on weakened bushes. “Severely affected bushes should not be plucked hard and allowed to recover with adequate rest,” advises the report. Shortfalls could be as high as 20 to 25% in April and May compared to previous years. Production through March is down 39% compared to 2019 but ahead of last year, according to Tea Board of India statistics. Assam growers through March have produced 100 million kilos of tea.

    The Economist Intelligence Unit writes that “prospects for India’s 2021-22 harvest are relatively weak, with only a partial recovery likely following a 9.6% fall in tea output in 2020.

    “We now expect a broad stagnation in output in 2021, ahead of partial recovery in 2022. Production levels are likely to remain below pre-pandemic levels, even in 2022,” according to EIU’s monthly Tea Forecast.

    COVID-19 map
    COVID-19 infections April 24-May7 by Google Maps.

    COVID Wave Sweeps Over Nepal, Bangladesh, and Sri Lanka

    By Dan Bolton

    COVID related deaths may double in the next month as the virus spreads to rural India, according to the Indian Institute of Science in Bangalore. Deaths, now at more than 230,000 could increase to 400,000 in June and rise to 1 million by the end of summer. Twenty-one million are currently ill. India has a case-per-million rate of 16,000.

    Tests for COVID indicate positivity rates of 20% on average, rising to more than 40% in hard-hit regions. The World Health Organization advises governments to implement strict social distancing until rates fall below 5% for at least two weeks.

    Attention has focused on the crisis in India but the spring wave has engulfed tea growing regions in Nepal, Sri Lanka, and Bangladesh.

    Here is a brief rundown:

    NEPAL

    Nepal reported a 1,600% increase to 83,000 COVID infections during the week ending May 7. Army medical teams were mobilized this week to care for the ill as hospitals are overwhelmed. Only 1.2% of the population has received a vaccine, fewer still in rural tea growing regions. Nepal is experiencing 12,500 cases per million. Cases jumped from an average 298 per day in March to 9,000 in April. Deaths total 3,529.

    Dry weather cut yields by half during Nepal’s first flush. Buds did not appear until April, three weeks later than normal. Scarcity means raw green, organic-certified leaves, now earn farmers a guaranteed NRs100 per kilo, up from NRs40 rupees per kilo last year.

    Export volume increased 65% to 9,700 metric tons in the nine months since July 2020. The price paid for exports set records in 2020 and prices are expected to remain high due to shortfalls in India which purchases 80% of Nepal’s tea.

    SRI LANKA

    Cases increased by 20,000 last week to reach 120,000. Deaths are relatively low at 734 but the trend is troubling. Cases per one million are now 5,477. During the period April 2020 to October Sri Lanka reported at most two or three deaths per day. The seven-day average has since risen to 10. The country closed its borders to India last week.

    The low rate of infection last year minimized disruptions to the harvest but logistics proved difficult for the island nation as virtually all the tea grown there is exported. Prime Minister Rajapaksa said that the government could not shut down the country because of the pandemic. The economic well-being of citizens was as important as fighting the virus, he said.

    BANGLADESH

    The country witnessed a sharp rise in infections in April when the seven-day average reached 7,000 infections and a record 102 deaths reported April 9. Lockdowns have since driven the seven-day average was 1,700 infections in May. Cases per million average 4,500 with 11,796 deaths.

    In tea, COVID restraints forced a 10% drop in year-over-year tea production in 2020 but output was sufficient to meet domestic needs. Consumption declined 10-15% due to strictly enforced lockdowns that included closing restaurants and tea stalls. Dry weather has limited output since January.

    Biz Insight Tea growers in Kangra in Himachal Pradesh are experiencing great weather but unable to harvest. Production there is predicted to decline 70% to less than a million kilos because laborers who fled to their native villages during the winter have not returned. COVID fears are to blame.

    In the past year 900 farms ceased harvesting tea as growers turn to more profitable crops. There are now 1,100 tea growers, down three quarters from the more than 5,000 in 2010. Acreage under tea is estimated at 5,600 acres (2,300 ha) down 60% (4,000 ha) from the 9,800 acres planted in the 1980s. The region produced 1.9 million kilos 20 years ago but will struggle to produce 800,000 kilos in 2021.

    Emergency Relief Fund Nears Goal

    A COVID-19 Emergency Relief Fund initiate by Vahdam India is nearing its goal with donations of 6.3 million rupees ($89,000) but needs an additional $20,000 boost to reach a 7.5 million rupees ($107,000) in five days. Donations to #RiseTogetherForIndia assist the non-profit Doctors for You deliver oxygen and relief services across India. Learn more and find a Ketto crowdfunding link to donate on the Tea Biz blog.

    Pranav Bhansali

    Are Tea Auctions Still Relevant?

    By Aravinda Anantharaman | Bengaluru

    Pranav Bhansali, managing partner at Bhansali and Company, tea traders since 1929, answers in the affirmative. Auctions continue to be very relevant and play an important role, he says. Currently 45% of tea sold in India is auctioned, vs 55% sold in private transactions.

    Price discovery at India’s regionally dispersed auctions is an accurate reflection of the dynamics of demand and supply, says Bhansali. Transitioning from out-cry to digital auctions was the right decision “and if it wasn’t for the e-auctions, the tea industry would have come to a halt during the pandemic.”

    Read more…

    Two Major Grocery Chains to Carry Flash-Frozen Tea Leaves

    By Dan Bolton

    Major Grocery Chains Safeway and Sobeys with a combined 433 locations will stock Millennia Tea nationwide in Canada. Millennia washes and flash-freezes organic tea leaves for use as a culinary ingredient and in brewing tea. The result is a cup of fresh tea with greater concentration of tea compounds, according to company co-founder Tracy Bell.

    The certified organic tea is available chopped; compressed into individual portions (tea cubes) or as two leaves and a bud. Recipe suggestions includes sauces, soups, and smoothies. Teas are sourced in Sri Lanka.

    Bell writes that the traditional path to market for wellness brands is through health stores, “but as soon as the pandemic hit, the health industry stopped taking on new innovative products, and we needed to quickly re-think our business model.”

    A 10-store trial last summer, in Sobeys’ “support local” program, led to placement in 30 locations, said Bell. “We were thrilled when they said yes to national distribution,” she said. Millennia Tea is also available online and a few US locations. A stand-up pouch containing 120 grams of tea sells for $25.

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    https://teabiz.sounder.fm/episode/news-01212021

    Subtext

    Avoid the chaos of social media and start a conversation that matters. Subtext’s message-based platform lets you privately ask meaningful questions of the tea experts, academics and Tea Biz journalists reporting from the tea lands. You see their responses via SMS texts which are sent direct to your phone. Visit our website and subscribe to Subtext to instantly connect with the most connected people in tea.

    Subscribe to Subtext

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  • Marketing Organics with Humor


    Dennis Weaver is the co-founder and president of the Organic Marketing Association, a non-profit that growers CANNOT pay to join. The consumer-facing OMA celebrates the fun side of organics by building awareness with slogans, puns and Instagram-inspired illustrations of vegetables like celery with the headline “Stalking You” or lemons calling you to “Pucker Up Baby.”

    Organic Marketing Association President Dennis Weaver

    I

    OMA Hero Image
    The Organic Marketing Association sells with humor.

    Organic’s Market Share Has Plateaued

    Organic Marketing Association President Dennis Weaver explains that organic food is delicious and nutritious, “So why is organic stuck at 5% market share with plantings on only 1% of US acreage?” he asks. One reason is that organic suppliers spend too much time talking about what’s not organic, he explains. They are in a defensive bubble, he says. Consumers are far more interested in how tasty, fun and easy it is to choose organics.

    Dan Bolton: Sales of organic foods and beverages are steady with broad distribution in the US, but growth plateaued in the 15 years since organic foods first became available at mainstream grocers. How did OMA come about?

    Dennis Weaver OMA
    Dennis Weaver, president and co-founder Organic Marketing Association

    Dennis Weaver: A group of us from a wide range of backgrounds happen to believe that organic good food is the best for you, me and the planet and that more people ought to be enjoying the wholesome, healthful benefits of organic good foods and so we’ve created the Organic Marketing Association to do just that to inspire you. 

    The Organic Marketing Association is a new, fresh bold, high-energy nonprofit designed to present organics in positive ways. We’re flipping the script to the fun, delicious, and entertaining side. We won’t try to educate anyone. Instead, we’ll focus on making positive associations with the word organic and the things that make people happy.  

    It’s a simple formula that works. It’s called the Law of Attraction.  

    The law of attraction states that people are more apt to move towards what they want rather than avoid. We’re walking away from the tired organic narrative that was negative, argumentative, disparaging. 

    “We won’t try to educate anyone. Instead, we’ll focus on making positive associations with the word organic and the things that make people happy. It’s a simple formula that works,” says Weaver.

    Dan: Describe OMA’s newly launched website and how it breaks free of the conventional paradigms for marketing organics. 

    Dennis: The website is full of color and fun and smiles and people living life to its fullest, a presentation of organic that’s always on the positive. Lot’s of fun stuff to see, read, do and buy and it’s real easy for brands, retailers, distributors, brokers, manufacturers, influencers, sponsors, allies and farms to get in where they fit in and join the fun ‘good works’ of driving the healthy and delicious Organic Good Food and Beverage Market Share forward for the good health of people and planet.

    You can buy boosted Facebook ads. The most important thing is the engagement rate. In 2019 the average engagement for food and beverage was 0.12%, for all industries it is 0.09%. Why? They’re not very fun.

    Sqeeze Us. Covelli

    Our taglines and headlines cause a smile if not “out loud” laughter, cause conversational comments and lots of personal shares with their friends. Because we load in fun and happiness, our average engagement rate is 13.5%! We claim we’re 13,166% funnier than anybody else. Proof fun wins! That engagement rate is where the money is and so we’ve refined that skill.  

    Organic Good Food is the life of the party and we’re bringing the party to their house! Organic Good Foods are the healthy high!  

    And way back in 1944, songwriter Johnny Mercer got it right in his song “Ac-Cent-Tchu-Ate the Positive”! 

    Dan: How can OMA benefit the organic segment of the global tea industry? 

    Dennis: The most important ingredient in tea is the workers and farmers. Farmers can participate in the Organic Marketing Association for free, because without the organic farmers, we’ve got nothing you can buy.

    All of our organic good food, farm health, and beauty fabric friends benefit by the Organic Marketing Association positioning their organic good food, tea, wholesome fun, delicious over-the-top taste. It’s designed to encourage people to make the organic good food choice for their own good health.

    We tell your story singing a song and with product and storyline placements, put your organic tea in their hands, mind, and mouth.  

    Join the fun. 

    Revised|Updated DWB May 3, 2021

    Organic Marketing Association

    Flipping the Script

    The Organic industry has struggled to speak outside of the Organic bubble—spending way too much time focusing on what’s not in Organic when the mainstream consumers care a lot more about how tasty, fun, and easy products are and how cool the brands will make them look. So the Organic Marketing Association is flipping the script. Instead of continuing the 5% narrative, we speak to and pursue the 95%.

    Organic Foods
    Organic variety is extensive and availability mainstream, “Why only 5% market share?” asks Weaver.

    ”If you want to introduce the mainstream consumer to the fun side of Organic while building awareness for great Organic brands…”

    Join the Organic Marketing Association

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  • Tea Biz Podcast | Episode 15

    Listen to the Tea Biz Podcast on iTunes | Spotify | Sounder | Stitcher | Alexa

    Hear the Headlines for the Week of April 30

    Hear the Headlines


    | Mombasa to Expand Tea Auctions to Five Days a Week
    | Spiking Prices Dismay Russian Tea Drinkers
    | A 6.4 Quake Shakes Assam, Tea Factory Damage Minor
    | Vahdam Tea Mobilizes Emergency COVID Aid for India
    | China Tea Price Watch | India Tea Price Watch
    | IN-DEPTH: India

    This week’s India Tea Price Watch

    Features

    This week Tea Biz visits the fabled Darjeeling tea growing region in the Himalayan foothills of northwestern India

    …. and we travel to Seattle for the launch of the Organic Marketing Association a group that conveys the complexities of organic cultivation with memorable memes, clever ditties, and illustrations that radiate the joy of farming in harmony with nature.

    Gopaldhara Tea Estate, Darjeeling, West Bengal

    Steadfast Darjeeling Continues to Evolve

    By Aravinda Anantharaman | Bengaluru, India

    Darjeeling is the most famous of India’s tea growing regions. Revenue from its spring flush also makes it the most lucrative, but the plants there are aging, wage inflation is high, and workers are restless. Innovation is overdue. Aravinda Anantharaman spoke with Rishi Saria a third-generation planter, managing the Gopaldhara, and Rohini estates in Darjeeling. He describes where things stand, how Darjeeling began producing oolongs and offers personal insights into rival Himalayan tea produced in Nepal. Read more…

    Darjeeling planter Rishi Saria manages the Gopaldhara, and Rohini estates.
    OMA Hero Image
    The Organic Marketing Association builds brand awareness with humor.

    Marketing Organics with Humor

    By Dan Bolton | Winnipeg, Canada

    Dennis Weaver is the co-founder and president of the Organic Marketing Association, a non-profit that growers CANNOT pay to join. The consumer-facing OMA celebrates the fun side of organics by building awareness with slogans, puns and Instagram-inspired illustrations of vegetables like celery with the headline “Stalking You” or lemons calling you to “Pucker Up Baby.” OMA’s slogan, is the double entendre: “Organic. Eat Me.”

    Weaver explains that organic food is delicious and nutritious, “So why is organic stuck at 5% market share with plantings on only 1% of US acreage?” he asks. One reason is that organic suppliers spend too much time talking about what’s not organic. They are in a defensive bubble, he says. Consumers are far more interested in how tasty, fun and easy it is to choose organics.

    “We won’t try to lecture anyone. Instead, we’ll focus on making positive associations with the word organic and the things that make people happy. It’s a simple formula that works,” says Weaver.

    Learn more…

    Dennis Weaver, president and co-founder, Organic Marketing Association.
    Dennis Weaver OMA
    Dennis Weaver, president and co-founder of the newly launched Organic Marketing Association

    Tea News you Need to Know

    Kenya’s Tea Price Slump

    Low auction prices for Kenya and other East African teas have persisted for the past three years due to oversupply. During the past nine months the average price of $2.52 per kilo declined by 8.6 percent. Teas auctioned by the Kenya Tea Development Agency (KTDA)   factories generally sell for more than teas from elsewhere but are down 12 percent. Recent auction averages of $1.81 per kilo are well below the cost of production for many factories. The country’s Agriculture and Food Authority (AFA) also blames the decline on weak demand due to coronavirus lockdowns in many countries and the devaluation of many foreign currencies. Meanwhile avorable weather and increased acreage under tea with each passing year leading to greater surplus volume, adding to already high stocks.

    Two developments this week will likely further roil Mombasa. On April 24 the government announced that auctions would be expanded from two to five days a week later this spring and last Friday detectives with the Directorate of Criminal Investigations seized both KTDA records and equipment and those of the East Africa Tea Traders Association (EATTA). No sales were conducted Monday.

    Biz Insight The Colombo Tea Auction in Sri Lanka is conducted on Tuesdays and Wednesdays. Annual sales volume of 300 million kilos is comparable to the 450 million kilos auctioned in Mombasa. In 2020, after 127 years, Colombo’s traditional auction went digital but retains its two-day-a-week schedule. John Snell, owner and CEO of Ela’s Tea Company in Ontario, Canada, has been buying tea in commercial quantities since 1984. A former trading manager for multi-nationals purchasing East African tea, Snell shared his thoughts on the expanded schedule.

    Tea trader John Snell questions expansion of Mombasa auction from two to five days a week.
    Bhootechang TE 6.4AssamQuake
    Interior cracks at Bhootechang Tea Estate due to 6.4 magnitude earthquake April

    6.4 Quake Shakes Assam, Tea Industry Damage Light

    By Roopak Goswami | Assam

    A strong earthquake followed by several aftershocks rattled rafters and nerves on April 28 but caused only minor damage to tea processing factories throughout the region. Several estates reported damage to outbuildings and dwellings for workers. There were 12 injuries, none life-threatening, reported following the 30-second shake at 7:51 am April 28.

    Bhupinder Singh, chairman of the Assam Branch India Tea Association (ITA) Zone 3 said, “We were lucky to have got away with no injuries to employees and their dependents from member gardens.”

    A hill collapsed in Bhirabkund in the Udalguri district due to soil liquefaction caused by the quake and area residents were warn to be wary of land slides and damage to local bridges.

    “The high-intensity earthquake early Wednesday has caused damage to houses and buildings with people running out of their homes and other places in panic, obliterating social distancing and other COVID guidelines amid a raging pandemic. From the initial reports, the massive quake has caused only light damage to buildings and there have been no fatalities reported so far and only few injuries,” writes Prof. T.G. Sitharam, director of IIT Guwahati and president of the Indian Society for Earthquake Technology.

    The National Centre for Seismology put the epicenter of the quake near Sonitpur, a “very seismically active area” along the Kopili Fault. The Kopili is a strike-slip fault aligned from northwest to southeast. The quake originated 17 kilometers underground and 43 kilometers west of Tezpur. During the first 48 hours there were 15 aftershocks measuring 2 to 4.9 on the Richter Scale. The quake caused many fissures, exposing liquified soil within a radius of 50-70 kilometers. The region’s last major quake, in July 1960, measured 6.0.

    Spiking Costs Trigger Russian Tea Price Increases

    By Eugene Gerden | Moscow

    Tea prices in Russia are steadily rising due to a weak ruble and the increased cost of tea imports.

    Retail prices increased by 2-10% in Russia last year and prices are expected to continue to climb in 2021 due to shipping and freight costs, packaging expenses and unfavorable currency exchange rates along with the increased cost of raw materials due to the pandemic.

    Demand for tea in Russia currently remains stable. The rise in retail prices, so far, are not significant. However the possibility exists for further increases in the second half of the year, which may have a negative effect on local demand, according to Ramaz Chanturia, director of the Russian Association of Tea and Coffee Producers (Roschaykofe).

    Tea consumption at home significantly increased since the introduction of quarantine measures and self-isolation in the country. At the same time out-of-home coffee sales fell by almost 30% after a sharp growth in 2019.

    Chanturia explained that it could be worse. Price increases were restricted because producers are concerned with the decline of purchasing power by consumers and the declining popularity of tea among the youth, as many switched to coffee in recent years. The association does not expect the Russian tea market to expand this year. Sales volumes are growing at the minimum levels, he said, making 2021 much like 2020.

    Learn more…

    COVID Relief Fund

    Vahdam India Mobilizes Emergency COVID Relief Effort

    By Dan Bolton

    Vahdam India this week donated $50,000 to launch a fundraiser as part of #RiseTogetherForIndia, a COVID-19 Emergency Relief Fund. Donations will assist the non-profit Doctors for You deliver relief services across India. The company seeks to mobilize tea drinkers worldwide to set up temporary COVID treatment facilities, acquire oxygen cylinders and concentrators and facilitate rapid vaccination efforts. India reported more than three million new COVID cases in the past 10 days. Nineteen million are currently infected with more than 200,000 deaths.

    Learn more and find a Ketto crowdfunding link to donate on the Tea Biz blog.

    Learn more…

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  • Q|A Rishi Saria


    Darjeeling is the most famous of India’s tea growing regions. Revenue from its spring flush also makes it the most lucrative, but the plants there are aging, wage inflation is high, and workers are restless. Innovation is overdue. In this podcast segment Aravinda Anantharaman speaks with Rishi Saria a third-generation planter, managing the Gopaldhara, and Rohini estates in Darjeeling.


    Gopaldhara
    Gopaldhara Tea Estate, Darjeeling, India

    The Way Forward for Darjeeling Tea

    Rishi Saria is a third-generation planter, managing the Gopaldhara and Rohini estates in Darjeeling. Among other things, he has put Darjeeling’s autumn flush teas on the map by producing a flavorful range of oolong-styled teas. Rishi spoke about Darjeeling from the point of view of a planter, describing where things stand, and what it needs. He tells the story of how Darjeeling began producing oolongs illustrating the need for innovation and he offers personal insights into rival Himalayan tea produced in Nepal.

    Aravinda Anantharaman: The conversation on Darjeeling tea often turns to Nepal and how it’s affecting the Darjeeling tea market. What are your views on that?

    Rishi Saria: I am an Indian whose mother is from Nepal and I’ve never thought of Nepal as another country. Our borders have been very closely tied. We have gone to Nepal whenever we wanted to. Siliguri as a community has always traded with Nepal. So for me to say that there is competition from Nepal, it’s like saying my friend has planted a tea estate. I think he’s allowed to, they are allowed to do their thing.

    The only problem is that I think Nepalis are not doing enough to promote tea in their own country.

    Secondly, Nepal is a Bought Leaf Model and there is a lot of dumping of tea that goes on. Their per hectare revenue must be lower than that of Darjeeling. The factory and traders may be making money. Last year I heard that they even sold the high mountain green leaf for INR 20. Our CTC leaf last year was selling at INR 30, and at INR 32 this year.

    The Nepal tea industry needs to understand that they have to stop this dumping model. They send the buyer 2,000 kgs of Darjeeling style samples. The buyer is going to pay you peanuts and they refuse to buy Darjeeling tea because Darjeeling tea producers don’t sell it for peanuts.

    The gap between Nepal tea industry and Darjeeling tea industry is huge. Our cost is higher. If you look at the cost structure, Darjeeling tea will offer more to a worker than the Nepal tea industry.

    They have to do more. There are exceptions like Jun Chiyabari but the bulk of the Nepal industry is not like that. They don’t have an auction centre. They don’t have a buyer-seller meet. They need to have a large spread to deal with the kind of quantity they have. They are not small anymore.

    One problem there with Nepal is the organic certifications. If you are not a tea estate over there, it’s very difficult to get an organic certificate. For a Bought Leaf Model to have an organic certificate is extremely difficult because of the expense.

    Most of Darjeeling is organic and competes in a different segment. That is one strategy, which some Darjeeling tea producers have taken. And the rest of us, we try to make better teas.

    Aravinda: Is it in the tea that Darjeeling can differentiate from Nepal? Or is the differentiator in the working model of these two regions?

    Rishi: I can tell you for sure that in the Bought Leaf Model, speciality tea has not worked for these issues: the clone is not known, the cultivar is not known. The transportation cost is causing damage. The transportation system is causing damage them in and there is very less confidence between the buyer and the seller.

    We started making a lot of speciality tea at Rohini and Gopaldhara. Now we need a system to sell it. We are trying to increase the number of buyers. We try to do something different; we try not to offer what others are offering. If we offer what Nepal is offering, why will someone come to us? We charge more as our costs are higher. I cannot say that we are more efficient than them but we offer a better lifestyle proposition to the workers.

    We also do a lot of direct marketing that helps. We sell directly to retailers and even to consumers. If we can sell 10 to 15%, 20% of our produce directly to consumers, it will take a lot of pressure off our balance sheet. In my mind, this is what we can do rather than harping about how Nepal is hurting us.

    Look at Bhutan; you can see the kind of ties that India enjoys with Bhutan. Minus Darjeeling tea, we have the same relationship with Nepal. So how can we disturb that equation because of one product.

    Rishi Saria and his son at Gopaldhara
    Rishi Saria and his son at Gopaldhara Tea Estate

    Aravinda: Where does Darjeeling tea now compared to say even 10, 20 years ago?

    Rishi: There’s been a lot of progress. India is a far more progressive country than what it was doing between 1980 to 2000. We have certainly outpaced the economic growth by a long margin. That has had an effect on the tea industry as a whole. Our wages have gone up faster than what we would have planned. That is one challenge. That is one of the reasons why there is a lot of hue and cry. Wage Inflation has been rampant. Pre 2006, wage inflation was roughly 3 to 4% now its close to 10 to 11%, sometimes 15%. So wage inflation is a huge issue.

    But if you look at the offer of teas, Darjeeling has added green tea. Darjeeling was never known for speciality tea. If you go through catalogs from 20 years back, you will find Darjeeling first flush and second flush in a retailers catalog. In a tea shop, if you asked for Darjeeling, they’d say, we have Darjeeling first flush and second flush. That has changed. You have very tippy Moonlight style teas now, we have the traditional china hybrid, we have green teas, we have white teas, we have some special hand-rolled, handmade stuff also. From two teas we have gone to at least eight or 10 teas.

    Aravinda: So there is a lot of product innovation?

    Rishi: There is a lot of innovation happening and it’s happening more with farms which are realising the changes that need to come in. Let’s talk about oolongs. Who thought Darjeeling would make oolongs. We don’t have a proper tea research Institute which guides us to all these things. But if we did, that would be wonderful, you know. Whatever effort planters have made, they are all taking a lot of effort. Learning and effort go hand in hand.

    Today, some retailers will describe a tea as “oolongs from Darjeeling”. Until recently, we were told, “You don’t know how to make oolongs.” We asked, why can’t we make oolongs. They said, “You don’t know how to make oolongs. You don’t even have an oolong clonal with you.” So we started defining that, we started learning how to pluck, we used to send samples and get the response, not good enough, not good enough, not good enough. Then we started hitting some right notes. We started thinking about what is mountain tea…  we started thinking about the style of making mountain teas.

    Most of the machinery in both of my factories are not what we had pre-2000. We have a lot of electric dryers now. We have fixing machines, we have small rollers, we are even trying to get chaangwithering into the system, we have outdoor withering… so one sits on top of the other. You learn, you ask, you learn more and you think of more things. Every day you learn. Today, I was having a tea in the office; it was a very lovely oolong style green tea, very, very lightly oxidised and very fragrant. And the thought that occurred to us was why didn’t we try this before.

    Aravinda: What do you think has to change in Darjeeling to support this innovation?

    Rishi: I think the Darjeeling tea fields have to get upgraded and that will take a lot of time. That, in my opinion, is one of the biggest challenges. Can we upgrade our field fast enough to still be relevant? That will be my concern. That is one of the biggest concerns there. And our biggest safety with respect to that is we are the only tea growing region in India which is trying to make tea without milk and sugar. I think that advantage can continue for sometime.

    We are moving in a direction where we think hundred percent of our produce in the leaf category should be without milk and sugar. That is what essentially is there in the back of my mind. What to make is the next question.

    So business advantages, there’s a lot of demand for these kinds of teas within India. Internationally, we have to compete with China, Taiwan, Vietnam, Indonesia, Kenya, Japan. There is a lot of competition and unless you have a price competitive offering — which we don’t have because our fields are outdated.

    Gopaldhara used to make 120,000 kgs in 1992-93. Now, it struggles to make 70,000. So, 40% of the crop is gone because the fields are old.

    So we started replanting. My family before me did too and for some reason, those fields are still not ready; it’s been 12 years. I’ve done eight hectares since 2016 or 17; mine are also not ready. We are trying to put in close to at least one lakh plants every year.

    It’s difficult to work in the mountains. Half of these areas don’t have roads so you have to carry all the plants. People have to have access to irrigation. We can only plant in summer. But it has to be done. There’s no alternative. So we now have close to 40% of the garden almost clonal but the balance 60% is there, that will take 30 years. But even if we get to 70:30 ratio, that’ll still be good. We’ll still be better off than many other estates that are not doing anything. All these things help in the long run.

    For example, Rohini is completely clonal. You see the advantages straight away. The shoots are much better. Compared to 2019, Rohini produced 500 kg more than 2019. That kind of advantage is welcome. If you can get some irrigation going and wear out the drought, and you can get some of this e-commerce going for you, and get some retailers, buyers as partners who trust you and supply to them regularly… all these things will help you tide over.

    Aravinda: Why don’t we see much Darjeeling in the auctions? Is that no longer a relevant route for Darjeeling’s teas?

    Rishi: Auctions help if you are the exporter. It’s very difficult to trade in tea without an auction system, that is a fact. The system allows you a lot of availability, otherwise product sourcing can be quite difficult. It is based purely on demand and supply. I think it sets the benchmark for the lower grades. If you are a buyer, you tend to buy the cheaper grade because you know it’ll always be there. Nobody tries to do private sale of ordinary teas unless they are looking for a quantity, which they want to contract and not fight in the auction so that prices go up.

    The top offerings never make it to auctions. So what happens to top offerings? Either you’ll find a wholesaler with whom you have good contacts and he feels confident buying your expensive tea and selling it. Which means he doesn’t want competition and wants some assurance that he won’t face too much competition. Otherwise you have to sell one bag, two bags, because everybody may not like paying such a premium for that tea. That is the difficulty in speciality tea. Everybody will not appreciate it. I have not found many buyers appreciating the same tea in speciality; they always want variety. So they buy one sack of this, one sack of that, different ranges so they know they’ll be able to sell something or the other.

    So privately, if you want to sell specialty tea you need a large set of buyers. Otherwise you will not sustain. It’s not easy to sell a speciality tea at a price in which it is remunerative. It’s really difficult.

    I know a lot of people who don’t even buy one kg of speciality, and I know so many buyers who don’t buy a single kg of ordinary tea. And I sell to both of them.

    Auction cannot help you in speciality. And we don’t have those kind of tea fields to make common tea. There’s a garden in Darjeeling with yields close to 900 kgs / hectare. In Gopaldhara, I cannot produce more than 400-450 kgs/hectare. So how can I compete with them if I don’t make something special. Those that are like Gopaldhara and organic, they are even lower yielding than us. Everybody is not on the same boat. If Rohini makes a decent quality tea for the whole year, it is fine. Gopaldhara really needs a speciality tea market to survive.

    It’s got a lot to do with what kind of tea fields you have, what kind of elevation… elevation of 87 gardens is from 500 feet above sea level to 7,000 ft. and they’re all Darjeeling. So everybody’s on a very, very different boat. They cannot do the same thing that’s and they cannot cater to the same market.

    Every tea garden in Darjeeling has its own story to tell.

    Aravinda: What about markets? Is Darjeeling still reliant on the export market or is India emerging as a market for Darjeeling tea?

    Rishi: It is changing for sure. Last two years have been a washout for the Indian market because of the virus. It has been shut. So we may be forgetting some of our close friends. We have not been in constant touch with them. They are not in our memories and we are not in their memories. Frankly speaking, the virus has killed the speciality tea trade. Unless they’re buying by e-commerce, there’s no reason why they will go to a tea shop to risk themselves and have a cup of tea.

    I think the high end Indian market is out. I don’t think that is coming back again this year.

    Internationally, things are more open. UK looks like they will lift their lockdown soon. Germany is also lifting some of the restrictions as are some of these Western European countries? US is opening up completely…

    I think it’s better than last year. I don’t know if we are going back to 2019 so quickly…  Let’s assume the vaccination in Western countries is over by July, realistically speaking. So we’ll have some kind of semblance July onwards, that is what I feel.

    Aravinda: And the prices?

    Rishi: The production for the medium segment is still not out. We are still in the very expensive category of teas. We have not done any major deal in the medium end.

    Last year, the prices nosedived. That will not happen this year. But the speciality tea sold. There could be a percentage decline but it’s not like what I saw in second flush. We were hardly able to move the tea in second flush. We were not able to sell much of the autumn flush also.

    Aravinda: What is a way forward for Darjeeling tea?

    Rishi: I think we really need support from the government to help us revive the tea fields. It can be in the form of a long-term loan, It can be in the form of a subsidy. It can be a combination of both. Let’s say you are removing an old area in Gopaldhara which is yielding 300 kg/hectare. I think the average price would be something in the region of INR 500. If we do 2 – 4 hectares a year, that reduced revenue can come as a subsidy, partial subsidy or a combination of loan.

    Aravinda: What about the plantation model itself? Is it still workable?

    Rishi: In India we have not been able to make quality tea from Bought Leaf Factories. If there is some example, it is Tea Studio. But it’s certainly not happening in a large scale. So to say that the plantation model has no future is not fair. The combination of an educated resourceful owner with  assured workers has its strength. You cannot say its completely useless. That combination has something to offer.

    It can all be worked out provided you have the field in order, that is the basic requirement. Whenever I think about what is missing, the field is missing. Once that is available, then you can start going back to the drawing board and start doing things.

    The problem with the plantation model is that you have to pay the workers, whether you have work or not. So we will always be plucking in the rains and we will always be doing a lot of the produce even during the banjhee (dormant) period. Among mountain regions, we must be the only tea region in the world which will be plucking during the banjhee. That’s the disadvantage of having a plantation and having to provide work 365 days a year.

    As an industrial body, I think planters need to start selling first, second and autumn differently from rain flush. We don’t do this. It can be very confusing for the consumer and buyer community as to what is Darjeeling. If you go to my website, we have a bai mudan that we made this year from that very fine artisan plucking, selling for INR 800 for a 20 g pack. We also have 1 kg Darjeeling broken at INR 800 or 900. This can be confusing to the consumer that the same estate is selling a kg for INR 800-900 and is asking INR 30,000 for another.

    We have to develop the terroir. How do we stand out, what is Darjeeling capable of… We have Japanese bushes at Rohini and they look like a cousin of Japanese tea. We make them mildly oxidised. They are different from the tea made by the same bushes in Japan. The place, the culture, the climate impacts the tea.

    We need to define this space. There’s a lot of false promotion that is happening. We need to get some intelligent content out there. There is a lot of misinformation that we have to clear. We need to say: This is what we make. This is how it is different. This is what kind of flavors you can expect. This is how you have to brew it.

    I think all these things need to come out and is currently missing.

    Aravinda: What about second flush this year with the weather?

    Rishi: I think it’ll be better than last year. We should have our regular buyers back. They’ve been writing that they’ll be buying this year and that’s encouraging. For estates that are catering to the HORECA segment, I think that is quite a welcome news.

    Rohini Tea Estate is located in the Kurseong valley of Darjeeling. The estate was closed for 38 years from 1962 to 2000. From the old 1300 Hectares around 38 ha remains. These teas are of the Chinese origin and in the second flush produce exquisite muscatel teas. The total are of the garden is around 146 Hectares of which 108 ha is young tea.

    DARJEELING TEA

    This year, Darjeeling is trying to make up for a poor 2020. Official plucking dates was February 21 and the season began on an optimistic note. But at the end of the first quarter, the mood is of concern from drought-like conditions and a severe second wave of the Covid pandemic. Rainfall was less than half received in March last year, at 27.8 mm as opposed to 66.2 mm in 2020. Number of rainy days was down to 3.8 in March 2021, from 6 in March 2020. Temperatures have seen a 1 C rise in maximum temperature and 0.6 C rise in minimum temperature, at 23.3 C (Max) and 13.3 C (Min).

    March production data shows 172,294 kgs which is lower than March 2019 which was 227,790 kgs. We will be tracking Darjeeling climate, production and market news in our weekly Tea Price Report.

    Darjeeling in the Indian state of West Bengal is home of a tea that comes with a 150-year legacy. Located in the far eastern part of India, almost at the Himalayan foothills, Darjeeling’s tea regions are Mirik, Kurseong, Darjeeling, Teesta Valley, Rungbung Valley and Kalimpong. The elevation ranges from 500ft to 7000 ft, impacting the flavours of the tea that is produced here. While black tea has been the mainstay of this tea region, we now see a wide range of tea types and tea styles from here. Darjeeling enjoys three main flushes – spring, summer and autumn. Darjeeling tea is protected by the Geographical Indicator (GI) tag which means that only 87 tea gardens can call their teas as certified Darjeeling tea.


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