World’s thirst for matcha dries up global supplies

2 days ago Share Save Osmond Chia Business reporter, BBC News Reporting from Singapore Share Save

Getty Images

Matcha mania is sweeping the world. The bright green Japanese tea can be found in everything from Starbucks’ lattes in the UK to Krispy Kreme doughnuts in Singapore. The global matcha craze is being driven by social media, with influencers sharing brewing tips, reviews and recipes. The “Matcha Tok” hashtag has clocked up tens of millions of views. Matcha’s growing popularity is also linked to Japan’s post-pandemic tourism boom, with the country’s weak currency making it an attractive destination as well as boosting demand for Japanese goods. In the midst of the hype, demand for the powder is soaring. US-based tea importer Lauren Purvis tells the BBC her customers are seeing what was once a month’s supply of matcha running out in days. “Some cafes are even asking for a kilo a day. They’re desperate to keep up,” says Ms Purvis, who runs Mizuba Tea Co. But that surging demand, combined with smaller tea crops due to heatwaves and US tariffs on Japan, is also pushing up matcha prices.

Courtesy of Mizuba Tea Co. Lauren Purvis runs a matcha firm called Mizuba Tea Co

Traditionally, Matcha – which is sought for its health benefits, caffeine and flavour – is the product of a centuries-old and highly-specialised process. It is made from green tea leaves called tencha, which are kept under shade for weeks while they’re still growing. This step is crucial for developing the tea’s signature “umami” flavour – a savoury taste that complements its natural sweetness. The leaves are harvested, dried and ground into powder using stone mills, which can produce just 40g (1.4oz) of matcha an hour. But in recent months growers have struggled, as record-breaking heatwaves have hit crops. In the Kyoto region, where about a quarter of Japan’s tencha comes from, hot weather has led to poor harvests even as demand soars. The country also faces a shortage of farmers as its population ages and not enough younger people go into the industry. Shops in Uji, a city in Kyoto famous for matcha, often see their shelves emptied by tourists as soon as their doors open. As a result, many retailers have set limits on how much customers can buy. Kyoto-based Camellia Tea Ceremony allows customers to purchase only one tin of matcha each as visitor numbers doubled over the last year, says director Atsuko Mori. Tea master Rie Takeda says she also has to closely monitor her stocks of matcha, as orders that would previously arrive in just days can now take more than a week. She works for Chazen, a tea ceremony chain based in Tokyo, which hosts traditional rituals serving matcha to guests. Shortages mean tea prices at Chazen’s outlets have risen by around 30% this year. “[The demand] is good,” Ms Takeda said through a translator. “It’s a gateway for more people to know about Japanese culture.” It has also attracted more growers. Matcha production nearly tripled between 2010 and 2023, according to Japan’s agricultural ministry. It also says green tea exports, including matcha, also rose 25% last year to 36.4bn yen (£180m; $250m).

Savour, not hoard

The matcha craze has sparked a movement to promote more mindful consumption. Advocates call out people they see as hoarding matcha or profiteering from its popularity. Others urge tea drinkers to be careful about how much they use, and to savour matcha in its purest form rather than as an ingredient in recipes. It’s “a bit sad” to see high-grade matcha used in cooking – where its delicate flavour is often lost – or stockpiled for resale, said Ms Mori. “Matcha is the highest grade of tea and it’s so special to us. So there’s a bit of a contradiction when I hear stories about how it’s resold or used in food.”

Courtesy of Camellia Tea Ceremony Matcha is used in traditional Japanese tea ceremonies

How are trade deals actually negotiated?

4 days ago Share Save Megan Lawton and Sam Gruet Business reporters Share Save

Getty Images The world’s trade negotiators are continuing to be very busy as the US demands new deals

Trade deals have never been more in the headlines, as Donald Trump continues to threaten countries with higher tariffs until they sign new agreements with the US. But how exactly are trade deals negotiated between nations, and has the US president’s forceful actions changed how the talks are conducted? Former Canadian trade negotiator Jason Langrish says that Trump’s tariff threats have undoubtedly worsened the tone inside the negotiating rooms. “Lately, as we’ve gone into a nativist, nationalist phase, these trade deals have become more defensive and accusatory,” he explains. Mr Langrish, who helped Canada sign trade deals with the EU and India, adds that this contrasts with how such agreements were previously reached. “Traditionally, trade talks were positive because you’re taking an agreement that works between two countries and you’re upgrading it.” He points to the continuing trade talks between Canada and the US as an example of the change in atmosphere. Their two teams are currently working towards signing a new deal by a 1 August deadline. “It’s what we would call a defensive negotiation. Canada didn’t ask for this, but it’s something that we have no choice but to engage in.”

Getty Images Former Canadian trade negotiator Jason Langrish says that Trump has made trade talks far more combative

Another former trade negotiator, Karl Falkenberg, who represented the EU in talks for many years, says that Trump “doesn’t recognise the rules of the game”. Mr Falkenberg doesn’t mean that as a complement, but Trump would surely take it as one. But how exactly are trade talks conducted? What takes place in the rooms behind closed doors? “A chief negotiator is appointed on each side,” says Mr Langrish. “Teams are put in place for each table, so there might be a table for tariffs, or regulation, and government procurement. Each of those tables would have its own sub-negotiator.” Then he says, “it’s off to the races”, caveating that deals often take years to finalise.

For Mr Falkenberg, a typical day in negotiations involves a morning and afternoon session, but he says he can “remember leaving the office at 5am in the morning”. “If meeting the deadline is looking possible, people are prepared to sit through long hours – the longest I did was 24 hours,” he recalls. While TV political drama will often sensationalise conflict in negotiations, most in the business say that the real work happens quietly, over long hours of strategic give and take. “Because, at the end of the day,” says Mr Falkenberg, “as a negotiator you want to come to an outcome with someone else, so you need to build trust and connection”.

Getty Images Veteran EU trade negotiator Karl Falkenberg says that Trump has ripped up the rules

Wendy Cutler worked as a negotiator for the US Trade Representative’s Office for 27 years. I ask her whether in that time, she was ever assigned a good or bad cop role. She smiles and says: “I’ve played all the different roles, but I don’t know which one I’ve been the most successful in.” For Ms Cutler trust was her most important negotiation tool. “You’re not going to have 100% trust, because each side has their own national objectives in mind,” she says. “But if you feel that you can informally share proposals with the other side, and that’s not going to be leaked to the press, or get out to your stakeholders, it’s easier to find a successful conclusion.” But while the internal dynamics in the negotiating room do matter, what is happening in the world outside can often make or break a deal, says Mr Langrish. He points to those opposed to an agreement being made, such as a sector of the economy that may be negatively impacted, or domestic political opposition. “It’s not just the people who are for the advancement of the trade deal,” he says. “There’s also people and sectors that stand to lose and they have political clout as well. The political side is ultimately what slows things down.”

Getty Images Wendy Cutler says that both sides in a trade negotiation have to build trust

Trump says US has struck trade deal with Japan

5 days ago Share Save Peter Hoskins & Tom Espiner Business reporters, BBC News Share Save

Watch: ‘I just signed the largest trade deal in history’ says Trump on Japanese tariffs

President Donald Trump says the US has agreed to a “massive” trade deal with Japan, one of the country’s largest trading partners. Japan has agreed to invest $550bn (£407bn) in the US while its goods sold to America would be taxed at 15% when they reach the country – below the 25% tariff Trump had threatened. Trump said on social media that Japan would open its economy to US goods, including cars, trucks, rice and certain agricultural products. Japan’s Prime Minister Shigeru Ishiba welcomed the announcement, saying it was “the lowest figure to date among countries with trade surpluses with the US”.

“I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan,” Trump touted at a White House event on Tuesday evening. “They had their top people here, and we worked on it long and hard. And it’s a great deal for everybody. I always say it has to be great for everybody. It’s a great deal,” he added. Ishiba said on Wednesday the agreement would mean US tariffs on vehicles and parts would be cut to 15% from 25%. However, the tax is above the 10% Trump levied on Japan and other countries when he suspended higher so-called reciprocal tariffs between April and July. A quarter of Japan’s US exports are from its critical automotive sector, which accounts for almost 3% of its economy. In 2019, the value of its automotive shipments was $410bn (£300bn), according to the US International Trade Administration. Ishiba said: “We were the first in the world to reduce tariffs on cars and auto parts without any quantity restrictions.” UK cars sent to the US are taxed at a lower 10% rate when they reach American shores but this is limited to 100,000 vehicle quota. Ishiba added: “The agreement does not include any reduction of tariffs on the Japanese side.” US car-makers, however, were not not happy with the deal which cuts tariffs on imports from Japan while leaving taxes on imports from their plants and suppliers in Canada and Mexico at 25%. Matt Blunt, president of the American Automotive Policy Council, a group which represents Ford, General Motors and Stellantis, called the Japan agreement “a bad deal”. The BBC has contacted the White House and Japan’s embassy in Washington for more details of the trade agreement. The US also announced trade agreements with the Philippines. US imports from the Philippines will be taxed at 19% when they reach America.

Reuters US President Donald Trump and Japan’s Prime Minister Shigeru Ishiba

Bringing its main tariff rate down to 15% is Japan’s “best compromise at this stage”, Shigeto Nagai from research firm Oxford Economics told BBC News. The planned investment in the US by Japan included in the announcement “will be a huge boost to restore the US, fitting in with Trump’s story of reviving US manufacturing with more jobs,” he added.

A woman said she was “devastated” when her dog died after being bitten by an adder.

Poppy, a nine-year-old cocker spaniel, started to limp after walking in Nailsworth, Gloucestershire.

She was taken to the vets, who initially thought it was a pulled muscle but eventually found two punctures marks, indicating an adder bite

Poppy’s owner, Vanessa Kellow, now wants to raise awareness so other dog owners can protect their pets.

Heat pump makers are ready for a rush: Will customers come?

14 July 2025 Share Save Chris Baraniuk Technology Reporter Share Save

Chris Baraniuk Octopus makes heat pumps at its factory in Northern Ireland

On the day I visit Octopus Energy’s heat pump factory in Craigavon, Northern Ireland, temperatures in London reached 29C. Some of the staff meeting me, who are usually based in the south of England, are beaming. It’s wonderful to escape the heat, they say. And who can blame them. Climate change is making the UK hotter. In order to do something about that, decarbonising our energy systems – including domestic heating – is becoming more and more urgent. Heat pumps run on electricity, not oil or gas, and Octopus is manufacturing heat pumps of its own design right here in Northern Ireland. “It kind of gets harder as you go up – it’s like levels in a game,” says Patrick Doran, one of the workers here, after I view the production line. He’s referring to how, in just under a year, he’s completed training in each stage of the manufacturing process. From fitting pipework to attaching bundles of cables, which connect up the heat pump’s internal electronics. “I get to do something different every day,” enthuses Doran.

The government wants to see 600,000 heat pumps going in to UK homes annually by 2028, just three years away. While installations have quickened recently, the country remains far behind that target. Total UK heat pump sales were slightly below 100,000 in 2024. Demand for heat pumps boomed in Europe when gas prices spiralled following Russia’s invasion of Ukraine in 2022 – but that enthusiasm has since cooled. Gas has become slightly cheaper again meaning that heat pumps are finding it harder to compete against gas boilers in terms of running costs. This factory, in a medium-sized warehouse, can churn out 600 heat pumps per month, I’m told – and this will soon double when a second production line becomes active. And in principle, Octopus could introduce additional shifts here and make many times that number of units. If higher demand materialises. “We can have a plug-and-play solution that works in the majority of homes in the UK,” says Aimee Clark, head of commercial, as she explains why Octopus wanted to manufacture its own heat pump – which is unusual among electricity providers, to say the least.

Chris Baraniuk Octopus heat pumps have an unusual design

Other heat pump makers, including Vaillant, have UK manufacturing sites. And Copeland, which makes heat pumps components, has a factory here in Northern Ireland. It supplies compressors to Octopus. Heat pumps work by absorbing heat from the environment, usually the air. It’s a way of harvesting free heat, if you like. Ambient heat causes a refrigerant inside the heat pump to warm up and expand. A compressor squeezes that refrigerant, raising its temperature yet further. Finally, a heat exchanger transfers this heat to water that gets pumped around your radiators, for instance. The Octopus heat pumps sport an unusual design. They come in a dark grey plastic casing. I have to admit, to me, it looks a little bit dour – but it packs some original tech. Mateusz Dewhurst, director of manufacturing, points out an internal metal plate the company has patented – refrigerant flows through this plate, absorbing heat from the machine’s electronics and cooling them down. “That’s a performance gain,” says Mr Dewhurst. He also says the heat pump’s casing contains small grey insulation beads to reduce heat loss from the system. Exactly the same kind of beads that are sometimes used to insulate cavity walls in buildings, he explains.

Chris Baraniuk Octopus can track the performance of a heat pump with internal sensors

Heat pump technology has been around since the 1800s. Zhiwei Ma at Durham University says manufacturing these devices is relatively straightforward – he made one himself when he was a PhD student. “It worked fine,” he recalls. Companies such as Octopus are able to buy in the main components and assemble a finished product. “There’s very little room to improve anything,” argues Dr Ma. Octopus would perhaps disagree. They say their design choices make a difference to overall performance, which the firm can track thanks to the many heat and pressure sensors it secretes within the device. Heat pumps can produce multiple kilowatts of heat for every kilowatt of electricity they consume, a ratio known as their co-efficient of performance (Cop). Ensuring the Cop is as high as possible really matters in terms of keeping running costs low. Octopus technicians can intervene should data from a heat pump’s sensors indicate a severe dip in performance. And customers also get an overview of their heat pump’s efficiency via a smartphone app.

Getty Images Getting a heat pump installed correctly is key