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Why is First Flush Tea so Tasty? Metabolites | Oversupply Threatens Kenya’s Harvest Windfall | World Tea Expo: An Infusion of Fresh Ideas Opens this Weekend

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Episode 159

Why is First Flush Tea so Tasty? Metabolites | Oversupply Threatens Kenya’s Harvest Windfall | World Tea Expo: An Infusion of Fresh Ideas Opens this Weekend | PLUS Tea Revolution founder Annabel Kalmar describes the DNA of a purpose-driven venture.

Tea News for the week ending March 15, 2024

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Annabel Kalmar, founder of Tea Rebellion, a small direct-trade single-farm tea retailer, describes the DNA of a purpose-driven tea venture and the challenge of changing how tea is traded, marketed, and consumed. She says the goal is to be a sustainable, transparent, award-winning tea brand. Tea Rebellion, founded in 2017, does not sell blended or flavored tea. Farms are co-branded, and marketing draws attention to the farm and identity of growers. “To affect change, we need to credit the maker of the product,” she says. “To drive impact, I choose to work with tea farmers with a clear goal of sustainability and impact in their communities. Several of these farmers are female-run or committed to the empowerment and well-being of women,” she says.

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The 2024 First Flush is Underway

By Dan Bolton

The allure of first-flush teas has inspired poets for centuries, but what of the science?

Scientists are rhapsodic, too.

In spring, the buds of high-mountain teas burst with amino acids. Tea leaves contain significantly more carbohydrates, flavonols, and polyphenols in summer and autumn.

According to a 2020 study published in Food Research International, flavonoids and flavonols (the good-tasting, good-for-you compounds), catechins, and amino acids abundant in spring leaves showed sharp seasonal differences. The researchers concluded that harvesting time was one of the most critical factors affecting metabolites most closely related to the quality of green tea.

A team analyzing young translucent Anji Baicha leaves plucked on March 6 found their leaf chemistry significantly differed from leaves from the same plants plucked on May 10. The analysis, which combined liquid chromatography and mass spectrometry (LC-MS), was found to “assess tea quality objectively and reliably.”

Since then, the research has been used to ascertain optimal harvest dates to take advantage of tea’s multiple health-promoting effects, primarily attributed to its secondary metabolites, including polyphenols, amino acids, caffeine, and other compounds.

Last year, Chinese researchers using the same technique found that they could distinguish all six categories of tea by calculating differences in the accumulation of signature compounds.

The study involved 1,329 leaf samples collected from every major tea-producing region in China. Most of the samples (1,146) were green teas, but categories included white, yellow, oolong, black, and dark tea.
The concentration of chemicals revealed the geographical origin and harvest period. For example, in early spring, green teas from Jiangnan contain China’s highest concentration of theanine and free amino acids.
Researchers employing fluorescence spectroscopy found they could identify and differentiate black tea from distinct tea gardens.
Their work was published in the journal Food Chemistry in January.

BIZ INSIGHT—The studies found that fermentation significantly reduced total polyphenols, catechins, and theanine content. Tea masters intuitively know this after decades of manipulating these compounds using various processing techniques to enhance aroma, umami, and overall taste. Now, they can better source raw leaves that contain the raw compounds needed to produce a specific tea. The research also allows for verification of the varietal, harvest date, and locations specific to each garden.

Kenya Tea Growing Counties

Oversupply Threatens Kenya’s Harvest Windfall

Kenyan tea exporters sold 523 million kilos in 2023, earning a record Sh 180 billion ($1.23 billion). However, oversupply due to favorable weather, subsidized fertilizer, and aggressive plucking threaten to undermine black tea prices globally.

Tea exports are in decline, and bulk tea prices are falling. The World Bank forecasts tea prices will decline 2% in 2024. The Economist Intelligence Unit (EIU) expects “prices to weaken to an average of $2.75 per kilo in 2025.”

Greenleaf production rose 15% among Kenya Tea Development Agency (KTDA) smallholders from June 2023 through January. Unit prices are up 13% to Sh 345 per kilo, rewarding growers with a record bonus.

But the windfall is more closely tied to currency fluctuations than demand. Slowing economies, sanctions, and war globally contribute to auction warehouses bulging with staling tea.

According to the East Africa Tea Traders Association (EATTA), 40.7 percent of the tea on offer remained unsold in 2023. Traders normally buy 75 percent of Kenya’s annual harvest at auction, but demand is unusually low, forcing the country to consider abandoning a $2.43 per kilo minimum price established in 2021.

Kenya stands out as the only country among the top five producers worldwide to see gains in volume and value. China reported a second year of declining export sales to $174 billion. In Sri Lanka, export value increased due to high unit prices, but volume continued to decline. India also saw declines in volume and value. Turkey, the world’s fifth-largest tea-producing country, reported tea production declined to 275,000 metric tons. Tea exports were up but amounted to only $25 million in 2022-23.

Unlike China and India, Kenya’s domestic tea market is relatively small, making Kenya the world’s top black tea exporter, even though India produces much more significant quantities. East African tea-producing countries export more than 90% of the teas grown there. Kenya exports 95% of its tea, of which only 10% is blended and packed.

The big surge in value did not significantly increase unit prices. Auction price averages fell in 2023 compared to 2022. Earnings surged by almost a third (31%) on volume that grew by 72.5 million kilos from the 450 million kilos sold in 2022.

The full-year price average was 10% lower in 2023 than the previous year “largely because we believe that market surpluses have been large in recent years and that stock levels are therefore high,” writes EIU.

BIZ INSIGHT – Ten years ago, Kenya experienced a similar bubble, which soon burst. Acreage under tea grew by 45%, and production jumped by 25.8% between 2003 and 2012. In 2014, the Mombasa auctioned a record 400,000 metric tons with little left unsold. The monthly volume approached 35,000 metric tons during peak months, with only 2,000 tons unsold. The global tea surplus reached 130,000 metric tons the following year as Kenyan production reached new highs. Shortly after, Greenleaf prices plummeted to 35 cents per kilo, down from 55 cents per kilo in 2012. Tea profits at plantations across East Africa fell by 30% when the pricing bubble burst.

World Tea Expo | North America’s Biggest Tea Industry Tradeshow

World Tea Expo: An Infusion of Fresh Ideas

The World Tea Expo returns to Las Vegas Convention Center this weekend through March 20.

The annual event draws worldwide attention to a North American market that fosters innovation and rewards quality-conscious producers who export specialty grades. The event is co-located with the Bar & Restaurant Expo.

It all begins Sunday with a meet-and-greet at the Las Vegas Convention Center. Sessions on Monday include the Tea Business Incubator, which is a must for tea retailers. This year’s program is immersive, with a new Tea Primer Certification and hands-on demonstrations essential to understanding tea’s organoleptic qualities. Kevin Gascoyne’s Rare Tea tasting is a fantastic opportunity to experience the “qi” in tea.

Tea educator Sharyn Johnston is hosting a reunion of Tea Academy graduates at the NxT Stage on Tuesday afternoon.

Tea Biz will be on the floor for live podcast interviews with attendees and exhibitors at the International Pavilions. Exhibitors include several Chinese, Sri Lankan, Korean, Japanese, and African tea suppliers.

I will also be hanging out at the Tea Bar to taste winning teas from the beverage challenge and with keynote speaker and good friend Jeff Fuchs on Tuesday from 1 to 2 pm.

Look for me at the Azilo Ultra Lounge at the Sahara on Tuesday night from 6:30 to 8 pm for the tea industry happy hour.

Say my name when passing on the South Hall floor, and you’ll receive a free full-year subscription to Tea Journey magazine.

BIZ INSIGHT—I’ve attended this show for 20 years as a journalist, speaker, panelist, presenter, exhibitor, and attendee. Every year, I learn something new and treasure the opportunity to mingle with a vibrant community of tea professionals.

FEATURE

Annabel Kalmar, founder Tea Rebellion

Tea Rebellion: Anatomy of a Purpose-Driven Brand

By Dan Bolton

The “B” in B Corp signals “Benefit” for all. In tea, that means an inclusive, equitable, and regenerative economic system for everyone and the planet. There are fewer than 9,000 B Corps globally.

Annabel Kalmer says, “Incorporating the B Corp stakeholder considerations into our Articles of Corporation for the UK and Canada ensures that our environmental, social, and governance commitments are firmly embedded in our corporate structure.

The goal is to be a tea brand for sustainable, transparent, award-winning tea. Tea Rebellion co-brands with farms and does not blend or flavor tea.

“We remain firmly wedded to our original Tea Rebellion DNA,” says Annabel, who has a master’s in economics specializing in micro- and rural finance. She previously worked for the World Bank and the OECD. She returned to academia to study agriculture, focusing on environment and gender. Her fieldwork included studying female banana growers in El Salvador and coffee farms in the Dominican Republic. To drive impact, I choose to work with tea farmers with a clear goal of sustainability and impact in their communities, several of which are female-run or committed to the empowerment and well-being of women.

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Annabel Kalmar, founder Tea Rebellion Tea

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Why is First Flush Tea so Tasty? Metabolites | Oversupply Threatens Kenya’s Harvest Windfall | World Tea Expo: An Infusion of Fresh Ideas Opens this Weekend | PLUS Tea Revolution founder Annabel Kalmar describes the DNA of a purpose-driven venture. | Episode 159 | 15 Mar 2024

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March 17, 2024

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Dan Bolton

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Diets that Include Tea Brewed in Teabags Linked to High PFAS Levels | Flavor-enhancing Microbes Are at the Root of Quality Tea | Retail Tea Prices Remain High

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Episode 156

Researchers Link Diets that Include Tea in Teabags to High PFAS Levels | Flavor Enhancing Microbes Are at the Root of Quality Tea | Retail Tea Prices Remain High as Inflation Eases

Tea News for the week ending February 23, 2024

Hear the Headlines | Seven-minute Tea News Recap

India Tea News | Aravinda Anantharaman

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Invented in 1875, the aromatic “qihong cha” or Keemun black tea, grown in Qimen County in China’s Anhui Province, quickly rose to prominence, explains senior tea master Lilian Xia, President of the Canada Tea Institute. She joins Tea Biz to recount the legacy of a Chinese market-savvy entrepreneur, Yu Ganchen, the pioneer of Qimen tea, who developed the processing method for Qimen black tea and expanded its sales overseas.

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Lilian Xia on the revival of Keemun black tea

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A diet with tea brewed in teabags was linked to higher PFAS levels in human trials.

Researchers Link Diets that Include Tea Brewed in Teabags to High Levels of “Forever Chemicals”

Researchers studying dietary patterns report a link between consuming tea in teabags and high levels of forever chemicals likely leeched from tea bags and packaging. The study was financed by the US National Institutes of Health (NIH) and was led by chemists at the Keck School of Medicine at the University of Southern California (USC)

According to researchers, dietary changes could lower pre- and polyfluoroalkyl (PFAS) levels in the body based on testing that showed increased levels in human trials among those consuming certain foods and beverages. The research is based on a nationally representative sample of 725 young adults.

The PFAS levels were highest in those who ate out frequently and those who drank tea in teabags and consumed processed foods. Eating food at home demonstrated the opposite. Every 200-gram increase in home-prepared food showed lower levels of PFOS (perfluorooctanesulfonic acid), one of several forever chemicals.

A single additional serving of tea was linked to 24.8% higher levels of perfluoro- hexanesulphonic acid (PFHxS), 16.17% higher perfluoroheptanesulfonic acid (PFHpS), and 12.6% higher levels of perfluorononanoic acid (PFNA).

Totals also rose among those who consumed pork, hot dogs, and processed meats.

Researchers expressed concern that even metabolically healthy foods such as tea can be contaminated with PFAS, which is known to harm human health.

Hailey Hampson, a PhD candidate at the University of Southern California, told Technology Networks, “Our primary hypothesis is based on a study published last year, which found that some tea bags contain PFAS. This study, conducted in India, tested 108 tea bag samples collected from the Indian market and found that 90% contained detectable PFAS concentrations.”

The research team is now testing popular tea brands in a follow-up study.

Hampson said, “We need more research on commercially available tea bags in the USA to determine the degree to which PFAS contamination in tea bags is an issue in the USA. Based on our findings and the findings from other researchers, we are currently performing a study to test for PFAS contamination in tea bags from the US market.”

Seafood, fruit, and vegetables, even the air you breathe, have been shown to contain microparticles of toxic polymers known to irritate lungs and cause headaches, asthma, and possibly cancers.

BIZ INSIGHT – A research paper published in 2019 calculated a single tea bag, when brewed in boiling water, releases up to 11.6 billion microplastics and 3.1 billion nanoplastics in a single cup. The plastics implicated were nylon and PET particles found at levels in tea “several magnitudes higher” than plastics in other foods. A 2021 study suggests that microwaving tea bags further amplifies the release of nanoparticles. Many brands have since switched to paper teabags, most of which are sealed with plastic.

Download: Plastic Teabags Release Billions of Microparticles and Nanoparticles into Tea (American Chemical Society – 2019)

Occurrence and Risk Assessments of Per- and Polyfluoroalkyl Substances in Tea Bags from India (Food Control – 2023)

Customized colonies of microbes in the tea tree root biome enhance tea flavor.

Flavor Enhancing Microbes Are at the Root of Quality Tea

Enhancing the underground community of microbes surrounding tea roots significantly improves tea quality even in poor soil and sickly plants.

Researchers at the Fujian Agriculture and Forest University in China found that microscopic microorganisms that regulate nitrogen intake are essential to the production of theanine. The amino acid, found only in tea, imparts a distinctive umami flavor and mouthfeel. Their study published last week in the scientific journal Current Biology attributes improved taste to a delicate balance known as nitrogen homeostasis.

Lead researcher Wenxin Tang writes, “The initial expectation for the synthetic microbial community derived from high-quality tea plant roots was to enhance the quality of low-quality tea plants.

“However, to our astonishment, we discovered that the synthetic microbial community not only enhances the low-quality tea plants but also significantly promotes certain high-quality tea varieties.

“Furthermore, this effect is particularly pronounced in low-nitrogen soil conditions,” he writes.

The Hindustan Times writes that by analyzing microbial populations in the roots of various tea plants across seasons, researchers developed a synthetic microbial community as a “custom-built team working together towards a common goal. In this case, the goal is to mimic the beneficial microbial environment of high-theanine-producing tea plants.”

“The researchers found that their synthetic microbial community significantly increased theanine content in tea plants (at least for the tea strains they tested). This indicates there might be a new way to improve tea quality by managing soil microbes rather than using chemical fertilizers,” writes Anirban Mahapatra.

He cautions this doesn’t mean we’ll see the use of this technique overnight. There are legitimate questions about how scalable using microbial communities to enhance tea flavor might be when discussing extensive gardens. But if these results hold out after further testing, we might have high-quality artisanal batches of tea from more sustainable cultivation practices that prioritize quality and environmental health.

Tea producers who adopt microbial management techniques to improve tea quality would be able to differentiate their products to open a whole new segment of the premium tea market.

FAO tracking shows nominal and real food prices aligned

Retail Tea Prices Remain High as Inflation Eases

Inflation is easing, but the cost of making and packing tea is higher than ever because of spiking distribution costs and rising fertilizer prices.

In the UK, prices are up 6% compared to last year but are rising more slowly. The inflation rate for milk and tea dropped to 2.9% in December. In January 2024, tea costs 10.6% more than it did in January 2023.

Last October, tea cost 15.1% more than in October 2022, according to the Office for National Statistics. Coffee is up by 9.5%, and cocoa and powdered chocolate are up by 12.3%. Sugar spiked 49.6%, according to the Guardian.

Analysts are concerned that foods that normally transit the Suez Canal will be impacted as virtually all container ships are now routed past Cape Hope, a detour that adds 10-14 days of transit expenses.

In January, the FAO Food Price Index* (FFPI) stood at 118, down 1.2 points (about 1%) from its December level. The index is 13.7 points (10.4%) below its corresponding value one year ago.

Eating at home and eating out continues to cost more for Americans. The US Labor Department data show restaurant prices were 5.1% higher in January than in January 2023. Grocery costs are up 1.2%.

A report in the Wall Street Journal advises relief isn’t likely to arrive soon. “Restaurant and food company executives said they are still grappling with rising labor costs and some ingredients, such as cocoa, that are only getting more expensive.”

In 1991, according to data from the U.S. Agriculture Department, U.S. consumers spent 11.4% of their disposable personal income on food. At the time, households were still dealing with steep food price increases following an inflationary period during the 1970s.

More than three decades later, food spending has reattained that level, USDA data shows. In 2022, consumers spent 11.3% of their disposable income on food, according to the most recent USDA data available.

Americans typically spend less than 10% of their disposable income on food.

FEATURE

Lilian Xia, president of the Canada Tea Institute

Keemun’s Hong Cha Revival

By Dan Bolton

Lilian Xia and her staff in Canada offer a seven-level curriculum for adults and teens. The organization, she says, “is committed to popularizing tea knowledge, using tea as a link to strengthen cultural exchange among all ethnic groups, all classes, and all ages.” The society hosts educational tea parties, tea-themed activities, and tastings, including a public introduction to Runsi Qihong (Keemun) sponsored by the Anhui Guorun Tea Co. Lilian and I met at the Toronto Tea Festival in January. Here, she tells the of hongcha (red tea), which is experiencing a revival in China as millions line up daily for their milk tea. Keemun has a special place in the story of black tea as it is the first modern market-driven tea. Tea fragrance has always appealed to tea drinkers. Jasmine is one of the oldest and the most famous scented teas globally. However, European royalty and upper-class preference for milk and sugar, crumpets, and dainties limited sales of green tea, creating an opening Keemun quickly filled. Read more…

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Liam Brody, CEO Committee on Sustainability Assessments (COSA)

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Episode 156 | Researchers Link Diets that Include Tea Brewed in Teabags to High PFAS Levels | Flavor Enhancing Microbes are at the Root of Quality Tea | Retail Tea Prices Remain High as Inflation Eases | PLUS In 1875, European Royalty and upper-class preference for milk and sugar, crumpets, and dainties limited sales of green tea, creating an opening Keemun quickly filled | 23 Feb 2024

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February 26, 2024

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Dan Bolton

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Maritime Security Concerns Worsen | Rising Operating Costs Close Nine Uganda Tea Factories | Hydration Concerns Motivate Consumer Purchases

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Episode 155

Maritime Security Concerns Worsen in Suez and The Red Sea as Two Missiles Disable British Ship | Rising Operating Costs Close a Third of Uganda’s Tea Factories | Hydration Concerns Motivate Consumer Purchases

Tea News for the week ending February 16, 2024

Hear the Headlines | Seven-Minute Weekly Tea News Recap

India Tea News | Aravinda Anantharaman

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“New tools and approaches are changing the game from always looking backward through the rear-view mirror to giving everyday tea professionals a new crystal ball that allows us to look around the corner and predict what’s coming,” observes Liam Brody, the new Committee on Sustainability Assessment CEO. Brody explains COSA’s role in intelligence-gathering and developing strategic tools that advance sustainable practices with “sound business” underpinnings. He also shares his vision of how artificial intelligence will revolutionize and influence consumer behavior and perception of sustainable practices.

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Liam Brody, CEO Committee on Sustainability Assessments (COSA)

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UK Grocers concerned about tea supply

UK Retailers Concerned About Tea Supply

By Dan Bolton
Shipping company executives see no sign of improvement for vessels transiting the Red Sea, leading UK retailers and tea companies to take steps to minimize shortages.

As shipping costs surge, suppliers in Kenya and India face a more daunting challenge. Rates from Asia to Europe are up nearly five-fold, rising to $5,000 per 20-foot container. During the height of the pandemic, the expense of shipping containers of tea long distances exceeded the value of bulk tea within.

Three months into the crisis triggered by the war between Israel and Hamas terrorists, Yemen’s Houthi rebels continue their drone and missile attacks in both the Gulf of Aden and the Red Sea. On February 18, twin anti-ship missiles disabled a British-owned bulk cargo ship, forcing the crew to abandon the ship, which was taking on water and in danger of sinking.

Bloomberg reports that last week, ship arrivals in the Gulf of Aden were down about two-thirds compared to early December, according to Clarkson Research Services Ltd., a unit of the world’s largest shipbroker.

Executives of the largest shipping companies told Bloomberg TV that threat levels continue to escalate. The disruptions could last an entire year.

Maersk Chief Executive Officer Vincent Clerc told Bloomberg, “The amount and range of weapons being used for these attacks are expanding, and there is no clear line of sight to when and how the international community will be able to mobilize itself and guarantee safe passage.”

Half of the tea consumed in England is shipped from Kenya and India via the Suez Canal. This week, executives at Yorkshire Tea and Tetley Tea reassured the public they had implemented measures to minimize any disruption of the blending and manufacturing due to shipping delays.

A spokesperson for Tetley told the BBC, “At the moment, it’s much tighter than we would like it to be, but we’re pretty confident we can maintain supply levels. Our priority is to maintain our consistently high levels of service based on ordered and forecasted demand. We believe we can continue to deliver this, but acknowledge that this is a critical period which requires our constant attention.’

Spokesman Tom Holder of the British Retail Consortium, representing 200 retailers, reports temporary disruptions in the scheduled arrival of some black tea, but delays thus far amount to no more than a “blip.” Companies are adjusting orders and inventory to account for 10 to 14 additional days at sea. Sainsbury’s website assured customers of adequate supply but expressed concern should shipping firms experience lengthy delays.

According to Reuters, more ships are re-routing via the Cape of Good Hope than transiting the Red Sea via the Gulf of Aden.

BIZ INSIGHT – Britons drink about 100 million cups of tea daily, according to Sharon Hall, chief executive of the UK Tea and Infusions Association. The UK is the world’s fifth largest tea importer. Tea imports from outside the EU amounted to 104 million kilos in 2021. UK blenders export about 9.5 million kilos of tea valued at two million British pounds ($2.5 million in US dollars) annually, mainly to the European Union.

Nine of 28 Uganda tea factories close, idling thousands of smallholders

Rising Operating Costs Close a Third of Uganda’s Tea Factories

Uganda’s tea sector is in crisis with the closing of nine factories, about a third of the 28 in operation. Excess stocks of lower-quality tea following an aggressive expansion of acreage under tea are holding down prices amid spiking costs for electricity, which led to the closures.

Tea is an important crop supporting 80,000 smallholder families in 17 tea-growing districts. Each factory that closes jeopardizes the financial welfare of 7,000 to 10,000 families.

Trade minister David Bahati told the local press that the Prime Minister is personally chairing a cabinet-level committee that has drafted policies to address requests for immediate subsidies to lower the cost of electricity. Uganda has a low per capita consumption of electricity and one of the highest average unit electricity costs in the sub-Saharan region. Rural factories currently pay 3,470 shillings per kilowatt compared to an average cost of 1,900 shillings per kilowatt in industrial areas.

The policy recommendations will then be presented to the house, he said.
In addition to immediate subsidies, Dickson Kateshumbwa, NRM, a member of the Parliament representing Sheema Municipality, urged the government to implement policies enabling Uganda to compete better in the international market.

He told New Vision, “People pluck the leaves without guidance. That is why Uganda fetches the lowest amount of tea in the region, but not because we do not have fertile soils. We need that policy to improve our quality,” Kateshumbwa said.

Members of Parliament representing tea-growing regions are calling for a bailout like that, given sugar producers are facing similar high production costs. Tea is the fourth most important agricultural export after coffee, maize, and fish.

Synergy Hydration Revolution | Click the image to download the graphic

Hydration Concerns Motivate Consumer Purchases

Tea marketers should take note of studies showing rising consumer thirst for hydration.

Consumer interest in hydration intensified post-COVID, with 56% of US adults in 2023 reporting “they were better at staying hydrated this year.” Forty-eight percent did so because of increased physical activity, reports Synergy, a global manufacturer and supplier of flavorings, extracts, and essences.

In the US, 32% of adults feel more motivated to live a healthy lifestyle now than before COVID-19, which has led to a greater focus on self-care and overall wellness, according to Synergy.

“In the UK, 58% of bottled water users would like to learn more about their hydration needs, and 54% of French adults think drinking fortified water is an excellent way to boost your vitamin and mineral intake.

Sixty percent of Millennials, the most of four cohorts, are engaged with functional hydration drinks. According to Mintel International, Generation Z and Generation X follow, each with a 58% engagement rate, with Boomers indicating 44% engagement. Female Gen Zs are the biggest users of functional hydration beverages.

Consuming beverages fortified with electrolytes, first introduced in the 1960s, is top of mind for all four cohorts. Gen Z drinkers seek protein, while Millennials, GenX, and Boomers want multivitamins. The younger generation wants fat burners, while Boomers seek omega-3 and glucosamine.

Eighty-five percent of US bottled water drinkers say that staying hydrated keeps them productive at work. Seventy-three percent of UK Adults say optimal hydration is essential for mental performance.

BIZ INSIGHT – Water bottles have become a status symbol, a vital accessory to daily life, writes Synergy. Stanley’s Quencher has seen a 275% year-over-year increase in sales and has experienced a 215% increase in its best-selling category, hydration, according to Retail Dive. What you are most likely to find inside those bottles are citrus, summer fruits, and berry flavors, according to Synergy.

Visit the Synergy Hydration Blog or download their infographic to learn more.

FEATURE

COSA CEO Liam Brody

Predictability is Around the Corner

By Dan Bolton

The Committee on Sustainability Assessment (COSA) was established to measure the massive quantity of precise data and the impact of harder-to-quantify, pragmatic ways of measuring sustainability, such as living income calculations, gender inclusion, and next-generation training.

In 2005, sustainability pioneers at the United Nations identified the need to harmonize sustainability metrics with science-based credibility. Seven years later, COSA became a not-for-profit public research organization to complete that work.

Daniele Giovannucci co-founded COSA to counter what he called “the fluff and ignorance masquerading as development and the colossal sums wasted by well-meaning funders.” He championed the “democratization of data,” devising standard metrics for the coffee industry in 2018.

COSA, supported by discerning philanthropists from the Bill & Melinda Gates Foundation to the InterAmerican Development Bank, has standardized sustainability metrics for leading brands, global frameworks, cutting-edge technologies, and governments for two decades. Giovannucci retired in mid-2023, and Liam Brody was named his successor. Liam explains COSA’s role in intelligence-gathering and developing strategic tools that advance sustainable practices with “sound business” underpinnings. He also shares his vision of how artificial intelligence will revolutionize and influence consumer behavior and perception of sustainable practices. Read more…

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Liam Brody, CEO Committee on Sustainability Assessments (COSA)

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Episode 155 | Maritime Security Concerns Worsen in Suez and The Red Sea as Two Missiles Sink British Ship | Rising Operating Costs Close a Third of Uganda’s Tea Factories | Hydration Concerns Motivate Consumer Purchases | PLUS Committee on Sustainability Assessment (COSA) CEO Liam Brody says “New tools and approaches are changing the game from always looking backward through the rear-view mirror to giving everyday tea professionals a new crystal ball that allows us to look around the corner and predict what’s coming.” | 16 Feb 2024

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February 21, 2024

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Dan Bolton

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The Confederation of Tea Smallholders Will Relocate to India | Iran Tea Imports Plunge by 62% | Economists Describe Stable Soft Commodity Prices in 2024
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Episode 154

The UN FAO IGG Confederation of Tea Smallholders Will Relocate its Headquarters from China to India for the Next Four Years | Iran Tea Imports Plunge by 62% | Economists Forecast Higher but Stable Prices for Beverage Soft Commodities in 2024

Tea News for the week ending February 9, 2024

Hear the Headlines | Seven-Minute Tea News Recap

India Tea News | Aravinda Anantharaman

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Delegates from 44 countries (and 14 official observers) who attended The 25th Session of the United Nations Food and Agriculture Organization’s Intergovernmental Group on Tea (IGG Tea) on Jan. 31 expanded the organization’s mandate beyond trade aspects, ratifying initiatives addressing all three dimensions of sustainability – economic, social, and environmental. Peter Goggi, IGG TEA delegate representing the US as President of the Tea Association of the USA, discusses #TeaPower, a new health and wellness campaign, FAO’s ongoing support of smallholders, and the economics of oversupply.

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Peter Goggi, IGG TEA delegate representing the US as President of the Tea Association of the USA

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UN FAO IGG TEA Confederation of Tea Smallholders

UN FAO IGG Confederation of Tea Smallholders Relocates to India

By Dan Bolton

The headquarters and staff of the Confederation of International Tea Smallholders (CITS) will relocate from China to India for the next four years. Delegates to the 25th Session of the United Nations Food and Agriculture Organization’s Intergovernmental Group on Tea (IGG Tea) ratified the decision during their recently concluded three-day session in Guwahati.
According to IGG Tea, smallholders hold a position of growing importance in the tea sector, where they cultivate 70% of the global acreage under tea. Smallholders pluck 60% of raw tea leaves and produce a sizeable amount of finished tea.

The announcement notes: “Their vitality and integral role within the tea supply chain cannot be overstated. Solving this sector’s issues is essential for the long-term viability and health of the tea industry, not to mention the farmers and their communities themselves.”

IGG delegates, one each from 44 producing countries and non-voting officials from 14 countries, praised the Government of India and the Assam government for their significant investment in the development of the small tea growers’ sector, citing the dedicated research and development work at the Tocklai Tea Research Center in Jorhat.

The federation (CITS) was established in May 2016 by delegates to the 22nd Session of FAO IGG on Tea meeting in Naivasha, Kenya. The federation was envisioned as “a forum for developing policies and solutions to strengthen the global tea smallholder sector by acting as a convener, catalyst, and resource to improve the consistency of tea policymaking on a global level.”

BIZ INSIGHT – Joydeep Phukan, Secretary of the Tea Research Association at Tocklai and Coordinator of the FAO IGG on Tea for India, told Tea Biz’s Roopak Goswami that “Moving CITS to India will synergize the efforts of federal and state governments as well as the Tea Board of India in bringing the global best practices to small tea growers of India.”
Iran Tea Garden in Lahijan, Gilan Province

Iran Tea Imports Plunge by 62%

One of the world’s top tea-drinking countries saw tea imports plunge 62% in value during the first ten months of the Iranian calendar year, which begins in March.

The Tasnium New Agency reported only $185.75 million worth of tea was imported from eight origins, according to the Islamic Republic of Iran Customs Administration. Volume declined to 33,683 metric tons as shipments from India dwindled.

Shortages have been reported, but the steep decline suggests that traditional suppliers are shipping more tea to surrounding countries where the non-tariff barriers to trade are lower.

Iran typically consumes about 21% of India’s annual tea exports. Indian traders report exports to Iran declined by 15.7 million kilos from January to October 2023. Tea exported from India is down overall, but shipments to Iran showed the most significant drop.

Indian producers say restrictions on Iran’s inability to trade in US dollars result from sanctions first imposed in 1979 and additional European sanctions imposed in 2010, are preventing timely payments. The higher transport cost in war-ravaged regions, including the Black and Red Sea, further complicated trade.

In November 2023, Iran halted tea imports at the request of Iran’s federal Inspection Organization. Investigators accused the CEO of Debsh Tea, the nation’s largest tea company and sole tea importer, of embezzling $3.4 billion in subsidies (about three trillion in local currency). Around $300 million is budgeted annually to purchase orthodox grades and tea for blending. Investigators became suspicious when that sum had tripled in recent years and eventually uncovered evidence of currency manipulation and fraud involving customs officials, members of the country’s central bank board, top executives in the food safety department, and office holders. The four-year scheme is the largest embezzlement in Iran’s history.

BIZ INSIGHT – Iranian tea exports also steeply declined by 12,828 metric tons. Value fell by 58% compared to the 2022 fiscal year ending March 2023. In the past, Iranian growers produced as much as 70,000 metric tons of tea to meet domestic demand. Iran still ships locally grown tea to 25 countries but at far smaller volumes than in the early 2000s. Tea exports peaked at 21,000 metric tons in 2000 before bottoming out at 4,500 metric tons in 2003 following the imposition of sanctions tied to nuclear development that continue to interfere with timely payments.

EIU Commodities Outlook 2024

Stable Price Outlook for Soft Commodities in 2024

Tea is classified as a soft commodity, one of several grown in the tropics and delivered globally along supply chains similar to coffee, cocoa, sugar, and spices.

The sector has experienced three years of extreme volatility attributed to escalating geopolitical tensions, soaring pandemic-induced shipping costs, and adverse weather conditions.

Last week, the Economist Intelligence Unit (EIU) predicted risks would ease and prices would stabilize in 2024. In its “Commodities Outlook 2024,” EIU writes, “El Niño and the Russia-Ukraine war still loom large for soft commodities. Prices for food, feedstuffs, and beverages (FFB) will rise throughout 2024, driven primarily by beverages, as El Niño will hit production, and therefore, prices for coffee and cocoa will increase.”

In the section subtitled “Resilient Prices Amid Global Headwinds,” EIU writes there is “Some relief in sight, with the US National Oceanic and Atmospheric Administration (NOAA) giving a 72% chance that El Niño will end by mid-year. But the damage to this season’s harvests will already be done by then, with coffee and cocoa production forecast to fall by 9% and 13%, respectively, in the 2023/24 crop season.

At least the threat of a “historically strong” El Niño is waning significantly, according to NOAA. NASDAQ reports that (Intercontinental Commodity Exchange) Arabica coffee futures
- ICE Arabica coffee futures rose to the highest price since 2011 in 2022 but closed in 2023 at $1.90 per pound, a 12.5% gain from the previous year.
- ICE cocoa futures exploded 61.4% higher in 2023, closing the year at $4,196 per ton.
Energy prices, excluding crude oil, will trend downwards in 2024. Prices of hydrocarbons will largely trend in the opposite direction than those of most industrial raw materials and soft commodities, writes NASDAQ.

FEATURE

Peter Goggi with Arun Singh, Founder Trustee at Tea Vision Trust

Observations on Tea Oversupply

By Dan Bolton

“The IGG is a fabulous opportunity for all interested parties on a governmental level to talk about the tea industry,” says UN FAO IGG TEA Delegate Peter Goggi, president of the Tea Association of the USA. “It’s essential to express their views. They all have issues that they’re facing. The problems facing countries of origin differ significantly from those facing consuming countries. But ultimately, solutions that satisfy both need to be met,” he says, adding, “The overriding concern of all parties in this business is the lack of profit throughout the supply chain.” Read more…

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Peter Goggi, IGG TEA delegate representing the US as President of the Tea Association of the USA

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Episode 154 | The UN FAO IGG Confederation of Tea Smallholders Will Relocate its Headquarters from China to India for the Next Four Years | Iran Tea Imports Plunge by 62% | Economists Forecast Higher but Stable Prices for Beverage Soft Commodities in 2024 | PLUS UN FAO IGG Delegate Peter Goggi Discusses The Economics of Oversupply | 9 Feb 2024

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February 13, 2024

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Dan Bolton

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black tea, episode 153, green tea, loose leaf tea, Podcast, Tea, Tea Biz Podcast, tea festival, tea imports, tea production, tea wholesale, TeaBiz
Lunar New Year Boosts Tea Consumption | Nepal Recovers from Currency Crisis | Pakistan’s Tea Imports (Legal and Smuggled) Climb

Episode 153

Lunar New Year Will Boost Consumption and Tea Travel | Nepal Recovers from Foreign Currency Crisis | Pakistan’s Legal and Smuggled Tea Imports Climb

Tea News for the week ending February 2, 2024

Hear the Headlines | Seven-Minute Tea News Recap

India Tea News | Aravinda Anantharaman

Featured

The Toronto Tea Festival concluded on January 28, marking a turning point in 2024 as the crowd surged from a low of 2,600 in February 2020 to 4,000 attendees – a 25% increase from previous highs. Joining us today to discuss the changing dynamics is Tao Wu, co-founder of Tao Tea Leaf and one of the festival’s key organizers… but first, let’s listen to the excitement ON THE FLOOR at the weekend event.

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On the Floor at the Toronto Tea Festival | Tao Wu, festival co-founder

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Lunar New Year is Feb. 10-17

Lunar New Year to Boost Consumption and Tea Travel

The New Year that begins Saturday will bring renewed vigor to China’s tea economy as travel experts predict strong sales during the extra-long holiday.
“A year after COVID-19 restrictions were lifted in China, the eight-day Chinese New Year (CNY) holiday is expected to see a major surge in travel and consumption as people head home for family reunions or set off for a week of travel and tourism,” writes China Briefing.

Last year, Chinese border control agencies recorded 5.2 million inbound and outbound transits, a 4.7-fold increase approaching pre-pandemic totals. The Ministry of Culture and Tourism reported 135 million domestic trips. This is roughly in line with the figure seen during the holiday in 2019, according to the administration.

East Asian cultures celebrating the holiday include Koreans, Vietnamese, Tibetans, and Chinese. The Chinese New Year falls on Saturday, February 10, 2024, beginning the Year of the Dragon—the Wood Dragon.

The 2024 Spring Festival Holiday Travel Forecast Report, jointly compiled by Baidu Maps and the Highway Science Research Institute of the Ministry of Transport (MOT), forecasts that travel volume over the 2024 holiday will exceed last year by more than 40%, with the busiest day of travel being on the last day of the holiday (February 17) as everyone returns home (departures are more staggered).

According to the forecast, “One of the major trends noted in recent years is the mixing of tourism and (CNY) New Year celebrations, where families choose to get together in a new destination rather than in their hometown. Some of the most popular domestic destinations for this type of travel include Yunnan, Guangdong, Fujian, Beijing, and Harbin for winter getaways. For international travel, Southeast Asia remains the most popular destination. Search data from Baidu.com shows that families and children account for as much as 42% of the holiday tourism cohort.

Whereas short-haul travel became popular during the pandemic, longer-distance travel is now back in vogue. Data from online travel agency Trip.com indicates that travel within the same province or to peripheral provinces will account for just 25% of overall travel during the 2024 holiday, while inter-provincial long-distance travel will account for as much as 75%.

Tea vendors welcome the holiday as it draws large crowds to tea-producing regions and encourages gifting of tea and an increase in out-of-home consumption at restaurants.

Pakistan Tea Imports Spike

Pakistan’s Legal and Smuggled Tea Imports Rise

Pakistan has emerged from deep financial difficulties, thirsty for tea.

According to the Pakistan Bureau of Statistics, tea imports surged 5.5% to $336 million during the first six months of the current fiscal year (July- December 2023). The increase is due in part to the reversal of trade deficits that crippled the country’s economy in 2022 and 2023.
Import volume grew by 9.1% to 138,750 metric tons in the current fiscal year, compared to 128,000 metric tons during the same period in fiscal 2022.

Exports are up 5% to $15 billion overall, but imports decreased by 16% to $26 billion, down from $31 billion during the same period last year.
The nation’s deficit from July to December (2023-24) declined to $11 billion, down by 34% during the fiscal year’s first half.

Scarcity and a spike in prices led to a high incidence of tea smuggling with the Afghan Transit Trade (ATT), estimated to have increased by 159% during fiscal years 2022-23. According to The Nation, Kenyan tea exports to Afghanistan totaled $75 million last year, up from $29 million in FY2021-22.

The newspaper reported, “Afghan authorities expressed shock over the 159% increase in the import of black tea. Afghans prefer green tea, according to an unnamed source who claimed Pakistani importers prefer to trade with Afghan traders instead of buying directly from Kenya. “The duty-free black tea is then smuggled back into Pakistan, which has caused loss to the national exchequer, the source argued.”

Nepal Foreign Currency Crisis

Nepal Recovers from Foreign Currency Crisis

Nepal achieved a record high of $13.3 billion in foreign currency reserves in December, reversing a two-year crisis.

According to Nepal Rastra Bank’s (NRB) report on the ‘Current Macroeconomic and Financial Situation of Nepal,’ reserves QUOTE “soared 13.6% in the past five months of the current fiscal year.” Remittance inflows were cited for adding $1.6 billion through December.

In 2022, Nepal was forced to limit imports of nonessential goods as its foreign currency reserves dipped. The cause was declining tourism and unusually low remittances from migrants who send home part of their earnings, one of the largest sources of foreign income for many developing countries.

Globally, remittances to low- and middle-income countries grew 5% in 2022 to $626 billion out of $767 billion worldwide. Nepal received $9.29 billion in remittances in 2022.

According to the NRB records, remittance inflows increased 28% to 613 billion rupees during the review period compared to a 23% increase in the previous year.

In US dollars, inflows increased 25% to $4.6 billion in the review period compared to 13% in the review period last year.

The tea industry, the largest foreign exchange earner after cardamom, is facing a crisis at a time when the National Tea and Coffee Development Board (NTCDB) has set a target of doubling foreign currency in the current fiscal year.

The newspaper My Republica writes that the Central Vice President of the All Nepal Trade Union, Bhupal Sapkota, blames the NTCDB for not effectively solving the problems of tea industrialists, businessmen, farmers, and workers. These include labor concerns, lack of irrigation systems, poor road infrastructure, and erratic distribution of electrical power and water supply.

Tea Board Executive Director Bishnu Prasad Bhattarai pledged to play an effective role in solving the existing problems in the tea sector and adequately address all the problems raised by the stakeholders.
Nepal earned NLRs 3.80 billion rupees, about $28.6 million in US foreign exchange dollars from tea exports last fiscal year. India, China, Sri Lanka, Russia, and the Netherlands are the main export markets.

There are 20,237 hectares of tea plantations in Nepal, mainly in Koshi province, with 38 CTC processing facilities. There are, in addition, 30 orthodox tea factories. Total employment is 70,000.

Nepal has set an ambitious target to transition from a World Bank-designated lower-income country to a status as a middle-income country by 2030.

FEATURE

Tao Wu, Toronto Tea Festival Co-Founder

Enthusiastic Young Crowd Sets Record Attendance at Toronto Festival

By Dan Bolton

Tao Wu and his sister Mingzhou Gao (an accountant) co-founded Tao Tea Leaf 14 years ago, opening their first three tea shops on Yonge Street in downtown Toronto. Tao and “Lisa” were raised in the Wuyi Mountain in China’s northwestern Fujian province, where their parents run a tea garden, and their brother has a tea shop and exports tea. In 2013, Tao was one of the original organizers of the Toronto Tea Festival. In this interview, he shares his observations and insights on the recently concluded 10th edition.

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On the Floor at the Toronto Tea Festival | Tao Wu, co-founder

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Episode 153 | Lunar New Year Will Boost Consumption and Tea Travel | Nepal Recovers from Foreign Currency Crisis | Pakistan’s Legal and Smuggled Tea Imports Spike | PLUS The Toronto Tea Festival that concluded January 28 marks a turning point in 2024 as the crowd surged from a low of 2,600 in February 2020 to 4,000 attendees – a 25% increase from previous highs.

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February 7, 2024

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Dan Bolton

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Podcast

black tea, episode 153, green tea, loose leaf tea, Podcast, Tea, Tea Biz Podcast, tea festival, tea imports, tea production, tea wholesale, TeaBiz