If you drink a hot beverage it is likely to be either tea or coffee, most of us drink it but have you ever thought about the source of the tea or coffee. In the book Darjeeling – The colorful history and precarious fate of the World’s Greatest Tea by Jeff Koehler published by Bloomsbury, London, 2015, the author did and does. Mr. Koehler describes the tea world from a perspective of an Englishman.
In the book, Mr. Koehler describes the tea process, the gardens and the history of Darjeeling. It was not always been easy, many people died trying to establish the plants for the hills were not alive with tea plants. All of them had to be planted, nurtured and the process to pick quality tea is very labor extensive.
When India achieved its independence in 1973, there was a push by the government to ensure India could grow more which lead to the use of chemicals. The chemicals increased yields but the soils needed increased amounts of chemicals each year. The tea growers have since 2013 been weaned off their chemical and are organic. In this case, organic and using compost enhances the flavor of the teas and when Darjeeling Tea is sold as a quality product, it was the correct decision to do.
With independence the British tea growers looked to other countries to grow tea in which they could control the production cycle. A country was found with altitude and rainfall and room to expand. The country is Kenya and now 60% of the teas on the grocery shelf in England come from Kenya. The tea is good and used in blending.
In all mass markets, there is a demand for the general price and a higher price for quality and the teas in Darjeeling moved to the higher priced quality teas. Although not every tea leaf is quality, which means the markets have shifted beyond England. The world of tea is similar to the world of wine, where the tea comes from allows its flavor to be enjoyed.
Linking to dividend paying stocks, every food commodity has its mass markets as well as the quality markets. Doing your homework on whatever you enjoy will allow you to enjoy the food and see which companies are doing what. Some will be private, some will be part of larger companies or a division of it, but if you spend your time and energy it makes sense to see if there are public companies you could invest in. Then you can have a financial award (dividends) and a flavor award (the food).
There are more questions than answers, till the next time – to raising questions.