Liputan6.com, Jakarta Japan is facing a supply crisis for matcha, the uniquely flavored powdered green tea that is all the rage.
Matcha is a beverage derived from tea leaves. Matcha used to be served in the form of a traditional drink before it came in many variations such as lattes, ice cream, cakes, and smoothies.
Advertisement
Its presence in various cafes and restaurants has increasingly attracted the interest of young people. This trend is getting more crowded with the viralization of these menus on social media.
However, behind the euphoria, Japan is actually experiencing a drastic decline in matcha production.
It is known that many farmers are struggling to meet the soaring demand for matcha from the global market.
So, what causes Japan to experience a matcha crisis?
Hot temperatures cause crop failure
Quoted from Reuters, Friday (July 4), record hot temperatures in Japan have caused the harvest of tea leaves, which are the basic ingredient of matcha, to decline sharply.
Kyoto, a region that accounts for about a quarter of the production of tencha, tea leaves that are dried and ground to make matcha, experienced a crop failure after being hit by the hottest summer in Japanese history.
Masahiro Yoshida, a sixth-generation tea farmer from Uji, Kyoto, said he was only able to harvest 1.5 tons of tencha this year. The harvest is down by a quarter from his normal yield of two tons.
“Last year's summer was so hot that it damaged the bushes, so we couldn't pick much tea leaves,” he said.
According to the Japan Tea Production Association, tencha production in Japan is expected to reach 5,336 tons by 2024. This is an increase of almost 2.7 times from ten years earlier.
However, production in 2025 is expected to decline.
“Many expected this year's harvest to be higher, but it doesn't look like that will happen,” said Marc Falzon, owner of tea milling company Ooika Co. in New Jersey, US.
Advertisement
Farmer crisis and production difficulties
Despite the high demand for matcha, matcha production cannot be increased immediately.
As quoted from The Japan Times, it takes about five years to grow the tea bushes that are the basic ingredients of matcha.
In addition, matcha milling is a time-consuming process, as only about 40 grams of matcha can be produced per hour on a single machine.
“You need a lot of stone grinders to produce large quantities of ceremonial matcha (premium quality matcha),” explains Simona Suzuki of the Global Japanese Tea Association.
She adds that stone grinding requires special skills to keep the matcha particles smooth and not damaged by heat.
In addition, the decline in the number of tea farmers has also worsened the situation. Data from the Ministry of Agriculture, Forestry and Fisheries (MAFF) shows the number of tea farmers is shrinking, from around 53,000 in 2000 to only 12,353 in 2020.
Many farmers are retiring, and there is no one to carry on, leaving some plantations abandoned.
There will be a dramatic price increase
The Japanese government is currently encouraging increased matcha production by providing subsidies and considering policy changes to support farmers to switch from regular leaf tea to tencha.
However, this effort is considered a long-term solution. It takes about five years before new tea fields can be optimally harvested.
On the other hand, a surge in demand continues to take place in the global market, putting further pressure on supply.
According to projections, the global matcha market value is expected to grow from US$2.8 billion in 2023 to around US$5 billion in 2028.
“I suspect we will see more dramatic price increases,” Marc Falzon, a New Jersey tea entrepreneur who buys directly from farmers in Uji, was quoted as saying by Reuters.
Meanwhile, some distributors such as Yamasan have begun to diversify their raw material supply to reduce dependence on one particular region.
This strategy was taken as an anticipatory step to face the scarcity of tencha in the market.
Kametani's Jason Eng also predicts that the surge in global demand for matcha will not subside anytime soon.
"We haven't reached the point of running out of stock yet, but this fall is going to be very tight, not just for us, but for everyone. The demand is very high," he said.
Advertisement
