STiR coffee and tea magazine

14 STiR coffee and tea / Issue 2, 2020 (April / May) NEWS Ceylon Tea Production Declines Sri Lanka tea production last year fell to a four-year low of 300 million kilos (m.kg), but export revenue set a $1.33 billion record. Sri Lanka Tea Exporters Association Chair- man Sanjaya Herath said that export revenue grew by $50 million (SRs8.9 billion) despite the fact that volume was down from 2018. Sri Lanka is developing a 10-year strategic plan to make the country more successful in the highly competitive market for black tea. The Ministry of Plantation Industries and the Colom- bo Tea Traders Assoc. are working on two strategy documents. The first examines tea industry issues from the grower level to the end customer. A second review focuses on international demand for Ceylon tea. Many feel that the emphasis should be on quality over quantity. Setting an export target of 250 m.kg of better-quality tea could result in higher profits. Others say that a target of 350 m.kg is more efficient as it allows the country's many tea factories to operate near capacity. Herath noted that export volume globally is expected to remain at high levels (estimated at 1.8 billion kilos), a surplus that drives down prices. Rajesh Gupta, compiler of the Global Tea Digest, estimates black tea output grew 1% to 2.3 billion kilos in 2019. In its annual report exporter Asiya Siyaka, "Last year we were optimistic that Sri Lanka's tea production could show a partial recovery in 2019, but that was not so. Low auction prices had both the farmer and plantation company running at a loss most of the time and could have led to reduced fertilizer application." Kenya and India also complained of low prices. Production of black tea was down 7% in Kenya, Malawi was off 4.5%, but India's tea production increased 3.8% to a record 1,390 million kilos. All three countries are worried that 2020 will present additional difficulties as forecasters predict an El Nino. Unusually hot seas in the equatorial Pacific region near Peru often wreak havoc in Africa and Asia. Lavazza Donates $11 Million to Virus Fight Lavazza donated $11 million in March to support Italian efforts to fight the coronavirus COVID-19. The Turin-based coffee giant is located in the Piedmont region of Italy, a northern area hard hit by the deadly pandemic. The money will be used to support schools and health care, purchase critically needed equipment and supplies, and help local citizens needing assistance, the company said in a statement. About $6.6 million of the contribution goes to the coronavirus Emergency Support in Piedmont for the purchase of materials and equipment to support health care workers and facilities caring for patients every day. Another $3.3 million was donated to a local newspaper's "Specchiodei Tempi" crisis foundation to help buy hospital equip- ment and medical supplies, rapid virus testing equipment, sanitizing kits to be used local schools, and delivering necessities to local residents. About $1.1 million is set aside for local groups and associations that "help the weakest and most disadvantaged sections of the population," the company said. "Lavazza and its entire workforce wish to send a positive signal and show solid commitment in the fervent belief that if everyone pulls together at this time, we can get through the emergency and make Italy shine once again," the statement said. Starbucks Updates COVID-19 Policies Starbucks, the world's largest retail coffee chain, detailed its course of action in late March as it faces COVID-19 infections both in its home city of Seattle and around the world. "Starbucks is taking a number of actions to protect the health and well-being of our partners and customers and to control the spread of COVID-19 in accordance with the expert guidance of [health authorities] and local public health authorities," the company said in a statement. Customers in the United States and Canada only will be served through drive-up windows and delivery service. All cafes have been temporarily closed. Some stores remain open near hospitals to support health care workers and first responders. Meanwhile, cleaning protocols at stores have been enhanced to prevent the spread of germs. Employees, meanwhile, are eligible for additional benefits. "Starbucks is offering full support with comprehensive care to our partners impacted by COVID-19, including catastrophe pay, mental health and sick pay benefits, childcare support, and more," the company said. The company will pay employees for a month even if they choose to shelter at home. Those employees who are able and choose to work are eligible for an additional $3 per hour during the same one-month period March 21 to April 19, the statement said. "The company also offered hardship grants, free mental health counseling and childcare support."

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