Tea Biz
Tea Biz

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Tea News and Biz Insights - October 29, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – Fairtrade International Predicts Growers Climate-Related Financial Disaster | Chemical Fertilizer Supplies Disrupted | Holiday Helpers Are in Short Supply| NEWSMAKER – Will Battle, author, consultant, and enthusiast for all things tea. Will trained as a taster in India, Sri Lanka, Kenya, and Malawi and has 20 years of experience sourcing tea. He is the author of “The World Tea Encyclopaedia” and managing director of Fine Tea Merchants, Ltd., in Lincoln, England. | FEATURES – This week Tea Biz travels to Lincoln, England for a visit with Will Battle, author of “The World Tea Encyclopaedia” and managing director of Fine Tea Merchants, Ltd., a wholesale tea import and export venture that supplies tea merchants with mainstream offerings as well as rare teas and herbals.The Unique Cost of Producing Specialty TeaConsumers who pay a premium at retail for specialty tea often leave growers to foot the bill. The costs of producing the distinctive taste of the authentic, transparent, eco-friendly, clean-label formulations that are so popular with Millennial and Gen Z cohorts are significantly higher than what growers spend supplying conventional tea. A preference for chemical-free cultivation, third-party certifications, energy-efficient, carbon-neutral processing and transport, and recyclable and biodegradable packaging further erode margins along the length of the supply chain. This raises a fundamental question: Is anyone making money making specialty tea?

The T dis podcast delivers a recountwith the week's major P news headlines with commentary and cultural trendshosted by Dan Boden Hebi is the voice of origin for p professionals andenthusiasts worrold bout. Think of us as a digital caravan ofstory, tellers bringing authentic, authoritative and exclusive stories foryou, weekly from the tea lands. Hello, everyone care, this week'sheadlands, fair trade international predicts, climate related financialdisaster for grovers chemical fertilizer supplies are disrupted and holiday. Helpers are in shortsupply more in a minute, but first thisimportant message: White makes a perfect cup of Ceylon tea.The Perfect Cup is from the T, businesses that ensure the protectionof all the children living within their tea estates. We Salute Kalani Valley,tell a Wakely, Bogo, Wanta, Lawa, Parana and Elitie t stas support, Savethe Children Silanga a hotter and dryer claved poses asevere financial threat to millions of farmers in major tea growing regions.According to Fair Trade International, the organization released a hundred andforty eight page report this week ahead of the United Nations Climate ChangeConference in Scotland. Fair trade called results of the study quoteextremely alarming in a clarian call for immediate and comprehensive climateaction, and quote the study as says climate impacts onproducers of bananas, Cocoa, coffee,...

...cotton, sugar cane and tea insummarizing the impact on tea, the authors named East and South Africa andSouth and South East Asia, as hot spots likely to suffer heat stress quote:Asian tea producers will, on average experience slightly more days withoutprecipitation, while most African tea producers will experience fewer dayswithout precipitation producers and Malali and Tanzania will be severelyimpacted by increases in days without precipitation. According to the report, tea producers in southern India will beparticularly impacted by increased heat. Stress quote. Nearly all producers willexperience more than thirty additional days with extreme temperatures underthe two most likely scenarios and quote. According to the report, limitedfinancial resources underlie the level of anxiety African tegoe sparticipating in the study identified, two thousand and nineteen as the firstyear in which climate change led to financial setbacks. India, tea growersreported a milder financial impact beginning in two thousand, and nineteenquote. Producers and Gana are more pessimistic than Indian producersregarding the future and quote. According to the study in India,producers are more concerned about the lack of labor than the immediatefinancial risk. According to the report, access to credit may be a limitationfor farmers who wish to invest in their farms to better adapt to heat and lessprecipitation. According to the report, most reported money lenders as theirmain source of credit business in sight. African Te FarmersView the financial impact of climate...

...change as moderate to very severe.According to the report quote in general, farmers perceive the highestlevels of risk in connection with higher temperatures, changingprecipitation patterns and the availability of water, and quoteaccording to the study which was financed by the European Union andconducted by Vu Amsterdam and the burned University of applied scientists.The report is free to download and available on the TVs blog, the sudden closure of fertilizermanufacturing plants in the UK and record high prices approaching athousand dollars for short ton in North America. Foretell cutbacks as GlobalFood Prizes reach a ten year high. There are ample stocks and capacity,but timely arrival is a concernd due to the shipping crisis and fertilizerprices are prohibitively high for some applications due to rising energy costs.China, the world's largest agro chemical manufacturer by tonnage, couldoutput due to rising energy prices, but has since allowed manufacturers tomaintain high operating rages to meet domestic food security requirements.Fertilizer exports surged in two thousand and twenty one. With a totalof ten point, eight million metric tons during the first eight months of theyear, an increase of forty six per cent compared to the same period. In Twothousand and twenty in July, China suspended phosphate exports and inAugust exports declined by twenty six per cent to two point: Seven: eightmillion metric tons as prices spike across the broad rangeof plant nutrients, European grovers say they may be forced to idle croplands or plant less fertilizer,...

...depending crops than corn. For example, in the US, the price of area increasedtwenty six per cent in the past month, reaching eighty cents per pound,nitrogen and an hydrus at fifty seven cents perpound. Nitrogen is averaging nine hundred and forty dollars per ton pot ashes of fifteen per cent comparedto September two thousand and twenty business inside the disruption istroubling because tea is a very demanding plant requiring three to fourhundred kilos of Nitrogen Por Hector for high quality, shoots, plus threesecondary nutrients and ten trace elements. No soil in any part of theworld can continuously provide full nourishment for plants when theirproducing economically significant yields without the use of fertilizer workers in us, retail and warehousefulfilment or and high demand and short supply. As made your employers staff upfor the holidays, seasonal, culinary workers, delivery, drivers and retailclerks are among the four point, three million quote missing workers and quoteunable or unwilling to return to work according to the wall, Street JournalMoney Magazine notes that ten per cent of seasonal job postings on indeed cominclude the description. Urgent Amazon expects to hire a hundred andfifty thousand seasonal workers up fifty per cent from two thousand andtwenty and is paying an average eighteen dollars per hour. Supervisorscan qualify for three thousand dollars signing bonuses in key slots. UPS isadvertising warehouse and package...

...handler jobs at twenty two per hour, Walmart target and fed ex round out thetop five seasonal employers, with a combined six hundred thousand slots tofill in response. Smaller retailers andcafes are offering additional hours and more stable work hours to existingemployees, investing in staff training and promising to transition the mostpromising new hires to full time work in thousand y twenty two business in sight. There are tenmillion openings as workers quit at the highest rate on record the greatestdecline and the eligible worker participation right is among womenworkers without a college degree and those in low paying service industriessuch as hotels, restaurants and challice. According to The Wall StreetJournal, the pandemic accelarated earlyretirements among those fifty five and older, a trend that economist say isunlikely to reverse new hires are requesting more flexibility andbenefits. The shortage means seasonal and full time. Job Seekers have greaterleverage they shared in negotie bonuses and benefits and wages greater thanfifteen dollars per hour. Er vind an and theremin in Bengalurureports on this week's India tortion prices in the ATI price report for theWeek Ending Twenty Third October, twenty twenty one, the focus thespeakers in the auctions and sale number. Forty two now thede after a MISweek of auction, so good demand in Kolkata go hate and Siliguri. Auctioncenters. In fact, last week saw the highest weekly sale volume for twothousand and twenty one in Calcata. Eighty three per cent of of the oxtionoffer was sold with the Middle East remaining the top Byer, however, agaling these or less uptick in Garraty,...

...the market showed good demand for bothCIRC and Orthodox tees, and major blenders were active in the south dust.He continue to perform betters an leave across Cochiquinas and cimeter auctions,inconel bias from nozing Er active reportedly due to the demand from deVally, which is one of the biggest Indian festivals and is coming up nextweek. Exports continue to be subdued because of container costs, hundredeight killow of green tea and offering conoor soul for a piece three hundredpercil and now a word from our sponsor. You trade understands that a successfultea bland goes beyond the creative fusion of appearance, Aroma and flavoror multi award winning product development team is passionate aboutconverting natural ingredients into sensory experiences that customersgrave. Every recipe is formulated with the commercial backbone of dependablequality sourcing, with the pricing structure that supports us, safe,regulated, profitable and scalable Blant C trade needs every brand's,retail food service and e commerce meed for more information visit. Our websiteYu Trade Tesco this week, tibis travels to LincolnEngland for a visit with will battle, author of the world, Ta Encyclopaediaand Managing Director of Fine Tea Merchants Limited a wholesale teaimporter and export venture that supplies tea merchants with mainstreamofferings, as well as rare, teas and herbals consumers who pay a premium in retailfor specialty t, often leave growers to foot the bill, the cost of producing the distinctivetaste of the authentic transparent. I Al Friendly, clean label formulationsthat are so popular with millennial and...

...gens cohorts are significantly higherthan what grower spends supplying conventional tea. A preference forchemical free cultivation, third party, certifications, energy, efficientcarbon, neutral processing and transport and recyclable and BIVARTA LEPAGAG ING further a road margins along the length of a supply chain. Thisraises a Fugam question: Does any one making money making specialty tea joining us to day is willed battle,author of consultant and enthusiast for all things, tea well trained as ataster in India, Shalaka Kenyon Malawian has twenty years of experiencesourcing tea in this segment he describes the unique cost of growersproducing specialty T in part too tabid will interview brand and categorymanagers on the cost they incur in bringing specialty tita market willfrom a grower's perspective, is manufacturing specialty tea worth theeffort, I think frequently it probably isn't really yeah look at some of thegrowers I deal with and the amount that they need to investfrom a financial and a human resources perspective is so much greater inalmost every area. I struggle to see many instances where that'sappropriately rewarded and that's pretty much all stages of the chain. Inmy experience, an it now whether it's the pruning, the approach to pruning,to leave quality stipulated to pluckers or to those buying leaf on the openmarket, the level of detail that the factory need to apply to the processingof the leaf right on through storage shipping. All of those processes, in myexperience, cost a lot more in the...

...speciality industry and, more often not.I don't see that rewarded appropriately. Let's fuck specifics: what cause areyou unique to producing specialty t? Let's take dodge EAGLING, for example,you your approach to the pruning cycle? That's a good case in point would be myexperience with Ja Sres da gelings this year they proved more than they didprevious years probe. More than most other producers and a like Prunin, Dargeting, effectively writes off your first flush. It might give you a betterlate, second flash and then next year, you'll, probably having a an improvedquality as well, but to write off your first flush and dareing is just anenormous financial handicap to impose on yourself. That's your that's yourstart point the costs of for a kilo of fine plucked leaf. It might be in thepre minimum price era: Seven to nine canyon, shillings, an hour formainstream leaf, but around twenty five for specialty les you've not even gotthe leave to the factory yet and you're already way. You got an enormous margin to makeup in the final product cost and don't forget. You got for four point. Two four pin six kilosof your green leaf for you made tea. So you've you've got a big headway to makeup on the final product cost and you haven't even stop go to the factory.Yet another example might be the traditional way of getting teach. The tleaf green leaf to the factory might be to dump in a pick up, but there theyput it in superspecula rated baskets to get it to the factory and that two orthree pickup trucks getting the leaf there other than one or a tractor, andthat's fuel costs and...

...wages again, just another increment onto the the final product cost to you can go on and on in it, and I see thatright through the process, when consumers pay a premium forspecialty t, what is the value they receive? You are your ultimatelyinvesting in quality and an approach to creating a product that is the best itcan be. A large proportion of it should end up back in the communities thathave spent the time in trying to create it for you. So wherever that specialty t comes fromwhether or not it's Japan, the dog, dealing a Sam, Dimbula or Malay thatinvestment in the regions in the districts that are making the tea issomething that really is worth. While is worth remembering that those peoplewho are making good specialty team are often improving their mainstreamquality. As well, why is it good practice to pay format, prices thatallow sustainable production, not just for specialty tea, as you mentioned,but commandite to Yous? Well, it's a good practice, because I mean we.Ultimately we have an obligation to make sure our industry survive and thatis reliant upon the people who grow and pluck and process Ta. If wedon't pay a sustainable price, they will do something else without anappropriate farm gate price. We don't have an industry down in my view, and it's our obligation to make sure thatany producer is appropriately remunerated. Otherwise, why would youroutine intrigued by what you heard in today'spodcast? Would you like to learn more from our gobal network of PABASjournalists and t experts remember to...

...visit the tea of his website for morecomprehensive coverage that Devia W W T hyphen Biz BIA Alcon, thanks forlistening for well till next week,.

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