Tea Biz
Tea Biz

Episode · 1 year ago

Tea News and Biz Insight - April 30, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – Mombasa to Expand Tea Auctions to Five Days a Week | Spiking Prices Dismay Russian Tea Drinkers
| A 6.4 Quake Shakes Assam – Tea Factory Damage is Minor | Vahdam Tea Mobilizes Emergency COVID Aid for India

| GUEST – Rishi Saria is a third-generation planter, managing the Gopaldhara, and Rohini estates in Darjeeling, India.

| FEATURES – This week Tea Biz visits the fabled Darjeeling tea growing region in the Himalayan foothills of northwestern India
…. and we travel to Seattle for the launch of the Organic Marketing Association a group that conveys the complexities of organic cultivation with memorable memes, clever ditties, and illustrations that radiate the joy of farming in harmony with nature.

Steadfast Darjeeling Continues to Evolve

Darjeeling is the most famous of India’s tea growing regions. Revenue from its spring flush makes it the most lucrative, but the plants there are aging, wage inflation is high, and workers are restless. Innovation is overdue. Aravinda Anantharaman spoke with Rishi Saria a third generation planter, managing the Gopaldhara, and Rohini estates in Darjeeling. He discusses Darjeeling from the point of view of a planter, where things stand, what it needs, and the successful processing of . She filed this this report:

Marketing Organics with Humor

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

Weaver explains that organic food is delicious and nutritious, “So why is organic stuck at 5% market share with plantings on only 1% of US acreage?” he asks. One reason is that organic suppliers spend too much time talking about what’s not organic. They are in a defensive bubble, he says. Consumers are far more interested in how tasty, fun and easy it is to choose organics.
“We won’t try to educate anyone. Instead, we’ll focus on making positive associations with the word organic and the things that make people happy. It’s a simple formula that works,” says Weaver.

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. Welcome the hero of the headlines. MUMBOSA expands tea auctions to five days a week. spiking prices dismay Russian tea dreckers. A six point four earthquake shakes a psalm, but tea factory damage is minor. Vottom tea mobilizes emergency aid to India. More in a minute, but first this important message. Avani empowers rural women practicing sustainable agriculture, including tea, and crafts such as weaving with natural fiber and plant base dyes. Up in the towering hillalayands Qum one is one of India's oldest tea regions. Today we raise our cups in the name of Avaniqu Mine, a nonprofit dedicated to strengthening farming communities. Cheers to a brighter future for all. To donate, visit Avani da Qman Dot Org. Low auction prices for Kenya and other east African teas have persisted for the past three years due to oversupply. During the past nine months, the average price of two dollars and fifty two cents per kilo declined by eight point six percent. Teas auction by the Kenya Tea Development Agency generally so for more than teas from elsewhere, but are down twelve percent. Recent auction averages of a dollar eighty one per kilo are well below the coast of production for many factories. The countries agriculture and Food Authority also blames the decline on weak demand due to the coronavirus, lockdowns and the devaluation of many foreign currencies. Meanwhile, favorable weather and increased acreage under tea with each passing year lead to greatest surplus volumes, adding to already high stocks. Two developments this week will likely further Royal Mumbossa. On April twenty four, the government announced that auctions will be expanded from two to five days a week later this spring, and last Friday detectives with the Directorate of...

Criminal Investigation seized both Katda records and equipment and those of the East Africa Tea Traders Association. No sales were conducted Monday. Business inside the Columbo Tea Auction and Shri Lanka has conducted on Tuesdays and Wednesdays. ANNU will. Sales volume of three hundred million kilos is comparable to the four hundred and fifty million kilos auction den Bombaza in two thousand and twenty. After a hundred and twenty seven years, Columbo's traditional auction went digital but retains its two day a week schedule. John Snell, owner and CEO of Ella's tea in Ontario, Canada, has been buying tea in commercial quality since one thousand nine hundred and eighty four. A former trading manager for multinationals purchasing east African tea, Snell shared his thoughts on the expanded schedule. A Mombassa te auction for five days a week, irrespective of technology allowing you to do so. The suggestion that the capacity is there for bias and traders to attend all week is misplaced. It speaks to a lack of consultation which could very charitably be called out as a missed opportunity to get things right and is another example of the disconnect between state and commerce which sometimes manifests itself when there is regime change afoot. I'm not suggesting for one minute that the current system is perfect either, but if you have ever sat in an auction and seen the feeding frenzy at can occur through good selling or indeed by the recognition of limited time and tea and this environment conjus, then future auction fatigue could dampen this effect. I also wonder whether there has been consideration for the impact that a five day investment in time is going to have on bias choice as to where they buy their tea. Of course can you produce as much of the exported tea in the world, and sales will not stop because of this decision, but will it help or hinder? Whichever I can emphatically state that it will not change the fundamentals of this market or the lot of the small hold of farmers it purports to help. That will require much more work. The pandemic and economic consequences caused tea prices at retail to increase by two to ten percent in Russia last year and prices there continue to climb in two thousand and twenty one. Rising freight cause packaging expenses and a week ruble against the dollar also in reach the cost of raw materials. Natalia and Lazarova, with the Russian Association of tea and Coffee Producers explains that it could be worse. Price growth is restricted because producers are concerned with...

...the decline of purchasing power by consumers and the declining popularity of tea among the youth, as many switched to coffee in recent years. The association does not expect the Russian team market to expand this year. Sales volumes are growing at minimal levels, she said, making two thousand and twenty one much like two thousand and twenty learn more on the tea Biz blog. A six point four earthquake shook a soalm this week. The strong quake was followed by several aftershocks that rattle rafters and nerves on April twenty eight, but caused only minor damage to tea processing factories throughout the region. Up under seeing chairman of the ASSAMB branch of the India Tea Association said, quote, we were lucky to have got away with no injuries to employees and their dependence from member gardens. The National Center for Seismology put the epicenter of the eight am quake near Sonoper, a very seismically active area along the Kopeili fault. The last major quake in July one nine hundred and sixty measured six Pooh. voluntee this week donated Fiftyzero to launch a fundraiser as part of Hashtag rise together for India a COVID nineteen emergency relief donations will assist the nonprofit doctors for you who deliver relief services across India. The company seeks to mobilize tea drinkers worldwide to set up temporary covid treatment facilities, acquire oxygen celadors and oxygen concentrators and facilitate rapid vaccination efforts. India reported more than two million covid cases in the past ten days. Learn more and find a kettle crowdfunding link to donate on the tea Biz blog. Our VENDEAN and thereman and Bengaluru reports on India's tea auction prices. INDIA TI price report for the week ending April twenty four. The week was dominated by the raging second wave of the covid nineteen tend to make across the country. Added to this, the t regions are all struggling with dry weather. The Indian Tea Association issued a press release on twenty one April the details extent of damage from the extreme into long dry weather. There has been very little drain, nearly reduced by half of pot was received the last year. The Sum Valley received fourteen point two MM rainfall for January and February twenty and twenty one, as against twenty eight seven mm in two thousand and twenty. Cutcher to received only almost half the rainfall, at four point one five mm this year, as against eight point three MM in two thousand and twenty. In Not...

Bengal, that are I region received six point one five mm rain as against nineteen point one MM last year. The hills term in a salmon not s being all earlier in the month, was also more severe than usual. severalty gardens have seen damage to mature and the young Te Bushes. The scale of damage is reported to be more extensive than usual. Cheng Mari Tst also reported extensive damage to workers houses. This is the main harvest season and producers would hope to see a revival after two thousand and twenty and not doubly worried, as SAM producers around four point five percent of its total crop and March and around six percent in April. Assa media reporter that workers of the more Chron Tier State did not work for two days in April as there were not leaves to pluck. Where two thousand five hundred to two three thousand kilos are produced every day, this month saw plucking of and production of two hundred and fifty to three hundred kilos. So production is down by at least thirty percent and in some places as much as by sixty percent. An Auction Watch this week sales sixteen so ab or seventy percent uptake a cross south and Aust India, which is encoategy Calcutta auction sub by ninety one percent of the Orthodox leaf on off of sold. And now a word from our sponsor. Q trade teas works with tea preveyors at every scale, from promising startups to the world's largest multinational beverage brands in the hot, iced and bottle tea segments. With US based formulation, blending and packaging services. Q trade can help you innovate, scale up and grow your specialty tea brand. For more information, visit our website, que trade teascom. This week to business iss the fabled darzening tea growing region in the Himalayan foothills of northwestern India, and we traveled to Seattle for the launch of the Organic Marketing Association, a group that conveys the complexities of organic cultivation with memorable memes, clever ditties and illustrations that radiate the joy of farming and harmony with nature. Currently is the most famous of India's tea growing regions. Revenue from its spring flush we get the most lucrative as well, but the plants there are aging. Wage inflation is high and workers are wrestless. Innovation is overdue, or window and anthero man. Whiles this report, she says, a third generation planter managing the coupas an Rockini estates induch. Really now other things. He's put ouchilings open. First, these in the map a, producing a flavorful range of long stats. Thieves. We spoke to a sheep, but actually from the point view of a plant, term from wet seeing stand what it needs and because the competition from Nipan.

Where does startality stand? Compared to say, even ten, twenty years ago, there's been a lot of progress. See India as is a far more progressive country then what it was doing between nineteen eighty two two thousand and what we have achieved between nineteen eighty two two thousand in terms of economic growth. We are certainly out past that by a long margin. Between two thousand and two thousand and twenty. That has had an effect on the team stream as a whole. So we just have gone off faster than what we would applay. So that is one challenge. That is one of the reasons why there is a lot of woe cry. Inflation has been rampant. Wage inflation was roughly three to four percent. Sometimes it is in fifteen percent. Wage inflation is a huge issue. That has been a problem. Why people are always talking of the setbacks. Doesn't invest. But if you look at offer wise and in we never used to make a lot of green sweech arning as added a lot of green tea. The thing was never known for speciality. The definition of US speciality t association and what a t shop thinks of speciality is very different. You would go through catalogs twenty years back, you would find doesn't first for us and doesn't second place in a detail of Schecule. At least that I changed. You have what you call very tp moonlight style teas. Now you have second flush tails, you have green teas, you have why teas, you have some special hand rolled and made stuff also, so I at least some two teas. You could have gone gone to eight or ten teas. There is a lot of innovation happening and they it's happening more with farms, which are which are realizing that what change needs to come in. Who Longs talk about rulers? The I mean who thought does thing would make bolongs there like you can make belongs. That is what the first reaction was. And being ready on this M I, in my stain in mind, would not have thought we don't have a property t research institute which guides you to all these things. I mean a lot of the younger generation. They're taking a lot of effort. So once you take effort you tend to learn. Some of the retailers actually they started writing. Who Longs from that? They're like why? Why? We can't belong? Well, you don't know to you don't even I have a no longer clone with you. So we started identifying that, we started learning how to plug them, used to send samples us to get the response. Not Good enough, not good enough, not good enough. Then we started hitting some right notes. And you know, when all these things you know, let me start thinking like we learned so much. Then we realize how to make mounted. Okay, we don't know so much, but we can always learn. I think the dazzling...

...tea fields have to get upgraded and that will take a lot of time. Can we upgrade a fields fast enough to still be relevant? What about a plantation model itself? Is it's still possible? See in India we've not been able to make qualdity out of worky sport. It is only the studio it which is able to figure out when we are doing it. But based on what I see, it is certainly not happening in a very, very large scale. Just to say that the plantation model it has no future, I think it is not fair. And educated the sourceful owner with a short workers, it has its strength. I mean I think that combination I had something to offer. What re you views in the competition from Nepal, Tis I Indian who has you know, my mother used to be from NEPPA. So I I don't think of Nepal as Nepal the country. You know, for me Nepal is like my mom's home country and we have gone to Nepal whenever we wanted to. Selibody, as a community, has always traded with Nepal. I have not thought of Nepal as something very foreign. So for me to say that, you know, there is competition from Nepal, it's like telling your me my Chacha or my friend has put up a tea state. They are allowed to do the thing. Why are you so worried? where, I think, is the fact that Nepalis are not being enough to promote tea in their own country. Secondly, see, Nepal is a bottle model. There is a lot of dumping which just goes on. You know, they just dunk the tea. So the Nepal tea state as a whole Super Hector Revenue Mos be lower than that of the let's say. I mean last year I heard that they sold their high mountain green leaf for Indian rupees twenty a city. See leaves last year was selling at thirty five. This year it is selling at thirty two Nepal factories. Nepal traders may be making money. Things are really you know, it's people don't understand. Nepalti industry also needs to understand that. They have to stop this dumping model. I don't know if you've ever bought teas from Nepal, but you've seen how the Nepal trade is organized. They just send you to posing Kidgis off dozing states samples and the EXPERTU to buy. Now the biot is going to be. You what he's going to be a penis. So most of dozing is organic. That is one strategy. It's some doesn't deep. Producers are taken. I don't know if it's looking for them or not, but it's very difficulty. By it that because I see things very differently. That's that I stuff us like what Vja to do is you may need better to easy. Dennis Weaver is the CO founder and President of the Organic Marketing Association, a nonprofit the...

...growers cannot pay to join. The consumer facing Oma celebrates the fun side of Organics by building awareness of slogans, funds and instagram inspired illustrations of vegetables like a celery with the headline stalking you or lemons calling you to puck her up baby, or my slogan is the double on Pondre organic heat. Me Weaver explains to that organic food is delicious and nutritious. So why is organic stuck at five percent market share, with plantings on only one percent of US acredge, he asks. One reason is that organic suppliers spend too much time talking about what's not organic. They are in a defense so bubble pieces. Consumers are far more interested in how tasty, fun and easy it is to choose organics. Well, we won't try to educate anyone. Instead, we will focus on making positive associations with the word organic and the things that make people happy. It's a simple formula that works. As Weaver SS of organic foods and beverages are steady, with broad distribution. In the US, the growth has plot code in the fifteen years since organic foods first became available at mainstream grocers. How did we make come about? A group of us from a wide ranging of backgrounds happen to believe that organic, good food is the best for you, me and the planet, and more people ought to be enjoying the wholesome healthful benefits of organic good foods. So we've created the Organic Marketing Association to do just that, to inspire you. The Organic Market Association is a new, fresh, bold, High Energy nonprofit designed to present organics in the positive always. We're flipping the script to the fun, delicious, than entertaining side. We're not here to educate anyone. We will spend our time and energies and efforts presenting things that make people happy. It's a simple form of the works is called the law of attraction. The law of attraction states people are more apt to move towards what they want rather than to avoid. We're walking away from the same old, same old, tired organic narrative, a narrative that was negative, argumentative, disparaging, describable. Image newly launched website and how it breaks free of the Conventional Paradigms for marketing organics. The website is full of color and fun and and smiles and people living life to its fullest. That's the presentation of organic. Always on the positive, always on the UP. A brand. Organic brand can become a member. Not Organic brand can become an ally. The most important thing is the engagement rate. The average for food and beverage is zero point one two percent, or...

...all industry is zero point zero nine percent. We have influencers. Our taglines and headlines cause a smile, if not out loud laughter, in some of the comments returned to our fun generates a thirteen point five percent engagement rate. So we claim were thirteen thousand, one hundred and sixty six percent funnier than anybody else. That engagement rate of what the money is, and so we've refined that skill. How can we may benefit the organic segment of the Global Tea Industry? Dennis, the most important ingredient is the tea workers and farmer, and they can join for free, because without the organic farmers we've got nothing. As we say, the time is now join the fun, and the Organic Marketing Association is full of fun, designed to encourage people to make the organic, good food choice for their own good health. Intrigued by what we've heard in today's podcast, would you like to learn more from our global network of TB is journalists and the experts? Contact them directly through subjects private message based platinum. Avoid the chaos of social media and start a conversation that matters. Sub Text Message based platform let's you privately ask meaningful questions of the t experts, academics and TB is journalists reporting from the tea lends. You see their responses via SMS texts which are sent to wreck to your phone. visit our website. Subscribe to subtext to instantly connect with the most connected people and tea. Remember to visit the TB is website from more comprehensive coverage. That's wwwazcom. Thanks for listening. Fare well to the next week.

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