Point of View
Tea Trade, Coffee Culture
Sri Lanka is showing how in times of crisis a core industry can function as a de facto national institution. The tea supply chain, like other sectors, is beset by the economy’s current problems. But thanks to deep roots and broad reach, tea farms and businesses are coping. And they have successfully called for better governance, winning a change in leadership at the national tea board, with the appointment of industry veteran Niraj de Melas as chair.
As reported by STiR’s tea editor, Dan Bolton, Sri Lanka’s crop is likely to decline somewhat in 2022, but growers, workers, processors, packagers and brokers are finding work arounds to problems like fuel shortages. They’re getting the job done, for the most part. That means exports of Ceylon tea could well equal those of the preceding year in value terms — around$1.3 billion — thanks in part to recent higher prices. The influx of tea dollars will help steady the economy, easing some of the hardships that the crisis is imposes on Sri Lankans.
The rallying of tea stakeholders today bodes well for the industry’s long-term strategy to shift toward regenerative farming and double earnings by 2030. And this bodes well for a sector that employs 2 million of the nation’s 22 million citizens. Not to mention that Ceylon tea is part of Sri Lanka’s claim to global fame. Rightly so.
In other news from South Asia, the tea industries of Nepal and India are at odds over bilateral trade that, for now at least, is free. Many quality Nepalese teas are competitive with many quality Indian teas, but cost less. Some businesses in India take advantage of tariff-free imports and mislabel Nepalese tea as Indian. A pending measure to impose anti-dumping duties would hit Nepal’s tea growers hard, as Dan Bolton reports.
A highlight of STiR’s coffee coverage is our interview with Sherri Johns, an American who has helped lead the industry through her pioneering work as a cupper. She helped develop today’s coffee-tasting protocols and has mentored and trained countless cuppers, roasters, farmers, managers, and baristas around the world.
Coffee culture has come to Kazakhstan, as reported by Mainbayar Badarch. This might mean an opportunity for international businesses that have lost sales to customers in nearby Russia following its invasion of Ukraine. Russia has long been Kazakhstan’s main supplier of coffee products and equipment. But war changes things.
In four coffee-growing countries in the Asia-Pacific region — Indonesia, Papua New Guinea, Timor-Leste, and Vietnam — the Asian Development Bank and Japan International Cooperation Agency have provided loans to Olam Group, the agricultural commodities company, to support its work with smallholder farms. The loans fund a variety of programs that aim to improve inclusiveness, sustainability, and transparency.
As STiR’s new managing editor, I welcome your comments, suggestions, and story tips on the business of tea and coffee.
Brian Mertens, Managing Editor | brian@octobermultimedia.com