Artisan factories profit using semi-automatic processing machines that create teas that closely resemble handmade.
By Dan Bolton
During the past century, tea gardens grew larger and larger to benefit from efficiencies in land and labor. Multi-national tea companies then established integrated supply chains that delivered consistency and volume at prices pleasing to commodity buyers at convenience, drug store, and global grocery outlets such as Tesco, Aldi, Walmart, and Carrefour.
The result is export prices that average US$3.50 per kilo in Kenya and $4 per kilo in India. Wholesale prices for the domestic markets hover around $2 per kilo in Kenya and India despite rising farm costs. Even Darjeeling’s fabled CTC grades earned an auction-average $4.80 per kilo in 2016 against an all-India average of $2.07 per kilo.
In 2017 prices for export quality teas at the Sri Lanka auction in Colombo averaged $4.27 per kilo, the highest average in the world, which ultimately led to a decline in exports as countries like Russia took advantage of more favorable pricing.
The downward trend in prices for commodity tea (and coffee and cocoa) makes it clear that large-scale farms are unsustainable, a trend likely to continue given that the World Bank estimates a global average of $2.81 per kilo of tea in 2018 rising a pittance to $2.83 in 2019 and another penny to $2.84 per kilo in 2020.
Manufacturing consultant and Teacraft founder Nigel Melican, says the “argument for sustainability is incontrovertible–but reality (geopolitical apathy, procrastination, and time pressure of events) may make it difficult to achieve.”
Thinking small
The century now unfolding promises greater rewards for artisan producers. The evidence is seen in growing volume and record prices for small quantities of specialty teas. Consumers seeking quality, variety, and convenience are driving the tradition-bound tea industry to produce many different styles of tea. These are primarily sold by tea merchants, tea houses, natural food stores, and in specialty coffee shops. Wholesale prices vary greatly but always exceed commodity prices. Small-scale factories have learned to exploit this advantage.
In April the Halmari Tea Estate in Assam received a record $10.50 per kilo for 307 kilos of CTC at the Calcutta Auction. The CTC, which was purchased by J. Thomas & Co. Pvt. Ltd. and by the Mahabodhi Tea House, will retail for $15 to $30 per 500-gram packet ($60 per kilo).
J. Thomas & Co. chairman and managing director Krishan Katyal called the price “quite a phenomenon” and said that Halmari was in a “different realm” now. He praised the tea’s unique combination of strength, body, and flavor. “It is just brilliant, and they make some superb first flush teas too,” Katyal told The Calcutta Telegraph.
The Vigneshwar Estate Tea Factory, a bought-leaf factory that has operated for 30 years in the small town of Aravenu, earned $4.92 a kilo that same month, establishing a new peak for CTC sold in South India. In the Nilgiris, a winter tea from Avataa Tea brought $36.69 per kilo, topping the company’s previous record of $31.87 per kilo for an artisan green tea. In December Donyi Polo estate in Arunachal Paradesh sold 2.5 kilos of a widely praised golden needle for $291 per kilo.
In private sales artisan processed first-flush Darjeeling earns $250 to $400 per kilo with white tea and green teas selling at the upper range. However, most of these teas wholesale for $60 to $200 per kilo.
In China, West Lake Long Jing, a comparable tea, wholesales for $260 to $360 per kilo and retails for as much as $870 for 500-grams depending on brand. In Japan, green teas for the domestic market, auctioned in Kagoshima and Miazaki, averaged $34 per kilo this spring. One extraordinary Japanese green tea from Shizuoka sold for $10,200 per kilo but is only available in very small quantities.
A new machine age
Raj Barooah, director at Aideobarie Tea Estates in Jorhat, Assam has embraced multi-style production. His Rujani silver needle introduced in October 2016 sold for $5.86/50 grams ($115 per kilo). His bai mu dan bliss assamica sold for $4.65/50 grams ($95 per kilo). Recently he brought to market two varieties of white tea–silky silver needle and bai mu dan assamica that sell for even more. His small batch specialty teas(including some black teas) routinely sell for $15 per kilo “which is five times better than the auction average for good quality Assam CTC.”
“This is the future, the roadmap for Assam. There is no point crying over an age-old industry norm and continuing with commodity CTC manufacture,” he said. “We have to stick our head out, be adventurous and take on the arduous journey of evolution to survive,” he said.
Aideobarie is a 500-acre farm that employs four tea makers and 700 daily workers. It produces about 1 million kilos of CTC and 1,200 kilos of specialty teas (green, white, oolong, and black) from trees that have been planted for 100 years.
Barooah was one of the first to purchase Chinese tea making machines. Here are six that he recommends and why:
Intelligent fermentation cabinets – “These have great potential as they provide controlled oxidation even when ambient or natural conditions are not stable. Results are more consistent with black and even oolong tea. However, the plucking standards must be rigorous. It works best with a consistent pluck,’’ he said
Color sorters – “Controlled by the internet of things (IoT) these provide real-time sorting without any professional staff. They are equipped with a cloud-calibrated camera with infrared technology that eliminates stone, glass, and insects.”
Pneumatic kneading (rollers) – “The grooves in the wells of the Chinese rolling machines provide an unbroken whole leaf tea, which is the essence of good quality,” he said.
Oolong machines – “Oolong is made from large mature leaves. A leaf shaking machine ensures consistency. I have purchased one of these with great expectation to reproduce the best of oolongs.”
Roasting cabinets (upright dryers) – “These are used all over China. I purchased the rotary type and have used it the past four years. It is excellent for small batch tea manufacturing up to 40 or 50 kilos,” he said.
“It might be well to point out that 20 years ago Chinese small-scale tea machinery was very poorly manufactured,” observes Melican. “Teacraft did occasionally import some but we would have to rebuild and repaint them, replace electric motors to European standard, and rewire the equipment to acceptable standards,” he said.
“Now several Chinese small-scale machinery suppliers are in joint ventures with Japanese companies and equipment from these companies is made to very high standards,” he said.
Some Chinese tea processing equipment manufacturers
Anxi Yongxing Machinery (1992), Quanzhou, Anxi, Fujian - www.yongxingjixie.com
Fujian Jiayou Tea Machinery Intelligent Technology, Chengxiang, Anxi, Fujian - www.hktdc.com
Xiamen Sengong (Gemini) Manufacturing (1998), Xiamen - www.nwbzj.com
Zhejiang Kawasaki Tea Machinery Co. (1990), Hangzhou, Zhejiang - www.facebook.com/zjkawasaki
Zhufeng Machinery Co., Ltd (2003), Quzhou, Zhejiang - zjzfcj.com