By Dan Bolton
Uniquely positioned in the southern hemisphere where the 2020 harvest will soon be underway, Argentina is one of the world’s great tea producing nations. Tea is harvested from November through April – fortunate timing in a world upended by the coronavirus. Yet the pandemic still managed to delay shipments and disrupt trade. A review of the USDA’s Global Agricultural Trade System (GATS) data indicates a significant shortfall through July compared to the same period in 2019.
Tonnage of black tea, the primary export are down 15% to 21,826 metric tons, green tea imports are off by 12% while shipments of tea bags are off 37%. The US imported 43,881 metric tons of black tea in 2019, down from 49,195 in 2018 and far below 2015 when the US imported 55,225 metric tons of tea. Tea from Argentina was valued at $32 million through July, also 15% below the same period in 2019.
Carolina Okulovich, president of the Chamber of Argentine Tea Manufacturers (CETA), said that the virus arrived as the last of the green tea was harvested. When a mandatory quarantine was issued in Argentina in March 2020, among the exceptions was tea as it was a food, she explained, adding that the industry continued working but with special protocols for COVID-19. The harvest in Argentina is largely mechanized which requires few workers.
Logistics presented challenges as normal shipping schedules globally were disrupted. This resulted in normally empty warehouses that are still filled with tea, according to Roberto Swier, manager of the Picada Libertad Cooperative, in Misiones
Okulovich, who owns La Ruta del Té, in Misiones, Argentina, said “the last harvest began in early November 2019, the first months were very rainy, achieving normal volumes at the end of the harvest. Regarding quality, optimization, it was very good performance and productivity too, within the normal parameters that we have been handling in recent years."
"We are beginning to see the first shoots of tea that indicate the early start of this new season," writes Swier. "Last season there was a drop in production due to a lack of rain and cool nights in the middle of summer. We expect to have better weather this year, but the influence of El Niño will remain until December, which often indicates less rainfall," he said.
Argentina cultivates around 96,400 acres (39,800 hectares) of tea, most of which is grown by 6,000 small farmers in Misiones, a lush sub-tropical rainforest that is part of the Mata Atlântica (Atlantic Forest) biome. Most of the tea is processed as black CTC (cut, tear, curl) used in making iced tea. James Finlays operates Argentina’s largest tea estate and five processing plants with an annual output of 27 million kilos.
Argentine black tea is ideal for blending, and Argentina emerged as a significant exporter, consistently ranking among the world’s top 10 producers. Chile was the first country to import Argentine tea, but the US is Argentina’s most important trading partner, and Argentine tea accounts for the largest volume of US tea imports.
Production in 2018 production was 82,000 metric tons, registering a rise of 2.2% year-on-year, with a ratio between dry tea and green sprout production estimated at 22%. Growers harvested 371,000 metric tons of raw leaves and sprouts. The total placed Argentina sixth among world tea producers in volume sold. Exports generated $ 94 million, according to data from the national Ministry of Finance.
According to the Food Chains Directorate, since March 2019, about 41% of the planted area in Argentina has met Sustainable Agriculture Network standards published by the Rainforest Alliance. The alliance is a non-governmental organization that works to conserve biodiversity and the assurance of sustainable livelihoods. Consumer products from certified farms managed under the SAN standard are certified with this seal.
The US and Chile are the main destinations for Argentine exports, with 15% destined for Chile and 70% for the US. Other export destinations include Poland, Germany, Russia, the United Kingdom, India, and the Netherlands. Yields per hectare are on the rise due to genetic improvements, both in seed use and with the clonal vegetative material.
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