Tea Biz
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Episode · 4 months ago

Tea Biz News and Insight - August 5, 2022

ABOUT THIS EPISODE

HEAR THE HEADLINES – India Considers Tough New Import Restrictions for Nepal Tea | IMF Bailout Talks with Sri Lanka to Resume | Kenya’s Ag Minister Reverses the Government’s Position Favoring Mechanization

| NEWSMAKER – Aasha Bhandari, International Trade and Promotion Executive at HIMCOOP, the Himalaya Tea Producers Co-operative

| FEATURE INTRO – Tea Biz this week travels to Kathmandu, Nepal, where Aasha Bhandari describes how Asia’s enthusiasm for golden tips powered Nepalese tea producers through the pandemic. HIMCOOP, the Himalaya Tea Producers Co-operative, is a consortium of tea producers founded in 2003.

Nepal Opportunity – The Eastern Nepal region has led the country's tea trade. Today the landscape is changing as more entrepreneurs are exploring the tea industry. HIMCOOP trade and promotions executive Aasha Bhandari says, "One of the best advantages Nepal tea has is that they own their factory, they own their garden. So, they have the power to make whatever sort of tea they want to make. That's a good advantage. And I think they're doing it quite well. I'm really impressed with the small farmers compared to the big factories."

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 t 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. Brazil is celebrating Samano de Cha, its first national tea week, through April seventh, with online tutorials and video demonstrations and in person activities in fourteen states. To participate at no cost to visit Samando CHA DOT COM dot B R. Here. This week's headlines. India considers tough new imports restrictions for Nepal. T I M F bailout talks with Shri Lanka to resume. Kenya's administer reverses the government's position favoring mechanization. Plus Asha Bundari, International Trade and promotion executive at him Koup, the Himalaya Tea Producers Cooperative, describes how Asia's enthusiasm for golden tips powered Nepalese tea producers through the pandemic. 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, Tellawaki, Lee Boga, Wanthal Awa, Harana and Elyptia tea estates support Save the children. Shrieka. India's parliamentary committee on Commerce is pressing for a review of the nineteen fifty, in known Nepal Treaty of Peace and friendship that allows free movement of people and goods. The treaties of popular in Nepal because of issues of sovereignty to give wealthy Indians unfettered market access. In January one, during a three day trip to India, Nepal's foreign minister, Perdeb Gowali, said that Nepal would also like to revise the nineteen fifty treaty to reflect, quote, changes and new realities and resolve a few misunderstandings. End Quote. In June, Commerce Committee chair Vj Sing Gretty asked the government to impose stringent certificate of origin requirements that would subject tea imports to a quality the standard, expanding existing food safety...

...regulations. The intent is to curb the flow of inexpensive tea that is blended and sold as higher priced. Startling the committee's report calls for enacting and anti dumping duty ranging from forty to a hundred percent. That would negatively impact Nepal's tea industry. Nepaule produces around twenty five thousand metric tons annually and exported eleven thousand nine hundred metric tons during the last fiscal year. Export earnings were about thirty million US. Indian buys eighteen and nine of Nepal's Orthodox tea and fifty of the CTC, which are processed mainly at body factories. Orthodox is priced much higher than CTC but yields only about three hundred and thirty five kilos per hector, while CTC averages and average of six kilos per hector and sells for about half of that. Have comparably grown Indian tea. According to the newspaper Napoli, tea producers say that if India goes ahead with the parliamentary committee's recommendation, Nepal's tea sector will collapse. The paper cited a deep decline in shipment's post covid India's decision to delay the transit of forty thousand tons of Nepaul tea for several weeks last year and, in some instances, rejects shipment's transitting India but bound for other countries. In November, India announced it would cancel import licenses of unscrupulous domestic tea companies found to people ending Himalayan teas with those from dargling. The keyboard of India imposed new restrictions to prevent companies from importing inferior te DPAC canal, director of Nepal's National Tea and Coffee Development Board, said that unfounded rumors questioned inequality of Nepal Ti also contributed to the decline. He told the posts that, quote, India has adopted a policy to discourage buyers from importing Nepali t and cited a t shipment of six thousand metric tons in twenty cargo trucks that was stopped at the Yahopa border crossing in June. Inspectors demanded additional lab test, which caused delays. Quote. We were surprised by the change in policy overnight, said canal. He said that the Indian side also halted the export of Nepali t to third party countries via India. Quote. Domestic Traders and producers are obviously discouraged. End Quote. To obtain a...

...sports certification, Napole team must be tested at the central food laboratory in Colkotta, India. Discussions between the two countries have since resolved double verification and notification concerns business inside. In Sen Nepal and India mutually seeking closer relations, agreeing to review all bilateral agreements and treaties and in issued a report described as a strong groundword for furthering India Nepal relations and resetting ties. According to Nepalese diplomats, the negotiation of navigation rights for access to the fift hundred mile long Ganges River as an example of how the treaty could be modified. Nepal is a landlocked nation with limited transport capability, but major tributaries in Nepal could one day connect nepaul to the Bay of Bengal via Bangladesh. Talks between bankrupt Sri Lanka and the International Monetary Fund will resume this month as the government finalizes a plan to restructure fifty one billion in foreign debt. The situation for tea gardens has improved with increased access for fuel and additional hours of electrical power. Workers must still contend with steep food inflation and limited supplies of cooking gas and petrol. A crackdown on thousands of protesters raised IMFs concerns that unrest will continue. Following the forced resignation of President Go to Baya, Rajapaksa, his successor, said he would not oppose constitutional amendments limiting presidential powers. Addressing parliament this week, Neil Rick Mussinghi, he said that he supports a four year bailout that would make three billion available in August and helped Sri Lanka to pay back twelve billion Ode to bondholders. The new president said the only way to escape the crisis was, quote, if we all face this challenge together as one people, end quote, and asked that all parties in parliament joined his initiative for a unity government. Opposition leaders agreed to work together during the crisis to balance the national budget by debts currently run a hundred and forty of Sri Lanka's Gross Domestic Product. Kenya's Minister of Agriculture, Peter Munia, reversed his advocacy from mechanical tea harvesters this week. According to her report in business daily Africa, Manya...

...on Sunday, said there's not enough job opportunities right now in the country. Quote. Kenya is not industrialized and we need to stop using machines now. I am going to stop it. In March, the cabinet secretary directed the Kenya Tea Development Agency, KT D A, to expand the use of mechanical harvesters to all tea growing zones, he said at that time. Quote. Mechanical Harvesting is critical as it will help reduce the cost of labor, increased earnings for farmers and protect their health. Harvesters are now in use on many tea farms in Nandi, Carico and Bomet in the western Rift Valley. Labor unions representing tea workers, however, in all these regions opposed mechanization. Growers say the machines save up to ten shillings per kilo. Manual laborers received fifteen shillings per kilo for harvesting forty five kilos, about a hundred pounds of tea per day. Machines typically plug four hundred kilos per day about a thousand pounds of leaf. Kat d a purchases the handheld machines for about two hundred dollars each and provides the equipment and training to farmers on request. Are Venda and Enteroman in Bengaluru reports on this week's tea auction prices India tea price support for the weekending thirty July. Two A parliamentary Standing Committee on Commerce has presented a report on the issues affecting the Indian ty industry, in particular the dadgailing region, at the parliament in June. Two details of this have just been released to the media. The report is an outcome of meetings held with various tea bodies and the teaboat of India. Among the issues presented the dumping of cheap and substandard teams from Nepal, pending subsidies, land rights to workers and Dodgy Link Terra and the dours living wages for workers, especially in West Bengal calling for the implementation of the twenty nine code on wages, which stipulates at the wages be provided in cash and the remaining fifteen per cent in kind. The committee is also noted the emergence of the small tea growers and have sought policies to mobilize this segment, along with including those in the dudge link district within the geographical indication status in deep prices. Sale thirty. North India saw a good uptake of Orthodox sleep with and offer sold. This is similar to the previous week. Dage linked tea continues to have at the mark volumes sold, prices dropping marginally. In the south there was a significant drop and uptake of Orthodox dust. As of my sale, thirties of similar responses, say twenty nine. And now a word from our sponsor. Q trade understands that a...

...successful tea blend goes beyond the creative fusion of appearance, Aroma and flavor. Our Multi Award winning product development team is passionate about converting natural ingredients into 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 blend. Q trade meets every brand's retail, food service and e commerce need. For more information, visit our website, q trade tas dot Com t Biz. This week travels to Kathmandu, Nepal, where Asha Bundari, international trade and promotion executive at him Koup, describes how Asia's enthusiasm for golden tips powered Nepalese t producers through the pay endemic. Him Coup, the Himalaya t producers cooperative, is a consortium of tea producers founded in twenty three the eastern Nepal region has led the country's t trade. Today, the landscapes changing as more entrepreneurs are exploring the t industry. We speak to Asha Bandari at him coup to hear about the growing specialty the industry and Nepal. One of the best advantages that Nepal Ti has it they own their factory, you know, they own their gardens, so they have the power to make what sort of tea um they want to make it. For example, one factory or one company is not ruling over many guardians and Um asking them to make this kind of tea or you know what I'm speaking like. Every sames has their own individual power that gives advantage to them to play with their art. To know more about t. What kind of tea has been served into the world market and what kind of tea they have potential to make and I think that's that's a good advantage and I think they're doing it quite well. Right where. I'm really impressed with the small farmers compared to the big factories. Where does this change begin and who's leading the shift in the industry? The first set to happen with the young people, young entrepreneurs, for example, sort of to bis young entrepreneur is a young entrepreneur. They have grown up in inside the tea valley. They have known tea for a longer time. They have also seen, with the education and with the globalization, they have seen the dynamic of tea industry changing. We have a good climate, we we fall on the one of the, you know, highest elevation of the...

...country, and what they decide is to do something good with their knowledge and research. And what helped them is um dietary connection to ah two buyers. They're very thoroughly. They've listened to the buyers. You know, what kind of t they warnant in, what season, what kind of characteristics they are looking for and the specific tea. But they've listened before that what it used to be like. Big factories used to make their own tea. Sell it to the market. If if one buyer will bid it or they might not bid it. But the young entrepreneurs are more focused into the specific buyer needs and they have the ability to make tea expert the buyer's preference. For example, in Golden Golden Tips, buyer might look for the you know, um sweet honey flaver look for the golden are in the cup more body. So each producer have specialized in what kind of t buyer would be looking and they will be in the future. So it's like more of a more listening and giving the service rather than making it and selling it, and that's an important distinction to make. Right where once you make tea and hope somebody would buy it, now the producers are listening to what the buyers are asking for and trying to customize it to their needs. With this direct access to bias and this conversation and dialogue with buyers, producers are also building relationships which could have a long term impact. Indeed, as a producer, as a netality industry, we do not only sell tea, but we be live in building trust, building relation, just exchanging the knowledge and we're working for the best for both of uh the pier to be producer or the buyer. City is not just seen as a product or a commodity, but it's actually seen as a vehicle to impact socially entire communities. Is that a conscious intention or is it just a consequence of the way things have shaped up? I think it's both. We are British, small in terms of capacity, and the small producers who does not have that much of capacity or even that much of knowledge to uh to build their own factory or, you know, even getting into the market the model of CO operative and joint factory or, you know, the Co operative model started to collect and to involve all the people and keep them facility a sense of being there, even if you know there might not be much capital to work on. Look for the joint profit. But corporative model...

...demands a lot of all the participants. It's a great idea, but to sustain that calls for certain commitment from the side of the farmers. So, given that, would you call it a successful model? In Nepal, I would say yes, the corporative has been secure and safety model for farmers. What about this golden tea? What makes it so special? Bird's taken to make it are similar, like a Whitey, you know, small first leaf with a bird. I think it's more about the market, how it saved it. We had a really good market in China and Taiwan before the COVID and the way the price increased. They increased the price of golden tea the way they demanded and it please golden tea. It really put itself on the highlight that everyone was trying to fulfill the demand. If we talk about what kind of a taste it would be like, it's like a remarkable sweet honey like note with not still finish but more pronounced, and it has more body have fruitier notes changes it for the season and I think that that really got into the buyer's test words. Most of the buyers always compliment like it's like a bright golden in the cup. Wow, he's known. So yes, I think more of a dynamic market, how the buyer sisted themselves from the normal ty too golden tea. I think that that we did all of our producers to uh have it. Having said that, there has been a few producers who are already making it there. It's their potential, it's their hard work that the buyer could you know, come to come and taste their tea and it has been highlighted. So I think this is the market dynamic. If you're focusing on domestic market, I think golden tea would be one of the best first products that we should more focused into, because it has a very honey, woody, dark chocolate flavor. People who? Who? For whom? T is our, you know, typical milk with ginger and caridamum. For those kinds of audience or those kinds of a market, I think golden team would be excellent product to, you know, market and make them understand about the tea culture. So what will they pass specialty to compete on in the global market? What do you think is going to be? Brand NEPALTI'S USB? I believe it our sustainable practice. Our Guardians are already organic, if not most of them are converted themselves into organic garden. They are aware of their action. We change, but how can we dive it into more so well quality. You know, it's not only for the profit,...

...it's not only for the market, but it's also about the environment and how can we BE UM responsible to change it? I think that all of the produces that are so pretty aware of the fact that how all of our action has been the reason for the climate change, and I think that is the most beautiful thing I've seen, the way produces are changing themselves into practice. I think that that is one of our strong UH marketing point beside our product. Another is, again, it's not only about business, it's not only about profit, but it's about the building relation, listening the feedback of buyer and making them Um satisfied with our product. If there's no market, it will be really difficult for any of us to sustain. We need to work on a bit on pricing site. Having said that, the bigger impact is always the sustainable practice and the belief we have for the novelty is will always be sustainable practice. Give the quality of soil so that the future generation will also sustain from the same ti garden, and the quality we would be making from the high elevation. They all the factories are on such a good location, such a good Um, you know, geographical or even the climatic situation, and I think all are making best out of it and we are trying to make their potential a bit more recognizable, and I think it's more more than a product more than, uh, you know, market the if we go to the ELAM and talk about the tea and it will always be about the environment. And how can we, you know, save it, give it back and take it back from it? Intrigued by what you've heard in today's podcast, would you like to learn more from our global network of TV is journalists and t experts? Remember to visit the TV is website from Lore comprehensive coverage. That's W W W T, hyphen Biz B I Z alcohol. Thanks for listening. Farewell until next week.

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