The 10th Edition scheduled for Aug. 27-30, 2021 at the Beijing Exhibition Center in Beijing, China has been postponed in a city-wide effort to contain the spread of the coronavirus.
The strong alliances and synergies resulting from this close cooperation with producing regions makes the popular exposition a benchmark in northern China by which other shows are measured. Attendees are highly qualified tea industry professionals and large-volume buyers including international representatives. A diverse show floor that includes every type of tea, plus processing and packaging machinery leads to many transactions and remarkable results.
The past nine years the Expo was co-organized by Pu’er city in Yunnan province, Xinyang city in Henan province, Lu’an city in Anhui province, Lincang city in Yunnan province, Huangshan city in Anhui province, Zunyi city in Guizhou province, Wuzhou city in Guangxi province, Xianyang city in Shanxi province, and Yiyang city in Hunan province, respectively.
The expo, which is approved by the Ministry of Commerce in China, is organized by the China Tea Marketing Association and the People’s Government of Xicheng District in Beijing.
Since 2012 the event has featured more than 3,000 exhibiting companies (90% are first-line brands), more than 1,000 media representatives generated nearly 30 million online searches. Visitors total 620,000, including 220,000 professional buyers. Exhibitors report a total of 7,282 projects, with turnover of RMB 5.9 billion. Tea delegations at the event are from a dozen countries including India, Sri Lanka, Kenya, Australia, South Korea, Singapore, Malaysia, Japan, Germany, Italy, and Argentina.
The expo annually attracts the best-known tea companies and tea brands in China. The 2021 exhibition covers 26,000 sq. meters with 600 companies participating. Brands include Zhejiang Tea Group, Xiangcha Group, Sichuan Tea Group, Dayi Group, Wuyi Star, Zhuyeqing, Zhang Yiyuan and Wu Yutai.
Education sessions spread tea knowledge and expose attendees to tea culture by showcasing local customs and heritage. A variety of tea cultural activities attract young and fashionable consumers seeking to better understand the tea industry.
Sessions also cover topics of interest to caterers, resort, and hotels operators, tea preparation and proper use of utensils, advice on selecting and properly utilizing water with an introduction to new style tea beverages. Many cross-border tea events are planned, revealing new trends that drive consumption.
The Beijing International Tea Expo has it all: popularity, extensive publicity, high standards, strong professionalism, a broad range of exhibition categories, international buyers, and good service.
A rigid definition of what makes tea special has eluded the industry. Professionals understand excellence in specific styles. For example, after 45 years of competitions there is consensus on the qualities that make an outstanding dong ding oolong as judged by the Lugu Tea Farmers’ Association in Taiwan. In France, the AVPA has demonstrated skill in determining the gastronomic qualities in tea that please the local palate. The International Specialty Tea Association posts a set of universal standards such as pluck and leaf quality. Consumers mainly differentiate by price. This week the European Speciality Tea Association announced a definition that is more aspirational than dogmatic. ESTA Executive Director David Veal explains how the association adopted this approach and why it will prove helpful.
David Veal, Executive Director of the European Speciality Tea Association on what makes specialty tea special. A field of tea in Japan
A New Definition of Specialty Tea
Aspiring to attain excellence in all aspects of tea processing and brewing from the bush to the cup
Dan Bolton – David, the European Tea Society that evolved into the European Speciality Tea Association did so initially without delineating specialty tea from the great sea of commodity offerings. That task is now complete. Will you share with listeners your process in defining the specialty tea segment?
David Veal – Three years ago, we didn’t really have a definition. [Association President] Nigel Melican had this definition in his head, but he’d never really put it down on paper. I’d been through the whole journey with the specialty coffee association of Europe. So, between us, we just lay down a fairly short definition that was open to people with different views in the industry to disagree.
We decided early on this year to set up a working group of very experienced tea professionals to really look at it and we covered a lot of ground.
Our starting point was to ask: Are we ever, ever, going to get a universally agreed definition of specialty which everybody will agree with? The answer, of course, is no, we weren’t going to do that. So, knowing that we weren’t going to achieve perfection, we looked at it from a different angle.
We still call it a definition because that has impact, but really it’s more of a description, an attempt to broaden understanding a bit and bring in words and descriptions and ideas and concepts that most people in the industry would buy into – knowing that not everybody would be happy with every part of it.
Dan – Will you summarize for listeners the fundamental concepts captured in the definition’s key phrase: “Aspiring to excellence in all aspects of tea processing and brewing from the bush the cup.”
David – We came up with a general statement that we feel is a fairly holistic view, about speciality in terms of it being a product, in terms of it being, you know the passion for excellence, the taking care at every step. Also, not forgetting the most important part is the actual sensory experience in the cup. It speaks to the education that we’ve indulged in to try and help the consumer understand more about what they’re drinking.
That indefinable subjectivity, the conceptual side of it, the community side of it, the aspirational side with the point that it is a movement as well. Speciality tea is something that some people get, and some people don’t get.
Merging all of this together we came up with a description that we feel will never be perfect for everybody, but it’s fairly close.
Dan –How will this definition make a difference?
David – Is it enforceable? No, but we’ve very firmly nailed our colors to the mast here. This isn’t just the work of the working group, it’s been endorsed by the whole of the board of European specialists, the association, and other peers as well. If you look at those parameters that we’ve actually put into the definition. A speciality tea would have to fit into all of those, for most people, I believe, speciality would have to fit into those parameters. But a tea that fits into those parameters isn’t necessarily a speciality.
Dan – Will you expand on the definition’s reference to “delicate and unique hand-crafted teas which can be categorized as speciality tea”? How does “hand-crafted” differ from “handmade” tea? Please also clarify the role of machines in processing specialty teas.
Nigel Melican [Association President] – “Hand-made” is an oft used descriptor more aspirational than actual, If it is applied in a strictly literal sense it potentially allows the inclusion of an appallingly bad tea made solely by hand while excluding a superb machine-made tea.
Personally, I have worked with a few CTC (cut, tear, curl) teas that I include as “Specialty” – due to their stunning make, bloom, grade, consistency, density – stunning to the senses even before cupping them: Rare occasional examples from a few factories in Rwanda and Mt. Kenya. Stunning enough to run shivers down my back in anticipation: but definitely not hand-made – no hand alone could produce that degree of excellence in a CTC tea. Tell me that an expensive “hand-made” Swiss watch is made without machinery – lathes, diamond drills and saws, precision jigs, CNC cutting equipment – and then I will agree to exclude machinery from the “hand-making” of tea.
Similarly, the use of novel selective plucking machinery that exceeds the leaf quality of hand plucking, such as now operating in the US to produce some supreme specialty teas would, if we use the term “hand made” too literally, exclude this excellent mechanically plucked teas from the specialty tea market.
I believe handmade is well understood by consumers to mean hand-crafted, using relevant tools of the trade: to the watchmaker his lathe and drill – to a tea maker his rolling machine and dryer. If the result is supreme excellence then it counts as a specialty, however, achieved.
For all these reasons the ESTA definition uses the term hand-crafted, not hand-made – and, to further distinguish specialty tea from commodity tea we place emphasis on attaining tea excellence from bush to cup.
Dan –The coffee industry successfully arrived at a definition of specialty leading to consumer enthusiasm that ultimately benefitted growers, but it took more than 20 years to establish the protocols that differentiate the highest quality coffees from commodity coffee.
David – I think we’re quite a long way behind the curve compared with the coffee industry. We haven’t achieved the penetration of education and level of understanding to consumers that the coffee industry does. People don’t have the correct understanding to be able to value atea as well as they do coffee nowadays. But it will follow without a doubt.
We don’t mention pricing. It’s inherent in what we believe that if we can help improve the quality that’s coming into consuming countries of specialty, then prices will go up. And hopefully, a lot of that extra margin will go back down the line to give people a better living and a better reward for putting in their love, care, passion, hard work, sweat, perspiration to make better tea.
We know that we’re up against the big, big guys, the multi-nationals, the centuries-old economic model, that drives the price down, and therefore quality with it. You have to believe that if you improve the quality and give the consumer a better experience that will give the producer a better price. We’re also aware speciality will be 5% to 10% to the market, maximum, maximum. But as it improves we’ll pull along other parts of the industry.
I had a really good conversation with a well-respected, experienced person who worked for so many of the big companies over here. He told me the other day that he believes that specialty will be the savior of the tea industry. As you can imagine, I quite like hearing that.
Editor’s note:Updated to clarify the use of mechanical devices in producing specialty tea.
The Definition
European Speciality Tea Association (ESTA) values the science and art of tea making at every level. We value the skill, dedication and care which has been applied to create delicate and unique hand-crafted teas which can be categorized as speciality tea.
We support the speciality tea industry in all aspects of tea production from bush to cup and recognise the farmers who are aspiring to attain excellence.
We also value the following factors which we believe help contribute to being able to distinguish speciality teas from commodity teas. These can include but are not limited to:
The known supplier, the known farm, the known location, the known production dates, the known processing method.
Speciality tea can also be defined by the quality of the five criteria below:
The dry leaf
The aroma of the dry leaf
The colour and clarity of the liquor
The flavour and mouthfeel of the liquor
The appearance and aroma of the wet leaf
At ESTA we also support the use of biodegradable and environmentally friendly packaging because this is an integral part of the tea industry’s future.
We believe that the consumer needs to be inspired from the moment they enjoy the aroma, liquor and taste of the tea and can celebrate in the plant’s personality, the origin of the tea, the care that has been taken in the processing and brewing of it; this being a speciality moment.
European Speciality Tea Association joins in growing an inspirational community, supporting the movement which promotes speciality tea and improving the quality of tea consumed. Speciality tea exists through the dedication of people at all levels of the tea value chain. We respect and support the person plucking the leaves, the person producing the tea to the consumer brewing the tea. Each person who touches the tea until it is finally sipped can affect the final cup and our aim is to support this and share knowledge that will improve the tea industry.
European Specialty Tea Association strives to value, support and promote the people who have this dedication and who are involved and passionate in providing perfection in every cup.
We value all of the above when considering what is speciality tea and we welcome like-minded people and or affiliates to join us in our quest for tea excellence at every level.
In summary ESTA supports and promotes speciality tea (Camellia sinensis), the community and the movement. We also support the botanical sector as an inclusive part of our organization due to its extensive synergy within the tea industry and with tea lovers and professionals.
We are a dynamic organization, we are aspirational for speciality tea, and we aim to have a positive impact on the wellbeing of all sectors of the tea industry.
The European Speciality Tea Association
European Speciality Tea Association is an inclusive organisation whose mission is to create and inspire excellence in the speciality tea community through innovation, research, education and communication.
With members from over 28 countries representing all parts of the tea supply chain from producers to tea baristas, European Speciality Tea Association is helping to generate a vibrant speciality tea community across the world and is dedicated to promoting great quality tea in all of its forms to create a new sensory excitement amongst tea drinkers. You can join by emailing us at [email protected]
| Darjeeling Experiences a Severe Downturn | Researchers Discover Expanded Role for Microbes in Tea Making | Oxfam India Defines Living Wage for Assam Tea Workers
Seven-minute Tea News Recap
This week, the focus is on declining tea exports from India, which is a cause of concern to the industry. The tea associations have issued a press release that the industry is bracing for a decline of 30-40 million kilos this year, compared to 2020. Read more…
Features
Tea Biz this week travels to South Africa to discuss with Carmién Tea founder Mientjie Mouton the beneficial aspects of the European Union’s decision to register rooibos as the first African food product to receive protected designation of origin.
… and then to Scotland where Dananjaya Silva discusses with nine local tea growers how the short summers and cold winters of a far northern terroir contribute to the unique flavor of Scottish tea.
Carmién Tea founder Mientjie Mouton walks a field of rooibos
Rooibos Revived
By Dan Bolton
Carmién Rooibos Tea founder Mientjie Mouton explains the significance of the European Union’s decision to award Protected Designation of Origin (PDO) to rooibos, a registration that attests to the authenticity and commercially guards traditional processing methods to protect suppliers in the region where unique products are grown. Read more…
Carmién Rooibos Tea founder Mientjie MoutonCatherine Drummond-Herdman at her Megginch Castle tea garden.
Scots have a long history of growing Camelia sinensis in faraway lands ? from the jungles of Assam to the hills of Ceylon. A group of Scottish ladies have decided to follow in their ancestor’s footsteps by banding together as the Tea Gardens of Scotland. I’m Dananjaya Silva from PMD David Silva & Sons, and today I sit down with Kate Elliot, Catherine Drummond-Herdman, Pinkie Methven, and Veronica Murray-Poore to talk about tea grown from seed on micro tea plantations in Perthshire, Fife, and Angus Scotland. Learn more…
Tea growers in Scotland discuss their tea gardens and aspirations for Scottish teaDarjeeling’s tea planters are experiencing difficult times.
Darjeeling Experiences a Severe Downturn
By Dan Bolton
The West Bengal tea community that surrounds Darjeeling is experiencing difficult times. Only 45 of the 87 tea gardens within the protected geographical origin are routinely auctioning tea. Production has declined from 16 million kilos 15 years ago to fewer than 7 million kilos in 2021.
Tourists are few. As COVID-19 infections decline elsewhere, the pandemic persists in the foothills of the Himalayas forcing travel restrictions. There were 1,500 active cases last week, with 88 new infections on July 8, a number greater than Kolkata recorded that same day.
In June, the Telegraph India reported that more than 10% of Darjeeling’s tea gardens were up for sale but saw no buyers. Absenteeism, political turmoil, and climate change are often cited as reasons, but the main concern is the declining volume in production.
Rajah Banerjee, the heir to Makaibari Tea Estate, describes the situation with clarity and insight. “Darjeeling now faces a large-scale decline,” he writes. “Commercially, Darjeeling tea has been weathering a waning export market, explained by outdated management practices and exploitative middle-men. But there is a far more powerful factor at work now — the region’s ecology was already facing deforestation, making the seismically sensitive area vulnerable to topsoil loss and land-slides. Pushing the tea gardens closer to the edge now, climate change is bearing down on tea yields, impacting the livelihoods of thousands in the industry.
“As emissions rise, intensifying global warming, changes in the melting of the Himalayan glaciers are causing temperature rises in Darjeeling — this has led to insect proliferation which damage the crop. Alongside, a lack of precipitation during dryer winters and unseasonal inundations during plucking seasons have drastically changed our harvesting window, reducing an eight-month harvest period to just six. Uniquely, Darjeeling is the world’s only region that produces teas in four seasonal ‘flushes’ or harvests. While each has its distinctive flavor, color and aroma, the four flushes share one common thread — the regularity of the seasons themselves. Currently though, between prolonged droughts and unusual rain, tea growers are facing erratic and shrinking yields,” he writes.
Tea Board data shows that in 2020, Darjeeling’s production stood at 6.7 million kilos. This year, the second flush which makes up 20% of the annual production is seeing a reported decline of 200,000 to 300,000 kilos. April-May 2021 production stood at 1.22 million kilos (Source: Tea Board of India)
Biz Insight – News of gardens being sold has been recurring from this region. In 2020, the Singbulli and Nursing Tea Estates were sold. Okayti in June is the latest estate to be acquired. The 1600-acre high-altitude estate operates a factory that dates to 1888. The new owners are local and offer a hopeful vision of Darjeeling whose first concern is serving the domestic market. The estate was sold to Chai Chun, a unit of Siliguri-based Evergreen Group, a firm that operates Chai Rasa cafes and boutiques. Founder Rajeev Baid envisions a world-class tea academy to draw students of tea culture and tourists to an estate that produces organic tea using orthodox process as well as cut, tear, curl packet tea. The company processes 15 million kilos of tea across a broad range of 165 varieties supplying premium and bulk tea in quantities that benefit from scale.
Researchers Discover Expanded Role for Microbes in Tea Making
By Dan Bolton
The oxidation of tea leaves during orthodox processing is essential but not exclusively responsible for the flavor in tea.
The finding that bacterial and fungal communities also drive tea processing suggests the microbiome of the leaves can be manipulated to create greater quantities of tasty compounds due to fermentation.
A team of researchers at Anhui Agricultural University in China cleverly demonstrated that black teas, withered, rolled, and oxidized before drying are less flavorful when sterilized. Their paper, Black Tea Quality is Highly Affected during Processing by its Leaf Surface Microbiome, which was published in the June issue of the Journal of Agricultural and Food Chemistry, shows that microbial fermentation, present in non-sterilized control samples, produced tea with lots of catechins and L-theanine, an amino acid specific to tea. Tea made from the oxidized but sterile leaves was less flavorful and lacking in many of the complex compounds that tasters identify in premium teas.
The experiment showed that caffeine and theanine were found in the same quantities in green tea with or without leaf surface sterilization. “However, the sterilization process dramatically decreased the content of total catechins and theanine in black tea, indicating that microbes on the surface of tea leaf may be involved in maintaining the formation of these important metabolites during black tea processing,” according to Prof. Ali Inayat Mallano.
Oxfam India Defines Living Wage for Assam Tea Workers
Oxfam India, a confederation of 20 independent charitable organizations, released a study last week that determined the minimum living wage for tea workers in Assam is INRs 887 rupees (about $12 per day). Workers make far less per day and are working fewer days due to COVID-19 restrictions. Only 39% of workers can be considered as permanent, the remaining 61% contract their services with fewer benefits. The study calculated a minimum of INRs 285 per day for food for a family of four and INRs 599 for non-food expenditures.
Biz Insight – The study of 5,000 tea workers in seven districts was conducted in October through December 2020. Oxfam CEO Amitabh Behar in appealing for improved wages described “a stark gap between the current wagers that tea workers receive vis a vis the living wages that has been calculated.”
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.
Rooibos is a shrub that grows in a very narrow corridor north of Cape Town in the fertile soil of the Cederberg Mountains. Growers there produce about 20,000 metric tons annually to make a healthful, refreshing, non-caffeinated herbal beverage known locally as red bush tea. Rooibos and the region where it is grown were recently awarded Protected Designation of Origin (PDO) status by the European Union. The traditional process used to make rooibos was also protected.
A field of rooibos in the shadow of the Cederberg Mountains. Photos courtesy Carmién Rooibos Tea. Photos by Peartree Photography
Listen to the interview
Mientjie Mouton, founder and managing director of South Africa’s Carmién Rooibos Tea, a supplier of quality rooibos, explains the significance of the protected status afforded this widely consumed beverageand how rooibos has rebounded from a devastating drought.
Mientjie Mouton, founder and managing director Carmién Rooibos Tea
Dan Bolton –Will you tell our listeners why the EU’s decision is good news and how you see the European Union’s seal of authenticity advancing the overall consumption of rooibos worldwide?
Mientjie Mouton – We are very excited about this. It’s a process that was started about ten years ago. Everyone now knows that rooibos tea is really something special and that some key points differentiate the product from all the other herbal teas. The rooibos tea certification means the product must be cultivated and produced in this region. Processing also has to take place in that region.
The region sees very cold winters and hot summers, which helps create the special taste and flavor of rooibos tea.
Rooibos is a natural product only grown in 15 areas in the Western Cape and the Northern Cape of South Africa.
Carmién Rooibos Tea is based in the Western Cape. We buy tea for processing from all the different areas, including the Northern Cape and southwest locations. When buying rooibos tea from Carmién Tea, we can guarantee that you will get true, honest, and purely natural products from these locations.
Dan – About half of the rooibos produced is consumed locally, and the rest is exported to 60 countries, mainly in Europe, where Germany (28%) is the leading market. Japan consumes about 22% of rooibos exports. Following several years of strong growth, a four-year drought in 2015 curtailed market expansion. The rains have since returned, and the perished bushes have been replanted, some with drought-resistant cultivars. Mientjie, you mentioned that shifting temperature and rainfall patterns have actually expanded growing areas.
Mientjie – Drier conditions apply globally, specifically in South Africa and the Western and Northern Cape. The production area for rooibos tea has moved slightly towards the southwestern parts and away from the northern parts. Our average rainfall is around 300 millimeters per year came down to below 100 mm of rain during the severe drought. Over the last two years that rainfall has picked up, but it’s still below average. So in general, we see a trend towards drier conditions. Luckily for South Africa, we have areas that used to be too wet to grow rooibos tea, which has become perfect and suitable for growing good quality rooibos.
Harvesting rooibosRooibos prior to oxidationOxidized rooibos air driedProcessing occurs immediately after cutting. Red rooibos is first bruised, then wet, and left to undergo enzymatic oxidation for 12 hours. Naturally occurring enzymes in the plant give the needle-like leaves a red hue. Green rooibos is harvested, cut, and dried immediately, without the fermentation step. Photos by Peartree Photography
Dan – The EU’s Geographical Indication (GI) requires strict compliance with traditional processing methods and prohibits third parties from using phrases like “rooibos style,” “red bush type tea,” or “imitation red bush” on labels and promotions.
Mientjie – This is actually a stricter GI certification that has been approved for rooibos tea. It specifies only 15 regions within the Western and Northern Cape of South Africa where Rooibos can be grown and be called rooibos tea. Rooibos undergoes an oxidation process where the antioxidants in the tea and the natural plant phenolic activities in the tea give you a very specific characteristic smell and taste, which is a more fruity, sweet flavor. That is one of the most identifiable properties of rooibos tea. The tea has a slightly sweet caramel taste and flavor and is not as stringent as black tea or other herbal teas. It has a very nice, smooth, full flavor and aroma. All that has to do with the special oxidation process where the temperature can increase to about 40 degrees Celsius. That happens overnight after the tea has been cut. Once it’s gone through that process, we have a nice red infusion in the cup. “Rooi” in Afrikaans is the color red in English; that is where the name comes from.
When it does not go through that process, we have green rooibos tea, which is the unfermented variant of our rooibos. Green rooibos is very popular nowadays, and we are very excited about it because the health properties are even greater in green rooibos than red.
“All Carmién Rooibos Tea products will now carry the PDO logo ensuring buyers that they are purchasing rooibos sourced from the above-mentioned areas and authentically produced.”
Dan –During the ongoing pandemic, there’s been a significant increase in consumption and interest in the health qualities of herbal infusions. Will you describe some of the health advantages of rooibos.
Mientjie – Rooibos tea is naturally caffeine-free. That is one of the biggest health benefits. Every batch of tea that we process is graded for the quality of that specific cup when it comes to specific antioxidant values. These antioxidants benefit and support your immune system and helps you to stay hydrated. We all know that is the baseline of keeping healthy. What we’ve seen is that minerals like zinc, magnesium, and calcium have become exceedingly important in times like these. It is about a well-balanced, healthy body that you have to maintain in order to prevent contracting viruses.
To keep a healthy body, and healthy lifestyle, we like to say that you need to drink 10 cups of rooibos tea a day. Research indicated six cups of rooibos/day provides important benefits but even two cups will suffice.
So you’re gonna have to drink your rooibos daily in order to keep healthy.
Dan –Customers looking for convenience will find rooibos available in both an iced format (bottled and canned), or brewed hot then chilled over ice, as well as cold brewed. Will you talk briefly about cold brew formulations since they are growing in popularity.
Mientjie – You can brew rooibos for as long as you like and it will not become bitter, it just increases the sweetness and antioxidant value. The cold brew option as a way of preparation is very interesting to us. Just put the tea bag in cold water, let it steep overnight and you get a very smooth flavor profile.
If you use a high-quality tea you will get the rich flavor and fullness in your cup. The health properties, antioxidant levels, and minerals available in that cup are exactly the same. Processed rooibos is steam sterilized and has a very low total microbial count, making rooibos a very safe tea to use as a cold brew. As for convenience, you can keep it in the fridge, let it brew overnight, and have it eady for the office or children’s food boxes, the next day, or simply for in-home consumption. It’s very healthy and very safe.
Carmién Rooibos Tea
The company was founded in 1998 in an old farm shop in Citrusdal, South Africa, at the foothills of the Western Cape’s Cederberg Mountains. Founder and Managing Director Mientjie Mouton grew up on a rooibos farm in the same valley before moving to the Brakfontein Estate where rooibos was also produced. Carmién sources from several growers and supplies Costco Japan, Taiwan, and several private-label and bulk clients globally. In North America QTrade Teas & Herbs has been the exclusive distributor of Carmién organic rooibos for the past 20 years.
Rooibos is native to South Africa and has been consumed by the Khoisan for more than 300 years. It has been grown commercially for over a century and now accounts for most of South Africa’s tea exports (South Africa also produces a small quantity of black tea). Initially regulated, in 1993 the South African government permitted commercial production that boosted exports. Plantings in the prime growing areas of Citrusdal, Piekenierskloof, Nieuwoudtville, Wupperthal, Clanwilliam, Redelinghuys, and Gifberg expanded and dry yields rose to about 300 kg per hectare using modern harvesting techniques. In 2007 rooibos generated $10 million annually (ZAR155 million) a total that doubled by 2015 when a severe drought depressed yields that fell to less than 10,000 metric tons. In 2019 South Africa exported 7,693 metric tons. The domestic market consumed 7,000 metric tons. According to the Rooibos Council fact sheet, there are 11 commercial processors and approximately 300 commercial farms employing 8,000 farm laborers. The annual harvest begins in late January through February.
| Logistics Companies Invest to Right the Ship | Kenya’s Newly Elected KTDA Board Ousts Executives | Hain Celestial Streamlines its Tea Selections
Seven-minute Tea News Recap
A special auction conducted by the Tea Board of India across auction centers featured a carefully curated catalogue of teas, plucked on the International Tea Day on 21st May. This special sale saw record prices that brought welcome energy and excitement to the industry. Read more…
Features
Tea Biz this week travels to Darjeeling, India where Dorje Tea, an innovative new tea venture is taking root at the Agarwal family’s ancestral farm at Selim Hill Tea Garden … and then to the Jersey Isles off the coast of France where Alicia Gentili, project manager and tea maker at Jersey Fine Tea, discusses the challenges and rewards of establishing a new tea garden in the English Channel.
Dorje Tea co-founders Sparsh Agarwal and Ishaan Kanoria, right.
Reviving Darjeeling
By Aravinda Anantharaman
Sparsh Agarwal is the fourth generation in his family to cultivate tea in the Himalayas but, as you will hear, he is not bound by tradition. Agarwal and Dorje Tea co-founder Ishaan Kanoria are targeting India’s domestic market, offering a subscription model that delivers Darjeeling tea from all four plucking seasons that will improve profitability and give Selim Hill Tea Garden a second chance. Read more…
Sparsh Agarwal on marketing Darjeeling’s seasonality domesticallyAlicia Gentili, project manager and tea maker at Jersey Fine Teas
Camellia sinensis is a versatile plant that is grown in many parts of the world, observes Tea Biz correspondent Dananjaya Silva. At 49 degrees latitude, Jersey, the largest of the Channel Islands situated between England and France, is much further north than traditional tea lands, yet the island is proving to be fertile ground to produce fine loose-leaf tea. Silva talks about the challenges of growing tea outside its comfort zone with project manager and tea maker Alicia Gentili from Jersey Fine Tea. Read more…
Alicia Gentili on growing tea on the English Channel Island of JerseyMSC operates the world’s second largest container fleet by TEU
Logistics Companies Invest to Right the Ship
By Dan Bolton
Shortages of raw ingredients for beverages and higher shipping costs continue the saga of supply chain woes into summer. Last week Starbucks’ customers found green tea in short supply along with chai tea bags and oat milk. No single item has disappeared from the menu, but Reuters found temporary shortages at nine major fast-service chains are widespread.
Less obvious are the costs passed along due to more expensive air and sea transport and a shortage of truckers. Reserving a 40-foot container to ship tea from Shanghai to Los Angeles cost $6,368 in June, according to the Drewry Freight Rate Index. Delivery to Chicago from Shanghai normally takes 35 days (including 33 at sea) but shippers now estimate 73 days for delivery as port-to-destination times have doubled. When premiums are added to secure equipment and vessel space is included, the effective West Coast rate for landing tea from China ends up being about $8,000 to $11,000 per FEU (forty-foot equivalent unit), according to the Journal of Commerce.
At the consumer level, this means online orders for tea must now meet $50 and $75 thresholds to qualify for free shipping and that four-week delays are common. Observers predict that the kinks in the supply chain will persist through 2022.
Biz Insight – Global container fleets are consolidating as shipping companies put new-found money to work acquiring vessels and ordering containers. Swiss-owned MSC (Mediterranean Shipping Company) has acquired 70 ships since August and has an orderbook of 800,000 TEU for new ships. The buildup in demand shows no sign of abating as consumers spend pandemic savings and economies emerge from lockdowns.
Kenya is home to 658,000 tea smallholders
Newly Elected KTDA Board Ousts Executives
Newly elected Kenya Tea Development Agency (KTDA) directors and chairman David Muni Ichoho on June 22 were escorted by police to their offices in the KTDA headquarters in Nairobi.
KTDA’s Peter Kanyago, who had been at the helm of the tea agency for 26 years, was forced to relinquish his position after he was unseated in a local election April 25. KTDA CEO Lerionka Tiampati and other senior staff were given compulsory leave. Ichoho announced an internal investigation to determine culpability for potential malpractice and possible abuse of office.
Kenya’s tea farmers collectively own 66 of the nation’s tea factories. They contract with the Kenya Tea Development Agency (KTDA) to pay for what they produce and to market their tea.
During the past two years local concerns about a ‘tea cartel’ and a new administration in Nairobi led to legislative reforms that permit factories to replace directors by conducting special elections. The previous system awarded votes by share. Board members found they only had to please the largest farmers. Now it’s one man, one vote. Ousted board members challenged the Tea Act, 2021 in court and consider any special elections conducted between March and May invalid.
Ichoho’s first official act was to notify the organization to accord full recognition and cooperation to the new board as it takes over factory management, “We wish to assure all stakeholders that the operations of the group are running smoothly without any interruptions.”
He told the Kenya News Agency that “Procurement contracts will also be reviewed to ascertain value for money and determine if the services and goods were obtained within the market benchmarks.”
“The reform journey began in earnest on 14th January 2020, with the directives by His Excellency the President of the Republic of Kenya, following outcry by over 658,000 farmers over dwindling fortunes as it became clear that the tea value chain governance structures had been captured by some individuals and groups of persons for their own selfish interests at the expense of the principal stakeholders – the tea farmers,” said Ichoho.
He said KTDA abdicated their core responsibility of serving the best interests of the farmers.
“It is against this background that shareholders made a decision to exercise their rights to make leadership changes with a view to charting a new direction towards a sustainable and profitable farming in tea sub-sector for smallholders. The farmers, towards this objective undertook to elect new leaders from the shareholders as Factory Directors and Board members for the KTDA Holdings,” Ichoho said.
A spokesperson at a non-violent late-night protest predicted that a case before Kenya’s Constitutional Court would find the government’s actions unconstitutional and reinstate the old board.
Ichoho said that all cases brought by or that have been filed by KTDA challenging the Crops Industry Regulations, 2020, and the Tea Act, 2021 will be discontinued with immediate effect.
“The Company will support full implementation of the Tea Act 2020 and will no longer pursue avenues that are against the interest of over 600,000 small holder farmers,” according to the Kenya News Agency report.
On June 18, 2021 KTDA elected the following: David Muni Ichoho as chairperson with board members, Michael Kamau Ngatia, Paul Mwangi Kagema, Enos Njiru Njeru, John Mithamo Wasusana, Geoffrey Chege Kirundi, Abungana Khasiani, Erick Kipeyegon Chepkwony, Thaddeus Mose Mangenya, James Ombasa Omweno, Wesley Cheruiyot Koech and Baptista Muriki Kanyaru.
Patrick Ngunjiri was appointed Acting Company Secretary.
Celestial Seasonings offers 105 varieties of tea.
Hain Celestial Simplifies Tea Selections
US grocery stores enjoyed a strong 2020 and in 2021 pandemic stickiness is apparent for e-commerce convenience and at-home meals, according to Coresite Research which reports that as of June US retail store closures are down year-over-year for the first time since the initial lockdowns.
Half of Americans now say they would feel “very comfortable” shopping in a physical store during the next three months, compared to 29% in the year-ago period according to SafetyCulture. When they return, consumers will discover that higher ingredient costs, packaging, shipping expense and eroding brand loyalty convinced food manufacturers to simplify their offerings.
General Mills anticipates raising its prices 7% globally over the next year. “We are ending one period of significant consumer disruption only to start another,” Chief Executive Jeff Harmening told the Wall Street Journal. “The next few months will be especially critical for our brands as the world transitions to a new normal.”
Tea manufacturer Hain Celestial has a big footprint in grocery with thousands of SKU (stock-keeping units) – far too many according to Mark L. Schiller, president and chief executive officer. Schiller told investors that shedding 20 brands, discontinuing 1,000 SKUs proactively before the pandemic and really simplifying the way we operate …” were the cornerstones of a simplification strategy that has increased margins.
He told Food Business News that he is transitioning the $2 billion Hain Celestial Group from a holding company to an operating company. The new focus is on innovation vs. additional flavor varieties, he said.
“So, instead of ‘here’s the 37th flavor of Sleepytime tea,’ ” he said, “we’re bringing tea with energy, tea with melatonin, tea with probiotics and gut health and immunity and things that are much more incremental in the category, cold brew tea, K-cups, things that really are going to help the retailer grow their category and therefore, earn their space.”
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.
