Tea Biz
Tea Biz

Episode · 9 months ago

Tea Biz News and Insight - April 8, 2022


HEAR THE HEADLINES – A Global Recession Looms | A Realignment of the Orthodox Tea Supply Chain is Underway | Assam to Open First High Schools for Children of Tea Workers

| GUEST – Korangani Tea Estate planter and mechanical engineer Ranjit Chaliha

| FEATURE INTRO – In this installment of Frugal Innovations, Tea Biz travels to Assam, India, to meet planter and mechanical engineer Ranjit Chaliha who describes the Varun, a device named after the Hindi God of Wind that recirculates heated exhaust to conserve energy and eliminate the inconsistencies in tea dryers that lower tea quality.

Achieving Consistency and Efficiency in Drying Tea – The Model Tea Factory at Tocklai was constructed during Ranjit Chaliha's tenure as chairman of the engineering subcommittee of India's Tea Research Association. During this time he began experimenting with equipment to recirculate exhaust in the factory's tea dryers. At an engineering symposium on tea machinery in 1998, Chaliha presented a paper describing the benefits of recirculating exhaust air. He based his findings on experiments and filed for a patent. A dozen years later, he was finally awarded recognition for his innovation, Varun, a device that reduces inconsistencies in drying tea.

The Tea Biz podcast delivers tea news that you need to know, a recap of the week's major headlines, with commentary and cultural trends. Hosted by Dan Bolton. It is the voice of origin for tea professionals and enthusiasts worldwide. Think of us as a digital caravan of storytellers, bringing authentic, authoritative and exclusive stories to you weekly from the tea lands. Hello everyone here. This week's headlines. A global recession looms, a realignment of the Orthodox tea supply chain is under way and a psalm opens its first high schools for children of tea workers. More in a minute, but first this important message. What makes a Perfect Cup of Ceylon tea? The Perfect Cup is from the tea businesses that ensure the protection of all the children living within their tea estates. We Salute Kailani Valley, tell a Wacky Lee, Bogojan, Thalawa, Harana and Elyptia tea estates. Support Save the Children Sri Lanka. Economists from so many nations are citing so many compelling reasons for slowing growth. Their probably right of recession looms. Deutsche Bank was the first on Wall Street to forecast recession. Goldman sacks places the likelihood of a recession by two thousand and twenty four thirty eight percent. The combination and spiking energy prices, rising interest rates, rising stock volatility and rising inflation are long term indicators. The War in Ukraine and the COVID nineteen lockdown of Shanghai, China's most important financial center, are immediate concerns. Signs of stagflation are worrisome as Europe considers bands on Russian oil, gas and coal amid constrained supply chains, at a time when inflation is averaging a record seven point five percent among EU members. For EU countries are already above ten percent inflation. Energy prices are up forty five percent compared to March. Two Thousand and twenty one with drawing Russian fertilizer and thirty percent of the world's grain from World Trade for tells of food catastrophe. Grain stock piles are low due to last year's drought and the price per Bushel of wheat, at eleven dollars, is seventy two percent higher than last year. In the US, consumer prices are the highest in forty years, but predictions are for a moderate downturn global markets expanded by twenty five percent in two thousand and twenty...

...and or now thirteen percent greater than two thousand and nineteen. The tea trade is currently valued at seven point seven billion, ranking three hundred and seventy four to globally, a tiny fraction of the twenty eight point five trillion traded in two thousand and twenty one. Tea exports are in decline, but consumption continues to expand as producing countries retain sixty nine percent of the tea harvest, up from fifty eight percent in two thousand and ten. The Economist Intelligence Unit estimates three point four percent growth and tea consumption in two thousand and twenty two. Despite sanctions following the Russian invasion of Ukraine, business inside. In America, where lockdowns devastated downtown coffee shops and cafes, lunch with iced tea is again being served as office workers returned to their desks and factories to make up for lost time. The Pew Research Center finds that fifty nine percent of US workers who say their work can be done mainly from home continue working from home most of the time, down from seventy one percent in October. Two Thousand and twenty survey respondents in January. Two Thousand and twenty two said the impetus for working from home is by choice rather than necessity, but thirty eight percent reports the workplace is closed or unavailable. Sanctions have re aligned the Orthodox t supply chain, putting a large share of the world's fifth most valuable tea market in play. The war in Ukraine has disrupted the black tea supply chain more than either the pandemic or the great recession. In two thousand and nine the signs are evident of a global realignment of tea suppliers, as governments in Europe, North America, Japan, Taiwan and South Korea are joined by multinational companies and suspending operations in the Russian market, triggering a damaging national recession up for grabs as an export market in free fall but worth at least three hundred and fifty two four hundred million in two thousand and twenty two, according to the Economist Intelligence Unit, Russia, which accounted for an estimated two point three percent of global consumption in two thousand and twenty one quote, will be affected by a sharp forecast recession. In Two thousand and twenty two. We forecast at decline and tea consumption in both two thousand and twenty two and two thousand and twenty three. and quote tea brand executives in Moscow right. That quote for Russia means that we will have to reduce the amount of discounts and supermarkets and trying to switch more consumers to tea bags, as the margin for loose leaf is low and it's difficult to manage blends ends because of loose Orthodox tea shortages.

...and quote, Russia imports five point four percent of the world's tea by value, spending four hundred and thirteen million on teas from forty five countries. In Two thousand and twenty, the Federal Custom Service in Russia last year estimated that the market would import four hundred and forty two million worth of tea in two thousand and twenty two. By comparison, Pakistan spent six hundred and forty six million on tea, accounting for about eight point four percent of the global tea trade by value. The US bought six percent of world tea imports in two thousand and twenty, spending four hundred and seventy three million dollars. Shre Lanka, Russia's top tea trading partner, earned a hundred and twenty four million dollars. In Two thousand and twenty four hundred and thirty million kilos of Orthodox tea, which all long can. Tea Exports over all felled by twenty seven thousand metric tons, about ten percent year on year, in two thousand and nineteen, to total two hundred and sixty five thousand metric tons in two thousand and twenty then rows to two hundred eighty six thousand metric tons in two thousand and twenty one, but will fall much lower in two thousand and twenty two, as recently is two thousand and thirteen FLOCO supplied Russia with forty seven million kilos of tea. The downward trend was evident since the Crimean sanctions were imposed in two thousand and fourteen and accelerated during the pandemic. Last year, Turkey imported thirty nine million kilos and Iraq imported thirty three million kilos from Sri Lanka, replacing the Russian Federation as the top buyers of Ceylon tea. India, Russia's second most important tea supplier, is expected to take up the slack, as Sri Lanka will fall far short of its annual production of three hundred million kilos. Shri Lanka counts for fifty percent of the world's Orthodox tea exports, the style favored by Russians. India mainly manufacture CTC, producing only a hundred and twenty million kilos of Orthodox tea annually. Last week, after visiting Sri Lanka, executives of the South India Tea Exporters Association estimated at twenty to twenty five percent decline in Shri Lanka output. If that prediction holds true, a seventy five million kilo gap will impact trade with Russia, Iraq, Iran, Turkey, Libya and UAE. Sri Lanka exporters acknowledge at decline, but place the short fall closer to thirty million kilos. But that was before widespread protests, a reduction to between five and ten hours of electricity daily to run tea factories...

...and the dissolution of floka's parliament, leading to a constitutional crisis. The gap in supply will expand even more as sanctions take hold. Germany ranks fifth among Russia's tea trading partners and Poland ranks thirteen. In Poland and Germany, exports of hot tea destined for Russia before sanctions are now in route to refugees and anxious tea drinkers in eastern Europe. Business inside Russia ranked eleven, and tea exports at a hundred and five million in two thousand and twenty, accounting for one point five percent of global tea exports by value, far behind Poland at two hundred and sixty five million in Germany at two hundred and twenty three million. Prior to invading Ukraine, the primary export destinations for Russian tea where Kazakistan and Belarus, each accounting for twenty percent of Russian tea exports. The current situation will likely enhance trade with Kyrgyzsten the Moldova Republic and Azerbaijan and disrupt trade with Latvia and Eastern Europe, except Hungary. Ukraine imported fourteen point eight million worth of Russian tea in two thousand and twenty. Elementary Education is mandated at as sums, eight hundred and three registered tea gardens, but for the first time, state funded high schools were now enrolled the children of tea workers. Ninety seven high schools will open may ten on tea states, with thirteen located offside, serving small holders who operate seventy fivezero small tea gardens. And additional twenty two schools will open for the two thousand three academic year, and eighty one schools will be upgraded to provide secondary education. Two years ago, the government of a Psalm established at twelve million Rupe development fund of approximately hundred Sixtyzero and US dollars to construct the new high schools. Children of one point one million workers attending school or serve breakfast and a midday meal. CARVENDA and and Thea man in Bengaluru reports on this week's tea auction prices. India tea priced about for the weekending April second two thousand and twenty two. With Sri Lanka in deep economic crisis, there's an anticipated drop of fifteen to twenty five percent in the country. Steep production and because Sri Lanka accounts for about fifty percent of the total trade of Orthodox Tea, but markets Invest Asia, North Africa, Turkey and Russia, this shot folk could be significant. Bias, as Luncan team maturn to US India to meet the deficit, although I did export us are quick to classify that it's unlikely at bias will replace the allegiance to brand cylon tea just yet. Meanwhile, in some belief for India, Russian bias is showing a return to market after the last three weeks in auctions.

Nor India only saw a sale tady in that Siliguri theslity is yet to hit the auctions. Out of the first flush teas that already out in the retail market. So far goodrick has had it a called sale from its hite t from the Batam Tam. Is it the BIOS Indian tea brand golden tips, who bought ten kilos of organic quite t at to piece? Twenty three thousand Pakilo in the South? Auctions took place, as usually. Could know, so good uptake of Orthodox Leaf and exporters were active for larger broken grids, fannings and dust. And now a word from our sponsor. Q trade understands that a successful tea blend goes beyond the creative fusion of appearance, a Roma and flavor. Are Multi Award winning product development team is passionate about converting natural ingredients its sensory experiences that customers crave. Every recipe is formulated with a commercial backbone of dependable quality sourcing, with a pricing structure that supports a safe, regulated, profitable and scalable bland q trade meets every brand's retail, food service and ECOMMERCE need. For more information, visit our website. FEW TRADE TEASCOM in this installment of Frugal Innovations, T bis travels to some India to meet planter and Mechanical Engineer Runjie Chilija, who describes of a room a device named after the Hindi God of war. The recirculate heated exhaust to conserve energy and eliminate the inconsistency in tea dryers, but lower te quality. In one thousand nine hundred and sixty one, je Cheliha arrived as family's courgany estate and a sum and never left. He had trained as a mechanical engineer and worked briefly some electricity board and now that he factory became a place of many experiments. He eagerly adopted new technologies and tinkled with new machines. And she's also became a member and later chairman of the Engineering Subcommittee of the Tea Research Association, involved in Machinery Development in tea research. It was during his tenure that the model ty factory in Toc I was constructed. In one thousand nine hundred and ninety eight, runjee presented a paper at an engineering supposium on team machinery on the recirculation of air in the tea drier and his findings based on experiments in recirculating part of the exhaust air. Recently, run cheese was in the news for the painted he was finally awarded for his innovation Parun a device that will address inconsistencies in drying tea. Congratulations in the patent, Mr Chelia. How long did it take me to get it? For me, veryous and unfortunately the patent examiner initially will not convinced. It was not impressed. He would all stop no other irrelevant questions and seem lad to him. Ultimately, it...

...is a very pleasant surprise. It came so how did the idea of what come about and what is whatroom do you see? What happens is in the tea dry the AMBA T air is heated to a high temperature, to about two hundred degrees Fahrenheit and blow it through the thinly spread tea leaves spread on trees, and air goes from below the trees through the tea and up in Sam weather changes from dry in the beginning of the year to very moist during the monsoons and again dry towards the end of the year. July our September are the moist months. At that time also, the air is heated to two hundred degrees fary night it's it and blown through the wet tea leaves and they get a result which is acceptable. But then come November, when the atmosphere itself is dry, the air itches itself dry. Then also the this air is heated to the same two hundred degrees Farenheit. In July, the MBIENT air would have a relative umbdit of let's say fifty sixty percent or or maybe more. In in November the relative hum between maybe thirty forty percent, much leer, and it is heated the same temperature. that the relative humidity instead of two three percent, it would go down to probably one two percent, which you don't need, because your three person was good. En Up, you're eating it till one two percent. In fact, not only don't need. It's bad because they becomes drier than what it was before and you get a faster drying which is also not good anyway. So I say, I thought to myself, why heat till two hundred degrees? Why not still about hundred and ninety degrees, on a hundred eighty degrees, so that the relative humidity goes down to near about what it was in July? How does monitoring the temperature and controlling the trying impact the t itself? You should get more consistent drying. Quality of tea is formulated, made by various numerous things, including the rate of drying. Rate of drying is two point eight, two three point six percent loss of moisture per minutes. In conventional drash that was the rate at which the wet leaves should lose moisture. So the tea's giant faster than that, it would some quality will be lost and if it's...

...if it is dried slower than that, there also quality will be lost. So there's a range within which the leaf drying rate of the t shirt take place. So and all that is dependent on various things, like to what temperature you heat the air and the relative humidity of the hot air, and that is also dependent on the ambient conditions of the air to start which. So, since the ambient conditions vary, the hot air conditions will also vary if you heat to the same temperature. So this instrument will tell you that. In order to keep a reasonable, say, consistency in the condition of the drying air, this will tell you to what temperature should be heated. Who is this monitor most helpful for? Is IT FOR CITC production? Orthodox is a speciality. I mean, is it diagnostic in that anybody can use it? Yes, yes, of course. God would be calibrated differently from H and different way of manufacturing, different machines and different mainly build different rash is got to be calibrated differently and also situations, locations. It's a psychometric thing. So it's got to be adjusted for a height of of sea level and how difficult to Easyaser to install it and implement it. Very just there's meter ky and it's got leads. How long the take will produce her to recover the cost of investment in modern within one year? What do you need to take more into market? First, leader there. It's an uphill task. I mean people have tried to sell this instrument in the market earlier. As I said, only two or three ver soul. So now that we've got the feedback that they are not interested in doing it manually, will have to make it automatic. There are different ways by which gardens beat the air. One is in by gas, natural gas. In a person and rest of the country mainly they use cold with gas it's easier regulated through the burner, but in coal some more work has to be done. But first let me get this manually operate machine going first, and also to say this it's not a very glamorous thing. It will give you. It will give you savings in fuel, maybe up to three percent, and also consistent in drying. But three person saving for a big factory making tail legs, Cage's fuel costs. Maybe. I don't know what what we are now what six,...

...seven, repeat kg. So what N lections about seventy? Seventy legs? Even two percent of that is a lot, much more than the cost of the instrument. Intrigued by what you heard in today's podcast, would you like to learn more from our global network of TBZ journalists and t experts? Remember to visit the TV Biz website. For more comprehensive coverage. That's wwwt Biz bizcom. Thanks for listening. Farewell Till Next Week.

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