Ukraine Tea Market survives despite War

The Ukrainian tea market is slowly progressing despite the ongoing war with Russia, which has led to catastrophic challenges for Ukraine and its economy.

Since the beginning of the war, tea consumption has decreased by 25 to 30 percent.

Prices rose by about 20 percent, but the rise in prices was a logical consequence of inflation and devaluation, which is observed in Ukraine.

The tea market in Ukraine has suffered significantly, but it continues to move forward as tea is classified as an everyday product, and local analysts expect the demand to stabilize in the coming months.

Overall, Ukrainians prefer black tea, but more consumers are becoming interested in new and potentially unfamiliar teas, especially fruit/herbal teas. This opens up opportunities for all players in this category.

The geography of tea imports was relatively stable between 2017 and 2021, and among the major suppliers were the United Arab Emirates, Sri Lanka, Azerbaijan, Poland and China. In 2022 Poland and China became new leaders in tea exports to Ukraine, although Sri Lanka still occupies first position.

Source: WTN (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Nitro – Tea Market to grow by 20.5% by 2033

Nitrogen-infused Tea Market Outlook (2023-2033) – the global nitrogen-infused tea market is expected to reach US$161.2 million by 2033, expanding at a high-value compound annual growth rate (CAGR) of 20.5 percent.

Nitrogen-infused tea is a relatively new trend in the beverages industry that has gained popularity in recent years. Nitrogen infusion involves adding nitrogen gas to a beverage.  

Nitrogen-infused tea is often served on tap, which provides a convenient and quick way for consumers to enjoy their tea. 

One factor that has contributed to the growth of the nitrogen-infused tea market is the increasing popularity and consumption of tea in general. Consumers are becoming more aware of the health benefits of tea and they’re looking for new and innovative ways to enjoy it.

The global nitrogen-infused tea market is currently valued at US$24.97 million for 2023.

Source: WTN (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

B’desh Tea Exports drops

Despite the steady growth in tea production over the past decade, Bangladesh's tea exports have taken a hit due to mounting domestic demand, driven by a growing population and urbanization.

According to the state-run Bangladesh Tea Board (BTB), tea production reached an impressive 94 million kilograms in 2022, marking a 53 per cent increase from the 62.52 million kilograms produced in 2012.

Yet, this growth didn't translate into booming exports. From the 2022 yield, a mere 0.78 million kilograms were exported, raking in Tk 196.31 million. This is a notable drop from 2020 when the country exported 2. 17 million kilograms of tea, earning Tk 347.14 million.

Simultaneously, sources reveal that the nation annually imports just shy of a million kilograms of tea. Insiders warn that if the current pace of domestic consumption persists, Bangladesh might need to import more tea in the coming years.

With 167 tea gardens spanning 280,000 acres and employing over 360,000 people, Bangladesh is the world's ninth-largest tea producer.

Source: Daily Sun (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

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Kenyan increase investment in Orthodox Tea

Farmers are set to reap big after the Kenya Tea Development Agency began installing orthodox tea processing lines in 13 factories.

The initiative is set to increase farmers’ earnings as orthodox tea fetches high prices in global markets compared to the crush, tear, curl (CTC) tea.

Currently, only 10 KTDA-managed factories across all tea growing areas process orthodox tea.

Kenya is out to stamp its authority as the top exporter of orthodox tea to major markets across the world through the project, which will increase production and guarantee farmers high returns.

Currently a kilo of orthodox tea is fetching up to Sh 952 in the global markets compared to CTC tea, which fetches about Sh408 per kilo.

The tea sector was drastically affected by the prolonged drought that hit the country. This saw tea production in the months of January and February decline by 60 per cent.

Tea production has increased by more than 90 per cent from 62 million kilos to 117 million kilos in the last two months thanks to the rains.

Source: The Star (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Organic farming could slash agricultural emissions

Organic tea farming can play a key role in reducing the effects of climate change. By limiting the use of manufactured chemical fertilisers and pesticides, organic tea farming can work within natural systems to reduce the risk of environmental pollution and greenhouse gas emissions.

Organic methods are not only beneficial for the environment, but also for the tea farming industry as it confronts the challenges posed by climate change by using less energy than synthetic fertilizers derived from burning fossil fuels.

While sustainability is important in farming practices, so too is understanding the carbon footprint of the tea industry.

Climate change could have significant implications for tea production, especially in countries expected to be more affected by extreme weather and rising temperatures.

Source: MSN/The Nation (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Germany plans to ban Glyphosate by end 2023

The continued approval of the widely-used herbicide glyphosate is a source of controversy both in Germany and the EU. While critics warn of considerable environmental and human health risks, proponents see no scientific basis for this.

In line with its coalition deal, Germany’s agriculture ministry has already taken steps towards banning glyphosate. Glyphosate should no longer be used in Germany after 1 January 2024.  

But that might not be so easy to achieve.

In the coming months, the EU is set to decide on whether it will renew its own authorization of glyphosate as an active substance in plant protection products, which is currently in place until 15 December 2023.

If glyphosate remains authorized in the EU after the end of the year, the German government can only impose restrictions on its use in specific cases or areas of well-founded reasons – rather than a general ban.

Source: Euro News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

How China tea industry deals with climate change

The Chinese Academy of Agricultural Sciences has surveyed tea plantations all over China and says that last year’s drought had a devastating impact on the quality and health of the country’s tea trees. Thousands of acres of trees died. Some were so parched they turned burnt red.

China is the largest producer and exporter of tea in the world. In 2022, tea production reached a record 3.35 million tons, of which 375,000 tons – about $2.1 billion worth – were exported to countries around the globe, from the United States to Ghana.

Climate change poses an existential threat to this industry. Rising temperatures cause tea plants to produce more polyphenols, resulting in more bitter, less valuable tea. And a market defined by terroir – teas produced meters apart command wildly different prices – is facing the potential extinction of its most

famous tea-growing regions.

Extreme weather events are only projected to get worse in the future. One study, spanning six decades of temperature data, found that heat waves are getting hotter, becoming more frequent, and lasting longer in China.

As extreme heat, drought, and rainfall become more frequent and harder to predict, tea-growing regions will have to adapt to survive. That starts with rethinking cultivation practices to prioritize adaptability over raw production.

Source: Sixth Tone (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Darjeeling tea demand drops in Europe

The Darjeeling tea industry is witnessing at least 10-15% fall in demand for its world-famous aromatic tea in Europe compared to last year, a contraction that has virtually coincided with Germany slipping into recession.

The total exports of Darjeeling tea last year stood at over 3 million kg. About 45-50% of the annual tea production generally gets exported. Europe and Japan are the two large overseas markets for this premium tea, the first product to get a geographical identification (GI) tag in India.

According to exporters, quantity off take this year is also low in Japan primarily due to weak yen. There is a lot of price pressure too. For Darjeeling first flush tea, there has been a shortage of high-quality crops and a surplus of mediocre quality due to erratic weather this year.

Up to the middle of April, the first flush crop had been down by 30% due to hot and dry weather conditions. Thereafter, the hills received abundant rainfall, resulting in a bumper crop during the end of April and first week of May. But this crop quality was low-medium.

Darjeeling tea production stood at 6.6 million kg in 2022 against 7.01 million kg in 2021.

Source: Financial Express (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Rwanda focus on promotion

National Agricultural Export Development Board (NAEB) has announced plans to focus on using technology and engaging youths in sustainable tea production, and promoting consumption following

impressive growth in the last ten years.

Statistics from NAEB show that tea production increased from 22,184 tons in 2012 to more than 38,000 tons in 2022 and foreign exchange revenues also increased by 90%, from $56 million in 2013 to more than $106 million this year.

For instance, in 2022 Rwanda’s tea sold at a premium price at the Mombasa auction, outdoing price offers from other regional countries as international buyers stay choosy on quality.

Market data from the auction shows the price of Rwandan tea at $3.02 a kilo in the sale held recently, against Kenya ’s tea at $2.72, Burundi ’s $2.44, Uganda ’s $1.27 and Tanzania ’s $1.15 for the same quantity.

Statistics from NAEB show that tea production increased from 22,184 tons in 2012 to more than 38, 000 tons in 2022 and foreign exchange revenues also increased by 90%, from $56 million in 2013 to more than $106 million this year.

Source: KT Press (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Organic farming could slash agricultural emissions

Organic tea farming can play a key role in reducing the effects of climate change. By limiting the use of manufactured chemical fertilisers and pesticides, organic tea farming can work within natural systems to reduce the risk of environmental pollution and greenhouse gas emissions.

Organic methods are not only beneficial for the environment, but also for the tea farming industry as it confronts the challenges posed by climate change by using less energy than synthetic fertilizers derived from burning fossil fuels.

While sustainability is important in farming practices, so too is understanding the carbon footprint of the tea industry.

Climate change could have significant implications for tea production, especially in countries expected to be more affected by extreme weather and rising temperatures.

Source: MSN/The Nation (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Germany plans to ban Glyphosate by end 2023

The continued approval of the widely-used herbicide glyphosate is a source of controversy both in Germany and the EU. While critics warn of considerable environmental and human health risks, proponents see no scientific basis for this.

In line with its coalition deal, Germany’s agriculture ministry has already taken steps towards banning glyphosate. Glyphosate should no longer be used in Germany after 1 January 2024.  

But that might not be so easy to achieve.

In the coming months, the EU is set to decide on whether it will renew its own authorization of glyphosate as an active substance in plant protection products, which is currently in place until 15 December 2023.

If glyphosate remains authorized in the EU after the end of the year, the German government can only impose restrictions on its use in specific cases or areas of well-founded reasons – rather than a general ban.

Source: Euro News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

How China tea industry deals with climate change

The Chinese Academy of Agricultural Sciences has surveyed tea plantations all over China and says that last year’s drought had a devastating impact on the quality and health of the country’s tea trees. Thousands of acres of trees died. Some were so parched they turned burnt red.

China is the largest producer and exporter of tea in the world. In 2022, tea production reached a record 3.35 million tons, of which 375,000 tons – about $2.1 billion worth – were exported to countries around the globe, from the United States to Ghana.

Climate change poses an existential threat to this industry. Rising temperatures cause tea plants to produce more polyphenols, resulting in more bitter, less valuable tea. And a market defined by terroir – teas produced meters apart command wildly different prices – is facing the potential extinction of its most

famous tea-growing regions.

Extreme weather events are only projected to get worse in the future. One study, spanning six decades of temperature data, found that heat waves are getting hotter, becoming more frequent, and lasting longer in China.

As extreme heat, drought, and rainfall become more frequent and harder to predict, tea-growing regions will have to adapt to survive. That starts with rethinking cultivation practices to prioritize adaptability over raw production.

Source: Sixth Tone (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Darjeeling tea demand drops in Europe

The Darjeeling tea industry is witnessing at least 10-15% fall in demand for its world-famous aromatic tea in Europe compared to last year, a contraction that has virtually coincided with Germany slipping into recession.

The total exports of Darjeeling tea last year stood at over 3 million kg. About 45-50% of the annual tea production generally gets exported. Europe and Japan are the two large overseas markets for this premium tea, the first product to get a geographical identification (GI) tag in India.

According to exporters, quantity off take this year is also low in Japan primarily due to weak yen. There is a lot of price pressure too. For Darjeeling first flush tea, there has been a shortage of high-quality crops and a surplus of mediocre quality due to erratic weather this year.

Up to the middle of April, the first flush crop had been down by 30% due to hot and dry weather conditions. Thereafter, the hills received abundant rainfall, resulting in a bumper crop during the end of April and first week of May. But this crop quality was low-medium.

Darjeeling tea production stood at 6.6 million kg in 2022 against 7.01 million kg in 2021.

Source: Financial Express (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Rwanda focus on promotion

National Agricultural Export Development Board (NAEB) has announced plans to focus on using technology and engaging youths in sustainable tea production, and promoting consumption following

impressive growth in the last ten years.

Statistics from NAEB show that tea production increased from 22,184 tons in 2012 to more than 38,000 tons in 2022 and foreign exchange revenues also increased by 90%, from $56 million in 2013 to more than $106 million this year.

For instance, in 2022 Rwanda’s tea sold at a premium price at the Mombasa auction, outdoing price offers from other regional countries as international buyers stay choosy on quality.

Market data from the auction shows the price of Rwandan tea at $3.02 a kilo in the sale held recently, against Kenya ’s tea at $2.72, Burundi ’s $2.44, Uganda ’s $1.27 and Tanzania ’s $1.15 for the same quantity.

Statistics from NAEB show that tea production increased from 22,184 tons in 2012 to more than 38, 000 tons in 2022 and foreign exchange revenues also increased by 90%, from $56 million in 2013 to more than $106 million this year.

Source: KT Press (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka