Tea Biz
Tea Biz

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Tea News and Biz Insight - October 1, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – Kenya Exports Saturate the World’s Black Tea Market | COVID Depresses Japanese Tea Business in Unique Ways | Unilever is Recognized as the Top Food and Agriculture Benchmark 

| NEWSMAKER – Mohit Agarwal Managing Director of the Asian Tea Group, owners of Cha de Magoma and the Monte Metilile brand 

| GUEST – Supply chain and procurementexpert John Snell, principal at NM Tea B, Toronto | FEATURES – This week Tea Biz travelsto Monte Metilile in Mozambique, a country along the southern coast of EastAfrica where Mohit Agarwal Managing Director of the Asian Tea Group has revived an abandoned 15,000-acre tea estate to demonstrate the viability of organic farming at scale... and then we talk with supply chain and procurement expert John Snell about what makes Mozambique such an exceptional tea-producing region. 

Producing Organic Tea at Scale 

Mozambique is the best-kept secret in the tea world, says Mohit Agarwal, Managing Director, the Asian Group. This growing region has beenhidden for centuries. With 6,325 acres under tea, Monte Metilile, located inGúruè, in Zambezia province, is the world’s largest bio-organic tea garden anda success story that demonstrates the many advantages of scale in producinggreat-tasting, high-quality, clean teas. “Farming organic at scale is applyingthe required size to solve the problem,"" he says. 

Mozambique is God's Country for Tea

A century ago, when the Portuguese first planted tea in Gúruè,Mozambique they found gentle, well-drained slopes of rich red volcanic soils at1,500 to 3,600 feet elevation – identical to the altitude of India’s Darjeelingmid-tier gardens. The climate is cool and dry from May to September and hot andhumid between October and April. Annual rainfall averages more than 3,000millimeters. By 1950 production exceeded 20,000 metric tons a year and there was more land under tea in Mozambique than any country in Africa."

The TAP is podcast delivers t news thatyou need to know a recap of the week's major headlines with commentary andcultural trends hosted by Dan Bolt. It is the voice of origin for teaprofessionals and enthusiasts road bide. Think of thus as a digital caravan ofstory, teller, bringing authentic, authoritative and exclusive stories toyou, weekly from the plander one. Here this week's headlines Can your exportssaturate the world's black tea market, covin depresses, Japanese tea businessin unique ways. UN Lever is recognized as the pop foodin agricultural benchmark Mor n a minute, but first this importantmessage: White makes a perfect cup of Ceylon tea.The Perfect Cup is from the tea businesses that ensure the protectionof all the children living within their tea estates. We Salute Kalani Valley,tell a Wackin, Bogo, Wan, Talaa, Parana and Elida t estates support, Save thechildren. Silanga demand remained slat globally, yetKenya reported a nineteen percent increase in exports to almost threehundred million kilos during the first half of the year, despite followingproduction Cobles, the reason is that Kenya is saturating a market with lowcause black tea. The price of tea of the Mamas auction average dollar,ninety six per chilo through June, down from two dollars and seven cents perCilo during the same period in two thousand and twenty and well below thetwo dollar and fifty cent per calo average export price for Indian t.According to business daily Africa. Kenya is the world's biggest exporterof Black Tea Pakistan, which received twenty million kilos. Egypt, ninemillion kilos in the UK at five million kilos are normally the top buyers, butIndia has so far imported five million kilos of Kenyon Ta in Two ThousandTwenty One compared to one point: five million kilos. During the previous year,China has upped its purchases as well. India, which accesses a hundred percenttarifans, am Portis for domestic consumption is considering setting aminimum import price for both tea designated for blending and re export.T imports were up a hundred. Seventy six per cent at twelve may ancelot forthe first six months, Narrin the annual total of sixteen million kilos in twothousand and nineteen. According to business daily Africa volume at India'sdomestic teachin houses is down over...

...all and at a five month low in conor.According to the corner t trade association prices for auction thirtyeight last week averaged a dollar twenty five per Cilo about ninety twoIndian rupes business in sight. In August, the KeniaDevelopment Agency K, T da increase famous for green lafe farmers and PrimeTegria regions will earn twenty to twenty one canyon shillings abouttwenty three to twenty five cents per kilo. In U S dollars, but from twentycents the pay increase was back dated to July. First, the decision by thenewly seeded K, T D A board will benefit farmers who were paid a paltryseven cents for Cilo twenty years ago, but it also guarantees an increase involume at a time when the sale price at auction averaged only a dollar. Ninetyper kilo. Last year, like the rest of the world, Japanesetea growers suffered as restaurants. Closed social gatherings were cancelledand safety precautions limited harvest days and processing. The pandemic alsoinflicted set backs unique to the market, including a sharp decline andgifting of tea at funerals. Japan's agriculture, forcer andFisheries Ministry reports, the production of unrefined, a Rachadeclined by fifteen per cent in two thousand, a twenty one compared to theprevious year year, on Ye sails of first flush, teas fell by twenty percent and she's Wolka and by seventeen per cent and Calgachi Ma according toministry figures, the Japanese Association of Pe Production reports,the total production of cense declined by fifteen per cent in two thousand andtwenty compared to t thousand and nineteen Japanese office workers orTele Working and drinking tea at home. But tourism dollars are down. Seventynine per cent compared to thousand and nineteen. Despite the Olympian andJapan's Popular Rural Roy Kan o the inns are shattered. An articlepublished in Japan Times identifies that money spent on gifting tea atfuneral services is down. Ninety per cent. From a peak of thirteen point:Six million yen in thousand and fifteen. The publication quoted a fewassociation spokesperson quote. Even if the pandemic is brought under control,I doubt funeral services will ever go back to the way they were before andquote business inside to be sales city andregional governments and tea growing regions or providing subsidies. Shewoke as perfessional government is offering producers five million yen todevelop new tea products and three...

...million yen to develop new salesshadows. The world benchmarking allowance hasnamed unalive its top food and agricultural benchmark. The allianceestablished in two thousand and eighteen encourage seventransformations considered essential to put society and the World Wide Economyon a more sustainable path annually. The group evaluates two thousand of theworld's most influential businesses against its bench marks in a first, thealliance assess transformation and the Food and agricultural system globally,ranking three hundred and fifty companies from farm to fork, criteria included, transformingnutrition, addressing environmental issues andsocial inclusion. According to the alliance, the findings reveal worminggaps in the industry's adaptation to climate change. Progress on humanrights and contribution to healthy diets quote only twenty six of thethree hundred and fifty companies are working to reduce submissions fromtheir direct activities through science. Space targets set by the ParisAgreement writes the alliance unlive one of the world's largest foodcompanies received a combined score of seventy one point: seven out of ahundred ranking ahead of Nestley, which scored sixty eight point five and a nonwhich scored sixty three point: six retailer, TESCO and beverage companiesPepsiCo and an Hansard Bush and beve were among the pop ten. No Food ServiceCompany made it into the top ten and one hundred and nineteen company scored,but between ten and twenty five points. Another hundred and ten companiesscored below ten points, business insight. The alliance writes that quote, whilecompanies at the top of the ranking demonstrated that they are meetingsocietal expectations on a variety of topics, the overall average benchmarkperformance is low. Almost two thirds of the companies in scope failed toobtain a quarter of total scores, demonstrating significant room forimprovement across all measure metaries and quote Derbin Dean and Therma in Bengalurureports. On India's T, auction prices in diaterascos for the week endingTwenty Fifth September, twenty twenty one there been more developmentsreported as a teaboard of India launches a field mechanizationsubsidies scheme to address the problem of Labor shottat in tea gardens acrossIndia. The scheme will include malty growers, apparently to US increasingproduction of speciality T in further...

...developments. The Minister of State forCommerce and Industry and of preesent petal announced that he developmentinto motion scheme has been extended to twenty twenty five twenty six. She wasspeaking at the annual meeting of the United Planters Association of Southend,a opase while the incentives for arthodoxly were discontinued. Theministry was now focused on clearing pending subsidy claims. The ministeralso said that the government was monitoring the imports which has raisedconcerns among producers in markets Garat's, so good demand for sale.Thirty eight nature blenders were active for dusty Calcata. A good demandfor all to types with Orthodox still leading the list major blenders wereactive. Middle East was active or Othodoxy, while in the Sanoni Liva andTartarin Sumer products continue to be active for Tagere Monsonis in the southleaf he sails, volume is higher than dust. Combined leave sealers were sixtyto eighty per cent across Cuno Cochin and CIMETER. Two hundred thirty threekilos of green tea was an offer. Andabout half it was sold and now aword from our sponsor Yu trade understands that a successfultea blend goes beyond the creative fusion of appearance, Aroma and flavorare multi award. Winning product development team is passionate aboutconverting natural ingredients into sensory experiences. The customersgrave every recipe is formulated with the commercial backbone of dependablequality sourcing, with a pricing structure that supports a safe,regulated, profitable and scalable bland. He trade leads every brand'sretail food service and e commerce need for more information visit. Our websiteyou, trade, Teas Com. This week, t is travels to MonteMatille in Mose em beek, a country along the southern coast of East Africa,were Mohi overwhelm director of the Asian Tea Group has revived anabandoned fifteen thousand acre to estate to demonstrate the viability oforganic farming it scale, and then we talk with supply trade and procurementexpert John Snell, about what makes mose an be such an exceptional teaproducing region movie ago, director of the Asian TeaGroup, the company that owns child de Magome and the Montemalo brand iswalking the garden as we speak via zoom, describing the organic berry heard aforest of renewable eucalyptus use for fuel, the large hydroelectric turbinesthat power the plantations, three factories pointing to the brilliant green teabushes that stretch as far as the eye can see. He explains that duringfifteen years of civil war from nineteen seventy seven until nineteenninety two...

Mosembe tea plantations were abandonedbecause of the gentle slopes. There's not water logging in the plantationsand everything. This is the Toreno womb, the soil, the rainfall and Genta slops,but we have yet Monte. Matille specializes in a cultivation of organicwhole leaf is as well as commercial grades of C t C. Could you talk aboutyour commendment to stewardship with the land and your regard for theecosystem, yeah natural legal system? What we have here, which is ideallysuited for any plantation without chemicals of fertilizers, we have a lotof wain cover. We have six thousand actors of line out, of which two NE Twothousand and five hundred under t. You see those ecliptic pores, so we grow alot of an on our land is under the follest cover. A lot of land is under the ITUNAplantation and a lot of land is under the bottom, Mala plantation, whichstops soil erosion, which gives nitrogen to the soil and also helps usto create biocomposite. There's a total ban on any chemicals of petalite. We dototally sustain a like recule, even the food for our people and our executivesis blown in house organic. We have our own dairy for, on which you could seethat which is we have a milk production and a cow down which gives us Houdonand power. Our in the entire equo system, which you built in Montieth, isself sustaining. This was a large scale operation with more than six thousandthree hundred acres under tea, the largest certified organic garden in theworld. Will you explain to listeners the advantages of scaling up whenyou're an organic farmer? The whole idea was to make organic tes a folderand available to the global audience. The moral levels and Collins in mostcountries have become stringe in conversis entire state of two thousandfive hundred and sixty actors of the in to organic is taken a lot of pain and alot of hard work. We have managed to make this entire two point, two or twopoint: five million pages of peace, which we produce available to theglobal audience at a very reasonable, affordable price. What consumersdiscover when buying those a big tea? There is flavor in the t because of theclimate, the temperatures in Moambe waring between fifteen to thirtydegrees because of the less set and a very moderate climate that is inherentflavors in the tea you see. Most of our bushes are China re out here which thePortuguesa planted on there and besides this, so we cannot only produceOrthodox, but we also produce green teas. We probus city cities we producefolon, teas and within green we produce both teams and rosted cts and autodthere's a huge range of peas. We also do some speciality to such as white tea.The tasting notes for these days is simply mon percent. The previous we geta slight musketo flavor in the autobots in the winters in the winter months anddoing what we call the first flash. The these are light. Bodied S, Musketo, flavoredtease, whereas won the season comes,...

...and we get a little more body in thetees, but still the brightness and the Cup remain mellow. The most am B is thebest kept secret in the T world. This has been hidden for centuries, andpeople are not but exposed to. It was used in Glens. We ask Commercial Tis,but since we have exposing these these, these these are just delicious andfantastic for consumption. Without milk on sugar they lend very well withLuncon or the Indians, and it is the largest book, a organic pinecal whyanybody could find in the way, a century ago, when the Portuguesefirst planted tea and Musubi, they found gentle well rain, slopes of richred volcanic soils at fifteen hundred to thirty six hundred feet, elevationidentical to the altitude of India's Dargle Gardens. The climbing here iscool and dry from made to September and how, in humid, between October andApril, annual rainfall averages more than three thousand millimeters on anineteen. Fifty production exceeded twenty thousand metric tons a year andthere was more land under tea and Mozambique than any country in Africa.Joining us is John Snell principal at an MTB consultancy, whose expertisesince sourcing spans thirty five years of procurement supply chain management,an importing tea for major brands and private label suppliers. John LionsMosembe such a great place to Source T. firstly, it is the latitude of which isgrown. If you look today, particularly with climate church, we are getting tosee hotter and drier climbs around the equator. The other thing on your quatis, you have very little seasonality, so you get no dormancy there for bushesto really store up their energy and then produce the right material duringfirst or second flushing, or indeed, at the other end of the season at theautumnal flushing, into to produce the right concentration of phenolics tomake great specialty team, so they are gifted with straight away. The secondthing is: the region is blessed with this necklace of lakes that sort oftraverse Africa from well north to south, but that expers a great groundwater sources and these mountains create the water shade or The rainshedfor the entirety of Africa. Those are beakers, definitely blessed with goodrain for great lomy soil seasonality. It's God's country fatigue.Frankly, will you describe the Portuguese era of taproot an and MOSand beat that began with plantings in the n? Is it was a Portuguese ColonyMazoe for seven hundred years within...

...its vast empire, and I use that,hopefully, in a good context, it it was able to select his an bi. That's aprodigious place to grow tea, O o one thousand nine hundred and fifty it wasthe largest producer in Africa. I yeah only to be overtaken by Kenya for anumber of reasons, but not least of which was the civil war. As you see,the Portuguese influence again is self India. You see it in salicate have beenabsolutely one but MOABITES, I would say their biggest triumph with respectto tea. Mozambique production is resurging its tea industry reborn withorganic cultivation and modern, more efficient processing techniques. Whatis the business opportunity and MOS an big? I think. To be honest, you knoweveryone could look at the civil war and thereafter Mosa big was producingfrom a normal t, chaps point of view pretty awful tea. They didn't pay toomuch attention to how it was produced and they didn't know a great deal abouthow to use the machinery. So there was a lot of light, flaky leaf Orthodoxmaterial coming over there fairly. We do liquors and it really didn't workvery well- that the forced dormancy created by civil war has done mos anbega favor, because what it didn't do, which the rest of Africa did must getconsumed by the the race to produce a lot of tebar great teeth. So it didn'tget involved in producing a lot of CLONOE IAL. That was there to producehuge volumes and and produce a lot of cannon. It was a lot of these busheshave left been left further, but during the Portuguese era you know theybrought in bushes, from both both a Samoa and sinensis wish it. So you havea very verygood mix of both of those varieties there and during the periodwhen these haven't been cropped and in fact, or these were trees, these treeshave been naturally cross pollinating, each other and creating hybrids that noone has ever desired. So now what they have there is is a lot of differentmaterial, some of it very good for making Orthodox to and so very good formaking cts. They have much more flexibility than you do in most other torigins, that's that's an important fact. There is, of course, a long wayto go because you have to then understand by plucking the leaves offthese particular hybrids and understanding what liquors you're goingto get from each and is which you want to then pepete from. But you do havethis astounding variety of. If you will mother bushes, from which you canvegetative ly propagate a massive amount of different raw material,depending on where you want to go. Look at the team market today when they weredoing nothing, a tea market was just...

...black tea. Now it is proliferated toenjoy Hulan Greens, whites pours you name it there's a massive variety outthere and therefore having a variety of starting materialsis actually going to play to their advantage. I think intrigued by what you've heard intoday's podcast. Would you like to learn more from our global network ofTEBA journalists and tea experts remember to visit the Tabi website formore comprehensive coverage. That's baww t hyphen Biz BIA COM, thanks forlistening very well till no.

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