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Poverty Impact of Social and Environmental Voluntary Standard Systems in Kenyan Tea

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Poverty Impact of Social and Environmental Voluntary Standard Systems in Kenyan Tea VOLUNTARYSOCIAL STANDARDAND ENVIRONMENTAL SYSTEMS POVERTY IMPACT OF IN KENYAN TEA I R X I M T X A A R I M T M T X A R A R X I I T T M I M X A R A R X X I R T T I M I M T T R X A X A R S A R N I M T I M T T T E M X A X A R A R M N I M I T with advisory and statistical inputs from Valerie Nelson, T M P A R X R X A O T T I and field assistance from I M L L R X A E U M T V S A E N D O C Edwin Kamau,Tanya Anthony Stathers, Gichohi, MercyCharity Kokonya, Gathuthi Noah Umidha, Virgina Irimu, Arnold Muhoro March 2013 Adrienne Martin, Helena Posthumus, Uli Kleih Contents CONTENTS ......................................................................................................................................................... II ACKNOWLEDGEMENTS ........................................................................................................................................ VI ACRONYMS AND ABBREVIATIONS .......................................................................................................................... VII EXCHANGE RATES .............................................................................................................................................. VII EXECUTIVE SUMMARY ................................................................................................................................... VIII 1. INTRODUCTION .............................................................................................................................................. 1 2. METHOD ........................................................................................................................................................ 3 3. THE KENYAN TEA CONTEXT .......................................................................................................................... 12 4. ASSESSING THE POVERTY IMPACT OF VOLUNTARY STANDARDS IN KENYAN SMALLHOLDER TEA .............. 17 4.1. THE FOCAL ORGANISATIONS AND THEIR CERTIFICATIONS ..................................................................................... 17 4.2. IMPACTS ON INDIVIDUAL TEA PRODUCING HOUSEHOLDS ..................................................................................... 19 4.2.1. Socio-economic differentiation ....................................................................................................... 19 4.2.2. Income and livelihoods ................................................................................................................... 20 4.2.2.1. Tea income ........................................................................................................................................................ 20 4.2.2.2. Gendered aspects of tea income expenditure decision-making ..................................................................... 21 4.2.2.3. The influence of tea husbandry on incomes .................................................................................................... 21 4.2.2.5. Factors preventing farmers from escaping from poverty ............................................................................... 26 4.2.2.6. Tea farmers’ ability to cover their basic needs ................................................................................................ 26 4.2.2.7. Investment of tea income ................................................................................................................................. 28 4.2.2.8. Livelihood Assets ............................................................................................................................................... 29 4.2.2.9. The Future ......................................................................................................................................................... 32 4.2.3. Tea Production ............................................................................................................................... 32 4.2.3.1. Tea yields ........................................................................................................................................................... 32 4.2.3.2. Tea quality ......................................................................................................................................................... 35 4.2.3.3. Costs of production ........................................................................................................................................... 36 4.2.3.4. Challenges to tea production............................................................................................................................ 38 4.2.3.5. Challenges at the local collection centre level ................................................................................................. 39 4.2.4. Farmers’ knowledge of certification ................................................................................................ 40 4.2.4.1. Members’ understanding of certification ........................................................................................................ 40 4.2.4.2. Changes in farmers’ knowledge of the tea value chain ................................................................................... 42 4.2.4.3. Farmers’ perspectives on certification related changes in their POs ............................................................. 42 4.2.4.4. Decision-making on the use of the FT premium funds .................................................................................... 42 4.2.4.5. Overview of FT Premium fund amounts received by different POs and their expenditure .......................... 45 4.2.4.6. RA additional payments and financial returns ................................................................................................. 47 4.2.4.7. Costs to farmers due to certification................................................................................................................ 47 4.2.5. Gender and diversity impacts ......................................................................................................... 48 4.3. IMPACTS ON SMALLHOLDERS’ HIRED LABOUR .................................................................................................... 49 4.3.1. Farmers’ perspectives on their pluckers and how certification has affected pluckers....................... 49 4.3.2. Pluckers’ perspectives on their work and the impacts of certification on them ................................ 51 4.3.3. Children’s involvement in tea labour ............................................................................................... 52 4.4. IMPACTS ON FACTORY WORKERS .................................................................................................................... 53 4.5. IMPACTS ON PRODUCER ORGANISATIONS ......................................................................................................... 56 4.5.1. Management systems .................................................................................................................... 56 4.5.1.1. Management changes ....................................................................................................................................... 56 4.5.1.2. Technical capacity ............................................................................................................................................. 56 4.5.1.3. Organisational financial capacity and stability................................................................................................. 57 4.5.2. Occupational health and safety ...................................................................................................... 57 ii | SEVSS Impacts in Kenyan Tea 4.5.3. Democracy, transparency and accountability ................................................................................. 58 4.5.3.1. Democracy ......................................................................................................................................................... 58 4.5.3.3. Legitimacy in the eyes of members .................................................................................................................. 58 4.5.4. Gender aspects ............................................................................................................................... 59 4.5.5. Services provided by Producer Organisations .................................................................................. 60 4.5.5.2. Training provided by PO.................................................................................................................................... 62 4.5.5.3. Ideas for future activities that members would like their POs to do .............................................................. 63 4.5.6. Growing markets and value addition .............................................................................................. 63 4.5.6.1. Access to markets and market information ..................................................................................................... 63 4.5.6.2. Value addition ................................................................................................................................................... 65 4.5.6.3. Developing larger FT tea markets ..................................................................................................................... 65 4.5.7. Advocacy and networking..............................................................................................................
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