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NEPALTRADEIssue # 3 May 2012

SPECIAL SPECIAL FEATURE INTELLECTUAL BEYOND CHIYA PROPERTY RIGHTS NEPALTRADE IMPRINT Publisher: Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH Narayani Complex, 4th floor, P.O.Box 1457 Pulchowk EDITOR’S NOTE Lalitpur, T +977 1 55 552 89 CONTENTS F +977 1 55 217 12 E [email protected] I www.giz.de/nepal

Place and date of publication: Nepal, May 2012

Dear Reader, Editor: Philipp Kruschel (Team Leader) Spring is the season when the best tea is produced in Nepal – the GIZ WTO/EIF-SP The Agreement on Technical Barriers to first flush! Therefore we are pleased to present to you the third Deutsche Gesellschaft fuer 8 issue of the NepalTrade Magazine, this time with an in-depth Internationale Zusammenarbeit (GIZ) GmbH Narayani Complex, 4th floor, P.O.Box 1457 Trade (TBT) 4 focus on the Nepalese Tea Sector. Pulchowk Lalitpur, Nepal Policy support for Tea sector in Nepal 6 One of the oldest and most revered drinks, tea holds a special T +977 1 55 552 89 F +977 1 55 217 12 place in the lives of the Nepalese. Being endowed with favourable E [email protected] Tea and Intellectual Property Protection 8 geographic and climatic conditions, it is believed that exports I www.giz.de/nepal of high quality tea from Nepal could grow significantly in the The Nepalese Tea Industry: Text: future. However, this potential has yet to be fully harnessed by Gabriele Schlaeger (TEPC) Nepalese tea exporters. Niraj Shrestha (SAWTEE) Challenges and Opportunities 10 Dominik Berger Himadri Palikhe Access and Benefit Sharing and In this issue, we have put together important aspects that need Jannu Chudal Sherpa to be considered when discussing the trade of tea from Nepal – Moheindu Chemjong Traditional Knowledge 14 policies, issues of IPR and TBT, challenges and opportunities, Philipp Kruschel international demand and some facts and events that could be Rup Kumar BK Vidha Pradhan A PPP initiative for promoting of interest to you. As with our previous issues, we hope that this issue will prove to be informative and useful to our reader. Photos/Graphics: organic tea 17 We hope to be able to provide you with concrete and practical GIZ Himadri Palikhe overview of the most pressing issues the sector currently faces. Jakob Elbæk Egegaard Pedersen 17 Beyond Chiya 19 For updates from this sector as well as all other 19 products and services that have been identified as “export potential sectors” in Design Layout: 10 Facts about Tea 24 the Nepal Trade Integration Strategy (NTIS), please also visit Jannu Chudal Sherpa EU requirements for Tea import the website www.nepaltrade.org and request a username and Translated by: 26 Ramchandra Khatri password, if it applies to you. Calendar of Events 28 Printed by: We are looking forward to your feedback and wish you a happy S Printers and insightful reading! Disclaimer: Views expressed in Nepal Trade are those of the authors and do not necessarily reflect the official position of GIZ or its partner institutions.

Philipp Kruschel 20 2 3 NEPALTRADE The Agreement on Technical Barriers to Trade (TBT) Technical Barriers to Trade (TBT) do not only protect the health, safety and satisfaction of consumers but also present a challenge for export oriented producers.

Every country faces the demand of In recognition of the diversity of as TBT enquiry point. The national its people to ensure the supply of people and nations and their different enquiry points are responsible for safe consumer goods. Furthermore conception of consumer safety, the the provision of information about many see that it is the responsibility TBT Agreement seeks to provide the country’s technical regulations, of the state to secure the protection member countries with sufficient test procedures, and adherence to of human, animal and plant life as domestic policy autonomy to pursue various international standards. well as national security and the legitimate regulatory objectives. The amendment of the Nepal environment. As the understanding It counterbalances these granted Standards (Certification Mark) of “safe” consumer goods and autonomies with several provisions Act and Regulation is currently the need for protection differs aiming on limiting harmful under consideration. significantly between countries, regulation. To prevent exporters also the policies implemented by from being confronted with a vast Besides being responsible for the governments vary. Being required variety of different regulations establishment of national standards to meet these varying national and standards, governments are and technical requirements and provisions, it is difficult and strongly encouraged to adhere to maintaining laboratories for quality cost intensive for exporters and international standards. As it is tests, the NBSM monitors the producers to achieve compliance. the case with other agreements implementation process of TBT At the same time, standards and within the WTO, the most- related amendments of Nepal’s technical regulations can be misused favoured-nation provision prevents provisions and acts as focal point www.world-geographics.com/maps/world/world-map to protect domestic producers and regulations that aim at the in the WTO accession process. therefore serve as an excuse for protection of domestic industries. Since its establishment, the NBSM protectionism, becoming obstacles has been notifying and publishing to trade. TBT Commitments of Nepal information regarding TBT which the required quality documents. On the other hand, Nepal can use essential to guarantee compliance includes national and international Because of the lack of these facilities, the provisions of the Agreement on with these measures. To ensure that regulations, Besides provisions regulating the notice of standards, technical it is difficult for producers in Nepal TBT to protect its own consumers standards, testing and certification trade in goods, services and aspects regulations and conformity to guarantee a specific quality and and industries against low quality Conclusion procedures do not become of intellectual property rights (IPR), assessment procedures and other to achieve compliance with the and potentially harmful products unnecessary obstacles, the member the TBT agreement was one of relevant information. high standards and requirements from other countries. So far, the Consumers in Nepal can benefit countries of the World Trade the mandatory obligations of the for exports to developed countries. lack of sufficient infrastructure at greatly from the adoption of the Organisation (WTO) agreed to WTO that Nepal adopted with Challenges and Chances of TBTs The creation of an adequate quality the borders and inadequate TBT measures provided by the agreement include the Agreement on Technical the WTO accession package on for Nepal infrastructure is essential in the policies, have allowed low quality on TBT. Effective standards and Barriers to Trade (TBT) in the 23rd April 2004. acquisition of buyers from abroad. products to enter the domestic regulations not only protect the health regime of the WTO. Within the An insufficient level of awareness Chambers of commerce and market. Training of customs officials and well being of the consumers, WTO regime the Agreement Nepal made the following about TBT provisions within industry and product associations and the provision of information is but also benefit local producers that on TBT stands beside other commitments under the TBT the public and the private sector could assist exporters through the essential to address these problems. are not able to underbid the low agreements like the GATT, GATS Agreement during its accession to has limited the export of quality provision of information about TBT prices of low quality and harmful or TRIPS. It is closely aligned with the WTO products to foreign markets in developed countries, and support TBT and Tea products and therefore suffer from the Agreement on the Application and encouraged the import the establishment of adequate testing unfair competition. Exporting of Sanitary and Phytosanitary • The Amendment of Nepal of low quality products to the laboratories. Awareness programmes The Agreement on Application of producers in Nepal benefit from Measures (SPS), which relates to Standards (Certification Mark) domestic market. for exporters in different parts of the Sanitary and Phytosantinary (SPS) the compliance with TBT not only food safety (bacterial contaminants, Act, 1980. country about the importance and Measures that deals with food items is by gaining access to high-demand , inspection and labelling) Most countries worldwide are impact of various provisions of the especially relevant for tea producers in markets in the developed countries as well as animal and plant health • The Amendment of Nepal using their right to restrict unsafe TBT Agreement for exporters could Nepal that are exporting their goods but also by gaining the trust of (phytosanitation) with respect to Standards (Certification Mark) and low quality products from increase the producers’ abilities to to markets abroad. Tea is classified as consumers abroad. imported pests and diseases. Regulations, 1982. being imported by strict standards tackle such challenges effectively. food in many countries and therefore and technical requirements that The GoN is currently preparing to SPS measures apply for the import of Plainly said, TBT are a set of rules • The establishment of an are enforced by customs. Nepalese promulgate an Accreditation Act tea. They take into account radiation regulating e.g. product weight, size, Enquiry Point. producers often face difficulties to that includes the formation of an level, maximum residue packaging, ingredients or identity attain these. Problems often arise Accreditation Board. It will be the level, heavy metal contents, and standards, mandatory labelling, So far, the government has because there are no internationally board’s responsibility to foster the microbial contamination, among shelf-life restrictions, and import designated the Nepal Bureau of accredited testing laboratories in recognition of Nepalese laboratories others. Especially for Nepalese Rup Kumar BK, GIZ testing and certification procedures. Standards and Metrology (NBSM) Nepal which may be able to issue by other countries. tea exporters it is challenging but Dominik Berger, GIZ 4 5 NEPALTRADE The objective of this board is period of 5 years for CTC • Access to Technical Services: Policy Support for Tea Sector in Nepal to promote and strengthen the and 7 years for orthodox tea Small tea farmers and tea and sector through plantations. In addition the cooperatives have access to free The has defined tea as one of the high potential export sectors in the policy formulation, technical and government has exempted technical services including NTIS 2010, but support by the government for the sector has its roots around 50 years ago. managerial support. In addition, income tax for the above grace disease and pest control, the government’s privatisation period. plantation, harvesting, drying, and liberalisation policy in 1991 organic farming etc. Peculiar weather, agro-climate, The plantation in Ilam, Panchthar, Terhathum further benefitted the private sector. • Access to Land: Whoever soil and geographical conditions Nepal began in 1863 when the and Dhankuta. Since then, the The introduction of the National buys land for tea plantations • Human Resource Development: of Nepal are in favour of tea first factory was built in Ilam government has supported the tea Tea Policy in 2000 was another will get a 75 % exemption The government provides plantation. Nepalese tea harbours in 1878. After almost a century sector by a number of measures. important step to support the sector. on land registration fees. In national and international a special aroma, fusion, taste and without government support for the This policy ensured several facilities addition, the government trainings under the Tea colour that attract tea lovers across sector, the government established The government adopted the for entrepreneurs: provides appropriate public Development Fund for small the globe. Aroma from the Nepalese the Nepal Tea Development Nepal Tea and Coffee Board Act in land on lease for up to 50 years tea farmers and members of tea reflects the beauty of the Trans- Corporation (NTDC) in 1966. 1992 and set up the National Tea • Access to Credit: Banks shall for tea plantations. Likewise, tea cooperatives. Himalayan eastern hills. In 1982, five eastern districts were and Coffee Development Board provide loans up to 80 % as the government arranges low designated as ‘Tea Zone’: Jhapa, (NTCDB) in 1993. priority credit with a grace interest loans to purchase land • Promotion of Auxiliary for tea cultivation. Industries: The government levies a minimum customs duty • Access to tools: The government on the import of machineries provides capital grants for for the tea packaging industry. irrigation, necessary agricultural In addition, the duty levied and equipment. on packing materials to export Furthermore, it is allowed to Nepalese tea shall be refunded import fertilizers, pesticides, under the Duty Drawback weedicide, and agricultural facility. Further, the government equipment required for the exempts income tax up to tea business. Electricity and five years to those industries agricultural roads to the place established for the packaging of tea cultivation are provided. and exporting of tea.

• Access to Infrastructure: Priority After the promulgation of the is given for infrastructure National Tea Policy 2000, there development (roads, irrigation, has been a tremendous growth in electricity, communication, the Nepalese tea industry (refer to education and health) in the article on The Nepalese tea Industry: commercial tea plantation areas. Challenges and Opportunities, below). Subsequently, the tea • Access to Market: Necessary cultivation area has been extended to information on the international different districts from Jhapa in the tea market is provided via to Ilam, Panchthar, Dhankuta, the Agro Enterprise Centre Terhathum, Sankhuwasabha, Bhojpur, (AEC) and embassies abroad. Dolakha, Ramechhap, Solukhumbu, A Tea Development Fund Sindhupalchowk, Nuwakot, and supports small and cooperative Kaski in western Nepal. tea entrepreneurs to attend trade fairs, trade exhibitions, The tea sector has been identified workshops and seminars for tea as a very promising sector for job promotion. creation. Especially orthodox tea gives higher returns compared to • Access to Information: National other crops, therefore it is a strong as well as international engine for income generation information covering studies and and poverty reduction for farmers research, market development especially in rural areas. of tea and information to tea entrepreneurs is provided. • Rup Kumar BK, GIZ Photo: Himadri Palikhe

6 7 NEPALTRADE Tea and intellectual property rights Intellectual property rights are an important tool to create and increase demand for tea from Nepal abroad. Best practice: Tea

Tea from the is To promote the image and reputation of tea from Darjeeling, the Tea Board renowned worldwide for its flavour of created the Darjeeling logo in 1983. Since then, there have been and quality that sets it apart from substantial efforts by the tea board to register the GI “Darjeeling” and the other . In many countries the logo internationally. name “” evokes the picture of high mountain ranges Beside several individual country registrations, either as GI or as mark and gardens at the foot (trade mark, collective mark, certification mark), the Tea Board of India of high snow covered Himalayan achieved a major success in the promotion of tea from Darjeeling when in peaks. Nepal has not only the 2011 the European Union (EU) granted India’s Darjeeling tea protection same geographical conditions as rights as a Protected Geographical Indication (PGI). This means that the Darjeeling, but also a similarly long name “Darjeeling” can only be used to brand tea grown in Darjeeling, tradition in the production of tea. which is processed in the typical Darjeeling style of manufactured in the Nepalese tea is already renowned factories situated within the specified gardens and within the defined tea- by connoisseurs for its rich taste, growing area. The tea may be packaged outside of Darjeeling and teas from similar to Darjeeling Tea, but with different Darjeeling tea gardens may be blended, but if Darjeeling tea is an even better reputation due to its blended with other teas the use of the word Darjeeling is not permitted. outstanding aroma, fusion, taste and colour. Therefore it has the potential The successful registration marked a major victory for the protection of tea to become just as successful as the with GI in the EU and is an example of best practice for the protection of world famous tea from Darjeeling. tea as Intellectual Property.

“Darjeeling Tea” is not just the name of tea from Darjeeling, it Photo: GIZ is also registered and protected as Intellectual property (IP) in many possesses certain qualities, is made Internal Market of the European tea sector in the registration and countries. This protection is ensured according to traditional methods, Union are two examples of such enforcement of ‘Nepal Tea’ as by the tools of the Agreement on or enjoys a certain reputation, due organisations. The Madrid system intellectual property. Trade-Related Aspects of Intellectual “Nepal tea is already renowned by connoisseurs to its geographical origin. A widely- for the international registration of Property Rights (TRIPS) of the for its rich taste, similar to Darjeeling tea, known example for this is the brand marks is administered by the World The use of intellectual property rights World Trade Organisation (WTO). but with an even better reputation due to its name “Champagne” which may Intellectual Property Organisation for the protection of tea from Nepal only be used for particular sparkling (WIPO) and provides a mechanism is important. However, it can only Intellectual Property is defined and outstanding aroma, fusion, taste and colour.” wine products by producers from for obtaining trademark protection be achieved in a collective effort of regulated in the TRIPS agreement this particular region in . in many countries around the the tea estates, the tea factories, the that has been ratified by all member Likewise, the name Darjeeling world, which is more effective than tea associations and the government, countries of the WTO, including Tea has been protected in several seeking protection separately in each working together in attaining the Nepal. The most common types of Registration of a TM or collective into buying the competitor’s tea countries by the Tea Board of India, individual country or jurisdiction of registration and enforcement of tea intellectual property are copyrights mark under the relevant trademark thinking it is tea from Nepal, thereby preventing producers from interest. as intellectual property in particular (literary works, art, music etc.), law gives the registering estate, though its quality might be much other areas to market or sell their tea as GI or trademark in major export trademarks (brand names and logos) organisation, cooperation or lower. This could not only decrease as Darjeeling Tea. The success of this The enforcement of a trademark or markets. It is important to note and patents (industrially applicable association the exclusive right to the demand for Nepalese tea and approach is the high reputation of GI on an international level requires that ensuring high quality of the inventions) and have been discussed prevent others from marketing confuse the customers, but may also Darjeeling Tea, a large demand and money and a substantial amount of tea (e.g. by the creation of a Code in the last issue of NepalTrade. identical or similar products under damage its reputation and image. high prices. effort. The unauthorised use of the of Conduct (CoC), as done by the Another less used type of intellectual the same or a confusingly similar trademarks or the name indicating Himalayan Orthodox Tea Producers property is geographical indication name or logo. Without trademark A GI is a name or sign used on certain For the registration of a mark, there a wrong regional origin must first Association (HOTPA) is important (names and signs corresponding to registration, the efforts of marketing products which are associated are some international organisations be detected. Then negotiations to successfully establish ‘Nepal Tea’ a specific geographical location or Nepalese tea abroad may not prove by the customers to a specific that help in achieving protection and legal means have to be used to as a brand abroad. origin). Out of these classifications fruitful as other producers may use geographical location or origin for several countries or a whole enforce the rights of the owner of of intellectual property, trademarks the same or a confusingly similar (e.g. a town, region, or country) region by only registering once. The the trademark or GI. Therefore it (TM) and geographical indications trademark to profit from the good and serves the same function as Benelux Trademark Office and The is important that the government (GI) are applicable for the reputation of tea from Nepal. trademarks. The use of a GI may act Office for the Harmonization of the and other stakeholders support the Dominik Berger, GIZ protection of tea. Thereby customers could be misled as a certification that the product

8 9 NEPALTRADE Agreement on the Application of and export. Producers need to can test and certify the quality and the Nepalese Tea Industry: Challenges and Opportunities Sanitary and Phytosantinary (SPS) adhere to good agricultural and standard of food products. Hence, Measures that deals with food items manufacturing practices and exporters are compelled to send Overcoming major challenges and taking advantage of opportunites is important for any thriving allows the WTO members to set factories should also acquire quality their samples to Kolkata in India, industry to make a mark at the global level. their own standards to protect the certifications such as ISO/ Hazard to export to India or to destination Nepal’s unique geo-physical health of humans, animals and plants Analysis and Critical Control countries for testing. This is character and climatic variation in their territory. Such measures Point (HACCP) certification to not only costly but is also very provide ideal conditions for the “ ...Nepal’s steady growth in tea export is a take into account radiation levels, gain the confidence of the buyers. time-consuming. production of two varieties of tea: pesticide maximum residue levels, Exporters also need to bear in mind orthodox and CTC. While the positive indication for this sector.” heavy metal contents, and microbial SPS and TBT requirements in Considering the difficulty in Eastern hills (Tea Zones) of Nepal contamination, among others. The destination countries. Adhering to establishing a new laboratory for are frontrunners in production of in 2009/10 (see table below). On the Considering the trend above, level of each component can vary these requirements ensures that the testing and certification, upgrading and high quality orthodox tea, crush- other hand, the import data shows Nepal’s steady growth in tea depending upon the importing consignments are not rejected by the accrediting the existing Department of tear-curl (CTC) tea is produced fluctuation in import, primarily exports is a positive indication country. Similarly, the Agreement buyers and no loss is borne. Producers Food Technology and Quality Control in the plains or Terai, primarily of CTC tea. However, the reasons for this sector. With favourable on Technical Barriers to Trade and exporters have the opportunity (DFTQC) Laboratory seems to be a in . Orthodox tea is for such fluctuations are not clear market access conditions in most (TBT) is associated with packaging to check the WTO website or reasonable option. It can be mandated generally exported to international from the available literature. Based of the export destinations; duty free and labeling of the product. As for contact the destination countries’ to carry out commercial testing of markets and CTC tea is supplied for on volume, ITC data shows that access in destinations like Russia Nepal, there have been no reported enquiry points to learn about export samples of all agricultural domestic consumption apart from in 2009/10 among others Nepal and ; and the world market cases related to TBT but exporters tariffs, and quality and standard products so their certifications can some export to India and . imported tea from India, China, showing positive signs of revival have had their consignments requirements to facilitate export. be accepted worldwide. Nepal being Malaysia, Singapore, Sri Lanka, from the global economic crisis rejected after test results showed Trainings and awareness on WTO a least developed country can seek Over the course of the last decade, Hong Kong, Japan, the Republic of (NTIS 2010), Nepal has immense traces of high pesticide residue. issues are imperative for Nepal’s tea technical or financial assistance, from Nepal’s tea industry has witnessed Korea and Saudi Arabia. opportunities in enhancing the tea industry. If the quality and standard other WTO members to enhance a significant increase in the areas industry. However, this industry, producers and exporters issues are taken seriously by the the tea sector. The Government, of cultivation and production. In Table 1: Trade performance in like most industries in Nepal, is need to rethink their strategies Nepalese tea industry, Nepal can having already prioritized the tea 2000/01 about 11,997 hectares Nepali Tea reeling under various problems, related to maintaining quality definitely increase its share in world sector, must do its homework to avail of land in Nepal was under tea particularly its feeble supply and standards of Nepalese tea. A tea exports. such assistance. plantation. This has increased to side capacity. strong monitoring mechanism Infrastructure: 17,137 hectares in 2009/10. The Year Export Export Import must be applied to ensure quality Nepal lacks internationally Infrastructure production of CTC tea increased (Mt) (Rs. (Rs. Challenges faced by Nepali is maintained from cultivation, accredited laboratories with modern remains a bottleneck in the from 5,537 tons in 2000/01 to ‘000’) ‘000’) Tea Industry harvesting, until packaging equipment and technologies that development of the tea industry in 14,471 tons in 2009/10, and production of orthodox tea has 2000/01 69.5 23084 98000 Quality and standard: Quality increased from 1,100 tons to 2,135 and standard remains one of the tons during the same periods. 2001/02 79.6 27787 8838 major concerns for the Nepalese tea The private sector is involved in industry. Although Nepal produces the tea sector in Nepal in mainly 2002/03 193 53908 468 and exports high quality orthodox three ways: i) tea farming by small- tea, it is believed that some do not holder farmers; ii) establishment 2003/04 884 104822 992 meet the standard requirements of bought leaf factories, which do of the international market. not have their own tea plantation 2004/05 4316 438771 419 Indiscriminate use of chemicals and therefore depend on small and pesticides has subsequently put farmers for green tea leaves; and iii) 2005/06 4623 415632 5005 Nepalese tea under high scrutiny establishment of big tea estates with in importing markets As these tea processing factories. There are 2006/07 7000 NA 19000 countries are usually extremely about 124 registered tea estates in sensitive towards health hazards to Nepal and 40 private tea processing 2007/08 8600 902122 13123 citizens from imported products, factories, of which 25 process standards related to food items are CTC tea and 15 are orthodox tea 2008/09 8889 1160593 9624 generally set high. processing factories. 2009/10 8498 1195319 36100 Nepal as a member of the World Nepal’s trade performance in Tea Trade Organization (WTO) Source: NTCDB 2011. has gained market access to During the last decade, the quantity developed countries, without of tea exported from Nepal shows an being discriminated, but needs to increasing trend from 69.5 metric comply with the agreements related tons (Mt) in 2000/01 to 8,498 Mt to standards, among others. The Photo: GIZ

10 11 NEPALTRADE Nepal. Lack of electricity has forced has developed logos to popularize tea in the international market. the industry to opt for alternative “Nepal Tea”, marketing the brand energy thereby increasing the cost of and ensuring uniform quality Auction market: Establishment production and making it difficult remains a challenge. of an auction market for tea is to compete in international markets. necessary to bring together buyers Similarly, fuel shortages, lack of Research and Development (R&D): and sellers, and ensure transparency. roads, especially in the hills, and a One of the major drawbacks of the International buyers will have an lack of quality processing facilities Nepalese tea industry is its negligible opportunity to bid and purchase have not helped the sector to export amount of R&D by the Government Nepalese tea in bulk, depending to its potential, as well. With respect or the private sector. Investment on the quality. This will ensure fair to processing facilities, the existing on R&D to identify new locations prices for the producers and also ones are considered average, which feasible for high quality orthodox increase exports. Due to the lack are neither capable of catering to and bio-organic tea cultivation; of auction markets in Nepal and production increases nor are they improvement and development of Nepalese tea not being allowed in in the condition to maintain the new plant varieties; market research Indian auction markets, Nepalese quality. It is believed that due to this and analysis to identify new markets exporters have been relying on fact, farmers are forced to sell their and diversify products as per the personal contacts to sell tea in the products to Indian factories, which demand to remain a step ahead international market. In major are then sold in the world market from other competitors can pave exporting countries like India, as Darjeeling Tea. It is guesstimated the way for the expansion of the Sri Lanka and Kenya, of the total that about 90 per cent of green leaf Nepalese tea sector and multiply production, 75 per cent, 90 per cent finds its way into Indian factories in socio-economic benefits. NTCDB and 85 per cent respectively, must Darjeeling and elsewhere. has the mandate to lead the way but be sold through auction. Although requires institutional strengthening the government had adopted a plan To improve the supply side capacity, and financing to conduct such to develop infrastructure for tea Nepal needs to improve basic activities. auctions in the National Tea Policy infrastructure. Until these basic 2001, the lack of appropriate laws amenities are provided, Nepal Labour: The development of the tea has been blamed by the authorities cannot develop any industry, sector has immense socio-economic for the inability to initiate the including tea. Likewise, NTCDB implications, particularly in the programme. and donor agencies should support form of job creation. According the development of processing units to ITC (2007), Nepal’s tea sector Nepal has immense opportunities to prevent the raw materials from employs more than 100,000 people, and potential to establish itself as going into India. the majority of them being rural an exporter of high quality tea, women. The Nepalese tea industry particularly orthodox tea, in the Branding/Marketing: It is not is thus considered important international market. As Nepalese only important to produce quality from the perspective of poverty tea possesses quality that can products but also to assure the buyers alleviation and empowerment of compete with the likes of high of a minimum standard and quality rural women. However, the shortage exporting countries such as Sri Photo: Himadri Palikhe through branding and correct of qualified labour, primarily due to Lanka, Kenya, China and India, marketing. People pay a premium the emigration of Nepalese youth Nepalese tea farmers, producers, price for products with distinct for jobs abroad, and the lack of exporters as well as policymakers identities and quality features. At technically skilled human resources need to set up their effort towards a time when India has made its is also haunting the tea industry. the overall development of this mark by registering “Darjeeling Likewise, industrial unrest has sector. There are many challenges, Reference: Tea” under geographical indication created problems. There is a need to as mentioned above, but if different and as a trademark, Nepal has strike a balance by creating a win- organizations involved can come • ITC. 2007a. Export potential assessment in Nepal. Geneva: International Trade Centre. lagged behind. Nepal too can avail win situation for both employers up with a coordinated effort, not • MoCS, GoN. 2010. Nepal trade integration strategy 2010: Background report. Kathmandu: Ministry of Commerce and Supplies, Government such an opportunity and establish and employees, without politicizing only in policy (on paper) but also of Nepal. itself as an exporter of high quality a situation in which employees are in practice, there are possibilities • NTCDB. 2009. “History of Tea in Nepal.” Accessed 7 March 2012. www.teacoffee.gov.np /index_history.php orthodox tea in the world market. seeking better pay and employers and opportunities to enhance • NTCDB. 2011. Tea-Coffee Souvenir - 2068. Kathmandu: National Tea and Coffee Development Board. However, uniformity in quality and to retain competitiveness. Finally, Nepal’s tea industry, increase • Sawa, Roshan. 2010. “Lack of access to auction mires tea trade.” Republica Daily, 11 November. Accessed 11 March 2012. http://archives. standard must be strictly adhered to the existing labour force as well as exports and reap subsequent myrepublica.com/portal/index.php?action=news_details&news_id=25081 in order to benefit from the use of farmers should be provided with socio-economic benefits. • USAID Nepal. 2011. “Value chain/ market analysis of the orthodox tea subsector in Nepal”. A report prepared by ANSAB for Nepal Economic such IP vehicles. Nepal can learn the proper training and guidance, Agriculture, and Trade (NEAT) Activity. Kathmandu: USAID/ NEAT Activity. costs and benefits of such use from which will ultimately increase the • Warakaulle, Mahinda, Ramesh Munankami, and Bastiaan Bijl. 2007. Advisory services on export development of priority sectors of Nepal: its neighbour. Though NTCDB productivity and export of Nepalese Niraj Shrestha, SAWTEE sector study on tea. Geneva: International Trade Centre.

12 13 NEPALTRADE 1. Prior Informed Consent (PIC) traditional knowledge associated or in situ wild sources of genetic Access and benefit sharing and traditional knowledge is a consent obtained by the with genetic resources and local or resources, standard 5 will be user from the government and indigenous communities, standard applicable. The concept and its application in Nepal. other providers, as the case 4 will be applicable. may be, after fully disclosing 5. Conservation + Sustainable all the required information 4. Traditional Knowledge Use are practices that ensure or that permits access to their (TK) refers to the content contribute to the maintenance genetic resources and associated or substance of knowledge of the diversity of genetic traditional knowledge, under resulting from intellectual resources accessed. Mutually Agreed Terms.. activity in a traditional context, 2. Mutually Agreed Terms (MAT) and includes the know-how, 193 nations around the world are conditions and provisions skills, innovations, practices including Nepal are party to the of access and benefit-sharing, and learning that form part CBD and have made commitments among others, negotiated of traditional knowledge on the three aims of the Convention. between the user and the systems, and knowledge Nepal signed the CBD on June 12, provider and involving other embodying traditional lifestyles 1992, which was ratified by the relevant stakeholders. of indigenous and local Nepali parliament on November 3. Benefit-sharing is participation communities, or contained in 23, 1993, and has been enforced in in the economic, environmental, codified knowledge systems Nepal since February 21, 1994. scientific, social or cultural passed between generations. benefits resulting or arising As the protection of TK varies This system is very relevant for from access to genetic resources from country to country in a country like Nepal which has and associated traditional accordance with national immense bio-cultural diversity & knowledge under Mutually legislation, policy and practices, agro-biodiversity yet many people Agreed Terms. it is important to consult are poor and natural resources are with the competent national depleting. There have been quite The Best Practice Standard contains authorities when applying this a few actual and claimed cases of two additional standards for standard. inappropriate collection or use of specific situations. If access involves If access involves wild collection genetic resources - biopiracy. After These standards are applied in different stages of commercializing the genetic resources:

Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 Photo: GIZ Commercialization R &D Results & Benefits Basic Research Preparation Planning

PRIOR INFORMED CONSENT (PIC) “ Nepal still has to update its National Biodiversity Strategies and Action Plans/Local Biodiversity Strategic Action Plans and set national targets and indicators. ” MUTUALY AGREED TERMS (MAT)

The use of genetic resources and for access and benefit sharing during The CBD has three objectives: their traditional knowledge used to the late 1900’s. This was however 1) the conservation of biological be free for all mankind. Industries not effective in solving the problem. diversity; 2) the sustainable use of BENEFIT SHARING such as the food, pharmaceutical, Thus many countries resorted to its components; and 3) the fair and and perfume industry, used these restricting access to these resources. equitable sharing of benefits arising resources to make commercialized This led to the negotiation of an out of the utilization of genetic products from them. Though there international regime to regulate resources. The CBD introduced Source: Access and Benefit Sharing, Good practice for academic research on genetic resources, Swiss Academy of Sciences, January 2006 were significant economic benefits, access and benefit sharing known a system for the regulation of these benefits mostly stayed with as the Convention on Biological collection and other types of access the large industries and didn’t quite Diversity (CBD) in 1992. This to genetic resources. This system is Genetic resources are defined by the CBD as genetic material, i.e. material containing functional units of heredity reach the community from where convention is a binding international known as the Access and Benefit- that is of actual or potential value. The value of the genetic resources need not be commercial (i.e. monetary), these resources and the knowledge agreement. Its implementation sharing (ABS) system. The CBD has but may be scientific or academic in nature. The ABS system covers all types of genetic resources, be they wild on its usage were sourced from. is not only a moral obligation the following elements as the core or domesticated; of animal, plant, microbial or other origin; situated on or in private or public land or waters. Because of this, a number of for the contracting parties but standards for ABS: Excluded from the scope of application of the CBD are human genetic resources. It applies to research on countries developed legal provisions also a legal one. resources that are both located and collected in situ or procured from ex situ facilities or from academic partners.

14 15 NEPALTRADE signing the CBD, a certain level of A general legal process for Access and Benefit Sharing from genetic progress has been made in Nepal to resources and associated traditional knowledge is shown in figure 1 A ppp initiative for promoting organic tea implement the concept of ABS. The National Focal Point for this purpose A success story is the Ministry of Forest and Soil Conservation. Nepal is now engaged Within the framework of GIZ, a Public in formulating and implementing Private Partnership (PPP) is also known national policies and laws to A company wants to see if The company applies to the as a development partnership with the implement the CBD. In 2002, there are useful resources in a govt. (competent authority) for private sector. Under this partnership, Nepal developed a comprehensive certain place a license to use the biological GIZ cooperates with businesses and Nepal Biodiversity Strategy (NBS) resources (Bioprospecting) business associations in developing and with the participation of a broad transition countries to combine the cross-section of Nepali society respective strengths of public and private as well as in consultation with partners. PPP projects are planned, international experts to fulfil its financed and implemented jointly. One obligations of being a party to the such example is a PPP in the organic tea Convention. A Nepal Biodiversity sector in Fikkal, Ilam. Implementation Plan 2006 – 2010 has also been prepared. The company studies the The company informs the The overarching goal of organic farming, plants and wildlife (genetic community, and asks for their according to the International Federation Additional progress is seen in the resources) in detail and asks permission (prior Informed of Organic Agriculture Movements form of signing and ratifying the the community what they consent, PIC); the community (IFOAM) states that “Organic agriculture Nagoya Protocol on ABS, the know about them (traditional decides if it is good for them is a production system that sustains the Biosafety protocol, establishment knowledge) health of soils, ecosystems and people. It of a Clearing-house Mechanism, relies on ecological processes, biodiversity formation of District and local and cycles adapted to local conditions, level Biodiversity Committees and rather than the use of inputs with adverse some documentation of Biological effects. Organic agriculture combines resources and associated Traditional tradition, innovation and science to Knowledge. The government is also The company may look at the The company prepares a benefit the shared environment and creating awareness and trying to likely impact on the propposal detailed proposal with a promote fair relationships and a good mainstream the elements of ABS. on the area (Environmental research and resource use plan quality of life for all involved.” Impact Assessment) and submit to the designated Nepal still has to update its National authority This PPP Project was launched with the Biodiversity Strategies and Action objective that a group of selected tea Plans/ Local Biodiversity Strategic farmers and processors in the tea supply Action Plans and set national targets chain in eastern Nepal produce high and indicators. Further challenges quality tea complying with international lie in ratifying and getting consensus standards for organic tea production on ABS and linking Bio-trade with and have an improved access to services ABS and Intellectual Property The company describes the The company collects samples related to cultivation, processing, and Rights into a functioning system. new products, what they will and documents everything marketing of organic tea. The project cost and how much profit there including TK and sends it was a joint cooperation between the Once Nepal is able to put all the may be. to labs to study and plan for three parties: the Deutsche Gesellschaft mechanisms needed in place, it products that can be made für Internationale Zusammenarbeit can reap long-term benefits in the from them (GIZ) GmbH; TeeGschwendner (TG) – form of economic benefits through a German company; and the Gorkha Tea the payment of royalties and joint Estate (GTE) – a Nepali company. ventures and social benefits in terms of institutional capacity building, The project was designed to cover a food and livelihood security benefits The product is made and sold, The community discusses the target group of 131 smallholder tea and social recognition. a part of the profit goes to best way to use the benefits. farmers groups in the Sunderpaani the government (competent (help conserve the biological tea cooperative (Fikkal, Ilam) who are authority), which shares it with resources for the future, as having their tea processed at GTE. The the local community well as to give the community farmer households in the Cooperative options for development) were divided into five groups according Photos: Himadri Palikhe to their locations. Each group consists of Himadri Palikhe, GIZ Adapted from general legal process for Access and Benefit Sharing, ICIMOD 15-20 households on an average and is

16 17 NEPALTRADE beyond chiya TeeGschwendner GmbH (TG), Gorkha Tea Estate Private founded in 1978, is the biggest tea retailer Limited (GTE) is a private firm What’s in your cup today? in with a market share of about located in the hills of eastern Nepal – 25% of the specialized tea trade. It sells in Fikkal, Ilam. The production capacity the segment of “best quality” tea, which is of the factory is 150, 000 tons. It is the top 0.5% of the world’s tea production. currently producing 50,000 tons only It has more than 120 franchise shops in due to shortage of quality tea leaves. Germany and a few more in neighboring The major export destinations are to countries as well. Germany and Calcutta.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH supports people and societies in developing, transition and industrialised countries in shaping their futures and improving living conditions. As a federally owned enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Photo: GIZ

managed by a coordinator selected 167 barrels to make organic fertilizers tea from Nepal, with labels such as: Chiya or “tea” is in fact the most manner that mimics hand-rolling. to reddish-brown and then to within the group. and the same number of fertilizer “Suderpaani tea”. popular non-intoxication beverage CTC tea is machine-processed by black. sprays have been distributed to the in the world enjoyed by many. chopping the leaves into uniformly- Under the PPP arrangement, GTE farmers. Furthermore, an irrigation Another remarkable outcome of this But have you ever wondered what sized bits. Most specialty tea is made • Firing is a process where the and these smallholder tea farmers dam has been constructed in order project is the fact that the farmers all the fuss over tea is about? Tea with orthodox production methods. tea leaves are fired (or dried) were provided with technical support to cater to the irrigation needs of are being reimbursed up to NPR 55 has become famous mostly for its orthodox tea processing generally by slowly heating them in a in the areas of organic cultivation farmers in the vicinity. per kg for their organic green leaves. medicinal value and health benefits has four stages: drying chamber. This stops the (soil conservation, nutrient contents, It must be noted that this amount because of its high antioxidant oxidation process and the leaves composting, organic standards and Traceability software has been paid by GTE is more than double content. However, whether you are • Withering - freshly harvested are prepared for storage. certification process, pruning and installed in GTE to check the quality the Nepali national average for a casual tea drinker, an enthusiast tea leaves are spread out onto skiffing, record keeping, etc.). A group of tea starting from the acquiring of orthodox tea green leaves. or just taking a tea break, you know tables or trays, which are then Orthodox tea has many varieties of 100 farmers were given a Training the green leaves from farmers to the that many things can happen over a left to dry. Moisture is removed such as , , of Trainers in these areas and later, packaging of the tea for export. This project was successfully realized cup of tea. And a good of cup tea is and the leaf becomes soft and tea, green tea, silver tips tea, these 100 farmers conducted 50 by a strong cooperation between enticing to many. prepared for rolling. post- (like Pu-erh trainings for other farmers. In Though the project started out with public and private actors. This tea), (powdered Japanese total, the project was successful to 131 farmers only, seeing the health same modality can be replicated for Tea Processing • Rolling is the process where green tea), and others. give a basic training on organic tea and economic benefits of shifting to organic tea in other regions, or with machines break the cells in the Amongst them the ones grown in production to approximately 1000 organic farming, additional farmers some customization, in other sectors It is amazing how many different leaves. This releases the tea Nepal are: people. joined the project’s initiative during as well. types of tea exist. And all the leaf juices and enzymes and the mid of the project duration. Now, more amazing how many complex exposes them to the air to Apart from the trainings, Biogas a total of 166 farmers are certified as flavours can be found. An enhance oxidation. facilities have been installed in organic by IMO and additional 64 understanding of the different types around 50 households. The farmers are still in conversion stage. In total, can make the experience of drinking • Oxidation, also known as are well trained to prepare organic these certified farmers account for tea more stimulating. Generally fermentation, begins during compost using the slurry from the 250 tons (approx) of Organic Green tea is divided into two categories: the rolling process. The rolled biogas. To ensure delivery of quality leaves which is processed to form 53 orthodox tea and crush-tear-curl leaves are spread out in a green leaves, some 400 nets and 90 tons (approx) of tea. This organic tea (CTC) tea. Orthodox tea refers to temperature and humidity crates have already been distributed is purchased by TeeGschwendner Himadri Palikhe, GIZ either hand-processed tea or tea controlled room where the to the smallholders. Additionally, and sold all over the world as organic that is rolled with a machine in a leaf colour deepensfrom green

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Black tea

Black tea is the most commonly consumed and undergoes a Orthodox Tea Types huge amount of processing to transform it from leaf to tea. After the leaves are picked, withering Photos: Jakob Elbæk Egegaard Pedersen takes place over a course of several hours. Then the leaves are rolled, oxidized and dried. It is then sorted accordingly, graded and packaged.

Green tea White tea

The processing of green tea is The least processed of all is white short. It is made in two ways tea. After it is withered for a - either by putting it in the certain period of time, it is then dryer or by steaming it to half dried through air drying, solar the oxidation process. There drying or mechanical drying and is minimal oxidation (around white tea is processed. It does not 5%) involved in processing need to go through the processes green tea. This helps the tea to of oxidation and there is in fact preserve its medicinal values. no rolling, breaking or bruising. It is then blended according to It is this lack of processing which the blend order and packaged helps it to retain most of its for sale. beneficial compounds.

Silver tips tea Oolong tea

Silver tips are delicate leaf- Oolong tea goes through a buds which are at the point of similar process like the black tea. developing. It undergoes the The first two steps are withering slightest of processing, therefore and rolling; however sometimes retaining higher levels of rolling is replaced by shaking antioxidants than others. After to bruise the outer edges of the withering, the buds are then leaves. The oxidation period for dried in smouldering fire. The Oolong is half of that of black tea is then packed right after tea. It is then dried, graded and drying, while it is still warm. This packaged. is important as it preserves its needle like shape, since cooling will make the tea vulnerable to breakage while packaging.

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Of course there many other intricate The art of making a good cup of tea details which are part of making each different type of tea more “The journey of a thousand cups begins with a single sip” -Steve Schwartz interesting and valuable. The quality of tea also depends on storage. Fine teas are very fragile and they should be stored in airtight containers to ensure longevity. Storing is about flavour control and ensuring value, long after production.

Flushing

The “Flushing” season which refers to the tea growing seasons, plays an important role in giving quality tea. The orthodox tea in Nepal is characterized by four flushes:

Spring marks the beginning of the first flush during the fourth week Photo: GIZ of March till the end of April. The tea produced has tender leaves and Making a good cup of tea and being Making a cup of Nepali style the liquor is light yellowish green able to find the perfect taste is an art masala chiya: in colour with delicate taste, subtle in itself. In fact one should enjoy the aroma and flavour. It is the most process of preparing tea as it could 1. Boil a mixture of fresh water, expensive of all flushes because be a part of your daily ritual. There CTC tea and spices in a vessel. of its high quality and the low are various ways of making tea (One can either purchase quantity produced. depending on the tea type. Teas with readymade spices comprising little or no oxidation period (green of clove, cinnamon, bay leaves, May to June yields the summer tea, white tea) are prepared at lower pepper, ginger and cardamom flush or the second flush.temperatures, whereas teas with or add them individually Connoisseurs believe that the longer oxidation period are prepared according to one’s preference). second flush gives the best tea as the at higher temperatures. The step for Once the tea has acquired an liquor is bright yellowish with an preparing tea differs from culture to intense flavour and a certain extraordinary flavour. culture and individuals. colour, strain it in a cup and add milk. Add sugar for taste The “Rainy tea” or the monsoon A typical way to brew orthodox and your cup is ready. This is flush is tea produced during the tea would be to: usually considered a healthier months of July to September also way of making tea. Moreover, know as the monsoon period. • Boil a kettle of fresh water. it also ensures that the desired The liquor is dark in colour and • Place the right amount of leaves amount of milk is added. is of standard quality. Unlike the (depending on the quantity of spring and summer flush which are cups) in a tea into a tea 2. There is yet another way of afternoon tea, the monsoon flush is pot, or leaves directly into the making tea. Simmer a mixture a morning tea. pot. of milk, water, CTC tea, sugar • Pour the hot water over the tea and spice. The solid tea and A fantastic combination of musky leaves and cover the pot. spice residues are then strained flavors, tangy aromas and amber • After a few minutes remove and served as “masala chiya”. liquor can be found in the autumn the tea infuser, or strain the tea flush which begins in October and while serving. However, there is no “fixed” recipe lasts until the end of November. • Enjoy your freshly home brewed in making a good cup of ‘masala cup of orthodox tea. chiya.’ Different people have their own special recipe for their cup! Another way of making tea is by What’s yours? adding milk and additives. Jannu Chudal Sherpa, GIZ Photo: Himadri Palikhe

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10 FACTS ABOUT TEA

1. Tea is the second most consumed beverage in the world, second 7. The largest per capita consumer of tea is the Republic of Ireland only to water. followed by Britain. China is the largest producer of tea followed 2. Tea was created more than 5000 years ago in China. by India. 3. Tea breaks are a tradition that have been with us for approximately 8. The number of recommended cups of tea to drink each day is 200 years. four; this gives you optimal health benefits. 4. Tea comes from the leaves of a tree called . 9. It has been found that tea can work as an odour absorbent, 5. The four main types of tea are Black, White, Oolong and Green. removing bad smells especially from your skin. Pouring a does not come from the leaves of a tea plant, therefore, cup over your hands is said to work wonders for all kinds of is not considered to be real tea. bad odours. 6. Tea is rich in antioxidants and can strengthen our immune 10. Tea can be used to soothe burns and sunburns. Put wet tea bags systems, help protect against tooth decay and gum disease, onto the affected areas or keep in place with gauze. You can also stop infection, prevent cardiovascular disease and even help us put tea into your bath water. lose weight!

Photo: Himadri Palikhe

24 25 NEPALTRADE EU Requirements for Tea Import many markets. In the following, associated with tea cultivation. generally is increasing across this aspect will be highlighted with This increasing awareness of(Western) Europe, and the role The concept and its application in Nepal a special focus on the EU, as the environmental and social aspects of organic tea is also expected to EU is one of the leading markets of production methods, and their expand as the consumers move Tea is one of Nepal’s products World Import of Tea (HS code tea exports. The remaining export for tea, accounting for 15% of impact on poor people and the more and more towards a healthier considered to have a good 0902, including all types of tea) is designated to countries like global consumption. environment, has been translated life style potential(NTIS 2010) for increased Germany (e.g. 2.8% share), The into various standard systems which export. Tea currently has a share of Czech Republic (1.1% share), What Types of Buyer seek to address these concerns. In Additionally to the important only 2% of Nepal’s overall exports. US$ value Quantity (t) Kazakhstan (0.8% share), The USA Requirements Exist? terms of social requirements the trend of “sustainability” in terms In the international market Nepal’s (0.4%), Canada (0.3%), France international ILO (International of socially and environmentally tea role as a tea exporter is also fairly 2007 4.508.080 1.696.312 (0.3), etc. Looking at this data, it Buyer requirements are all the Labour Organization) standards production, as mentioned above, small with a share of only 0.26%. becomes obvious that the market requirements an exporter can have therefore high relevance such as some other trends of tea consumers Despite this relatively small number 2008 5.367.402 1.797.114 for Nepalese tea exports should be expect from a “buyer”. They -the right to union membership and in EU can be mentioned which in national and international export diversified. can be divided into two groups: to negotiate; non-discrimination, are indirectly related to the above: performance, it is worth to promote 2009 5.017.243 1.638.090 legislation and additional (non- forced labor, minimum age, There is an expanding group of this sector. Not only because Nepal For identifying new markets a legal) requirements. If legal working hours, equal remuneration, knowledgeable tea consumers has very favourable climatic and 2010 5.765.553 1.819.151 detailed market analysis is necessary. requirements are not met, products minimum wages, and occupational in Europe looking for products geographical conditions for this Looking for new markets and cannot be imported. Additional health and safety. An important which fit their lifestyle. Double product, but also because the (Source: ITC statistics, 2012) thinking about market entry requirements go beyond legislation. initiative based on these standards income households, as well as single demand is steadily increasing, strategies, not only criteria like high The main categories of additional is the “Ethical Tea Partnership” households, are increasing. Wellness as drinking tea is being trendy. Looking at countries to which demand play a role but also the buyer requirements are environmental and (ETP). Participants of this initiative is on the mind set of these consumers Worldwide the consumption has Nepalese tea (HS code 0902) has requirements. Tea is regarded as a social requirements and are set by are companies like Unilever, and they are looking for healthy tea steadily grown over the last years. been exported - India dominates food item and therefore underlies companies, not the EU or individual Twining & Coe which hold a major varieties. There is a trend and change with more than 90% of Nepalese high food safety regulations in EU Member States. market share of the EU tea market. in terminology from “specialty” to Other important initiatives are the “premium” tea observable using For the EU market, legal food sector “Rainforest Alliance”, “trade –fair” “premium” when referring to high- requirements focus on consumer and “UTZ Certified”. Compliance quality tea including traditionally safety – hygiene and traceability, with national environmental laws labour-intensive and rare teas. emphasizing the importance of and regulations in the country of More and more specialized tea guaranteeing hygiene measures origin often play an important role. retail shops are opening, trying to throughout the whole supply chain. As the EU can only restrict product- build-up relationships with the tea Additionally maximum levels related issues, this requirement manufacturers and the customer as a for pesticides and contaminants focuses on production processes marketing strategy. Customers love (maximum residue levels-MRL) which are not visible in the final to feel a connection to the source or are defined. For tea, numerous laws product. This is required by most know more about the origin of the and regulations exist - general food large companies like Unilever. tea they drink. And there is a clear “ Customers love to laws (e.g. regulation (EC) 178/2002), trend towards more sophisticated feel a connection to the hygiene of foodstuffs (e.g. regulations The market share of certified tea in packaging in the EU. source or know more (EC) 852/2004; 853/2004; general has grown rapidly over the 854/2004), contaminants in food past years. It is projected to reach Sources: about the origin of the (e.g. regulation (EC) 1881/2006), almost 13% of the global production • Centre for the Promotion of Exports from tea they drink.” food contact materials (e.g. by the end of 2011. Within this Developing countries (CBI) (www.cbi. Regulation 1935/2004), general “fair trade-labelled” tea has only eu): European buyer requirements: coffee, requirements on packaging around 1% of the total market. tea and cocoa, 2011; Compliance with (Directive 94/62/EC), food control As many large EU brand owners EU buyer requirements for tea, 2011; (e.g. Regulation (EC) 882/2004), have committed themselves to a International Social Code of Conduct: food labelling (e.g. Directive certification scheme, certification is Ethical Tea Partnership; Trends and 2000/13/EC), organic production increasingly the standard in the EU segments for tea, 2011; Promising EU and labelling (e.g. Regulation tea market. export markets for tea, 2011. (EC) 834/2007)and others (for • International Trade Center (ITC), detailed information please see Very little information is available Market analysis tool, trade map (www. www.CBI.eu – Compliance with on organic tea. This market seems trademap.org) EU buyer requirements for tea). less dynamic than the organic • Trade and Export Promotion Centre coffee market. Leading countries (TEPC): Nepal Foreign Trade Statistics There has been growing public for organic tea are Germany and 2009/10 and 2010/2011. awareness in the EU for some the United Kingdom. However, the Photo: Himadri Palikhe years, of the social hardships awareness of organic consumption Gabriele Schlaeger, TEPC

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China International Tea Fair, Shanghai, China Tea Expo, Guangzhou, China 18-21 May 24-28 May www.tea-shexpo.com www.teaexpo.cn Calendar of Events World Tea Expo, Las Vegas, USA Macao Tea Expo, Macao, China 1-3 June 29 June - 1 July If you are interested in what has been discussed in this issue, feel free to get informed www.worldteaexpo.com www.teaexpo.cn/macao about or participate in these events. Hong Kong International Tea Fair, China 3rd North American Tea Conference, Canada 16-18 August 11-13 September www.hktdc.com www.tea.ca

COTECA, Germany World Tea East 2012, Pennsylvania, USA 20-22 September 2012 2-3 October www.coteca-hamburg.com www.worldteaeast.com

India International Tea Convention and Fair, India Bio Fach India 2012, India November 8-10 Nov 29- Dec 1 www.indiatea.org www.biofach-india.com

Photo: Himadri Palikhe

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