Tea Biz
Tea Biz

Episode · 3 weeks ago

Tea News and Biz Insights - November 12, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – Ekaterra Tea Pledges to be Net Zero at the UN Convention on Climate Change | Grocery Shoppers Say they are Willing to Pay for Sustainably Produced Foods | Inflation Demonstrates a Troubling Persistence | NEWSMAKER – Prabhat Bezboruah, Chairman of the Tea Board of India | FEATURES – Tea Biz this week travels to India where the traditional tea plantation model is under regulatory scrutiny. The union government there is redrafting legislation from the 1950s to gradually loosen regulations, abandoning requirements that previously limited who could grow tea and where it could be grown. In Part 1 of this extended Newsmaker Interview, Aravinda Anantharaman speaks with Tea Board of India Chairman Prabhat Bezboruah to better understand the current situation and the economic and societal forces driving change.India Experiences a Very Bad Tea Year | Aravinda Anantharaman |The Tea Board of India has been in the news recently for various reforms that seem to be underway. We spoke to Prabhat Bezboruah chairman of the Tea Board of India to understand the changes that are brewing with the board as well as his views on how the Indian tea industry is faring this year. Bezboruah has been chairman since 2017. He is the first tea planter to hold this position.Next week, in Part 2, Bezboruah discusses high-level talks on transferring regulatory oversight of India’s Tea Industry from the Ministry of Commerce to the Ministry of Agriculture and Farmers Welfare

The Pedis podcast delivers a recap withthe week's major peneus headlines with commentary and cultural trends hostedby Dan Bolton. Ibis is the voice of origin for pepree and enthusiasts worldlot. Think of us as a digital caravan ofstory, tellers bringing authentic, authoritative and exclusive stories foryou, weekly from the tea lands. Hello, everyone here, this week'sheadlines A cataret pledges to be Nen zero at the UN Convention on ClimateChange, grocery shoppers say they are willingto pave for sustainably produced foods and inflation demonstrates a troublingpersistence more in a minute. But first thisimportant message: What makes a Perfect Cup of Ceylon tea? The Perfect Cup isfrom the T, businesses that ensure the protection of all the children livingwithin their tea estates. We Salute Kalani belly, tell a wacky ly: BogoWanta, Lawa, Parana and eliptic estates support, Save the children, Srilankan Hectorite, an levers, newly createddivision of legacy, tea brands and the world's largest tea supplier pledgedthis week to become carbon net zero by twenty thirty. The division led by C E,o John Davidson, announced several climate and sustainability goals,including a commitment to a hundred per cent sustainably source, tease a switchto all plant based tea bags and recyclable compulsatorily packaging bytwenty twenty five, along with the adoption of regenerative agriculturalpractices for raw material sourcing by thend. Thirty greenhouse gases havereduced bath. Sixty six per cent since thousand y ten said Davidson, whopromised a further reduction to eighty per cent from the twenty ten bays light.A CITERA owns, Lipton, peg tips, Tazo Ruban, lions, Puka and red rose,leading tea brands and fifty eight of the hundred and ten countries where itsportfolio of thirty four products are sold. The division employs one million peoplein twenty one countries earning two billion euros annually about two point:Three billion in US dollars quote real leadership to day means mobilizing andtransforming the entire industry for positive impact said Davidson. Theannouncement benefited from global attention on Seal P. Twenty six nowwinding down in Glasgow Scotland, where the US in China announced an unexpectedclimate agreement adding to momentum for change. Delegates are negotiatingand accelerated carbon emissions, cutting schedule and financial aid todeveloping countries. Scientists stress the importance of keeping globaltemperatures within a one point: five degrees Celsius target copious amounts of tea were visibleduring the event. At one point, protesters dressed as caricatures ofworld leaders staged a tea party theme performance where they were served,burnt, Alaska and Arctic Melt Business in sight. There was a greatersense of urgency during the two weeks. Summon quote every one knows what is atstake for the future. We have no choice...

...but to rise to that challenge and quoteC, O P. President Alec Charmante delegates, C, l, P. Twenty six promisesa renewed commitment to climate change in the most important response. Sincethe Paris Agreement, grocery suppers say they are willing topay for sustainably produced foods, our consumers willing to compensatesuppliers for the cost of sustainable production. Yes, according to a globalpanel of eighty six thousand consumers conducted by Yougov will sustainability,both in terms of production and consumption, its top of mind from anyconsumers globally, according to Yugo as governments, world wide sign accordsto battle climate change, reduce carbon emissions and look after the planet'shealth quote, consumers are also inclined to playing their part andhelping preserve the environment a and are willing to back their personalvalues with their spending dollars and quote according to Yu Gov Yugas,international, F, M C G C, P G report, O Thousand Twenty One compares shiftsand consumer preferences in consumption patterns in seventeen countries whenqueried on their willingness to pay more to address environmental concerns.Only responses from persons identified is mainly or partly responsible forgrocery shopping for their household rosary. Shoppers were telling globally three and five German groceryshoppers. Sixty per cent were willing to pay more to address environmentalconcerns. Next, were U s grocery shoppers at fifty eight per centclosely followed by? U K grocery shoppers and fifty seven per cent morethan half of grocery shoppers in Australia. Fifty three per cent showeda similar inclination in Japan. Feelings are mixed. Onlythree and ten grocery shoppers agree with the statement. I don't mind payingmore for products that are good for the environment. Forty two per cent of this audienceneither agreed or disagreed with the statement business in sight. The Yugo pedal indicated that in the UKand the US Gen and millennial grocery shoppers were far more likely thanolder aged cohorts to say they would pay more for sustainable products dismissed initially as transitoryeconomist responded with concern this week as an increase in the US cost ofliving touched a thirty year. High inflation increased to six point twoper cent in October growing at a pace not seen since nine hundred. Ninety.According to the US Bureau of Labor Statistics, an Flecha was more subduedin the European Union at four point. One per cent last month up from threepoint: FOUR PER CENT: In September: U S food prices added far less to theoverall cost of living than energy costs, for example, which rose bythirty per cent in the past year, but food inflation has spiked globallyhunger and Malderton, or on the rise due to weather, related flooding androuts and more expensive inputs. Bloomberg writes that the United NationIndex tracking staples rose three per cent to a fresh decade high in October,threatening even higher grocery bills for households that have already beenstrained by the pandemic. T is plentiful. Rising prices for bothtransactions are blamed on energy cost, shipping, logistics and expensiveground transport, not scarcity the...

...coast of labor climbs steeply in twothousand, a twenty one at both ends of the supply chain, along with close formanufacturing packaged goods in the tea lands, worsening hunger as aconcern. As Africa and India Experience Multi Year Highs National Governments and AG groupsreport. The poorest families are struggling. The World Bank reports that globalpoverty had been declining before Covin nineteen quote as a result of long termscarring. We estimate by twenty thirty five hundred and eighty eight millionpeople could still live in extreme poverty. An additional fifty millionpeople compared to pre, Covet nineteen estimates and quote business inside market research for IRI product CPG.Inflation will be eight percent in grocery during the first half of oThousen y twenty two tapering to four per cent in the secondhalf of the year. In the U S markets, the current inflation rate is fivepoint three per cent for package goods. According to I, Ri consumers pulledback from purchasers leading to a decline in unit sales and volume whenprices rise five per cent or more. According to I R, I arvind an and theremin in Bengalurureports on this week's in Thia tortion prices in Tiati price support for the weekending Sixth November thousand, and twenty one in us this week isinvitation to Indian t companies to participate in Iraq's first teafestival. Iraq was a major market venging until two thousand and six whenthe government of the rapoport from India under the UN Food for oil programin Port of tea to it round. Eighty million killow withnearly half comingfrom India to day Shilluk as a major supplier of tea to Iraq, so thisinvitation from the bag that chamber of Commerce comes as a boost at a time anIndian exports of struggling, even as competition from Kenya and Schelahintensifies in markets this week, Calcutta auctions, so good demand forall teas Middle East was active Orthodoxy while Hinders Tan one liverwas active for duster for d agility prices were not significantly differentfrom the previous week. Kahar also saw good demand at major blender's activefor both leaf and dust prices were higher by seven to ten to piece fromthe previous week. Siliguri also sued, better prices this week compared wi theprevious week in the south. There was no sail in cimiter auctions this weekand coaching prices were marginally higher than the previous week. Exportus to the CIS in Middle East were active, Orthodox Leaf, fannings soldwell to exporters entlibuch manufacturers in connote. Ninety percent of the city, Sealey was sold with major blenders being the main byers.Orthodox leave also saw good demand with holy great, seeing marginallyhigher price. This week, exporters were active, Orthodox leave by city, seedust, so major blender's active and twenty four pillows of green tea. Anoffer was sold averaging at piece two hundred eighty one Bercino and now aword from our sponsor. You, trade understands of a successfultea. blent 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 a commercial backbone of dependablequality sourcing with the pricing structure that supports as saferegulated, profitable and scalable blant. Few trade meets every brand'sretail food service and e commerce meed for more information visit. Our website,Yu trade, TESCO...

Tevis this week travels to India, wherethe traditional tea plantation model is under regulatory scrutiny. The union government there isredrafting legislation from nineteen, is to gradually loosen regulationsabandoning requirements that previously limited who could grow tea and where itcould be grown in part. One of this extended newsmakerinterview, Arvina and Antherae, speaks with the tea board of India chairmanfrom Bezverie to better understand the current situation and the economic andsocietal forces driving change. The Tea Board of India has been in thenews recently for various reforms that seemed to be under way. We spoke toprobatis borer, chairman of the teapot of India, to understand the changesthat are brewing with a board, as well as his views and how the Indianyindustry is faring. This year, Crobert desborough has been chairman since twothousand and seventeen and is a firsty planter to hold this position, how hast twenty twenty one been for theindent industry, its wing quite bad, two thousand and twenty, despite thelock down and despite the fact that the tea gardens were shut for a whileturned out to be a pretty good year for tea, when supply is restricted. Tprices go up this year. Indian volumes have recovered and will almost stuttertwo thousand and nineteen levels and demand is sluggish. I personally don'tbelieve that demand has contracted over the covert epidemic, but it's sluggish.It's you can see stagman, maybe one percent of so higher and nineteen was abad year for P, so twenty one will be a pretty bad year, especially for thesous in an industry where prices are lower, even than two thousand andnineteen, a rising costs and slowly exports. The primary reason. Theprimary reason is that volume our output of crop has bounced back to thetwo thousand and nineteen levels. Remember we had record exports in twothousand and nineteen of two hundred and fifty five million Killo last year.They were about two hundred and ten or fifteen. Now this year, they like youto be lower even than last year the whole logistic chain having been brokenin various paces. Various reasons I in being being uncompetitive, Kanyonteaser, still available cheaper than equivalent Indian teve and South Indadoesn't compete with Kenya. Basically, you have antedote ports from solvesIndia which are decent. They compete with three luncon export, the south inand serieses that are that are much lower in the in the value chain thanthen iamsbut north Indian, a city c exports are going to be very badlyaffected because canyons are available, Mac sepet. Well, the domestic demand isalso sluggish. To everywhere will grow US carry fogerty again thisyear, like two thousand and nineteen there will be. There might be somecarry forward stock because exports are going to be much lower than twothousand and nineteen, but you know in nineteen we made thirteen hundred andninety five million Killo of thirteen hundred ninety million pillows, and weexported two D, fifty or fifty five minute killers. So if our exports hadbeen at two thousand and nineteen levels, you wouldn't have seen anycarry carry for this year in es hospitality, industry has stillto recover from the pandemic. What's the impact on tea? Hospitality is a fairly large chunk ofdemand in India. Hospitality intrudes your t stalls roadside te stalls thatthat's a big demand, but the total out...

...of home demand for te in India is onlyaround fifteen percent of the Tory de Mark in home use. The drinking of teahas increased to offset some of the drop in in double H, O it. I don't buythe story that Indians are drinking less ten, two thousand and twenty one.Then they were even in two thousand and nineteen. I don't think you're reallygoing to see a very bad last water. As far as demand is concerned, I don'tknow what price it is, but I think a demand will be there. You've spokenabout the need to liberalize the market. What would you say is the currentreliance on auctions, a surprise, discovery platform? What needs tochange? Well. I've always thought that theauctions are a good place to sell your tea, provided it's the only place tosell your tea. You, you can't have a system which acts as the primary pricediscovery mechanism, that's the auction and then it and expose it to manipulation and all kinds of you know.There's no overt collusion among the main byers, becauseyou know they are companies which are bound by very strict ethical codes andand they do follow those gods. So I I would hasten to dispel the notionthat there is any overt collusion between at least the big boys, so tospeak in any action. There's what's known as a demand multiplier, even thebiggest boy to get a million kilos of tea, for example, needs to bid for twoand a half or two or two and a half million pillows of tea, because theydon't get every lot they bit for. So, if you take a way demand from theauction, if a bar has a totally demand requirement and neal demand requirementof say fifty million Killes and you permit him to buy thirty million outside the auctions- isthat level of competition in the auction will be affected not only forthe thirty million that he doesn't buy, but another forty or fifty million thathe would have had to bid for in order to buy that trudy million. So it'sactually a no brainer that if you have parallel systems running even ifthere's no overt collusion, you'll be weakening the auction. So therefore theaction should not be a price barometer, but it is so. I don't believe that a your systemI can survive now. We need to sell fifty percent of our ease in theauctions, but buyers don't need to buy a fifty percent of their perfuses inthe auctions. So it's all it's a total heard spot. I have brought up the issuerepeatedly at the Tea Board. Now they have Mahadevan report in hand, eventhat is being implemented very slowly, but I would want that. That's not a panacea that will not be apanicy unless you ensure that a hundred percent of tea is sold through theoptions. If you can't do that, I feel that the government and the tea boardshould withdraw from the auctions. The brokers who sell the on behalf of theproducers to the buyers in the auction brokers can organize their own optionsright. If you know that won't be a universal parameter, price paramedewould be like any other say there would be competition in the market. Marketingof the the primary marketing of tea would be liberalized in a way thatwould benefit everyone. The alternative,...

...whether I told you before and amrepeating myself many times O, is have everything in the offin a hundredpercent of you. How can the plantation models stay relevant in these changingtimes, even as a small Tigro community is growing the organized sector to bestruggling because it has a low productivity, investment, largescale, theft and MALTRATA, and an inability to to carver nice out foritself? There are companies, even in today's scenario, where small growershave a constatation which is half that of the organized sector, or maybe evenless. There are companies we are doing well, because small growers, the waythey are set up and the fact that they sell their produce to Botley factories.They cannot make very good teas, they're, always exceptions. There aresome body factories that by only the best quality greenly from small Rores,there are small growers who lack very well. So there are exceptions, but thebulk, the general trend and the small Tigro Sectis, that their quality is notas good as the organized sector on an average and there are. There are statesin the organized sector that makes superlative the possible production ismuch higher, but especially this year they are getting huge premiums. I wouldlike to bring to your attention that a media Sam today is selling a hundredand eighty rupees a kill, a hundred an eighty to maybe two hundred opes a kilo.The best is four hundred plus, so you have a premium, a quality premium oftwo hundred plus, and let me tell you, the cost of production differential isnot to ruminate. Therefore, people who are who aren't focusing on quality andI'm talking about really really good quality they're going to lose all this.Yet they will lose out to people who are focusing on that kind of quality. Isuppose that's the way to go. If you, if you do go that way, you would also there would also be thesin of elephints for everyone, because your bolly will come down. Itwould be all interest to you that there are some areas of a same where largescale, theft and equity of really daly used. Take TACPAC and I've beenobserving that many of the the companies of the major the team majors,as you would call him who had to direst their units, the the units that they'regetting rid of and the bulk of their their assets, are in the areas wherethis really left is rampant and I feel for them because you know it's beenreally. I sold to people who buy and there is no, you know, there's nocertificate of origin in the case of green lad. If you have a bodly factoryand somebody brings two traps of fairly acceptable leave to you, he was by you,don't ask: Where did you get this problem? Yeah, I something being doneabout this. The leaf has been stolen from the the composit gardeny estate cans.The people were doing the stealing or local local people, and the governmentis doing its best. You know to help, but the it's endemicin certain areas I have. I have a sneaking feeling that one of the bigreasons for majors having problems in the Unitas is this. I started by sayingthat smarties can produce greenly at half or less the cost of production ofthat is gone, but there are ways of handling it, creating these markets foryourself, but you have so many different pressures and you, and one ofthem, is...

...you know an a new fucking in part. Two prove desboro discusseshigh level talks on transferring regulatory oversight of India's teaindustry from the Ministry of Commerce to the Ministry of Agriculture andFarmers Welfare. Intrigued by what you heard in today's podcast. Would youlike to learn more from our gobal network of TIEBA's journalists and teaexperts remember to visit the tea of his website from more comprehensivecoverage that Deva W W T, hyphen bizz, bi, Iz balcom, thanks for listening,fare well till next week.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (49)