Tea Biz
Tea Biz

Episode · 8 months ago

Tea News and Biz Insight - April 30, 2021


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 newsthat you need to know, a recap of the week's major headlines, withcommentary and cultural trends. Hosted by Dan Bolton. It is the voice oforigin for tea professionals and enthusiasts worldwide. Think of us as a digital caravanof storytellers, bringing authentic, authoritative and exclusive stories to you weekly from thetea lands. Welcome the hero of the headlines. MUMBOSA expands tea auctions tofive days a week. spiking prices dismay Russian tea dreckers. A six pointfour earthquake shakes a psalm, but tea factory damage is minor. Vottom teamobilizes emergency aid to India. More in a minute, but first this importantmessage. Avani empowers rural women practicing sustainable agriculture, including tea, and craftssuch as weaving with natural fiber and plant base dyes. Up in the toweringhillalayands Qum one is one of India's oldest tea regions. Today we raise ourcups 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 QmanDot Org. Low auction prices for Kenya and other east African teas havepersisted 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 byeight point six percent. Teas auction by the Kenya Tea Development Agency generally sofor more than teas from elsewhere, but are down twelve percent. Recent auctionaverages of a dollar eighty one per kilo are well below the coast of productionfor many factories. The countries agriculture and Food Authority also blames the decline onweak 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 leadto greatest surplus volumes, adding to already high stocks. Two developments this weekwill likely further Royal Mumbossa. On April twenty four, the government announced thatauctions 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 andequipment and those of the East Africa Tea Traders Association. No sales were conductedMonday. Business inside the Columbo Tea Auction and Shri Lanka has conducted on Tuesdaysand Wednesdays. ANNU will. Sales volume of three hundred million kilos is comparableto the four hundred and fifty million kilos auction den Bombaza in two thousand andtwenty. After a hundred and twenty seven years, Columbo's traditional auction went digitalbut retains its two day a week schedule. John Snell, owner and CEO ofElla's tea in Ontario, Canada, has been buying tea in commercial qualitysince one thousand nine hundred and eighty four. A former trading manager for multinationals purchasingeast African tea, Snell shared his thoughts on the expanded schedule. AMombassa te auction for five days a week, irrespective of technology allowing you to doso. The suggestion that the capacity is there for bias and traders toattend all week is misplaced. It speaks to a lack of consultation which couldvery charitably be called out as a missed opportunity to get things right and isanother example of the disconnect between state and commerce which sometimes manifests itself when thereis regime change afoot. I'm not suggesting for one minute that the current systemis perfect either, but if you have ever sat in an auction and seenthe feeding frenzy at can occur through good selling or indeed by the recognition oflimited time and tea and this environment conjus, then future auction fatigue could dampen thiseffect. I also wonder whether there has been consideration for the impact thata five day investment in time is going to have on bias choice as towhere they buy their tea. Of course can you produce as much of theexported 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 itwill not change the fundamentals of this market or the lot of the small holdof farmers it purports to help. That will require much more work. Thepandemic and economic consequences caused tea prices at retail to increase by two to tenpercent in Russia last year and prices there continue to climb in two thousand andtwenty one. Rising freight cause packaging expenses and a week ruble against the dollaralso in reach the cost of raw materials. Natalia and Lazarova, with the RussianAssociation of tea and Coffee Producers explains that it could be worse. Pricegrowth is restricted because producers are concerned with...

...the decline of purchasing power by consumersand the declining popularity of tea among the youth, as many switched to coffeein recent years. The association does not expect the Russian team market to expandthis year. Sales volumes are growing at minimal levels, she said, makingtwo thousand and twenty one much like two thousand and twenty learn more on thetea 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 Apriltwenty 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 employeesand their dependence from member gardens. The National Center for Seismology put the epicenterof the eight am quake near Sonoper, a very seismically active area along theKopeili fault. The last major quake in July one nine hundred and sixty measuredsix Pooh. voluntee this week donated Fiftyzero to launch a fundraiser as part ofHashtag rise together for India a COVID nineteen emergency relief donations will assist the nonprofitdoctors for you who deliver relief services across India. The company seeks to mobilizetea drinkers worldwide to set up temporary covid treatment facilities, acquire oxygen celadors andoxygen concentrators and facilitate rapid vaccination efforts. India reported more than two million covidcases in the past ten days. Learn more and find a kettle crowdfunding linkto donate on the tea Biz blog. Our VENDEAN and thereman and Bengaluru reportson India's tea auction prices. INDIA TI price report for the week ending Apriltwenty four. The week was dominated by the raging second wave of the covidnineteen tend to make across the country. Added to this, the t regionsare all struggling with dry weather. The Indian Tea Association issued a press releaseon twenty one April the details extent of damage from the extreme into long dryweather. There has been very little drain, nearly reduced by half of pot wasreceived the last year. The Sum Valley received fourteen point two MM rainfallfor January and February twenty and twenty one, as against twenty eight seven mm intwo 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 intwo thousand and twenty. In Not...

Bengal, that are I region receivedsix 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 andthe young Te Bushes. The scale of damage is reported to be more extensivethan usual. Cheng Mari Tst also reported extensive damage to workers houses. Thisis the main harvest season and producers would hope to see a revival after twothousand and twenty and not doubly worried, as SAM producers around four point fivepercent of its total crop and March and around six percent in April. Assamedia reporter that workers of the more Chron Tier State did not work for twodays in April as there were not leaves to pluck. Where two thousand fivehundred to two three thousand kilos are produced every day, this month saw pluckingof and production of two hundred and fifty to three hundred kilos. So productionis down by at least thirty percent and in some places as much as bysixty percent. An Auction Watch this week sales sixteen so ab or seventy percentuptake a cross south and Aust India, which is encoategy Calcutta auction sub byninety one percent of the Orthodox leaf on off of sold. And now aword 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 teabrand. For more information, visit our website, que trade teascom. Thisweek to business iss the fabled darzening tea growing region in the Himalayan foothills ofnorthwestern India, and we traveled to Seattle for the launch of the Organic MarketingAssociation, 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 springflush we get the most lucrative as well, but the plants there are aging.Wage inflation is high and workers are wrestless. Innovation is overdue, orwindow and anthero man. Whiles this report, she says, a third generation plantermanaging the coupas an Rockini estates induch. Really now other things. He's putouchilings open. First, these in the map a, producing a flavorfulrange of long stats. Thieves. We spoke to a sheep, but actuallyfrom the point view of a plant, term from wet seeing stand what itneeds and because the competition from Nipan.

Where does startality stand? Compared tosay, 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 doingbetween nineteen eighty two two thousand and what we have achieved between nineteen eighty twotwo thousand in terms of economic growth. We are certainly out past that bya long margin. Between two thousand and two thousand and twenty. That hashad an effect on the team stream as a whole. So we just havegone off faster than what we would applay. So that is one challenge. Thatis one of the reasons why there is a lot of woe cry.Inflation has been rampant. Wage inflation was roughly three to four percent. Sometimesit is in fifteen percent. Wage inflation is a huge issue. That hasbeen 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 makea lot of green sweech arning as added a lot of green tea. Thething was never known for speciality. The definition of US speciality t association andwhat a t shop thinks of speciality is very different. You would go throughcatalogs twenty years back, you would find doesn't first for us and doesn't secondplace in a detail of Schecule. At least that I changed. You havewhat you call very tp moonlight style teas. Now you have second flush tails,you have green teas, you have why teas, you have some specialhand 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 lotof innovation happening and they it's happening more with farms, which are which arerealizing that what change needs to come in. Who Longs talk about rulers? TheI mean who thought does thing would make bolongs there like you can makebelongs. That is what the first reaction was. And being ready on thisM I, in my stain in mind, would not have thought we don't havea property t research institute which guides you to all these things. Imean 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 actuallythey started writing. Who Longs from that? They're like why? Why? Wecan't belong? Well, you don't know to you don't even I havea no longer clone with you. So we started identifying that, we startedlearning how to plug them, used to send samples us to get the response. Not Good enough, not good enough, not good enough. Then we startedhitting some right notes. And you know, when all these things youknow, let me start thinking like we learned so much. Then we realizehow to make mounted. Okay, we don't know so much, but wecan always learn. I think the dazzling...

...tea fields have to get upgraded andthat will take a lot of time. Can we upgrade a fields fast enoughto still be relevant? What about a plantation model itself? Is it's stillpossible? See in India we've not been able to make qualdity out of workysport. It is only the studio it which is able to figure out whenwe are doing it. But based on what I see, it is certainlynot happening in a very, very large scale. Just to say that theplantation model it has no future, I think it is not fair. Andeducated the sourceful owner with a short workers, it has its strength. I meanI think that combination I had something to offer. What re you viewsin the competition from Nepal, Tis I Indian who has you know, mymother used to be from NEPPA. So I I don't think of Nepal asNepal the country. You know, for me Nepal is like my mom's homecountry and we have gone to Nepal whenever we wanted to. Selibody, asa community, has always traded with Nepal. I have not thought of Nepal assomething very foreign. So for me to say that, you know,there is competition from Nepal, it's like telling your me my Chacha or myfriend has put up a tea state. They are allowed to do the thing. Why are you so worried? where, I think, is the fact thatNepalis are not being enough to promote tea in their own country. Secondly, see, Nepal is a bottle model. There is a lot of dumping whichjust goes on. You know, they just dunk the tea. Sothe Nepal tea state as a whole Super Hector Revenue Mos be lower than thatof the let's say. I mean last year I heard that they sold theirhigh mountain green leaf for Indian rupees twenty a city. See leaves last yearwas selling at thirty five. This year it is selling at thirty two Nepalfactories. Nepal traders may be making money. Things are really you know, it'speople don't understand. Nepalti industry also needs to understand that. They haveto stop this dumping model. I don't know if you've ever bought teas fromNepal, but you've seen how the Nepal trade is organized. They just sendyou to posing Kidgis off dozing states samples and the EXPERTU to buy. Nowthe 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 somedoesn't deep. Producers are taken. I don't know if it's looking for themor not, but it's very difficulty. By it that because I see thingsvery differently. That's that I stuff us like what Vja to do is youmay need better to easy. Dennis Weaver is the CO founder and President ofthe Organic Marketing Association, a nonprofit the...

...growers cannot pay to join. Theconsumer 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 youor lemons calling you to puck her up baby, or my slogan is thedouble on Pondre organic heat. Me Weaver explains to that organic food is deliciousand nutritious. So why is organic stuck at five percent market share, withplantings on only one percent of US acredge, he asks. One reason is thatorganic suppliers spend too much time talking about what's not organic. They arein 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 tryto educate anyone. Instead, we will focus on making positive associations with theword organic and the things that make people happy. It's a simple formula thatworks. As Weaver SS of organic foods and beverages are steady, with broaddistribution. In the US, the growth has plot code in the fifteen yearssince organic foods first became available at mainstream grocers. How did we make comeabout? A group of us from a wide ranging of backgrounds happen to believethat 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 goodfoods. So we've created the Organic Marketing Association to do just that, toinspire you. The Organic Market Association is a new, fresh, bold,High Energy nonprofit designed to present organics in the positive always. We're flipping thescript to the fun, delicious, than entertaining side. We're not here toeducate anyone. We will spend our time and energies and efforts presenting things thatmake people happy. It's a simple form of the works is called the lawof attraction. The law of attraction states people are more apt to move towardswhat 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 ofthe Conventional Paradigms for marketing organics. The website is full of color and funand and smiles and people living life to its fullest. That's the presentation oforganic. 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 iszero point one two percent, or...

...all industry is zero point zero ninepercent. We have influencers. Our taglines and headlines cause a smile, ifnot out loud laughter, in some of the comments returned to our fun generatesa 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 ofwhat the money is, and so we've refined that skill. How can wemay benefit the organic segment of the Global Tea Industry? Dennis, the mostimportant 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, thetime is now join the fun, and the Organic Marketing Association is full offun, designed to encourage people to make the organic, good food choice fortheir own good health. Intrigued by what we've heard in today's podcast, wouldyou like to learn more from our global network of TB is journalists and theexperts? Contact them directly through subjects private message based platinum. Avoid the chaosof social media and start a conversation that matters. Sub Text Message based platformlet's you privately ask meaningful questions of the t experts, academics and TB isjournalists reporting from the tea lends. You see their responses via SMS texts whichare sent to wreck to your phone. visit our website. Subscribe to subtextto instantly connect with the most connected people and tea. Remember to visit theTB is website from more comprehensive coverage. That's wwwazcom. Thanks for listening.Fare well to the next week.

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