Need to Know

Tea Industry News for the Week of May 11.

  • Tea & Tariffs
  • Export Value of Tea Declined in 2019
  • U.S. Consumers Remain Wary of Reopening
  • Tea is Piling up
  • Attend the SofaSummit on International Tea Day
Global Tea Exports Declined 18.8% year-over-year in 2019.

Tea Export Value Declined in 2019

Logistical hurdles in tea producing countries greatly complicated export this quarter as demand declines and prices remain low. Recessions in Russia, Europe, and North America dim prospects of a profitable return for the export segment where sales have declined in value by an average 12.8% since 2015.

The declared value of global tea exports depreciated 18.8% year-over-year in 2019.

Sales from tea exports totaled only $6.4 billion in 2019, according to analyst Daniel Workman at World’s Top Exports. Tea shipments worldwide were valued at $7.3 billion five years ago.

China, at $2 billion in sales, remains the leading tea exporter, accounting for 31.8% of total exports by value, up 13.5% compared to 2018.

China faced several impediments to growth prior to the coronavirus outbreak but retained its rank as the top tea exporter globally in 2019. Green tea exports, the main tea crop, totaled 304,000 metric tons and were valued at $2.02 billion. The average price of exported green tea was $4.34 per kilo in 2019.

China’s tea exports were generally stable and of improved quality, despite the U.S.-China trade dispute and uncertainties in the world economy, according to agricultural and trade officials. Tea exports to the U.S. in 2019 were down 5.1% to 15,000 metric tons, but this was easily offset by a 15.6% increase in purchases by ASEAN nations. The 23,000 metric tons sold to ASEAN countries was valued at $400 million, up 55.7% compared to 2018.

China reported a 13.6% overall revenue increase year-over-year. Black tea exports were up 6.7% to 35,000 metric tons increasing in value by 24.5% to $350 million, according to China customs statistics. Black tea averaged $9.92 per kilo, up 16.72% year-on-year.

Yu Lu, vice president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) said the average annual compound growth rate of exports was 3% during the past three years. Green tea accounts for 82.8% of the total volume, which topped 367,000 metric tons last year.

Trade with countries along the Belt and Road increased 4% last year, earning China $560 million, a year-on-year increase of 307%, according to Yu Lu.

India exported $803 million worth of tea in 2019, up 4.6% compared to the prior year. India set a production record in 2019 growing by 3.8% thanks mostly to smallholders, but while volume reached 1,390 million kilos, the country accounted for only 12.6% of tea exports by value.

Sri Lanka’s 11.3% market share by value and Kenya’s 5.7% share also contribute significant volume, but each saw steep declines in value as prices for cut, tea, curl CTC grades fell. During the past five years (2015-20), the value of Kenyan tea exports declined by 71.3%. During that same period, the value of tea sold for export by Taiwan increased 131.3%; sales of Japanese tea are up 59.6%, and the value of Chinese tea for export is up 46.5%, according to World’s Top Exports.

Selling to domestic consumers is appealing in China and Japan, where higher prices are the norm, but India may benefit most from increasing domestic consumption.

Tea & Tariffs

The economic impact of the pandemic makes it unlikely that China will meet the expectations of a “phase one” agreement negotiated with the U.S. in January. As a result, U.S. President Donald Trump said he might initiate another round of tariffs targeting China.

Or maybe, not.

“I’m very torn, I have not decided yet, if you want to know the truth,” President Trump told reporters last week.

On Friday, to keep what have been productive discussions on track, the U.S. Trade Representatives’ office released this statement: “In spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.”

In January, China agreed to a 2020 increase of $76.7 billion over 2017 imports. China has since purchased less than $25 billion of U.S. goods, which is a decline of 5.9% through April compared to 2019, reports Bloomberg. The 2020 goal is almost $200 billion in sales.

U.S. trade plunged in March. Overall the U.S. bought 6.5% fewer goods than during the same period in 2019. Imports of Chinese tea through March 2020 declined 23% compared to the same period in 2019, according to the Global Agricultural Trade System database (GATS). Lower sales are due, in part, to a 15% tariff imposed in September 2019. The duty was later reduced to 7.5% in February 2020, but by then, many blenders had switched suppliers. During the first quarter in 2019, the U.S. imported Chinese tea valued at $32 million, a total that declined to $24.7 million during the same period in 2020.

Volume is down 31% from 8.7 million metric tons to 6 million metric tons through March. China is predominately a green tea exporter, but volumes of every category slid, except organic flavored green tea.

Jason Walker, marketing director at Firsd Tea in New Jersey, the U.S. offices of China’s largest tea exporter, writes that while “U.S. imports of Chinese black tea have generally declined over the past five years. More recently, the U.S.-China trade war and coronavirus pandemic have contributed to this slowdown. However, organic black tea imports from China have been rising, with a 66% increase in volume.”

Since workers were able to return to the fields before April, tea production China was spared the pandemic-associated drop in yield experienced in India and Sri Lanka. Imports recorded during the first quarter include little of the spring harvest. Second-quarter statistics will be more revealing as they will reflect the logistical challenges that are still rippling through the supply chain.

“Firsd Tea has been watching the activity at U.S. ports for indications of delays and disruptions. We have not seen any to date,” writes Walker. “In terms of containers leaving China, we have not seen any disruptions since normal business resumed around the end of February in China. At this point, China operations have implemented monitoring systems and PPE (personal protection equipment) requirements for workers. We are watching for indications of flare-ups, but so far, we don’t see evidence of another wave of infection,” writes Walker.

Blenders initially found themselves racing to meet the demand for packaged goods, particularly private label for grocery, but orders for foodservice grades has virtually disappeared due to the unprecedented restaurant and retail tea closures. This alone will substantially reduce tea imports from every producing country.

Specialty tea importers receiving Chinese tea this spring say that demand remains steady despite a three-fold increase in airfreight, which is a far greater expense than the 7.5% tariff.

“Importers were working with a three-fold increase in air freight delivery in April. Rates are still high, but at least cargo is moving faster now,” writes Andrew McNeill with Seven Cups Fine Chinese Tea in Tucson, Ariz.

China recognizes the desirability of retaining a presence in the U.S. market as Europe is likely to experience a more severe recession than the rest of the world. The European Commission last Wednesday released projections that show economic activity shrinking by 7.4% in the 27-nation bloc, according to the New York Times. Economists predict the deepest economic recession in EU history.

While the U.S. administration is angry at China, the escalation of retaliatory measures challenges the prevailing business assumptions guiding American companies in China. U.S. companies invested $14 billion in new factories and other long-term investments in China last year, according to the National Committee on U.S.-China Relations and the Rhodium Group, a consultancy that tracks foreign direct investment flows.

Shawn Donnan, writing in Bloomberg Supply Lines, suggests, “it’s worth remembering every so often that it is still businesses and not governments that really make the decisions that drive globalization and supply chains and that they aren’t decoupling yet.”

Reenergize Local Consumption

Pradyumna Barbora, a specialty tea producer in Assam, points to a straightforward solution: Increasing average per capita consumption from 750 to 800 grams will “uplift the Assam tea industry,” he writes.

“If every tea lover in the country increases their consumption by a mere 50 grams per month, and starts sourcing their tea locally, the gardens will be able to meet their expected minimum wages whilst creating a better living environment for themselves,” writes Barbora, spokesman for Tea for Unity, a group of Assam planters. “We are losing focus on a high-quality heritage product which fetches much more and is more valuable than commercially mass-produced tea,” writes Barbora. The tea industry employs more than a million workers,” he explains, “Investment will improve the mindset of the workforce, translating into greater efficiency and quality.”

Learn more: Tea for Unity

Tea is Piling Up

Processed tea is piling up as demand declines, and transport is interrupted. Globally, warehouses usually empty by the start of the spring harvest. An abundance of tea stored in 2019 is compounding problems in India. Consider the 21 villages in Champawat, a tea-growing region where warehouses are bulging because drivers are not permitted to travel.

Tea, valued at INRs360,000 ($4,700), was ready to be sent for auction in April, “but we have not been able to transport it due to the lockdown. If the stock is not sent to Kolkata soon, those involved in tea plantation and its selling may face a financial strain,” Desmond Brikbeck, manager of several local tea gardens, told the Times of India.

U.S. Consumers Remain Wary of Reopening

Datassential continues its weekly series of webinars tracking consumer behavior during the pandemic. The COVID-19 series is free and hosted by managing director Jack Li, whose company pioneered the use of menu data to predict flavor trends.

The topic May 8 was “The Next Phase” (download PDF).

Reopening is underway led by Starbucks, which announced that 85% of its corporate stores would soon resume operations.

Li notes that concern has declined somewhat as some states reopen, “but America is still anxious, with slightly more than half of the people feeling very concerned and hugely worried about their own personal health.”

“Avoidance of eating out is steady, but down from a month ago with 55% of those surveyed saying they will “definitely avoid going out” and 27% saying they are “nervous but will still eat out.” The number of individuals reporting “no concerns whatsoever” increased to 18%, up 2% since April 27 but down 23% since March 10, according to Datassential.

Health remains the top concern, but economic worries are intensifying, according to Li, who found that 57% of respondents are more concerned about the public-health crisis (down 2% since April 27 and down 6% since April 10). Those who say they are most concerned about the economic crisis increased 2% from April 27 to 43% of respondents.

“Not much has changed in the past month. America is still at home and still longing to get back out,” writes Li. “People are excited to get back to activities like dinner and a movie, or lunch and shopping at the mall,” he said.

When asked: “Which of the following food & drink places or activities are you most excited to get back to?” 45% selected “dining at my favorite sit-down restaurant,” and 42% selected “visiting recreational places” with 39% longing to “meet family and friends at restaurants.”

Going to coffee shops (20%) and drinking at bars (19%) ranked in the middle. Visiting nightclubs, concerts, and lounges appealed to only 10%. Visiting cafeterias (5%) was the least exciting activity.

Editor’s note: Unemployment increased to 14.7% in April, the highest since the Great Depression. New claims topped 26.5 million during the five weeks ending April. The proportion of employed working-age adults (51.3%) is the lowest on record. Datassential found that 16% of survey respondents are still going to school or working as usual, with 16% stuck at home due to layoffs and furloughs. An additional 33% of those taking part in the weekly survey are working or attending school remotely, with 35% not working overall.

Next episode: “What Consumers Want Right Now.”

EVENTS

Attend the SofaSummit on International Tea Day

Thursday, May 21, is International Tea Day, a global event declared by the United Nations that will, for the first time, be celebrated in every county. The U.N. organized the event to elevate tea by drawing attention to “the importance of tea for rural development and sustainable livelihoods, and to improve the tea value chain to contribute to the 2030 Agenda for Sustainable Development.”

To celebrate, the Tea & Herbal Association of Canada, in coordination with many prominent industry leaders, is hosting an all-day tribute May 21, beginning at 9 a.m. through 7 p.m. EST. The tea and chat will “circumnavigate the globe,” spanning 14 time zones with participants from 13 countries. Watch on YouTube live – no registration required.

Shabnam Weber will host on THAC’s YouTube Channel: http://tiny.cc/gyqdoz

Click to learn more: International Tea Day.

UK Tea & Infusions Association

Raising Our Cup to All Tea Drinkers

The

Participants (in order of appearance) include:

Yu Lu, China Chamber of Commerce CCFNA

Rajah Banerjee, Makaibari

Arun Singh, Tea Vision

Ketan Patel, Jalinga Tea

Stephen Twining, Twinings

Alfred Njage, KTDA

Cindi Bigelow, Bigelow Tea

Gabriella Lombardi, Cha Tea Atelier

Joyce Maina, Cambridge Tea Academy

Will Battle, Fine Tea Merchants

Joe Panter, Camellia PLC

Ramaz Chanturiya, Tea Masters Cup (Russia)

Carolina Okulovich, Don Basilio

Rona Tison, ItoEn

James Norwood Pratt, Author

Jane Pettigrew, UK Tea Academy

Kevin Gascoyne, Camellia Sinensis

Jeff Fuchs, Tea Horse Road

Tania Stacey & David Lyons, Cuppa Cha & AUSTCS

Cecilia Corral, Tian Té Mexico

Fred Yoo, Myung Wong Cultural Foundation

*Corrected 9/13 to clarify this event was organized solely by the THAC.

Virtual Tea Tasting

The Ceylon Artisan Tea Association is hosting its third in a series of virtual tea tasting webinars. Amba Estate was featured on April 30. This week features Forest Hill Tea, which was recently profiled in Tea Journey magazine.

Click this link to join the meeting: https://us02web.zoom.us/j/9997849844

Meeting ID: 999 784 9844

The Zoom event begins at 5.30 p.m. Wednesday, May 13 in Colombo Sri Lanka (India|Asia) | 8 a.m. EST (New York) | 1 p.m. (London) | 2 p.m. (EU) | 8 p.m. (Singapore and Hong Kong) | 9 p.m. (Japan and Korea)

If you miss the live event, recordings of these webinars are available for viewing at no charge.


Enhance your well-being with tea. Tea Journey is a bridge connecting those who craft handmade teas in 35 countries with the growing number of premium tea consumers globally. Tea Journey educates readers not only in the selection and preparation of healthy whole leaf tea but also in the manufacture of authentic teaware and utensils designed to enhance the tea experience.

Curious about tea? Subscribe free to Tea Journey Magazine

Need to Know

Tea industry news for the week of April 6

China’s tea harvest in full swing including Enshi, in pandemic stricken Hubei Province

Closely Monitor Tea Auctions

Tea auction houses are a choke point for black tea transactions globally. The routine flow of commercial grades of tea is in jeopardy as major tea auctions react to the pandemic. Twin threats loom, the first involves gatherings that ensure the safety of participants. The second is the logistics. India’s national lockdown was tragically timed to the onset of the first flush, which observers predict is lost.

The Colombo Tea Traders Association (CCTA) successfully conducted an all-digital auction – a first in 126 years of outcry” bidding. The pandemic shut down the auction temporarily, halted shipping, and closed factories engaged in processing, blending, and packaging tea. “The tea industry has since regained its composure and momentum, and all its operations are now gradually resuming full capacity islandwide,” according to CCTA. The e-auction runs April 4-6, with samples available for viewing online and for purchase remotely under the guidance of the Colombo Tea Brokers’ Association.

India’s Darjeeling growers earn 40% of their business during March and early April as first-flush teas are rushed to clients in Europe, Russia, Japan, and the US. Plucking had just commenced when India’s prime minister ordered a 21-day national lockdown on March 25. Tea bushes welcome spring with their best quality shoots, which amount to 25% of the crop by volume but bring an estimated $20 million (INRs150 crore), or roughly 40% of revenue. Lost sales are compounded by the fact that by April 15, when the lockdown is scheduled to end, trees will be overgrown, forcing a time-consuming and costly pruning. Darjeeling annually produces about 8 million kilos of tea. That will not be the case in 2020.

The financial losses Darjeeling faces led the Union Home Ministry on April 3 to amend its workforce order to permit gardens to operate with up to half their workers if they enforce social distancing. However, few seem willing to operate processing factories, bought-leaf factories are closed to smallholders, and workers’ unions in West Bengal and Assam strenuously oppose returning to work due to the contagion and limited healthcare. North Bengal accounts for a quarter of India’s 1.3 billion kilo harvest.

Tea Retail

India’s street corner chaiwallahs and tea stand vendors operate without inventory or cash reserves. In the past three weeks, the steady business of supplying office workers has disappeared along with crowded trains and bus stations. At 20 rupees per cup, these workers earn less than $1.50 per day after expenses.

The approximately 1600 US tea shops in all but eight states where residents are now under orders to stay at home, are experiencing dramatic declines in foot traffic. It is hard to profit from small transactions, so Emma’s Tea Spot in Baltimore promoted its curbside pickup and delivery by offering staples as incentives. These include eggs, bread, and toilet paper. Orders are mainly by phone with payment prior to pickup or delivery. No employees come into contact with customers since orders are placed in a sanitized pickup area outside the building.

China Harvest Underway

Saturday (April 4) marked the opening day of the tea harvest in China. Qingming celebrations, which involve traveling to the ancestral homes of urban Chinese, are subdued in many parts of the country this year as more than 3,000 perished amid 83,000 confirmed cases of COVID-19.

Tea harvests in Zhejiang and Anhui Province are in full swing. Harvesting is underway but delayed in Hubei, which is the third-largest producing province and the center of the pandemic.

Yunnan continues to experience a severe drought. Chinese authorities say 1.14 million of the province’s 47 million residents are experiencing difficulties accessing drinking water, along with a quarter of a million head of livestock. Crops covering 180,000 hectares are drought damaged according to the provincial water conservancy department. “At present, 78 rivers in Yunnan have been cut off, 115 reservoirs have dried up, and 99 irrigation wells have an insufficient water supply,” according to a report published by Xinhua News Service.

UPCOMING EVENTS

The European Tea Society is hosting a free webinar on How Pandemics and Climate Change are Affecting the Tea Trade.

On Wednesday, April 8 Elyse Petersen, founder of www.tealet.com, is presetting on Covid19 and how this is impacting working directly with growers. The European Tea Society opened this webinar to anyone.  The webinar begins at 2 p.m. EST.  Here is the link:  https://www.europeanteasociety.org/events/2020/4/8/members-webinar-elyse-petersen-working-directly-with-growers-how-pandemics-and-climate-change-are-affecting-tea-trade.  

The World Health Organization was founded on April 7, 1948. This agency of the United Nations is commemorating the work of nurses and midwives on World Health Day, Tuesday.

Darjeeling Silence is Deafening

Darjeeling Silence is Deafening

In West Bengal, India massive crowds are pressing for Gorkhaland statehood

Internet service in the Darjeeling Hills was disabled June 19 and service providers remain under orders not to allow online communication through July 25. The order is a security precaution to pre-empt organizers from coordinating protests throughout the region from Siliguri to Sikkim and north to the border with Nepal.

DARJEELING, West Bengal

Residents near the Sadar police station in Darjeeling normally file 30 complaints a day, mostly for petty crimes. Not a single complaint has been filed since June 9, shortly after hundreds of thousands of Gorkha began a strike for statehood now in its 33rd day.

Residents are keeping their distance from local police and riot-clad members of the Central Reserve Police Force (CRPF) following weeks of unrest in which seven people have died and hundreds more, including police, were seriously injured. Heavily armed CRPF were deployed to Darjeeling, Kalimpong, and Sonada on July 14. There are 11 CRPF companies now in place in the region but they are not under siege. In most cities, police stand watch over peaceful gatherings.

Headlines worldwide portrayed the violence with a reminder of the 1,200 killed during similar uprisings from 1986 to 1988.

Residents describe a different story.

Allan Rai is a 20-year-old studying tea management. He asked that his location and personal details remain private at this time.

The protests are orderly and residents are determined to prevail, he writes.

“On reading your recent article as well as sharing it with a few of my companions, we felt that the information you were provided was quite biased and portrayed only one side of the story,” writes Rai.

The article he is referring to appeared in World Tea News under the headline: Darjeeling Uproar Disrupts Tea Operations.

He counters with these points supporting the Gorkha protest:

  • Firstly, the ongoing movement is a mass movement not adhering to any political party. The common people of the entire region are supporting the demand for a separate state irrespective of their caste, creed, religion, and other differential status. The Gorkhas from different parts of India as well as those across the world have come in support for Gorkhaland.
  • With regards to the strike being held off for 12 hours on the auspicious occasion of Eid, our Muslim brothers and sisters are in solidarity for our demand for Gorkhaland and were willing to continue with the strike even on the day of their festival.
  • Approximately 70% of people in Darjeeling and adjoining areas of Doars depend on income from tea plantations directly or indirectly. In almost all the tea factories, 99% of the workers are the natives i.e., the Gorkhas. A separate state is the aspiration of each individual worker in these factories.
  • Tea workers were protesting for the minimum wage act, which has not been implemented in Darjeeling and Dooars. The Gorkhaland movement began stirring among tea workers who fully support the movement for a separate state. They even carry their lunch from home and actively participate in the rallies every day.
  • The movement would not have gained such vast momentum if it were not for social media. Not only the Gorkhas, but people from other communities in India and from several parts around the globe are in solidarity for the cause of Gorkhaland.
  • Gorkhaland is not a separatist movement, unlike Kashmir where they are demanding a separation from the nation entirely. Our movement is for a separate state within the Indian nation for the cause of our IDENTITY and DIGNITY that has been denied to us for the past 110 years.
  • The movement here is rather democratic and apolitical. The only visible violence is the atrocities committed by the Bengal Government by ordering forces to charge and fire bullets at peaceful protestors in broad daylight.
  • The violence on June 17 that claimed four innocent lives was due to a clash between the protestors and the armed forces. This was because on previous days these armed forces charged women and elders who were peacefully protesting. On June 16 police raided the house of the Gorkhaland Territorial Administration (GTA) chief. The media flashed that they found weapons and explosives when all that they found was an archery kit that was for training school children, agricultural tools and other traditional weapons along with two cartons of fire crackers. The media termed these “weapons and explosives.” This led to a massive rally in Darjeeling. When the armed forces tried to intervene, it led to a clash and resulted in the death of the four martyrs.

Gorkha tea worker in Darjeeling

The Current Situation

Each day thousands of tea workers from the fields join city residents at a now-familiar 10 a.m. gathering at the historic Darjeeling train station. They rally, tour the city along Mall Road and end their protest at Chowk Bazar. Some groups chant in front of the magistrate’s office. Groups of 500 to 2,000 listen as speakers from the organizing bodies address the crowd for about an hour before dispersing.

There is nothing much else for locals to do. The tea gardens are closed, the factories idle. The tourists are too scared to stay, schools are closed, outdoor sporting events canceled. Restaurants, pubs, shops, and grocers as well as banks and ATMs are locked to prevent looting, according to the Times of India.

Residents report that each day you see the same faces whether the march is for the GJM (Gorkha Janmukti Morcha), the GNLF (Gorkha National Liberation Front), the ABGL (Akhil Bharatiya Gorkha League) or the CPRM (Communist Party of Revolutionary Marxists). All support the effort to establish Gorkhaland, a state carved from the upper reaches of West Bengal.

The scene is familiar to travelers. In January in Chennai tens of thousands of protestors expressed their outrage over the ban of a traditional bull-taming contest known as jallikattu. The sport was continued.

Five years ago, thousands in Darjeeling took to the streets to peacefully protest the expansion of 50 Wal-Mart locations across India. I missed a flight to Kolkata due to the resulting congestion in every village along the 60-mile road to Bagdogra Airport.  There are many names for the protests which draw the people of India into the streets carrying signs and chanting. Nationwide a cessation of work is know as a hartal. Locally these strikes are called anishchitkal bandh (indefinite strike).

One key difference is the interruption of the internet, which has choked off contact with the Gorkha. The Hindu reports this decision has led to widespread resentment, which is being tapped into by the movement. On Monday the GJM marched to the magistrate’s office demanding that internet service be restored.

Peaceful street protests

Dangerous Precedent

“This movement is not a sudden, it has been prevalent for 110 years, however, it was highly voiced out during the year 1986 under the leadership of late Subash Ghising,” writes Allan Rai.

“During the ongoing agitation in those days my father was among the activists for the cause of Gorkhaland. The movement turned out to be violent, killing 1,200 innocent civilians as well as injuring many. Despite this violence the demand for Gorkhaland was not fulfilled,” he writes.

“Instead they settled with the Darjeeling Gorkha Hill Council (DGHC), a semi-autonomous body to look after the administration in the hills. This granting of autonomy led the masses to believe that now the hills would see better administration and development,” reports Rai.

Here is an excerpt from my upbeat report at the time:

“A new territory was carved from West Bengal’s Darjeeling district but India rejected demands for a separate state. The Gorkhaland Territorial Administration (GTA) will have powers to manage public works, social welfare, health and forests and agriculture including valued tea gardens. Existing land records will be transferred to the authority

“The agreement will end the violence in the hills of Darjeeling and pave the way for development,” newly elected West Bengal Chief Minister Mamata Banerjee told the crowd of joyous Gorkhas gathered in the village of Pintail. She praised the signing as historic. “There is nothing to fear… Bengal is not being divided. Darjeeling is close to our heart,” she said.

“There will be an elected local body, there will be schools, colleges, hospitals, jobs will be available and Darjeeling will shine,” said Banerjee who shared her vision of Switzerland as a model.

Autonomous Region Fails

“The autonomy status was just a farce and the state still continued to intervene and rule over the region, depriving it of the development it deserved,” according to Rai. “I’ve been well acquainted with this movement. Since I was a child, I heard stories about the agitation of 1986, which our loving elders referred to as the most devastating “chyassi ko andolan” one of the biggest and most violent movement in the history of Gorkhaland,” he continues.

Protests soon resumed, often involving garden workers, with frequent strikes disrupting tea production and reducing productivity.

Tensions are greater now than at anytime since the bloodshed of the 1980s.

“The agitation which has been going on for over one month will turn terrible and it will be a decisive battle for our independence,” GJM Chief Bimal Gurung told reporters Saturday night. “If I need to shed my blood I am ready to do that, but the fight will go on till Gorkhaland is achieved,” Gurung said.

So, Why Gorkhaland?

“Darjeeling tea is our pride and our heritage,” writes Rai. “It has been one of the world’s leading brands of tea. However, the tea plantations and factories in the region do not flourish or prosper to their full potential due to several reasons, one of them being inequitable distribution of monetary resource. The revenue collected from the Darjeeling tea does not return to those who produce it. Thus, there is not much monetary support to maintain the factories and the wages of the workers are very low compared to the wages of workers in other states of our country,” he writes.

“Workers are provided with facilities such as PF, Pensions that do not even amount to $15.50 (INRs1000) per month and medical facilities that are mentioned in the documents for name sake as there are no medical units or hospitals. Owing to these factors many factories in the region have been shut down. This has led to widespread unemployment resulting in deaths due to starvation as well as depression,” he said.

“When visiting tea estates, people usually meet the owners and managers of these estates. This leads them to understand only the owner’s or the manager’s point of view regarding the estates. However, they often fail to consider the daily wage workers of the estate and fail to understand or even consider the terms or the conditions in which they work to earn their minimal standard of living.

I’m sure when people drink our Darjeeling tea they sip it in delight but has anyone thought about the condition of the old lady in the garden who plucked those luscious leaves with her delicate hands? Or the ever-smiling man who turns these tea leaves into an aromatic sipping delight? Has anyone thought that even under these extreme and crucial conditions these simple workers do not fail to do their job and supply us with our world-famous brand of tea?

“The people of this region are very hardworking and generous, they work 8 hours a day for a meager amount of $2 (INRs130) per day. These workers are living in such harsh conditions yet has anyone even bothered to think about them? These are the things that one must ponder upon to realize the potential that the tea plantations will reach, if, a separate state is formed,” he concludes.

Sources: World Tea News, The Hindu, Indian Express

Next, Gorkhas speak in support of their cause:

Anjana Gurung
Anmol Gurung

Like father, like son

Only a few hours remain in the already-successful Kickstarter campaign to launch Nepal Tea, LLC. This is the time to pour it on. Donors can contribute through Wednesday, March 8. – Dan Bolton


Nischal Banskota at Kanchanjangha Tea Estate

Nishchal Banskota is 24.

He is pictured at right in his not-so-long-ago teens, perched on a rock in the family’s Kanchanjangha Tea Estate, the first tea garden in Nepal to achieve organic certification.

His father, Deepak Prakash Baskota, is nearing four score. The path these two men travel closely adheres to the ancient proverb “Like father, like son” a beloved truth first published in the 1300s but with an oral tradition as old as mankind.

Nishchal is Deepak and Dambar Baskota’s youngest son. He graduated last year from Colby-Sawyer College in New London, New Hampshire, settled in Jersey City, NJ and in May 2016 launched Nepal Tea, LLC.

Nepal Tea is one of very few companies that imports single-origin tea direct from the garden. This guarantees quality and freshness and a good return for growers who can bypass middle-men in the supply chain.

“Not only does Nepal Tea believe in providing the best quality tea to the tea drinkers around the world,” Nishchal says proudly, “It infallibly does so with the “Do Good to Others” motto and farmer’s first approach. This is what distinguishes us from the numerous commercial tea whole-sellers/retailers.”

Did you hear his resolve in that statement?

Six decades ago when his father was only 15 year old, Deepak Prakash Baskota recalls the first time he saw the thousands of hectares of tea gardens that blanket the foothills of India’s Darjeeling tea growing region. He left inspired. On returning to the village of Phidin, he shared his vision of planting a tea garden near Ranitar in the remote hilly region of Panchthar district in the rugged Himalayan foothills. In 1954 growing tea was a new concept. Villagers questioned his ambitions and his grandiose dream of one day building a tea factory.

Deepak Prakash Baskota, his wife Dambar and youngest son Nishchal

In response he decided to dive head-first into the project. First he read everything he could find to read, borrowing books to better understand what was required, and then exploring the nearby hills in search of terrain suitable for tea. Ranitar is 50 kilometers north of tea-rich Ilam but the only way to know for certain whether tea would thrive was to conduct soil tests. Deepak learned that the nearest soil laboratory was in Siliguri, West Bengal and so he walked 167 kilometers across the foothills of northern India carrying two heavy sacks of soil. The trip took three days. Later he discovered that delivering a handful of soil would have been sufficient.

Encouraged by the positive results but unable to purchase land, he and his wife, Dambar, planted the first tea trees in their backyard. Then, as the trees matured during the next four years, he invested in new plantings, visiting Darjeeling as often as possible to learn how to make tea.

Gradually villagers began to grasp the potential and offered adjacent land for expansion until there was more than 200 acres. Growers established a cooperative to sell their leaves. Eventually they produced enough leaf to require a factory which was completed in 1984.

The family prospered, making Nishchal’s childhood very different than that of his father and mother. Yet he developed the same confidence and self-motivation that led him to found a national newspaper at 17 and manage a project to build a school for underprivileged children during his college years. He volunteers for the Nepal Red Cross Society and 4 E’s Social Service programs. He worked as a financial planning analyst during his school years.

Nishchal Banskota

“While finance remains my keen interest of study, it has not limited me to explore beyond my apparent horizon and make a difference,” says Nishchal, “I constantly attempt to challenge my entrepreneurial spirit to drive change.”

Nepal Tea is a fine purveyor worthy of your donations but its mission runs deeper than commerce.

Children in Nepal do not receive a free education. One-in-four live in poverty and only 57% of Nepali adults can read and write. Banskota said a portion of tea sales are donated to a scholarship fund that has educated 2,300 students since 2002.

Nishchal would like every child of the 600 farmers who work at the Kanchanjangha Tea Estate and Research Center (KTE-RC) to have the opportunity he enjoyed.

This is your opportunity to make the vision of two generations of dreamers a reality.

Nepal Tea LLC Kickstarter campaign

Friends in Tea

Last week donors pledged $15,000 to bring Tea Journey to life.

As you read this note our total paid subscriptions will top 325 and our Kickstarter campaign will have reached nearly 30% of the final goal. There are now 30 days left in the campaign. Many Kickstarter ventures are fully funded in a 30-day window but we need to act quickly to draw attention to our “replenish rewards.”

We need to make the most of each day…

Founding sponsors have committed an additional 1,000 packets of tea and several new tea experience rewards totaling $20,000. This boosts the value of Tea Journey rewards to $95,000 USD (our current goal).

The word is getting out. We have 185 Kickstarter subscribers (and another 130 who subscribed direct from the website). They hail from Iceland and Indonesia to Eastern Europe, India, UK and New Zealand. Those who see the prototype tell us they love it.

The combination of support from bloggers, media and social media has brought us this far but reaching goal depends on peer-to-peer appeals to your friends in tea. Eighty-two percent of our Kickstarter donors are friends in tea. They are responding to short personal notes at a rate of 1% – that’s 5 per 500 notes sent.

A simple note is all it takes: 70% of millennials prefer a “peer” endorsement and rely on non-celebrity bloggers over the glitz and glam of stars. Only 3% of the 14,000 consumers surveyed by Collective Bias say they even consider buying a product endorsed by a celebrity.

The articles, images and video in Tea Journey are authentic, unvarnished, detailed and devoted to tea. Your note should be the same.

Do these five things and we will be celebrating our success on June 1.

1) Open a PayPay account and add $30 (for up to 500 names). GreenInbox only accepts PayPal payments.
2) Signup for GreenInbox.com (and select and upload either your Facebook friends, Twitter followers, Linkedin connections or email contact list). Click the check box beside the names of everyone you think will be interested in Tea Journey (up to 500).
3) Personalize the note below.
4) Click send.

If you are short of cash I will be happy to reimburse you…. better yet, send a note to dan@tea-biz.com with your Paypal email and I will send you $30 in advance.

I emailed 317 appeals this week and there were 60%+ opens resulting in several donors.

I know a lot of people but not nearly enough to reach the Kickstarter goal.

If you help us by doing this, I am convinced that together the tea community will reach the $96,000 goal but it needs to be done now…. send as many as you can as quickly as practical. It takes donors several days to evaluate the magazine. In many instances it takes appeals from three or four of you to tip the scale.

Tomorrow is too late.

Dan

SAMPLE LETTER

Dear (or Hello, or Hi) <first_name>

Tea Journey magazine presents authentic and elusive tea knowledge translated from publications in China and other tea lands. The mobile app and website is a collaboration between western tea journalists and tea experts to introduce readers to the world’s finest gardens and teas. Choose from these awesome tea rewards: https://www.kickstarter.com/projects/teajourney/tea-journey-magazine
I did!
Your Name

GreenInbox ADVICE

1) Focus the message on the recipient, not you.
2) Make the message positive
3) Keep the message short.
4) Include a clear call to action.
5) Do not use short links (like bit.ly)

Most email providers (like gmail) will mark your message as spam if it includes bit.ly, goo.gl, tinyurl etc. Moreover, better to use the full link since people like to know what’s the target web page. Using the full link will increase the number of people that actually click on it. https://www.kickstarter.com/projects/teajourney/tea-journey-magazine

Tea Journey

Tea Journey

Thirty Days

During the past decade I have met thousands of tea drinkers on a path of discovery, a journey to find the special teas that tantalize their sense of taste and reward them with tales of exotic terroir and artisanship so compelling they are eager to share.

I believe that there is a perfect tea for each of us and that finding that tea is the key to fully realizing the health and wellness tea brings.

But finding that tea and preparing it correctly requires knowledge not easily obtained.KICKSTARTER_Higishyama_360px

Ron Studd put it this way: “I have a strong feeling that there are many interested in getting to the next level with tea, but they don’t have a good way to get there specifically with knowledge.  I know that was a problem I had when I returned to the States.  You get people that say they’re enthusiasts, but when their depth of tea knowledge and practice is so shallow, it’s tough to find inspiration and encouragement that can only come from a wider community of other enthusiasts at or beyond your own knowledge.”

In the past year I assembled an awesome team of journalists and tea experts in the tea lands and their counterparts in the west dedicated to obtaining and sharing authentic, elusive and exclusive knowledge. We call our venture Tea Journey. It was christened by Tony Gebely and ratified by a group so passionate about tea I am humbled to stand as their leader.* Together we created something very special, a digital magazine available online, via iOS and Android and downloadable as a PDF.

KICKSTARTER_GlazedTeaCup2_360px

This mobile magazine features articles written in the tea lands by native-speaking writers. The articles are beautifully illustrated and there are informative videos that bring history to life and describe the amazing work that goes into creating tea:

YIXING POTTERY
https://youtu.be/mRu5xdcVRXs

CHIGUSA MEIBUTSU
https://animoto.com/play/5ddO72eWDl5RYi9oxotVxA

Click to view the prototype we created. I know you will find the content compelling. Then join us.

Three hundred enthusiasts already have invested $25,000 in making this Kickstarter project a reality.

MARKETING-TJ_SigArt_China_360pxRon Studd continues: “When reading the magazine articles, I kept thinking ‘this is exactly what I need!’ Even for topics that I may be familiar with, there’s so much effort that went into making the content intuitive and interesting that any level of enthusiast will enjoy.  It’s also just nice to know ‘I’m not the only one interested in this!’ ”

There are 30 days left in the campaign. Our goal is 1,000 paid subscribers. Those who donate receive their choice of amazing gifts of tea; tea experiences of a lifetime or splendid teaware.

Choose from hundreds of rewards valued at $95,000.

That’s what it will cost to launch Tea Journey. The deadline is June 1.

Are you in?

Dan's Informal Signature_240px (Blue)

If you already donated or subscribed, please share the news with your friends in tea by clicking the link below: https://www.teajourney.pub/social

KICKSTARTER CAMPAIGN
https://www.kickstarter.com/projects/teajourney/tea-journey-magazine

DOWNLOAD LATEST PROTOTYPE
https://www.teajourney.pub/tea-journey-prototype.pdf

PRESS COVERAGE: YAHOO FINANCE
http://finance.yahoo.com/news/tea-journey-magazine-announces-official-100000148.html

PRESS COVERAGE: WORLD TEA NEWS
http://worldteanews.com/news/tea-writers-plan-to-kickstart-global-magazine-for-premium-tea-drinkers

LATEST PRESS RELEASE
https://www.dropbox.com/s/g4b9fbdkh3cadwa/Tea%20Journey%20Kickstarter%20Launch%20Press%20Release%204-4-16%20extended%20version.docx?dl=0

SUBSCRIBE LINK / FOUNDING SPONSORS
https://www.teajourney.pub/subscribe

*The Tea Journey Team

Dan Bolton, Editor/Publisher
Nan Cui, Associate Publisher
Si Chen, Senior Editor
Hans Niebergall, Business Development
Ashley Sostaric-Finkes, Marketing Director
Suzette Hammond, Education Director
Beibei Lu, Art Director
Jennifer Sauer, Video Editor
Kathe Meseman, Finance Director
________________________________________
Contributing Editors

Ian Chun, Origins
Jennifer English,
Podcast
Jennifer Quail,
Teaware & Antiquities
Cynthia Gold,
Culinary Tea
Bruce Richardson,
Tea Retail
Dan Robertson,
Origins
Jennifer Sauer, 
Videography
Jennifer English,
Tea Journey Podcast
Cynthia Gold,
Tea Cuisine

________________________________________
Contributors

Stephen Carroll
Barbara Fairchild
Jeff Fuchs
Keith Horner
JT Hunter
Nicholas Lozito
Nicole Martin
Frank Miller
Katrina Munichiello
Hans Niebergall
Geoffrey Norman
Stephenie Overman
James Norwood Pratt
Dan Robertson
Felicia Stewart
Peter Surowski
Jason Walker
Nathan Wakeford
________________________________________
Advisors

Victoria Bisogno, El Club Del Te
Kevin Gascoyne,
Camellia Sinensis
Tony Gebely, World of Tea
Austin Hodge
, Seven Cups Fine Chinese Tea
Joshua Kaiser, Co-founder Rishi Organic Tea
Brian Keating, Sage Group
Bob Krul
, Boreal Wildcraft
Andrew McNeill, Seven Cups Fine Chinese Tea
Dr. Nada Milosavljevic
, Harvard Medical
Elyse Petersen, Tealet
Jane Pettigrew, UK Tea Academy
James Norwood Pratt, Tea Lovers Treasury
Dan Robertson, The Tea House

________________________________________
Founding Sponsors:
Camellia Sinensis | Seven Cups | Mighty Leaf | Mad Monk Tea | Tealet | CrafTea | Tea Squared | Jalam Teas | Misty Peak Tea | Tea Total | Yunomi Tea |Tetulia | Lochan Tea | Teatrade Mart | Rishi Organic Tea | Adagio Teas | World Tea Academy | Hong China Tea | Smacha | Young Mountain Tea | Nothing But Tea | Australian Tea Masters | ITI | Paper & Tea GmbH | International Tea Masters | Wild Tea Qi | The Green Teaist | El Club Del Te |  Rolling Leaf | World Tea Podcast | Tea Lula | Daily  Tea | Conundrum Tea | Tea Vivre (watch for updates as additional founding sponsors sign up every day.)

Companies interested in becoming founding sponsors should contact Suzette Hammond at suzette.hammond@teajourney.pub to inquire.

Tazo Transition – Need to Know

Complaints mount as the Tazo transition to Teavana creates shortages… a $600,000 Pu-erhCold tea territoryKumaon tea project funded … U.S. Tea Growers update….

Tazo Transition

Several news reports confirm what online discussion groups have noted for months: the transition from Tazo to Teavana has been bumpy. Grumpy Tazo fans complain they can no longer find their favorites at the chain’s coffee shops while Teavana tea drinkers find their favorites in short supply. Tazo is still available at grocery outlets, natural food stores including Whole Foods and department stores but as of January is no longer sold at Starbucks. Last week

Tazo Tea

Tazo Tea

Aly Weisman at the Business Insider complained about a shortage of any tea at Starbucks. “We’ve already switched over but we’re not receiving the supply to meet the demand,” she reported being told by a Starbucks employee in New York City after asking for tea at three different stores. She settled for a cup of hot water, paying 54 cents.

The $600,000 Cake

Want a slice? A 375-gram cake of century-old Pu-erh is on sale this week from the collection of Six Mountains Tea Ltd., in Vancouver, British Columbia. The tea dates to 1910, according to tea specialist Erick Smithe. In this video he tells The Province, there are only 49 cakes remaining, all part of Kennedy Yeung’s collection. Yeung’s father is one of the foremost collectors of vintage teas, which like fine wines, improve with age. In 2013 a stack of Pu-erh cakes sold for more than $1 million per kilo at a Hong Kong auction. Brewing the first pot would cost around $150,000 Smithe estimates, largely due to depreciation that follows breaking up the cake.

Cold Tea Territory

Even in winter America is cold tea territory. Annual spending is much greater for iced and ready-to-drink teas (62%) but hot tea, driven by the specialty category, continues to grow. In the U.S. last year hot tea accounted for 30% of the $4.2 billion in packaged tea sales reported by Nielsen MarketTrack. The category grew 4% last year largely due to pricing of specialty tea which sells for three times more than commodity tea.

Sales of tea in single-serve capsules are growing in double digits.

In the U.S. upscale and specialty tea accounts for 67.2% of sales compared to 32.8% for traditional black tea, despite the fact that black tea accounts for almost 70% volume by weight, according to Nielsen Scantrack.*

*Nielsen ScanTrack National US All Outlets for the 52 weeks ending Aug. 2, 2014.

 

LOGO-USLTGU.S. Tea Growers Update

The annual gathering of The U.S. League of Tea Growers, led by Jason McDonald, concluded this week with a simple pronouncement: “Can you grow tea in the U.S.? Yes!”

The growers are evolving from hobbyists into commercial specialists whose cutting-edge techniques will likely spread to the vast gardens overseas. Growers with at least 25 plants can join with some now cultivating tens of thousands.

The object is not to produce millions of kilos typical of African, Indian, Malaysian, Vietnamese or Sri Lankan plantations. Instead “the U.S. grown tea movement is driven in part by the increasing market demand for specialty tea and the confidence given to small farm startups created by the ‘Farm to Table’, ‘Artisan’, ‘Buy Local’, and ‘Urban Food’ movements of the past decade,” said League President McDonald who owns The Great Mississippi Tea Company.

“I am pleased with the gaining interest in the U.S. grown tea movement and think that this event gave the movement serious traction and direction going into the inaugural membership drive of the USLTG,” he said.

The conference was attended by agribusiness experts and agronomists “the goal of the Roundup was to bring together farmers and aspiring growers to discuss estate operations, Federal, State, and University resources, and tea crop production issues. There was also an opportunity to network and liaison with various research projects already underway here in the USA, according to McDonald.

Nigel Melican with USLTG members

Nigel Melican (orange) with USLTG members in Brookhaven, Miss.

Growers from as far as Hawaii, Nevada, Michigan and several southern states attended including representatives from Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North and South Carolina, Texas and Tennessee. There are now growers in 17 states.  A highlight of the gathering was visits to select estates and research sites in Texas, Mississippi, and Louisiana. Hosts include the East Texas Tea Company, The Great Mississippi Tea Company and J&D Blueberry Farm. The gathering drew 40 to Brookhaven, Miss., during the five-day event with an additional 10 at the East Texas stop.

“This group was actually a blend of old and new folks. We definitely are attracting new folks to our mailing list weekly and are kicking off a membership drive soon,” said McDonald, who mentioned two attendees from the U.K. including co-founder Nigel Melican of TeaCraft.

“It is exciting to see more people getting interested in growing tea within the U.S.,” Dr. Guihong Bi, Assoc. Research Professor of Plant and Soil Sciences at Mississippi State University, said of the tour. “Contacts that we have made through the USLTG have been invaluable in the development of our research objectives,” he said. USLTG maintains a website (www.usteagrowers.com) a blog and can be found on Facebook.

Sponsors of the event include: Fairhope Tea Plantation (Fairhope, Al), Camellia Shop Nursery, Joy’s Teaspoon and SerendipiTea.

Growers next meet at the World Tea Expo, May 6-8, 2015 in Long Beach, Calif. Learn more at: USLTG

Kumaon Tea Project Funded

Young Mountain Tea this week exceeded its Kickstarter goal ahead of schedule. The campaign has generated $26,000 with 12 days to go. It will be funded March 19. Founder Raj Vable contracted with Avani, a non-profit in the Kumaon region of Uttarakhand, northern India, to grow the bushes need to make white tea. The steep hillsides of the Central Himalayas were first planted in tea by the British who later abandoned the gardens due to challenging logistics.

YMT - Fields

Tea bushes used to make Young Mountain Tea

Avani plants tea bushes in a grid that includes indigo and madder, which are sold as raw material to make natural dye, and with sericulture trees that support silk worms whose cocoons are sold to Earthcraft to make silk. The intercropping is a pioneering type of organic permaculture. The first harvest will be in May and made teas will be available late this year.

Vable visited the region for extended stays and formed the company on his return to the U.S. He carefully planned the funding campaign aligning supporters well in advance. He first described his venture at the World Tea Expo in Long Beach, Calif.

“Participating in the New Business Boot Camp at the World Tea Expo gave us confidence and competency at a time when we needed both,” said Vable. “Equally important, it introduced us to the tea community, a welcoming and supportive group of people dedicated to combining their passion for tea with business.” To learn more: www.youngmountaintea.com.

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