• Tea Biz Podcast | Episode 44

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    Hear the Headlines

    | India Tea Industry Reforms
    | Glasgow Climate Pact Boosts Morale, but Will Momentum Build?
    | Drinking Tea Linked to Lower Risk and Severity of Stroke
    | Golden Leaf Awards Return

    Seven-minute Tea News Recap

    Features

    In Part 2 of this extended Newsmaker Interview, Aravinda Anantharaman speaks with Tea Board of India Chairman Prabhat Bezboruah who describes a new board mission to increase consumption, promote tea exports and expand markets at home and overseas. He also addresses discussions underway to transfer regulatory oversight of India’s tea industry from the Ministry of Commerce to the Ministry of Agriculture and Farmers Welfare. Read more…

    India Initiates Tea Industry Reforms

    By Aravinda Anantharaman

    India’s highest levels of government are reforming the basic structure of agriculture. The intent is to loosen regulations on pricing and storage and to permit direct sales of produce. The rules have protected India’s farmers from the free market for decades. Prime Minister Narendra Modi has called the reforms a “watershed moment” for Indian agriculture. Opposition by farmers has been so intense that Modi announced in November that the government will abandon the September 2020 reforms. Will tea reforms go forward? In this Newsmaker Interview Prabhat Bezboruah, Chairman of the Tea Board of India describes a new board mission to increase consumption, promote tea exports and expand markets at home and overseas. He also addresses discussions underway to transfer regulatory oversight of India’s tea industry from the Ministry of Commerce to the Ministry of Agriculture and Farmers Welfare.

    Listen to the interview (Part 2)
    India Tea Board Chairman Prabhat Bezboruah discusses reforms in the regulatory oversight of India’s Tea Industry.
    Listen to the interview (Part 1)
    The year has been “quite bad” compared to 2020, explains India Tea Board Chairman Prabhat Bezboruah

    News

    Ekaterra CEO John Davison, left, is joined by: Sebastian Pole, Founder, Pukka Herbs (with mic), Ruchira Joshi, UK Country Director, Sustainable Trade Initiative, IDH, Jenny Costelloe, Executive Director, Ethical Tea Partnership and Abdul-Razak Saeed, Climate Policy Lead, Rainforest Alliance.

    Glasgow Climate Pact Boosts Morale, but Will Momentum Build?

    By Dan Bolton

    The Glasgow Climate Pact constructively addresses issues critical to the tea industry both for brands and producers. The document also advances efforts to end deforestation and to phase down (not phase-out) coal.

    COP26 brought into line the four largest polluters when India announced plans to reach net-zero emissions by 2070. India is the world’s fourth-biggest emitter of carbon dioxide. China announced it will be carbon neutral by 2060 and both the US and EU reaffirmed their commitment to reach net-zero by 2050. 

    The pact makes concrete tools to curb warming and establishes new rules to hold countries accountable for curbing emissions but falls short of financing efforts in less developed countries. The pact also leaves unresolved how much and how quickly each nation will cut emissions. Delegates returned to their homelands demonstrating greater cohesion and consensus that every nation must do more before the 2022 summit.

    Tea brands welcome rules to encourage trade emission-reduction credits and prevent double-counting and wording that allows carbon-market credits from decades past (Kyoto Protocols).

    The agreement advances the Paris Accords but pledges made by 197 countries are unlikely to contain atmospheric temperatures at less than 1.5 degrees Celsius above their pre-industrial levels. Scientists estimate that close adherence to pledges may limit global warming to around 2.4 degrees Celsius.  Others say temperatures will increase by 2.7 degrees Celsius.

    Warming to either level will wreak havoc in the tea lands. Degrading tea quality and reduction in yield are already apparent in three regional hotspots.

    South India is one of the hotspots where tea production is threatened along with the Rift Valley in Africa and portions of China.

    Biz Insight – Many of the 74 nations where tea is produced find it difficult to finance climate mitigation efforts at the farm level. Unresolved at this year’s summit are concrete steps by developed countries to make good on a $100 billion a year promise made in 2009 to assist poor nations. Contributions in 2019 were $30 billion short and $50 billion of what was pledged is directed at mitigation with much less earmarked to finance adaptations. In Glasgow, delegates asked that countries “at least double” to $40 billion the money committed to financing adaptations making possible construction of clean energy alternatives to coal and wood.

    Golden Leaf judges evaluating teas in 2019 competition

    In-person Judging Returns for the 2021 Golden Leaf Awards

    By Jessica Natale Woollard

    Australia’s Golden Leaf Awards return in 2021 with live, in-person judging to crown this year’s best teas in the Australian market. Tea submissions are open until Nov. 30. View the award guidebook for more information.

    The Golden Leaf Awards are presented by the Australia Tea Masters and feature a number of categories: green, black, white, yellow teas; matcha; Pu-erh; herbals; chai; and iced tea. There’s even a category for tea packaging and best tea house.

    The judging is blind and done by industry professionals. Learn more…

    Australia Tea Masters founder and CEO Sharyn Johnston speaks with Tea Biz’s Jessica Natale Woollard about this year’s event.

    Listen to the interview
    Australia Tea Masters founder Sharyn Johnston
    Tea and Coffee Drinkers are Less Likely to Suffer Strokes
    Moderate consumption of coffee and tea separately or in combination lower the risk of stroke and dementia

    Tea and Coffee Drinkers are Less Likely to Suffer Strokes

    A decade-long study of 365,000 people suggests that tea and coffee drinkers are 32% less likely to suffer a stroke when compared to nondrinkers.

    Results of the UK Biobank study, initiated in 2006 and continued through 2020, were reported this week in the online journal PLOS Medicine. The authors write that “while previous studies have looked at associations between tea and coffee consumption and better brain health, there has been inconsistency in findings.” 

    “Our findings suggested that moderate consumption of coffee and tea separately or in combination were associated with lower risk of stroke and dementia,” writes lead author and Professor Yuan Zhang at Tianjin Medical University, Tianjin, China.

    Associating tea and coffee drinking with better health outcomes does not guarantee that the same outcome will happen for everyone, according to a review of the research published by Medicine Net.

    Professor Zhang said it is also possible that coffee and tea consumption might be protective against dementia and post-stroke dementia. Strokes cause 10% of deaths globally, and those who survive often experience post-stroke dementia. People who have had a stroke have a far greater risk of developing dementia than people who have not had a stroke. About 1 in 4 who have had a stroke will go on to develop signs of vascular dementia, according to WebMD. In the US vascular dementia is the second most common form of dementia after Alzheimer’s disease.

    Drinking coffee or tea even in very small amounts lowered the risk for both strokes and dementia.

    Researchers cite weakness in that study participants were in better health than the population as a whole, and that the participants are mainly white and British (96%) “therefore we cannot infer an association that is relevant to everyone in the UK.” Learn more…

    Biz Insight – Drinking two to three cups of coffee or three to five cups of tea daily (or in combination) led to a 28% lower risk of dementia compared with those who do not drink tea or coffee. Researchers say that around 40 years of age, the immune system starts to decline. As people age, they experience a form of chronic low-grade inflammation. Experts have linked this kind of age-related inflammation to dementia and cognitive decline. The worldwide population of those aged 60 years and over will grow to 2.1 billion by 2050 according to the United Nations. Rates of dementia are expected to increase alongside this aging population, according to Medical News Today

     Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from reliable outside sources.
    Tea Price Report
    Nov 13 – Sale 45

    India Tea Price Watch | Sale 45

    Large quantities of Kenyan tea imported and blended with Assam, Darjeeling, Nilgiri, and Kangra tea are impacting the quality of Indian teas sold domestically. Indian media report Kenya tea imports increased 146% year-on-year between January and August prompting the Tea Board to take a stern stance. Importers must now report within 24 hours any tea stored for distribution and declare origin, quantity, and describe the quality of leaf stored. Random checks are underway. Read more…

    Aravinda Anantharaman

    Upcoming Events

    November 2021

    Iraq Tea Festival | Nov. 28-29 | Baghdad Chamber of Commerce
    Baghdad, Iraq |

    Click to view more upcoming events.


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  • Tea Biz Podcast | Episode 43

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    Hear the Headlines

    | The Desirability of Sustainability
    | Ekaterra Tea Pledges Net Zero Emissions by 2030
    | Grocery Shoppers Say They Will Pay for Sustainable Food
    | Inflation Demonstrates a Troubling Persistence

    Seven-minute Tea News Recap

    Features

    Tea Biz this week travels to India where the traditional tea plantation model is under regulatory scrutiny. The union government there is redrafting legislation from the 1950s to gradually loosen regulations, abandoning requirements that previously limited who could grow tea and where it could be grown. In Part 1 of this extended Newsmaker Interview, Aravinda Anantharaman speaks with Tea Board of India Chairman Prabhat Bezboruah to better understand the current situation and the economic and societal forces driving change.

    India Tea Board Chairman Prabhat Bezboruah

    India Tea Reforms: Challenges and the Current Situation

    By Aravinda Anantharaman

    The Tea Board of India has been in the news recently for various reforms that seem to be underway. We spoke to Prabhat Bezboruah Chairman of the Tea Board of India to understand the changes that are brewing with the board as well as his views on how the Indian tea industry is faring this year. Bezboruah has been chairman since 2017. An alumnus of IIM Calcutta and the Wharton School of Business, he is the first tea planter to hold the position. Read more…

    Listen to the interview (Part 1)
    The year has been “quite bad” compared to 2020, explains India Tea Board Chairman Prabhat Bezboruah
    • Next week, in Part 2 of India Reform: Tea Market Expansion, Prabhat Bezboruah discusses high-level talks on transferring regulatory oversight of India’s Tea Industry from the Ministry of Commerce to the Ministry of Agriculture and Farmers Welfare.

    News

    Ekaterra Tea CEO John Davison
    Ekaterra Tea CEO John Davison at the UN’s Climate Change Summit in Glasgow, Scotland

    Ekaterra Tea Pledges Net Zero Emissions by 2030 at COP26

    By Dan Bolton

    Ekaterra Tea, Unilever’s newly-created division of legacy tea brands and the world’s largest tea supplier, pledged this week to reduce carbon emissions to net-zero by 2030.

    The division, led by CEO John Davison, announced sustainability and climate goals during a panel discussion with several NGOs deeply committed to the sustainability of the tea industry. During a press briefing on Nov. 8, Davison reiterated the company’s commitment to 100% sustainably sourced teas, a switch to all plant-based tea bags, and recyclable, compostable, or reusable packaging by 2025 along with the adoption of regenerative agriculture practices for raw materials sourcing by 2030.

    Davison said, “We want to give back to nature more than we take. To sustain is to reduce the drain on the planet’s resources, which is a good start, but at ekaterra, we want to go beyond this. In the tea category, we have a unique opportunity to become climate positive through the regenerative power of plants.”

    Greenhouse gas emissions have been reduced by 66% since 2010, said Davison who promised a further reduction to 80% from the 2010 baseline. Ekaterra owns Lipton, PG Tips, TAZO, Brooke Bond, Lyons, Pukka, and Red Rose  —  the leading tea brands in 58 of the 110 countries where its portfolio of 34 products is sold. Ekaterra has a staff of 3,500 in 90 offices and employs 1 million people in 21 countries earning 2 billion Euros annually (about $2.3 billion in US dollars).

    “Real leadership today, means mobilizing and transforming the entire tea industry for positive impact,” said Davison.

    The announcement benefitted from global attention on COP26 in Glasgow, Scotland where an unexpected climate agreement between the US and China added to the momentum for change. Delegates are negotiating an accelerated carbon emissions-cutting schedule and financial aid to developing countries. Scientists stressed the importance of keeping global temperatures within a 1.5 degrees Celsius target.

    Copious amounts of tea were visible during the event. At one point, protestors dressed as caricatures of world leaders staged a tea party-themed performance where they were served “burnt Alaska” and “Arctic melt.” 

    Biz Insight – There was a greater sense of urgency during the two-week summit. “Everyone knows what is at stake for the future, we have no choice but to rise to that challenge,” COP26 President Alok Sharma told delegates. The UN’s 26th Conference of the Parties, delayed by a year due to COVID, promises a renewed commitment to climate change in the most important response since the Paris Agreement. Learn more…

    Ekaterra Tea Zero Carbon Pledge
    Ekaterra Tea pledges Net-Zero carbon

    The Desirability of Sustainability

    By Dan Bolton

    Are grocery shoppers willing to compensate suppliers for the additional cost of producing goods that are good for the environment?

    The answer is “Yes” according to a global panel of 86,000 consumers conducted by YouGov, a UK-based online market research firm.

    “Sustainability – both in terms of production and consumption – is top of mind for many consumers globally,” according to YouGov data journalist Hoang Nguyen.

    As governments worldwide sign accords to battle climate change, reduce carbon emissions, and look after the planet’s health, “consumers are also inclined to playing their part in helping preserve the environment and are willing to back their personal values with their spending dollars,” according to YouGov.

    YouGov’s International FMCG/CPG Report 2021 compares shifts in consumer preferences and consumption patterns in 17 countries. 

    When queried on their willingness to pay more to address environmental concerns, only responses from persons identified as mainly or partly responsible for grocery shopping for their household (grocery shoppers) were tallied. Globally, three in five German grocery shoppers (60%) were willing to pay more to address environmental concerns. Next were US grocery shoppers at (58%), closely followed by UK grocery shoppers at 57%. More than half of grocery shoppers in Australia (53%) showed a similar inclination. 

    In Japan, feelings are mixed. Only three in ten grocery shoppers agree with the statement: “I don’t mind paying more for products that are good for the environment.” 42% of this audience neither agree nor disagree with the statement.

    Younger Generations in UK and US are More Likely to Pay More for Sustainable Products
    Younger Generations in UK and US are More Likely to Pay More for Sustainable Products

    Biz Insight –  The YouGov panel indicated that in the UK and the US, Gen Z and millennial grocery shoppers were far likelier than older age cohorts to say they would pay more for sustainable products. Learn more…

    FAO Food Price Index is spiking in 2021

    Inflation Demonstrates Troubling Persistence

    Dismissed initially as “transitory” economists responded with concern this week as an increase in the US cost of living touched a 30-year high. 

    Inflation increased to 6.2% in October, growing at a pace not seen since 1990, according to the US Bureau of Labor Statistics. Inflation was more subdued in the European Union at 4.1% last month, up from 3.4% in September. 

    US food prices added far less to the overall cost of living than energy costs, for example, which rose by 30% in the past year but food inflation has spiked globally. Hunger and malnutrition are on the rise due to weather-related flooding and droughts and more expensive inputs.  Bloomberg writes that a United Nations Index tracking staples rose 3% to a fresh decade high in October, threatening even higher grocery bills for households that have already been strained by the pandemic. 

    Tea is plentiful. Rising prices for bulk transactions are blamed on energy costs, shipping logistics, and expensive ground transport – not scarcity. The cost of labor climbed steeply in 2021 at both ends of the supply chain along with costs for manufacturing packaged goods (CPG). In the tea lands, worsening hunger is a concern as Africa and India experience multi-year highs. National governments and aid groups report the poorest families are struggling. The World Bank reports that global poverty had been declining before COVID-19. “As a result of long-term scarring, we estimate that by 2030, 588 million people could still live in extreme poverty, an additional 50 million people compared with pre-COVID-19 estimates.”

     Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from reliable outside sources.
    Tea Price Report
    Nov 6 – Sale 44

    India Tea Price Watch | Sale 44

    This week, the big news is the invitation to Indian tea companies to participate in Iraq’s first tea festival. Iraq was a significant market for Indian tea until 2006, when the government of Iraq procured tea from India under the UN food for oil program. The import of tea was around 80 million kilos, with nearly half coming from India. Today, Sri Lanka is the major supplier to Iraq. The invitation from the Baghdad Chamber of Commerce comes as a boost at a time when Indian exports are struggling, even as competition from Kenya and Sri Lanka intensifies. 

    Aravinda Anantharaman

    Upcoming Events

    November 2021

    Iraq Tea Festival | Nov. 28-29 | Baghdad Chamber of Commerce
    Baghdad, Iraq |

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  • Tea Biz Podcast | Episode 42

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    Hear the Headlines

    | A New Theory on How Green Tea Promotes Longevity
    | The Bubble Tea Business is Frothing Globally
    | Assam Smallholder Collective Debuts Equifarm Tea Brand

    Seven-minute Tea News Recap

    Features

    This week Tea Biz travels to Miami, Florida to the offices of SAMA Tea where CEO Michael Parisi uses artificial intelligence to create new functional blends. SAMA’s CLAIRE platform is programmed to discover whitespace for new tea products, provide marketing insights based on consumer behavior. It even lists trending ingredients to consider in formulating the company’s new line of adaptogenic teas…

    Then we Zoom called two of the winners of the AVPA’s 4th Teas of the World Contest, starting in Crete, Greece where Jessica Natale Woollard spoke to the family-owners of Tofillo Farms, gold medal winners in the botanicals category.

    Then to Miaoli, Taiwan where Dan congratulates five-medal winner Rick Chang at the Xuejian plantation where he produces authentic bug-bitten Oriental Beauty oolong.

    Jay and Radhi Devlukia-Shetty co-founders SAMA Tea
    Jay and Radhi Devlukia-Shetty co-founders SAMA Tea

    Delicious by Design

    By Dan Bolton

    SAMA is an adaptogenic tea brand made delicious by design, according to SAMA CEO Michael Parisi, co-founder of 100.co, an artificial intelligence-powered brand creation platform used to parse millions of retail data signals such as product reviews and consumer beverage trends. Applying insights gleaned from this vast reservoir led to the recent launch of four purpose-driven tea blends inspired by Ayurveda and crafted to help balance the mind, body, and heart. The teas are sold in samplers or by subscription. Parisi spoke with Tea Biz from SAMA’s company headquarters in Miami, via Zoom.

    Listen to the interview
    SAMA CEO Michael Parisi uses artificial intelligence to create new functional blends.
    Malotira "Mountain Tea" from Tofillo, Crete
    Malotira “Mountain Tea” from Tofillo, Crete

    Native Malotira Tea from Crete Wins Gold

    By Jessica Natale Woollard

    High in the White Mountains on the island of Crete grows malotira, an ancient herb with small yellow flowers used to make Cretan Mountain Tea. Rodo Vasilaki and her husband and business partner Nikos Psyllakis grow the herb on 30-acres of family-run farms that are dotted across the island. Their Malotira Tea, known locally as tsai tou vounou and by the Latin name Sideritis syriaca, won gourmet gold at the 4th AVPA Teas of The World contest. Another one of their teas, Pink Healer, featuring Cretan sage and pink rockrose, earned a “gourmet” distinction. Read more…

    Listen to the interview
    Xue Jian Oolong Tea farm in Miaoli, Taiwan
    Xue Jian Oolong Tea farm in Miaoli, Taiwan

    Taiwan High Mountain Oolongs Earn Multiple Gold Medals

    By Dan Bolton

    Miaoli is a city of 89,000 nestled in the mountains of western Taiwan. The region is home to the Hakka, an indigenous tribe employed in the cultivation of tea since the early 1900s. Gardens in the area are famous for producing Oriental Beauty, an oolong that depends on the bite of the tea leafhopper to develop its honey fragrance and honeysuckle taste. Rick Chang is director at Xue Jian, a tea plantation situated at 4,500 feet altitude that produces oolong and black tea. The company first competed in the AVPA contest 2018, winning a gold medal that year and at least once every year since. Read more…

    Listen to the interview
    Rick Chang Xue Jian Oolong Tea

    News

    A New Theory on How Green Tea Promotes Longevity

    By Dan Bolton

    Researchers at ETH Zürich have discovered that green tea catechins are not passive antioxidants but pro-oxidants that act to strengthen cells against attack by free radicals, leading to longer life and greater fitness.

    Initially, the presence of green tea catechins increases oxidative stress for a short while which has the subsequent effect of strengthening the defensive capabilities of the cells and the organism, according to study leader Dr. Michael Ristow, professor for Energy Metabolism at the University’s Department of Health Sciences and Technology.

    “Catechins, aren’t in fact antioxidants, but rather pro-oxidants that improve the organism’s ability to defend itself, similar to a vaccination,” said Ristow. “Green tea activates genes that produce certain enzymes such as superoxide dismutase (SOD) and catalase (CTL) that deactivate free radicals in nematodes, the test organisms chosen for the study,” he explained. 

    The findings from the study translate well to humans, said Ristow. “The basic biochemical processes by which organisms neutralize oxygen free radicals are conserved in the evolution history and are present in everything from unicellular yeast to humans,” he said.

    His findings appear in the October issue of the peer-reviewed journal Aging.

    Learn more…

    • Tian J, Geiss C, Zarse K, Madreiter- Sokolowski CT, Ristow M: Green tea catechins EGCG and ECG enhance the fitness and lifespan of Caenorhabditis elegans by complex I inhibition. Aging, 2021 Oct 4;13. doi: 10.18632/aging.203597call_made
    From left, Sabin Narzary,  Sanibar Boro, Assaigra Boro, Thapsa Boro, Baburam Daimary, Pijush Goyary, Ajith Boro, Bijoy Boro, Kukhol Boro,  J. John, Minto Goswami,  and Sanjwrang Basumatary.

    Assam Smallholder Collective Launches National Tea Brand

    By Roopak Goswami

    Subsistence growers with generations of experience understand how to cultivate tea but are held back by their inability to process, package, and ship larger quantities. Few ever advance beyond the constraining role of supplying profit-driven bought leaf factories. 

    Grassroots Tea in New Delhi aggregates, repacks, wholesales, and retails authentic teas supplied by collectives and helps smallholders secure financing to establish Tea Producer Companies. TPCs then partner with the collectives to operate mini-factories that each process 2,500 kilos of green leaf to make 500 kilos of tea a day. Smallholders become producer stakeholders and ag entrepreneurs. Last week Grassroots debuted the equifarm brand on Amazon India. Equifarm teas range in price from $4.85 to $8.15 (INRs 605) for 250 grams. Unlike most smallholders — who receive perhaps a tenth of the retail price — growers supplying equifarm tea receive a far greater percentage of what consumers pay. This is because Grassroots Tea and lenders enable stakeholders to earn significantly more money by adding value close to origin. Read more…

    Philipping-based Jollibee buys controlling shares of Milkshop, Taiwan.
    Philippine-based Jollibee buys a controlling share of Milkshop, Taiwan.

    The Bubble Tea Business is Frothing Globally

    Manila-based Jollibee Foods Corp. this week acquired a majority stake, paying $12.8 million for one of Taiwan’s largest bubble tea companies, the latest of many investments fueling the global expansion of the multi-billion segment.

    The 250-location Milkshop International, founded in 2008, operates 231 units in Taiwan and the remainder in Singapore, Hong Kong, Melbourne, and Vancouver, Canada. Milkshop grew revenue by 12% compared to 2019 generating $75 million in sales in 2020.

    Jollibee, which operates 5,853 outlets in 34 countries, announced that the investment “gives JFC the opportunity to participate in this fast-growing beverage category.” Milkshop drinks are offered in three Jollibee locations.

    Kung Fu Tea, founded in 2010 in Queens, New York operates 250 locations in the US. Gong Cha operates 1,400 stores including 36 North American locations. In September ChaTime, Taiwan’s largest bubble tea brand with 1,200 locations in 50 countries, announced a major expansion in the US.

    The global market, valued at $2.2 billion in 2019, is rebounding from an acute shortage of tapioca pearls that followed lockdowns in 2020. Fans worldwide adopted a self-imposed “one boba” per day limit during a period when Taiwan halted the water-intensive manufacturing of pearls to conserve water during a two-year drought. Taiwan manufacturers 90% of the world’s favorite boba-sized black tapioca pearls.

    Technavio estimates the global market will grow at a compound annual rate of 6.5%, adding $942 billion in sales by 2025. Fortune Business Insights predicts $3.9 billion in sales by 2027. Market leaders include Kung Fu Tea, Gong Cha, Chatime, ShareTea, and Coco Fresh.

    Biz Insight –  There are now 20,000 bubble tea outlets in the US and the drinks are sold at another 30,000 restaurants including Sonic and Dunkin. Jollibee operates 69 US stores. The US market for bubble was estimated at $240 million in 2020 and displaying every indication of continued growth. For example, San Francisco-based Boba Guys now manufacture their tapioca pearls in the US. 

     Dan Bolton

    In Memoriam

    Peter G.W. Keen
    Prof. Peter G. W. Keen, a brilliant educator, and author with a passion for tea passed Oct. 26. Keen was born in Singapore, educated at Oxford, and taught at Harvard, Stanford, and MIT. He published more than 30 scholarly books during his 79 years, including three books on tea along with many hundreds of magazine and online articles about his beloved brew. A celebration of life is planned for spring 2022.
    Click to read his obituary.

    • Read more… links indicate the article continues. Learn more… links to additional information from reliable outside sources.
    Tea Price Report
    Oct 30 – Sale 43

    India Tea Price Watch | Sale 43

    In North India, Kolkata saw good demand for all tea types. Among buyers, the Middle East was active for orthodox tea while HUL and TCPL were active for CTC and dust. In Darjeeling, more broken and fannings found takers this week. Guwahati also saw good demand with major blenders active for both leaf and dust. Siliguri also saw good demand for tea, as it did the previous week. In the south, Coonoor saw good demand for CTC leaf with nearly 96% on offer sold. Cochin and Coimbatore saw better uptake for dust. Of the 692 kilos of green tea on offer at Coonoor, only 173 kilos sold at INRs 200 per kilo. Read more…

    Aravinda Anantharaman

    Upcoming Events

    November 2021

    HX: The Hotel Experience | Nov. 14-15 | New York City
    Jacob Javits Convention Center | Agenda | Register

    Click to view more upcoming events.


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  • Grassroots Tea


    Equifarm tea is a new brand with deep roots. In 2017 New Delhi-based Grassroots Tea Corp. first shared its vision for transforming the livelihoods of 250,000 of India’s small tea growers (STGs) by processing and marketing well-made chemical-free teas. Subsistence growers with generations of experience understand how to cultivate tea but are held back by their inability to add value. Few advance beyond a time-bound role as raw leaf suppliers. Grassroots helps secure financing and then aggregates, repacks, wholesales, and retails authentic teas supplied by collectives. Tea Producer Companies then partner with the collectives to operate mini-factories that process 2,500 kilos of green leaf a day.

    Photo caption: From left, Sabin Narzary,  Sanibar Boro, Assaigra Boro, Thapsa Boro, Baburam Daimary, Pijush Goyary, Ajith Boro, Bijoy Boro, Kukhol Boro,  J. John, Minto Goswami,  and Sanjwrang Basumatary.


    Smallholders in Assam supply green leaf to locally owned mini-factories. Photos courtesy of J. John.

    Assam Smallholders Express Pride of Ownership

    By Roopak Goswami

    Tea grower Sabin Narzary, 32, is proud and brimming with confidence, as are 260 small tea farmers in the Udalguri and Biswanath districts of Assam.

    All are shareholders in a tea producer company, a new business model that enables subsistence growers to finance mini-factories and create local brands collectively. Their new equifarm tea is now on sale on Amazon. The Grassroots Tea Corporation (GTC) launched the product during a virtual meeting on Oct. 8.

    Two weeks later their teas debuted on Amazon.in priced from INRs 360 to 605 (US$4.85-$8.15 for 250 grams).

    Sabin Narzary

    In 2017 New Delhi-based Grassroots Tea Corp. first shared its vision for transforming the livelihoods of 250,000 small tea growers (STGs) by processing and marketing well-made chemical-free teas. Subsistence growers with generations of experience understand how to cultivate tea but are held back by their inability to add value. Few advance beyond a time-bound role as raw leaf suppliers.

    “I have not heard about growers becoming shareholders in the small tea grower sector,” says Narzary, a father of two who was raised in Khasiapather. Small tea growers now produce more than half of the millions of metric tons of green leaf grown in India. Producer-members of the Swmkhwr Valley Tea Producer Company contribute green leaf and are granted shares in the venture.

    Smallholders in 2020 produced 52% of India’s tea, primarily for production as black CTC (cut, tear, curl) but with a growing segment of specialty tea producers.

    The equifarm brand’s tea range includes Premium Orthodox Whole Leaf, Premium Orthodox packaged in stand-up pouches, and orthodox tea and green tea in teabags. Initially, it will be available online on major e-commerce portals like Amazon, Flipkart, and selected cloud kitchens.

    Shortly after it was founded, Grassroots Tea encouraged a group of 260 indigenous Bodo small tea farmers in Assam’s Udalguri and Biswanath districts to set up four manufacturing units to process green tea leaves sourced from their farms. Each unit required an investment of INRs 1.3 crores (about US$175,000) to purchase the property, structure, tea-making machinery, and other equipment. The four factories raised the required capital – as equity and as a term loan from Financial Services Limited (NABFIN), a subsidiary of the National Bank for Agriculture and Rural Development (NABARD).

    Ten years ago “We were not getting good prices as we used to sell our leaves individually [to bought leaf factories],” explains Narzary. One of the biggest problems and worries of small tea growers in Assam are getting low prices for the green leaf as they are dependent on bought leaf factories.

    Protests and demonstrations are ongoing. The Confederation of Indian Small Tea Growers Association (CISTA) says that bought leaf factories pay an average of INRs 15-17 (US$0.20 – 0.23) per kilo for green leaf growers in Assam and West Bengal. Growers say the cost of producing green leaf has increased as much as INRs 19 (US$0.25) per kg due to shipping expense and a tightening supply of fertilizer and other inputs increasing the cost of production.

    He said the entry of Centre for Education and Communication (CEC) New Delhi and J. John changed all that, and the growers formed a society to get a higher price for the leaf they supply to the processing factories. The collective leaf trade fuelled the leadership and entrepreneurial aspirations of kindling their desire to move up the value chain. The societies brought their active members as shareholders to constitute producer companies.

    While taking advantage of a ‘Company’ registration, like raising capital and sharing profit, the Producer Company framework has the advantage that it runs based on cooperative principles. The shareholders are ‘active producers,’ which means only those who contribute to the supply of green tea leaves can participate. Each shareholder has one vote irrespective of the number of shares owned.

    “Our lives are now completely transformed as we are getting good prices for the green leaf and have learnt a lot about tea,” he says.

    Kukhol Boro says one of the most significant learning has been the advantage of being united. “Earlier we were selling our green leaf only by ourselves and did not get good prices, later when we became a society, we got better prices,” he says.

    “We had difficulties in getting compliances, but now, we can proudly say that we have a factory of our own where we manufacture tea all by ourselves, a dream that we have been chasing for the last eight to 10 years.

    Today after many ups and downs, we could make it happen,” he said.

    Equifarm tea

    “We have many more miles to go, but today is the beginning, today is the day of farmers, today is the day of GTC. Let the small tea growers of the world unite and be active part of the value chain,” Kukhol Boro said.

    “We could never imagine that one day the growers would be owning factories as members of societies,” added Kukhol Boro.

    Grassroots Tea has a packaging unit in Barpeta, Assam.

    “It is a market linked to the farmers’ movement in which farmers own and govern various stages of value accrual of an ethical product and obtain a reasonable share of the value accrued. It also establishes a direct connect between farmers and consumers by making available high quality ethical, ecologically sound and traceable natural tea,” said J. John, managing director of Grassroots Tea.

    GTC provides support at three distinct stages: empowering small tea growers (STGs) to cultivate chemical-free tea; assisting STGs in raising equity to set up Tea Producer Companies (under the Company Act, 1953) to build processing factories that manufacture high quality, certified orthodox tea; and when the tea is made Grassroots aggregates and markets the tea to conscious consumers under the joint ‘equifarm tea’ brand.

    Teas are natural, traceable, single-origin (subsumed within geographical indicators); made and owned by small tea farmers, ensuring a sustainable livelihood and an optimum share of the profits, he said.

    “Our long term vision is to transform socio-economic outcomes for 250,000 small tea growers at risk, in India. We want to ensure dignity and economic justice for all STGs by enabling fair compensation at multiple levels of value accrual throughout the value chain,” John says.

    India needs an alternate model for the tea-value chain as a core strategy to drive systemic change. In this model, subsistence tea farmers organize in collectives that own and actively participate in the value-creation and value-sharing processes, he explains.

    “As part of our long-term vision, we will facilitate the setting up of more STG owned tea producer companies (TPC) across India, directly impacting larger number of STG households and worker households,” he added. In time big brands and retailers will recognize and execute, the principle of fair compensation at value accruals.

    At the virtual launch event, Adina Pasula, Supply Chain leader, IKEA, Sweden, commented on the distress faced by small-time farmers across the world: “Social entrepreneurship like the equifarm tea is contributing in addressing their plight,” she said. Initiatives of this nature lead to systemic change and would have a collective impact across stakeholders at various levels, she said.

    NABARD General Manager Baiju Kurup praised the GTC model. He said that during the “last couple of years, NABARD’s major focus has been in the facilitation of the aggregation of farmers to a farmers’ producer company, or FPO, where better share of the price can be transferred to the producers so that they enjoy better price realization.”

    CISTA president Bijoy Gopal Chakraborty said, “in equifarm tea, we see the prominent footprint of the small tea growers in India.”


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  • Tea Biz Podcast | Episode 41

    Tea Biz Podcast Logo

    Listen on your favorite player

    Hear the Headlines

    | Fairtrade International Predicts Climate-Related Disaster for Small Tea Farms
    | Chemical Fertilizer Supplies Disrupted
    | Holiday Helpers are in Short Supply

    Seven-minute Tea News Recap

    Tea Price Report
    Oct 23 – Sale 42

    India Tea Price Watch

    After a missed week of the auction, North India saw good demand in Kolkata, Guwahati, and Siliguri. Last week saw the highest weekly sale volume for 2021. In Kolkata, 83% of Orthodox tea on offer was sold, and the Middle East remained the top buyer. However, Darjeeling tea saw less uptake. In Guwahati, the market showed good demand for CTC and Orthodox teas, and major blenders were active. In Coonoor, buyers from North India were active, reportedly due to demand during Diwali, one of the biggest Indian festivals. Read more…

    Aravinda Anantharaman

    Features

    This week Tea Biz travels to Lincoln, England for a visit with Will Battle, author of “The World Tea Encyclopaedia” and managing director of Fine Tea Merchants, Ltd., a wholesale tea import and export venture that supplies tea merchants with mainstream offerings as well as rare teas and herbals.

    Will Battle on the unique costs of producing specialty tea.
    Will Battle details the additional costs of producing specialty tea.

    The Cost of Producing Specialty Tea

    By Dan Bolton

    Growers are taking initiatives on quality at all levels, blurring the lines between the everyday and specialty sectors, says tea wholesaler and author Will Battle. But is manufacturing specialty tea worth the effort?

    “Frequently it probably isn’t considering the amount that growers need to invest from a financial and human resources perspective to make the very best teas,” he says.

    The costs of producing the distinctive taste of the authentic, transparent, eco-friendly, clean-label formulations that are so popular with Millennial and Gen Z cohorts are significantly higher than what growers spend supplying conventional tea. A preference for chemical-free cultivation, third-party certifications, energy-efficient, carbon-neutral processing and transport, and recyclable and biodegradable packaging further erode margins along the length of the supply chain. Consumers who pay a premium at retail for specialty tea often leave growers to foot the bill. This raises a fundamental question: Is anyone making money making specialty tea? Read more…

    Listen to the review
    Will Battle on the costs and questionable return on investment for growers making specialty tea

    News

    A tea farm in Kerala, South India, one of several climate “hot spots”? identified by Fairtrade International

    Fairtrade International: Small Tea Growers Face Climate-Related Financial Disaster

    Limited access to capital will make it difficult for farmers to finance adaptations to changing climate that will generally lower yield, reduce tea quality, and lead to more instances of catastrophic failure in tea “hotspots” globally.

    By Dan Bolton

    According to Fairtrade International, a hotter and drier climate poses a severe financial threat to millions of farmers in major tea-growing regions.

    The third-party certification organization released a 148-page report ahead of the United Nations Climate Change Conference in Glasgow, Scotland (COP26). Fairtrade CEO Nyagoy Nyong’o called the study’s results “extremely alarming and a clarion call for immediate and comprehensive climate action.”

    The study assessed climate impacts on bananas, cocoa, coffee, cotton, sugarcane, and tea producers. Juan Pablo Solis, Fairtrade’s senior advisor for climate and environment, said, “the way climate change affects the planet is extraordinarily complex.” He cited “mounting challenges that they [Fairtrade International certified farmers] face if the international community continues to fail them.” 

    In summarizing the impact on tea, the authors state that tea-producing locations will be subject to considerable increases in the number of days of extreme temperatures, especially under the high emissions scenario.

    Read more…

    Representative Concentration Pathways (RCP) are described in two climate scenarios through 2050. RCP4.5 is the current trajectory, and RCP8.5 is the more extreme scenario. RCP4.5 assumes global mitigation will enable the atmosphere to stabilize by 2100. RCP8.5 presents a future where mitigation efforts fail and greenhouse gases remain high.
    Smallholder spreading fertilizer by hand on tea farm

    Chemical Fertilizer Supplies Disrupted

    By Dan Bolton

    Closure of fertilizer manufacturing plants in the UK and record-high prices approaching $1,000 per short ton in North America foretell cutbacks as global food prices reach a 10-year high. There are ample stocks and capacity, but timely arrival is a concern due to the shipping crisis and fertilizer prices are prohibitively high for some applications due to rising energy costs.

    China, the world’s largest agrochemical manufacturer by tonnage, cut output due to rising energy prices but has since allowed manufacturers to maintain high operating rates to meet domestic food security requirements. Fertilizer exports surged in 2021 with a total of 10.8 million metric tons during the first eight months of the year, an increase of 46% compared to the same period in 2020. In July China suspended phosphate exports and in August exports declined by 26% to 2.78 million metric tons.

    As prices spike across a broad range of plant nutrients European growers say they may be forced to idle croplands or plant less fertilizer-dependent crops than corn, for example.

    In the US the price of urea increased 26% in the past month reaching $0.80/lb.N [per pound of Nitrogen] with anhydrous at $0.57/lb.N., an average $940 per ton. Potash is up 15% compared to September.

    Biz Insight – The disruption is troubling because tea is a very demanding plant requiring 300-450 kilos of Nitrogen per hectare for high-quality shoots plus three secondary nutrients and 10 trace elements. No soil in any part of the world can continuously provide full nourishment for plants producing economically significant yields without fertilizer.

    Holiday workers are in short supply
    Holiday workers are in short supply

    Holiday Retail and Delivery Workers in Short Supply

    Workers in US retail and warehouse fulfillment are in high demand and short supply as major employers’ staff up for the holidays.

    Seasonal culinary workers, delivery drivers, and retail clerks are among the 4.3 million “missing workers” unable or unwilling to return to work, according to the Wall Street Journal. Money Magazine notes that 10% of seasonal job postings on Indeed.com include the description “urgent.”

    Amazon expects to hire 150,000 seasonal workers (up 50% from 2020) and is paying an average of $18 per hour. Supervisors can qualify for $3,000 signing bonuses in key slots. UPS is advertising warehouse and package-handler jobs at $22 per hour. Walmart, Target, and FedEx round out the top five seasonal employers with a combined 600,000 slots to fill.

    In response, smaller retailers and cafés are offering additional hours and more stable work hours to existing employees, investing in staff training, and promising to transition the most promising new hires to full-time work in 2022. New hires are requesting more flexibility and benefits. The shortage means seasonal and full-time job seekers have greater leverage this year to negotiate bonuses and benefits and wages greater than $15 per hour.

    Biz Insight – There are 10 million US job openings as workers quit at the highest rates on record. Nearly 50% of US adults in a recent LinkedIn survey said the pandemic has changed how they feel about their careers. Of those who view their careers differently, 73% said they felt less fulfilled in their current jobs. The greatest decline in the eligible worker participation rate is among women, workers without a college degree, and those in low-paying service industries such as hotels, restaurants, and childcare, according to the Wall Street Journal. Pandemic accelerated early retirements among those 55 and older is a trend that economists say is unlikely to reverse.

    — Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from reliable outside sources.

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