NAPP TEA NEWSLETTER 2019
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Dear Fairtrade Partners, We are pleased to share our Annual Tea Newsletter 2019- Network of Asia and Pacific Producers (NAPP)!
This issue features the current market perspective on Fairtrade Tea from Amy Collis, Tea Supply Chain Manager at Fairtrade Foundation (FTUK). We also got an insight into the current market trends and expectations from consumer perspective, through an interview with Suranga Herath, CEO of English Tea Shop.
This edition features two of our Fairtrade tea producers :- Ketan Kumar Patel, Director of Jalinga Tea Estate- FLO ID 29907 and R. Gnanasekaran, Project Manager of Idulgashina Bio Tea Garden, Sri Lanka; FLO ID 1550
Tea being a high risk commodity, no doubt continues to gain a lot of media speculation over the years. We, therefore also spoke to NAPP Program Manager – Subhra Prakash Tudu to understand the ground reality and the challenges therein, positive changes brought about by Fairtrade certification for tea plantation setup, and major activities being implemented by NAPP for risk mitigation and improvement of overall conditions in hired labour plantation set ups. Read on more to know about NAPP’s initiatives for building ‘Capacity building and Strengthening of Fairtrade Tea Producers’ for the past 12 months. We thank all the partners and truly grateful for your valuable contribution, time and effort! WE hope you enjoy reading this newsletter!
UNTE; FLO ID 508
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CONTENTS 4 Global Markets Trends and Forecast 6 Global Tea Market Segments 7 Top Ten Largest Tea Producing Countries in 2019 9 NFO Speak Fairtrade Foundation (FTUK) 12 Retailer Speak English Tea Shop, UK 15 Producers Speak Jalinga Tea Estates, FLO ID 29907 .Idulgashina Bio Tea Garden, Sri Lanka; FLO ID 155 20 NAPP Consultant Speak NAPP Program Manager, North East India 24 Strengthening of Producer Organizations Annual Training on Awareness of FT Standards, Principles & Certifications FT Consultation on Standards & Pricing Reviews 27 Deepening Impacts through Services & Programs Project on Improving the quality of green leaf in Fairtrade certified Tea Gardens in Sri Lanka Upcoming TRA Training for Fairtrade certified Tea Gardens of Assam on ‘Climate Adaptive Agricultural Practices, Water Harvesting and Adaptation of Mitigation Measures’
29 Producer support in areas that go beyond standards compliance Supply Chain, Occupational Health & Safety Training for Management of Tea Plantations in Darjeeling, India Participatory Planning, Monitoring and Evaluation (PME) training for tea garden workers in Assam, India 30 Fairtrade Premium Story Coverage
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GLOBAL MARKET TRENDS AND FORECAST PRODUCTION: World production of black tea is projected to rise annually by 2.2 percent over the next decade to reach 4.4 million tonnes in 2027, reflecting major output increases in China, Kenya and Sri Lanka - with this China would reach the output levels of Kenya, the largest black tea exporter in Tea is one of the most popular and the world. Global output of green tea is lowest cost beverages in the world foreseen to increase at an even faster rate of 7.5 percent annually to reach 3.6 and consumed by a large number million tonnes in 2027, largely driven by China, where the production of green of people. Owing to its increasing tea is expected to more than double from 1.5 million tonnes in 2015-2017 to demand, it is considered to be one 3.3 million tonnes in 2027. of the major components of world beverage market. Export: Global sales from tea exports by country Global tea consumption and totalled an estimated US$7.76 billion in production are projected to keep 2018. The value of worldwide tea exports rising over the next decade, driven fell by an average 0.5% for all exporting by robust demand in developing countries since 2014 when tea and emerging countries. shipments were valued at $7.8 billion. Year over year, global tea exports Global Tea Market was valued at depreciated -3.2% from 2017 to 2018. $46,392 million in 2016, and is projected to reach at $67,751 Among continents, Asian countries sold the highest dollar worth of exported million by 2023, growing at a tea during 2018 with shipments valued at $4.7 billion or three-fifths (60.1%) of CAGR of 5.5% from 2017 to 2023 the global total. In second place were African exporters at 23% while 13.2% of and at a CAGR of 4.5% in the overall tea shipments originated from Europe. Much smaller percentages of forecast period 2019-2024. exported tea came from North America (2.1%), Latin America (1.3%) excluding Mexico but including the Caribbean, then Oceania (0.2%) led by Australia, •Global tea market is characterized Papua New Guinea and New Zealand. by the black tea segment holding a prominent share. However, the Consumption maximum growth is estimated for green & herbal/ flavored tea, due to Fig 1.0 Annual Per Capita Tea Consumption, By Country the awareness about health benefits associated with them.
•Consumption of carbonated tea drinks are a new trend in the tea industry, which is further fuelling the growth of the tea market.
•Various tea manufacturing companies such as Bigelow, have introduced several flavours of tea, ranging from fruity to herbal flavours, creating a diversified portfolio of tea products for the The above figure indicates that Turkey, Ireland, the UK, Russia, and Morocco customers. are top five countries of the world with largest per capita tea consumption. Maximum of the top countries consuming tea belong to Europe and LAMEA regions, resulting in growth of the market. 4
Global Tea Market Drivers:
A rise in the disposable incomes of consumers has enabled tea manufacturers to introduce premium and health-oriented products. They have started adding several healthy ingredients to their organic tea formulations to target some of the common health conditions. Therefore, a shift towards the consumption of organic tea acts as an emerging trend which is having a positive impact on the growth of the tea market.
- Another major factor driving the growth of tea is its strong consumer acceptance. Currently, it represents the world’s most consumed beverage Global Tea Market, By Geography after water. It has very high penetration levels in Asia & Europe with people consuming tea on a daily North America witnessed the second highest growth rate basis. owing to rise in demand of tea. The Canada tea market was valued at $606 million in 2016, and is expected to -Tea represents an inexpensive beverage and is reach $838 million by 2023, registering a CAGR of 4.7% consumed across all socio-economic consumer during the period from 2016-2023 groups. A major catalyst which has supported the popularity of tea across various developing markets, Key leading players operating in tea industry are Tata such as India and China, is the fact that it is Global Beverages, Unilever, Associated British Foods affordable by the mass population, a majority of Plc., TAETEA, Nestle, Barry's Tea, Apeejay Surrendra whom belong to low income groups. Group, Bettys & Taylors Group Ltd., McLeod Russel, and ITO EN Inc. Over the past few years, out-of-home market for tea The other players in the value chain include Mighty Leaf has been expanding where various tea lounges Tea Company, Numi Organic Tea, The Republic of Tea, have been opening across the globe. These lounges Tazo Tea Company, Teavana, Celestial Seasonings, offer different benefits to the consumers such as the Inc., Fukujuen, Harney and Sons, Kazi Tea, M. M. availability of a variety of handpicked teas from Ispahani Limited, DavidsTea, Tim Hortons, and Godrej different regions. Such places have provided the Group. consumers with hang out spaces where they can indulge in conversations which has contributed Fig 1.1 Leading destinations for Indian tea exports in FY 2019, based on volume (in towards an augmenting demand for tea. 1,000 kilograms)
The global tea market is majorly driven by the health benefits associated with consuming tea and increase in awareness related to carbonated drinks among people. Moreover, increase in cafe culture, rise in disposable income, change in tastes of people, and introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth. However, increase in cost of raw materials due to unpredictable weather, rise in cost of agricultural inputs, and increase in trend of out-of-home coffee consumption are expected to limit growth of the tea market. The introduction of new flavors & variety in tea and growth in demand from health-concerned young population are anticipated to provide lucrative opportunities for the market.
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Global Tea Market Segments
Type Insights Regional Insights:
The tea market has been On a geographical front, China segmented on the basis of type enjoys the leading position in which include black tea, green the global tea market while tea, oolong tea and fruit/herbal holding the majority of the tea. Amongst these, black tea market share. This can be is the most popular type of tea accredited to tea being an as it is anti-allergic, anti-viral important part of the Chinese and anti-spasmodic. culture where it is consumed on both casual and formal
Packaging Insights: instances. China is followed by India, Kenya, Sri Lanka, Turkey
On the basis of packaging, the and Vietnam. market has been categorised Distribution Channel Competitive Landscape: into paper boards, plastic Insights containers, loose tea, aluminium tin and tea bags. The market is concentrated in There are several means Currently, paper boards nature with the presence of through which the consumers represent the largest segment. large and small manufacturers can obtain their desired tea who compete in terms of quality including supermarkets/ Application Insights: and prices. Some of the leading hypermarkets, specialty stores, players operating in the market convenience stores and online. are: Based on application, the Supermarkets/hypermarkets market has been segregated exhibit a clear dominance over Tata Global Beverages into residential and commercial. the market as they provide a Unilever Currently, majority of the tea is wide variety of brands and being consumed by the choices to the consumers. Associated British residential sector. Foods Plc. Taetea Barry’s Tea
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TOP TEN LARGEST TEA PRODUCING COUNTRIES IN THE WORLD in 2019 1.China (1,000,130 tonnes) 3. Kenya (303,308 tonnes) 5. Turkey (174,932 tonnes)
China is the world’s largest The people of turkey love their tea. producer of tea. The focus is on the Tea is the most important cash As per a study conducted a decade production of superior quality crop for the Kenyan economy and ago, an average of 2.5 kgs were green, yellow and white tea. yet the people who produce it consumed per person. In 2004, Majority of the land is allocated struggle to optimise production. No turkey produced more towards the cultivation of tea. As huge farms, very little modern than 200,000 tonnes of tea. Today, the production of tea grew over the equipment and poor working while a good portion of the tea is conditions. Yet it ranks third in years, so did the exports. Infact, exported, a lot of it is used for approx. 80% of the green tea production of tea in the world. domestic consumption. The soil of exported in the world comes from That’s remarkable. Almost of the the Rize Province is like gold dust. China. One of the oldest regions tea that’s grown in the region is It is in this fertile soil along the where tea has been known to be black tea and most of it is exported. coast of the Black sea where all the cultivated is the Yunnan district in Very little is left for domestic tea is grown. China. Anhui and Fujian districts consumption, which is understandable as there isn’t are two other very important tea 6. Indonesia (157,388 tonnes) growing regions. substantial local demand for it, and also since tea is the most important 2. India (900,094 tonnes) cash crop for the country. 4. Sri Lanka (295,830 tonnes)
Tea was once upon a time, the most important crop of the region. Indian tea history is about 172 Due to the growth of more lucrative years old and is an integral part of palm oil business, land devoted to Indian culture. It plays a very useful tea plantations has taken a hit. Yet part in the national economy. Indonesia remains as one of the Officially or unofficially, tea can Tea is a huge component of Sri leading producers of tea in the also be called the ‘National drink of Lankan economy and an immense world. Half of what they produced the country’. Tha range of tea source of livelihood for the people is exported, while the other half is offered by India – from the original living on this island. The numbers left for domestic consumption. The Orthodox to CTC and Green tea, to back this statement are main export partners are Russia, from the aroma and flavour of astounding. Over 1 million people Pakistan and the Great Britain. Darjeeling tea to the strong Assam are employed because of tea. One major problem faced by the & Nilgiri tea remains unparalleled Majority of the tea produced are tea cultivators is maximising their in the world. Today, India has exported. Russia, UAE, Syria and output. Most of the tea produced in emerged as world leader in all even Turkey, who are the leading the region is black tea, while only a aspects of tea production, producers of tea also import a good proportion of it constitutes green consumption and export mainly portion of tea from Sri Lanka. It’s a tea. The bulk of the production is because it accounts for 31% of relatively small island and most of carried out in Java, especially global production. the tea is grown in two regions: West Java) Kandy and Nuwara Eliya. 7
7. Vietnam (116,780 tonnes) Hokkaido and regions in Osaka. 10. Argentina (69,924 tonnes) Owing to the differences in soil condition and climate, different regions are famous for producing different blends of tea. Shizuka remains to be the largest tea producing state in Japan, even today. Nearly, 40% of the tea that’s produced in Japan is produced in this area. Kagoshima region Vietnam has tea deeply rooted in Apart from mate, tea is a very accounts for another 30% of the their culture. The French invasion popular hot beverage in Argentina. production. Fukuoka , Kyushu and of Vietnamese helped the Locally grown, yerba mate is the Miyazaki are few other important Vietnamese industry to a indigenous tea grown throughout tea producing states. Out of all the significant amount. They helped the country. However, with tea that’s produced in Japan, only with the construction of factories reference to tea production the a small fraction of it is exported, and research in many areas. north eastern provinces of the owing to its large demand in the Since, then the tea industry has country is where most of the magic country itself and most of the tea grown from strength to strength. happens. Bulk of the tea that’s that’s produced is green tea. Most of the tea produced is actually produced in the country is grown in exported and only a fraction of it is these regions, Misiones Corrientes 9. Iran ( 83,990 tonnes) retained for domestic to be very specific. consumption. Just like Japan and China, Vietnam primarily produces The farmers depend on modern green tea. A lot of the tea, in fact is tools to assist them in all aspects of exported to China itself. The farming right from planting to plantations thrive in a number of picking. Naturally, a lot of the tea regions within the country. Some of that’s produced here is exported the most popular regions include and is a major source of foreign Son La, Lau Chua, Dien Bien, Land exchange for the country. The Son, Hi Giang etc. Initially, Iranian’s were inclined United States of America, United towards ‘tea’s’ bitter rival, coffee. Kingdom and couple of other 8. Japan (88,900 tonnes) However, due to the difficulties European countries is where most involved in obtaining coffee, of the tea is exported to, where the because of large distances to tea is primarily used for blending coffee producing countries, tea purposes specifically. was soon introduced in the country. Tea, was relatively easy to get as China being one of the largest exporter of tea was The reality is that in Japan, tea, is comparatively closer to coffee grown almost everywhere in the exporting countries. Iran, today is country. Although, it may not be the ninth largest tea producing grown for commercial purposes country in the world. Today most of throughout, but it’s capable of the tea that’s produced in Iran is being grown everywhere in the grown in the northern provinces on country, perhaps with the only hill slopes, similar to those in exception being, the Island of Darjeeling.
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NFO SPEAK
Fairtrade Foundation (FTUK)
https://www.fairtrade.org.uk/ As producer networks, we always welcome the market perspective from our partner National Fairtrade Organizations (NFOs). In this edition we feature -Amy Collis, Tea Supply Chain Manager at Fairtrade Foundation (FTUK).
Q. Could you tell us about the role of NFO in the Market front? Are they in a position to influence brands to source tea from specific regions? A. The UK is the largest market for Fairtrade tea, and we work with most of the large brands, retailers and packers selling in the UK to source Fairtrade tea from across the globe. Several of our commercial partners have made Fairtrade commitments, including M&S (100% Fairtrade certified own-brand tea since 2006 – and who are now extending this commitment to the tea sold in their in-store Cafes), Co-op (100% Fairtrade sourcing for their own brand tea since 2008) and Waitrose (100% own-brand tea since 2017). We also work with Clipper, the world’s largest Fairtrade tea brand. Most of the UK retailers (M&S, Co-op, Sainsbury’s, Aldi and Lidl) have Fairtrade certified tea ranges and our Commercial Partnerships Amy Collis, Tea Supply Chain Manager -Fairtrade Foundation team are working with them to find opportunities to (FTUK). increase their Fairtrade sourcing. We help our customers Amy has worked at the Fairtrade Foundation since April identify sustainable sourcing options and can advise 2018, originally in the Business Engagement Team them of the different opportunities and challenges in focusing on Fairtrade cotton. In this role, she worked different regions, however, most of our customers have closely with businesses to support them in sourcing strong relationships with their packers and tea suppliers Fairtrade cotton and in joining the Fairtrade system. She – who, in turn, have excellent knowledge of the different now works in the Supply Chain team as the UK Tea geographical profiles and qualities in the teas they are Supply Chain Manager and supports other supply chain looking for. colleagues on Flowers.
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Q. How is the current market situation for Fairtrade teas Q. There are many certification and sustainable labels on especially with other ‘Sustainability labels’ increasing the market. With Sainsbury’s choosing to source more of their market share? their tea under their own “Fairly Traded” pilot and other certifications and in-house labels appearing in the A. Only about 4% of the tea sold in the UK is sold as market, how can we improve positioning of Fairtrade tea Fairtrade. Globally, there has been a decline in sales of in the market as compared to other sustainable black tea as consumers appear to be favoring herbal products? infusions and other varieties of tea. There are many other certification labels now on the market, and this can make A. Sainsbury’s continue to be the largest retailer of it hard for customers to understand the differences in Fairtrade products and we continue to work with them what those labels mean. However, the FAIRTRADE towards their sustainability objectives. Further, the 100% Mark is one of the most well-known and trusted (with Fairtrade commitments made by several of our retailers 90% consumer recognition and 80% of people saying demonstrates that Fairtrade continues to hold a they trust the FAIRTRADE Mark (latest Kantar preferential position in the market and amongst end- Research, 2019 Q3)). Sales of Fairtrade tea have consumers. I think we must continue to work with our remained stable, despite market-wide declines, showing existing partners to increase their Fairtrade tea sourcing that consumers continue to choose Fairtrade. In recent and, at the same time, look to engage new partners and market research, 65% of customers also said they new market segments. We must also work to engage our thought that there should be more Fairtrade tea customers and campaigners and ensure that they available in stores, so there is certainly further room for continue to support Fairtrade and demonstrate their growth. support through choosing Fairtrade products when they shop. Q. What is the average sales of Fairtrade tea (in volumes) / per year in UK? Do you foresee any growth Q. Can you highlight few brands who are majorly in demand for FT tea from Asia in the coming years? sourcing Fairtrade tea from Asia? What are their interest What are the challenges? and expectation before building a supply chain partnership with any trader or producer? A. On average, around 5,000 – 7,000 MT of Fairtrade tea is sold in the UK each year. Many of our customers A. Clipper source the Fairtrade tea for their Organic source from Asian producer groups, for both their English Breakfast blend from Assam and Ceylon– they blended and specialty teas and this is likely to continue. source from 8 partner gardens in Assam and share the However, the landscape for tea production is very list on their website (https://www.clipper-teas.com/tea- challenging, particularly in North East India, with talk/what-is-assam-tea/). Similarly, Waitrose source increasing costs of production and changing demands, many Fairtrade teas from across India – including from as well as many long-standing sector-wide issues. We Darjeeling, Assam and from Sri Lanka. Retailers and are currently working to strengthen our Standards traders are looking for good quality and consistent through our Tea Standard and Pricing Review, with a supply. Most of our retailers have worked closely with the particular focus on forced labour, gender equality, traders for many years and, in turn, the traders have women’s empowerment, wages and on improving worked with us and with the producer groups, so this workers’ housing and labour conditions. We are also enables them to have good visibility and understanding undertaking research to understand the situation of of their supply chains. workers in North East India and hope to use this to shape our strategy and engage our partners to deliver more impact for producers working with Fairtrade tea. We also need to continue to promote Fairtrade tea and ensure consumers understand the value of Fairtrade and the impact that we have for producer groups through our Standards, the Fairtrade Minimum Price and the Fairtrade Premium.
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Q. What are the Fairtrade Awareness initiatives adopted by Fairtrade UK for increasing visibility and market presence of FT tea in your region? What are the main factors that influence the purchasing power of the end consumers? A. Fairtrade tea continues to be well recognized in the UK and several of our customers are proactive in their promotion of Fairtrade which helps to retain our profile. This year we are celebrating 25 years of Fairtrade – one of our first brand partners was Clipper - so we have some great promotional materials and on-pack messaging which will be in store in October! We are also hosting a big event for our key partners and customers to think about what we have achieved over the past 25 years, Q. and to think about what more we can do in the next 25. How can our tea producers improve their visibility in the Our social and media teams also regularly post content Global Market? Is there a potential for FT UK to facilitate about different Fairtrade commodities and feature POs meet market requirements? different brands, so this helps to raise awareness and A. We can work with NAPP to help identify market needs attract new customers. Price is a factor for consumers, and requirements and I hope that we can use our close and the market is competitive with other sustainability relationship with retailers and traders to facilitate long labels presenting consumers with more choices. term relationships with producers. We try to proactively However, I believe customers do appreciate the added connect our retailers with producer groups through joint value that Fairtrade tea offers and that’s why they trips, so that we can demonstrate the impact of Fairtrade continue to choose it. through the work done by the NAPP (and our other Producer Networks) and through projects funded by the Fairtrade Premium. Q. Can you give us a short brief us on the Tea Business Plans & Priorities for 2019? How can NAPP provide support in alignment with the plan? A. Our strategy for next year is to protect and grow our existing Fairtrade tea volumes by working with several of our existing partners, and by engaging some new customers. We will also be progressing our project work. Firstly, we will be engaging our stakeholders in the second round of the Tea Standard and Pricing Review consultation and will support them through the subsequent implementation of the new Standard requirements. Secondly, we will be progressing our research in North East India so that we can better understand what opportunities there might be to drive positive change in the tea sector for tea workers. We hope that this research will give us a platform to look for partnerships and collaborations that would enable us to take this further.
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RETAILER SPEAK
English Tea Shop, UK https://www.etsteas.co.uk/ Alongside brands, retail businesses play an important role in Fairtrade’s supply chain. They can enhance service and boost supply chain speed by improving upstream and downstream processes. They also play a crucial role in linking Fairtrade brands to consumers.
economically and sustainably. English Tea Shop is active in providing funding to local organic organisations in Sri Lanka, investing USD $186,000 in organic programmes in 2018, improving the lives of over 3,000 farming families in Sri Lanka and worldwide and enhancing the livelihood of over 400 individuals in the Sri Lankan factory.
Q. Brief Background of the Company and what makes it Suranga Herath- CEO, English Tea Shop sustainable. In this edition we speak with Suranga Herath from English Tea Shop. A global expert on the tea industry, Suranga A. English Tea Shop is a specialty organic tea brand Herath is CEO of English Tea Shop, one of the world’s which works with only the finest organic and Fairtrade farmers from all over the world to produce a special leading organic tea businesses which brings high quality, range of teas. It was founded on the principles of ethically sourced tea to customers all over the world. His Creating Shared Value (CSV), a concept pioneered by business has a 50% CAGR over the past nine years Harvard Professor Michael Porter. CSV is about whilst continuing to instil sustainable practices that achieving competitive advantage through a steadfast enrich the brand’s community. By doing so, Suranga’s dedication to sustainable development, and creating visionary leadership has led the way in sustainable value both for the business, and for the world at large. practices, inspiring other forward-thinking ethical food and drink companies to follow. CSV is about win-win situations. Putting the principles of CSV at the heart of all we do means we share value As CEO, Suranga implemented Creating Shared Value throughout our supply chain from seed to cup. This (CSV) as the business model for English Tea Shop which creates a robust link between our farmers, our is driven by the mantra of ‘trade instead of aid’. This employees, and those who ultimately enjoy our tea. means that English Tea Shop continues to work hand in Using the principles of CSV, we aspire to continually hand with farmers on the ground to encourage their improve society and the environment in a way that entrepreneurism and helping them to grow their business results in a competitive advantage for English Tea Shop.
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Our unique and innovative Creating Shared Value model Q. When it comes to creating a brand awareness for your focuses on achieving economic, social and Fairtrade tea what are the main challenges and concerns environmentally sustainable outcomes by empowering of consumers? our supplier communities and our own team of 400+ business people. Our model also works to improve the A. Fairtrade has achieved a lot to make consumers stop, lives of over 3,000 farming families in Sri Lanka and consider and care where their food, drink, clothes and worldwide. jewellery comes from. Inspired by Fairtrade, and consumer demand for ethically sourced products, there Q. How has your brand journey been so far? How has is an emerging trend for manufacturers to develop their the journey with Fairtrade sourcing been so far? own sustainable sourcing models, even the likes of Tesco and Sainsbury’s are following suit. From A. Our mission is to make organic farming an attractive experience, a proactive commitment to sustainable and profitable business. We achieve this by sourcing is to be applauded, setting up an entirely new guaranteeing that our minimum prices are always well sourcing model – and doing it well – is no mean feat. I over Fairtrade minimum prices and market prices. speak from experience of converting English Tea Shop Growth in terms of Fairtrade Premiums has increased to run on a Creating Shared Value model throughout our 30% year on basis for the last three years and the supply chain from seed to cup. The impact of creating percentage of Fairtrade SKU’s on the core range will be and implementing our own sourcing model has been increased to 20% from current 10%. profound not only for the farmers but for our business and all those in our community.
Last year we sponsored 44 farmers to obtain Fairtrade Q. What do you do to promote Fairtrade? certification by spending over €2,500 in farms in Morawaka, Sri Lanka. During the year, the total number A. English Tea Shop ensures to promote Fairtrade in all of Fairtrade farmers we worked with grew from 730 to correspondence to media, ensuring to amplify our 842. partnership where possible. As well as this, all our
packaging carries the Fairtrade logo, communicating our strong partnership to consumers.
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Q. Do you see a trend in consumer awareness and preferences for ethically sourced products? What factors do you think are important to consumers when buying tea?
A. Consumers are becoming much more ethically conscious nowadays and from day one, this has very much been a strong focus for English Tea Shop and one we are always striving to highlight to our consumers. When it comes to factors that are important to consider, it’s vital that shoppers are aware that our teas are sustainably packaged. We’ve worked extremely hard to make our packaging more sustainable and all new lines launched after 1st January 2019 are free from single use plastics. To avoid short term measures, like adopting corn starch-based PLA pyramid bags and other PLA packaging which isn’t compostable, we have a sophisticated long-term approach. Currently, over 80% of items we use are compostable or multi-use and recyclable. Our aim at English Tea Shop Q. How can NAPP extend its support for further is to increase this by 5% year on year. strengthening the supply chain?
A. The Network of Asia Pacific Producers should work Q. In terms of quality and volume what do you expect towards establishing processes and procedures to help from your supply chain partners? farmers drive down costs and enhance efficiencies. Currently, in certain cases, Fairtrade minimum prices are A. From any supply chain partner quality and volume is at times below the cost of production. key, but there are two things that are key for us. At all times we expect our partners to ensure that all our Q. Are you working with any producer organizations to products are consistently premium, something that we diversify and strengthen your supply chain? are famous for. A. At present we are working with a few producer Secondly, growth in year on year volumes, consistent organizations to help us launch some innovative and with the long-term forecasts we share with our supply exciting NPD for 2020. chain partners is essential.
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PRODUCERS SPEAK
JALINGA TEA ESTATES;
FLO ID 29907
Major Country of Export: Japan, Taiwan, Sri Lanka, USA and all European Countries. www.jalingatea.com
Q. Can you tell us about the history of tea production in your region?
A. After two decades of the discovery of tea in the Brahmaputra Valley, the Barak Valley was also added to the tea producing regions. Cachar was invaded by the Ketan Patel, Director, Jalinga Tea Estate British in 1832. At that time the jungles and hills of the area were covered with the indigenous tea plants. The Ketan Kumar Patel is the Director of Jalinga Tea estate Governor General of North East Frontier, David Scott, and is the 3rd Generation in family tea business. He collected some specimens of the indigenous tea plants completed his MBA from Northeastern University, of Cachar and forwarded to the 51 Government of Boston and worked at Fidelity Investments in Boston & Bengal. He found the Government attaching importance Weikfield Foods, Pune as GM Exports. He joined the to the discovery in view of its growing unfavourable family business in 2010 and got it certified organic and got into exports. He started Miracle Tea & Spices Co. in relations with China. The Tea Committee subsequently 2012 for organic export trading & currently does approx. found that tea plants were sufficiently available on hills $ 3million turnover. Jalinga Tea Estate bought 50% over and low- lying jungles of the Brahmaputra and Barak in 2016 from uncle & currently exports approx. $2million valleys. turnover under Jalinga Tea Co (I) Pvt Ltd. In February 1855 R. Stewart, Superintendent of Cachar, With a passion for climate & social sustainability he forwarded some specimens of Cachar tea plant to started the 1st Organic & Fairtrade SPO Tea project in Assam. ‘Jalinga Tea Run’- a CSR annual project in 2nd Calcutta Botanical Garden. They were recognized as year is JTR 2.0 Paradise Music Festival to be held from genuine tea plant. The committee then resolved to begin Jan 24 & 25, 2020 with an expectation of approx. 400 tea plantation in Cachar. The Board of Revenue on 12 people for a two-day fun festival. The CSR this year is to January 1866 decided to grant land for tea cultivation build a home/school for special autistic kids at Jalinga. under the Assam Rule of 1854. The Superintendent of Jalinga Climate Tea Research Foundation (JCTRF) is a Cachar then invited applications for undertaking tea non-profit initiative, focused on doing extensive R&D to produce tea in a climate friendly way aiming at carbon cultivation in Cachar. G. Williamson, Superintendent of emission reductions and also earning Carbon Credits Assam Tea Company, and J. Graham were some early with joint partnership with Atmos-fair, Germany. applicants. 15
Williamson happened to be the pioneer of the tea cultivation in the Barak Valley, who was offered the first grant of 742 acres of land in Burrahangur in May 1856 for a period of 99 years. Along with this the tea cultivation began in Cachar. The profit earning by the pioneer planters attracted the attention of a number of capitalists who applied for the grant of wasteland. By 1861 A. D. the Government issued 54 tea gardens regularly covering 80,000 acres of land under the Assam Rule.
Q. Pls provide a background on the work of Jalinga Tea Estates in the Fairtrade tea supply chain? What makes it Figure 1Distribution of Reuseable aluminum bottles to workers uniquely sustainable and the challenges therein?
A. Jalinga tea is the only supplier of 100% organic Their life has improved since becoming involved in Fairtrade tea from Cachar-Assam. We supply to global Fairtrade as now they are living healthier lives with a giants like Spicers, Honest Tea, Starbucks, Lifebrands, better quality of life due to the various Fairtrade projects Nerada tea, Everton, interTee, Typhoo, Amazon Teas, which the Fairtrade Premium Committee (FTPC) English Tea Shop, Halsen & Lyon, Horng Yih Tea, undertakes with the Fairtrade premium funds in Madura etc. consultation with all the workers.
Q. When and why did the Organization get Fairtrade The community has become much more aware of their certified? What changes did you make to become rights and duties as workers. They have also become Fairtrade certified? What has been the benefits received very confident in expressing their feelings and opinions. post the certification? It has also enabled some of them to develop leadership A. We got Fairtrade certified in 2014. We were following skills which is amply demonstrated by two women most practices required by Fairtrade, but Fairtrade gave members of the FTPC standing for the post of head of us a system to document it and standardize it as per the local panchayat. Today one of them is the head of international standards. One area where Faritrade was the local panchayat which did not had a single female of great help was their insistence on training of the member till very recently. workers in various aspects like health and hygiene, work safety, worker empowerment etc. The certification has helped us showcase our environment, ecology and worker friendly practices to the world. We were all these even before we got certified but the certificate gave us a global forum to blow our own trumpet.
Q. What is the importance of Fairtrade tea to the workers in Tea Plantations? How has their life improved since becoming involved with Fairtrade? Can you explain the changes you have seen in the community? A. The importance of Fairtrade tea to the workers is that now they are taking great pride in producing the tea in a system which is globally recognized. Following of the Fairtrade system has not only made their work life easier but has even helped improve the health and hygiene of their entire family as well as improve the quality of their Figure 2Soma Mal and Roma Gonju-FPC committee members who lives. stood for elections
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Q. What are the different types of tea that the plantations Q. Where are the various sales channel implemented by supply? How much of the products are sold on FT terms? the organization to penetrate the global retail chains? Do you have a market for volume unsold on Fairtrade How can you scale up for this type of distribution? terms? A. We do direct exports to end users as well as to re- A. We supply Indian Organic CTC Black Tea, Indian packers as well as through trade partners. Organic Orthodox Black Tea, Indian Organic Green Tea, Indian Organic WhiteTea, Indian Organic Oolong Tea, Q. Can you name major retails brands that you are Indian Organic Black Tea, Indian Organic English currently supplying to? Is there a growth in demand? Breakfast Tea. We sell about 150 mt of our 900 mt total A. We supply to retail brands like Starbucks, Typhoo, production as Fairtrade Tea. Lifebrands, English Tea Shop, Clippers, Honest Tea etc. We have a market for the volume unsold on Fairtrade terms. Q. Is there any message you would like to share with other plantations who aren’t involved with Fairtrade?
A. My message to other plantations who aren’t involved with Fairtrade is “This is a system which works to the benefit of the plantation and its workers. Please adopt the same at the earliest for your workers upliftment”
‘’Fairtrade has brought a very big change in Jalinga. Being in a backward part of Assam, the Fairtrade premium has helped
to change the lives of our workers in many ways. Their health has been in focus with the no-emission stove and the quality provisions that they have got access to. There is a significant empowermen t in our women population. As you know, 60%
of our workers are women and we have seen great improvements in their confidence levels, ever since they were involved in the Fairtrade premium committee. A couple of them even stood for the local Panchayat elections and one of them won. They have learnt to take charge and make decisions. We are also planning to go beyond tea and venture into spices, honey, herbs etc. We are also assisting small producers
around Jalinga, because we believe in extending our knowhow for the benefit of the community as well, and we will help them also to avail the benefits of being Fairtrade certified’’. Ketan Patel, Director, Jalinga Tea Estate
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PRODUCERS SPEAK
Stassen Natural Foods (Pvt.) Ltd Idulgashina Bio Tea Garden, Sri Lanka; FLO ID 1550 www.stassentea.com
Q. Pls provide a background on the work of Stassen Natural Foods (Pvt.) Ltd. (Idulgashina Bio Tea Garden) in the Fairtrade tea supply chain? What makes it uniquely sustainable and the challenges therein? No. of farmers in the organisation? In conversation with R. Gnanasekaran, Project Manager of Idulgashina Bio Tea Garden, Sri A. Stassen Natural Foods, a member of the Stassen Lanka. Group moved into organic many years ago and in 1987 earned the distinction of having the world’s finest R. Gnanasekaran is the Chairman of Network of Asia certified organic tea garden. The Export Development and Pacific Producers (NAPP), Fairtrade Producers of Board of Sri Lanka conferred pioneering status to Sri Lanka, National Network of Fairtrade FPASL and Stassen having to produced the first organic tea in the Grand Smile Foundation (Support for the disable Senior country. The garden consists of 16 tea smallholdings Citizen). He is also the General secretary of Gayathri with a total extent of 350 hectares. These gardens are Peedam International Trust, Justice of Peace in Sri situated just below the famous Horton Plains, Lanka and Adviser of Lankananada Educational Trust of Sri Lanka. In addition to this current roles he is also a geographically at the Heputale- Beragalle summits of Member of Public Service Commission, Uva Province, Uva province in Sri Lanka, producing world famous Sri Lanka, Wild Life and Nature Protection Society of Sri special Uva tea flavor. The elevation varies from 1000 Lanka and Bio Dynamic Farming Association of India. meters to 2000 meters. The factory is situated at the top of the Haputale Horton Plains Mountain range at an elevation of 1800 meters, producing 200 mt of black and green tea, which possesses a sharp and refreshing taste.
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Idulgashinna Organic Tea Garden by Stassen Stassen Natural Foods (Pvt) Ltd is the pioneer producer of certified Organic Tea worldwide, and the tradition of certified organic cultivation continues today at the Idulgashinna Bio Tea Garden, which produces the best quality Organic Black Tea, Organic Green Tea, and Handmade Organic Designer Tea varieties. Classified as Uva High at an elevation of 1800m, the estate is found within Haputale in the Uva Province. The green and black teas harvested from the upper ranges possess a sharp and refreshing taste.
Q. When and why did the Organization get Fairtrade Q. Is the production likely to increase or decline in the certified? What changes did you make to become coming season? What are the major challenges? Fairtrade certified? A. The production will be increased due to our buyers request. The main challenges faced is in terms of pricing A. The organisation for Fairtrade certified in 1994 on and maintenance of quality. requests from our buyers. We organized Premium committee and trained them to manage the premium Q. What are the major countries of export? funds independently. A. EU, USA, Australia, China, Japan Q. What is the importance of Fairtrade tea to the workers in Tea Plantations? How has their life improved since Q. Can you name major retails brands that you are becoming involved with Fairtrade? Can you explain the currently supplying to? Is there a growth in demand? changes you have seen in the community? A. Stassen, Q Trade . There is a growth in demand for A. The workers have gained Dignity, independence, premium quality tea. Freedom & equal Rights, Better housing & Health. Q. Is there any message you would like to share with Q. What are the different types of tea that the plantation other Tea Plantations who aren’t involved with Fairtrade? supply? How much of the products are sold on FT terms? A. My message to Tea Plantation Management:- Due to A. Idulgashinna Bio Tea Garden produces a range of increase in improvement in standard of life the attitude of teas that are 100% organic and 100% natural, and workers will be changed, thereby leading to increase in includes a premium selection of black, green, output of work. The quality of product and environment flavoured, and designer teas that are in demand by an eager and expanding client base across the world. will also be increased. To Workers:- Fairtrade will lead 20% of the production have been sold under Fairtrade. to Quality of life, Better living condition, Environment and great future for Women & Children
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NAPP CONSULTANT SPEAK Tea being a high-risk commodity in any certification scheme, no doubt continues to gain a lot of media speculation over the years. We recently interviewed NAPP Program Manager – Subhra Prakash Tudu to understand the ground reality and the challenges therein, positive changes brought about by Fairtrade certification for tea plantation setup, and major activities being implemented by NAPP for risk mitigation and improvement of overall conditions in hired labour plantation set ups.
The introduction of the Assam tea bush to Europe is related to Robert Bruce, a Scottish adventurer, who apparently encountered it in the year 1823. Bruce reportedly found the plant growing "wild" in Assam while trading in the region. Maniram Dewan directed him to the local Singpho chief Bessa Gam. Bruce noticed local tribesmen (the Singhpos) brewing tea from the leaves of the bush and arranged samples of the leaves and seeds from the tribal chiefs, which he planned to have scientifically examined. Robert Bruce died shortly thereafter, without having seen the plant properly classified. It was not until the early 1830s that Robert’s Subhra Prakash Tudu- Program Manager - NAPP brother, Charles, arranged for few leaves from the Assam tea bush to be sent to the botanical gardens in Subhra Prakash Tudu has been working with Fairtrade, Calcutta for proper examination. There, the plant was since 2011, and closely engaged with Tea Producer of finally identified as a variety of tea, or Camellia sinensis Assam and Darjeeling. Prior to joining NAPP, he was var assamica, but different from the Chinese version actively engaged in working on social issues of Tea (Camellia sinensis var. sinensis). Workers of Terai and Doars region in North East India for over 15 years The cultivation and production of Assam tea in the first two decades (1840–1860) was monopolised by the Q. Can you tell us about the history of Tea Plantations Assam Company, which operated in districts of Upper set up in Asia? Assam and through the labour of the local community. The success of the company and the changes in colonial A. Tea planting in the Indian district of Darjeeling began policy of offering land to the tea planters (Fee simple in 1841 by Archibald Campbell, a civil surgeon of the rules) led to a period of boom and expansion in the Indian Medical Service. Campbell was transferred as Assam tea industry in the early 1860s, but these could superintendent of Darjeeling in 1839 from Kathmandu, not necessarily be translated into a dramatic shift in Nepal. In 1841, he brought seeds of Chinese tea plant production (from China to Assam) due to the "makeshift" (Camellia sinensis) from Kumaun and began nature of plantations, poor conditions of life on plantation experimenting with tea planting in Darjeeling. The British (huge rates of mortality and desertion), and also at times Government also established tea nurseries during that the presence of pure speculative capital with no interest period (1847). Commercial development began during in tea production. Most of the tea estates in Assam are the 1850s. In 1856, the Alubari tea garden was opened members of the oldest and most prominent body of tea by the Kurseong and Darjeeling Tea company, followed producers of India. by others.
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Q. What has been the main challenges (past and current) The age old marketing system of Tea, is unlike in adopting the Fairtrade model across plantation set up commodities, which passes through an organized as opposed to SPOs set up? system of Auction. Lion share of the revenue from Tea, are held by the customer facing market players, while the A. Tea industry in the North was set-up through an Producers are left with minimum share of the revenue, aggressive process to serve the colonial market and thus a very small amount of the revenue is passed-on to foster economic growth favouring the colonial rule. the workers. The market players, do not have any Introduction of Wasteland Act 1857, displaced the liabilities towards the workers, thus compelling the sovereignty of the locals, through indiscriminate producers with smaller share of revenue, to be solely accusations of their lands for tea plantations. Secondly, responsible for the workers, which is changing the alluring the famine and poverty ridden regions of central preference of investors, to withdraw their investments India, targeting the tribal populations, for better livelihood from Tea Producing to Tea Trading. in the Plantations, and restricting the movement of migrated tribal population in the Plantations, were Q. Do you see any positive impacts and changes foundations, of establishing the Tea Plantation in the implemented in the past decade? North, during the colonial rule. The era of introducing Tea Plantation in the North was also coined with the term A. Yes, there has been very important changes in NEI- Planters Raj, which incorporated introduction of policies, Tea space. Media has played an important role, to cover systems and practices, to crush the self-sufficient the dismal stories of Tea Workers of Assam and economy of the locals, threatening and exploiting the Darjeeling, and broadcasted the challenges of migrating tea labourers, changing the demography of the plantations workers. This has acted as virtual pressure region, and propagating imbalance in the natural point, for Govt., Human Right activists, CSO and vegetation of the region. Certification agencies, to frequent their talk, and network, in favour of the workers. The Govt. of Assam and Govt. Independent India made attempts to transform Planters of West Bengal, issued notification for wage increment, Raj to Swaraj for workers, by introducing the first for the first time in recent history, when the demand for legislation in favour of the workers- the Plantation Labour increased wage proposal could not be settled through Act 1956, which recognised the poor conditions of CBA. The Govt. of India, has a draft policy on National Plantation workers and held the Plantation owners Minimum wage and Occupational Safety, for workers. responsible to adequately support the basic needs of Raising of market demand for certified tea, has workers. encouraged the producers to adopt various certification schemes for their Producing sites, which has introduced Though, the legislation ensured relief to the workers, but third party monitoring, on social and environment the century old social and economic setting for the Tea compliances, and also assisted to focus the attention of Workers, and the remoteness of Tea Estate locations, Tea companies on social and environment compliance, denied the tea workers, the basic access to education, while they produce quality tea from their factories. health and freedom to choose alternative options for livelihood. Control and regimentation of workers, are Q. What is the importance of Fairtrade tea to the workers usual practices for Management of Plantation work- and small holders in Tea sector? How has their life force, believed from the past, to discipline the working in improved since becoming involved with Fairtrade? Can the Tea Estate, and ensure retention of workers. you explain the changes you have seen in the community? Challenge in a Plantation, has always been to restrict the workers in the tea Estate, in a condition when physical A. Fairtrade has proved to be of immense importance to restriction in the Tea Estate is not possible, therefore the workers. Social compliances in the Tea Estates have restriction on access to economic resources, and social been strengthened, though the legislation has norms, remain the only means to condition economic provisioned for statutory social compliance, but due to restrain and downgraded social status, which restricts the poor monitoring of compliance by the Govt. agencies, the power of movement of workers, with the ultimate it has been a regular non-compliance on the distribution motive of sustaining the labour supply from generations of the statutory entitlements, specifically the in-kind of ONE community. benefits, to the workers, on the pretext of poor cash flow of the Tea Companies. Fairtrade certification, has ensured timely distribution of the in-kind benefits to the workers.distribution of the in-kind benefits to the workers.
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Q. How can we improve positioning of Fairtrade tea in the market as compared to other sustainable models?
A. Strengthening of FLO-cert audit system as regular announced audit have not always been very effective to identify the issues, though there are various challenges of time constrain for auditors, language and makeshift set-up during audit and findings justified commonly as, ‘findings of audit as on audit dates’. Intensity of unannounced audits could be increased for Plantation, on the pre-text of high risk commodity. Few focussed audit on subjected Risk, should be introduced, eg. if Occupation Health and Safety is a Risk, audit should be Fairtrade has influenced a major change in the social focussed ONLY to cover compliance on OHS. FLO-cert conditioning of Tea Estates, by promoting constructive should have access to all relevant agreements, deliberations between common workers and notifications and legislation, on statutory compliance, to management, which was otherwise restricted between ensure statutory compliance, beyond the specification of Workers representatives in the Trade Union and Fairtrade Standard. Management, to negotiate & bargain on workers statutory entitlements. Fairtrade has introduced an Fairtrade International and NAPP, should facilitate at additional participatory space to workers to deliberate least one annual interface between Market Players and with management, and take their guidance, on Fairtrade Producers, to interact on the challenges, and agree on Project planning and implementation. The standard common actions. process of Fairtrade Premium planning and implementation, has inculcated a sense of confidence, Market communications from NFO, should include the self-dignity and self-determination, among the workers. challenges in Tea Estates to end consumers, so that the It has facilitated a scope for common workers to practice challenges when broadcasted through independent their leadership skills, which otherwise was restricted to media, does not appear to be a shocker to Fairtrade the space of highly politicized Trade Union activities. consumers, and with assistance from PN update the Access to financial Resource in the form of Fairtrade changes influenced through Fairtrade certification. Premium, has helped the workers to compensate few of their basic needs like Children Education, Family utilities, Tea should be removed from Tier 2 product category of community resources, Fairtrade, and focussed as special category, to earmark investment for improvement in the Tea Sector, and have Q. Has there been any reform in the labour practices in a Global Tea Strategy and Global Commercial Plan for the plantation sector. Tea, to enhance FT Sale in existing market and develop new markets. A. There have only been some Legislative reforms in the Labour Practices in the Plantation sector. The Plantation Q. Pls provide a brief on the NAPP Tea Strategy and Labour Act.1956, stand as the principle legislation for the Plan 2019 aiming at improving social, economical and Plantation Workers, which has been amended only once environmental developments across Fairtrade in early 1980s. Though, in the recent years, with the Plantations and SPOs. introduction of National legislation against Sexual Harassment at work place, and legislation on prohibition A. . NAPP Tea Strategy and Plan 2019, has focussed of Child Labour, has geared-up additional management on enhancing the knowledge and skills of Workers and provisions for compliance to this legislation. The Management on various topics - (i) Child Protection and introduction of Modern Slavery Act, in few market Child Labour (ii) Gender Based Violence (iii) countries, has also compelled the focus of brands and Occupational Health and Safety (iv) Fairtrade Premium retailers, of relevant market countries, to increase their Project planning and Fairtrade Premium Committee enquiry on social compliance in their respective supply Governance. We continue to provide guidance on Pre chain. and Post-audit, Training on Fairtrade Support and Mock- audits to empower the workers and management, assist in identifying the gaps in compliance and introduce self- monitoring systems in the Tea Estates.
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Q. Can you highlight some major activities implemented by NAPP to improve employment conditions and protect the rights of workers on plantations and to support members of smallholder organisations in gaining more control within the tea supply chains and increase their incomes.
A Mock audit and FLO-cert audit analysis has been an important tool introduced by NAPP to identify the existing risks of non-compliances and also highlight the recurring non-compliances. From the past FLO-cert audit reports, this has intensified Board Room meetings of senior management of Tea Companies, to improve compliance in the Tea Estates. Training on Gender, Child Rights and
Child Protection, Occupational Health and Safety has enhanced the knowledge of workers and management on the legislative provisions and empowered them for compliance.
Q. Tea being the highest risk commodity in the Fairtrade system, how can we as a part of the system contribute to mitigating such risks in the long run?
A. The focus of engagement on Tea, should be shifted from the consideration of revenue earned from the commodity to the consideration of large numbers of worker benefiting from Fairtrade. Increased Fairtrade resources should be invested on improving the conditions of Plantation workers to foster change. Subhra supporting the visit of John Loughridge – Chief Value Deeper understanding of the root causes of the Risks officer of FI at Chamong Plantation to understand the production and appropriate actions should be channelized in the and marketing challenges of the Tea Industry, major challenges right direction. being low sales volume of FT certified Tea. .
Q. Are there any plans for climate change adaptation projects in the coming years? A. Yes, NAPP is in contact with Tea Research Association, which is the nodal agency to conduct research and recommend appropriate farm practices on improvement of Tea. TRA already have various research findings on climate adaptation practices for Tea Cultivation, NAPP would partner with TRA for dissemination of the technical know-how to introduce climate adaptive farm practices for Tea.to introduce climate adaptive farm practices for Tea.
Q. As a part of Producer Network managing the tea sector is there any message you would like to share with our Fairtrade partners?
A. Let us continue to remain focussed and committed to transform the lives of Tea workers, who contribute more than 60% of Workers, from the Fairtrade certified Plantations, around the Globe.
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GOAL 1: STRENGTHENING OF PRODUCER ORGANIZATIONS
1. Annual Trainings on Awareness of Fairtrade Standards, Principles and Certification .
No of Trainings conducted: 05 To aim at reducing Non-Conformities to zero No of Producers Trained: 42 across India, China and Sri level during audits against requirement on FTP Lanka management and to support producers in facing the audit confidently A 03-day intensive and Interactive Annual workshops organised by NAPP Producer Support Representative Sessions Covered: covering overall sessions on: General principles and requirements of Objective: Fairtrade including the minimum price and the Fairtrade premium To keep the Producers updated on the current Introduction of Participatory tools and HL and SPO Tea Standards, principles techniques and providing space for participants underlying the standards: management of FT to practise these tools. premium, freedom of association and collective Fairtrade standards on Trade-including trading bargaining, working conditions and certifications contracts, traceability, product sourcing and use of Fairtrade system. of the Fairtrade mark To empower and strengthen Fairtrade Officers Governance support (Roles & Responsibilities who stand as the main pillars of the Fairtrade of board, constitution) system Certification advisory training: risk management Build capacity of worker representative on Access to markets and supply chain services. Participatory planning and management of FTP Fairtrade Development Plan Projects and assist in enhancing the compliance ICS- Child labour and child protection, YICBMR requirements on FTP management. ICS- Occupational health and safety To enable producers to unlearn and cross learn from each other and aid in building a strong and ICS- Organizational management of Fairtrade sustainable model for FTP projects; to empower Premium; Premium Committees and Fairtrade workers to be able to generate potential ideas Premium/Organizational Development plans for FTP project in order to bring actual change. Sharing of existing practises in different Tea Estates on Premium Management, enlisting and To implement a sustainable in-house system for workers and management and motivate them to observing of the best practises of FTP be able to perform their roles successfully as a management part of the Fairtrade system, ICS- Hired labour conditions and rights, labour legislation and labour rights; labour legislation
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and negotiation skills, freedom from 2. Training on Fairtrade discrimination, sexual harassment; freedom of association & right to collective bargaining. Consultation on Standards and Pricing Reviews Impacts: Better understanding of Fairtrade Standards and Principles among the management and workers The Management would conduct follow-up training for FPC members in their respective Estates, to disseminate the learnings, so that the members are able to execute their roles effectively, make use of the tools and practise the process of engaging maximum workers in the decision making, implementation, monitoring and evaluation phase of the project. The Workers were enabled to disseminate the Fairtrade Standards on Tea and Pricing Review is a learnings and facilitate process for engaging all crucial component of the global tea strategy. the workers in FTP project decisions and No of Trainings: 04 Consultation workshops were monitoring. organised by NAPP for the Fairtrade tea producers in Better knowledge on certification process and Asia to brief them on the proposed changes on standards preparation for audits, more confidence to face and pricing. audits Collectively work towards reducing Non- No of Producers: 44 Tea Plantations; 16 SPOs and 17 conformities. Plantation workers Strengthening of producers on FTP Region: Asia Management. The participants had the opportunity to discuss Objectives: on the best practices and challenges in the Estates, they were introduced to efficient and The main objective of the training was consultation on : prospective tools to aid them in generating Standards Review: collective opinions on deciding FTP projects. Review and analyse outstanding issues included on the monitoring log for both the Tea Overall Challenges: Small Producer Organizations (SPO) and Tea Interpretation and perspectives of the different Hired Labour (HL) standards. auditors during the audit. Consult on the inclusion of floor wages, improving working and housing conditions Time constraint: Negotiating adequate time among other topics. during working hours between the Management and workers, to facilitate discussions and Seek solutions from stakeholders to resolve brainstorm around FTP utilisation. standard related issues Over workload of Fairtrade officers in addition to Consult on solutions with relevant stakeholder the current certification work. groups. Ensure consistency in standards by aligning Fairtrade Premium committee setup is mostly changes in all tea standards in particular dominated by workers and FTOs & Fairtrade Standard for SPO, Fairtrade Standard Management team feeling uncomfortable in few for HL and Fairtrade Trader Standard. incidents. Improve standard language for better clarity and Different mind sets of participants during simplicity. training. Most of them are seem to ignore or delay their task as they feel it’s an additional job Develop final proposals for Tea SPO and HL for them without remuneration. Standards for approval by Standards Committee (SC). 25
Pricing Review: Opportunities: Collective and transparent decisions: Multiple options and more suggestions to rectify a common issue, collective inputs to arrive at the calculation of a fair price for the tea producers.
Collect data on costs of production using technical tools and workshops. Explore the impact of floor wages on the overall costs of production Compile, validate and analyse collected cost of production data. Review of the Premium setting model and mechanisms.
Develop the price and Premium proposal for consultation with stakeholders & for decision to Impacts: the Standards Committee Premium proposal for consultation with Members were capacitated to plan their stakeholders. compliance as required through the changes in Publish the new Fairtrade Minimum Prices and the SPO Standard. Fairtrade Premium. The participants were aware of the proposed changes in the Tea Standard, and were given an
opportunity to contribute their feedbacks and Activity: suggestions. The Activity was a collective consultation process in order to lead into a feasible and fair Standard for Tea. Strengthening of POs.
Challenges: One of the major challenge faced was the proposal for introduction of Floor Wage in the Tea Sector. The industrial set-up provides for a wage setting mechanism, which seems to be defeated by the effort of setting of Floor wage by Fairtrade International.
The main changes for SPO Standard was introduced to the members along with the proposed changes to be included in the Tea Standard. Feedbacks were sought from all the members for the proposed changes. Separate consultations were held for Workers and
Management.
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GOAL 2 DEEPENING IMPACTS THROUGH SERVICES AND PROGRAMS
1. Project on Improving the quality of green leaf in Fairtrade certified Tea Gardens in Sri Lanka
Objective: improvement of processes in the tea factory. Participants who were convinced of the proposal were encouraged to The entire Sri Lankan tea industry has been facing a volunteer and support the standard of green tea leaf, regular problem with regard to the standard of green tea thereby improving productivity of the entire supply chain leaf, i.e the loss of productivity in the entire quality chain from field to tea factory. from the field to the point of dispatch in the Tea processing centres. Mr. Nimal Udugamapola- a former Tea commissioner of Sri Lankan Tea Board, with a vast knowledge in Therefore, on the request of the tea producers, NAPP regulatory and quality aspects in tea industry was has initiated a program with a strategy to improve the tea assigned as a consultant to this project. manufacturing standards in Fairtrade certified group of tea factories. Improving the standards of green tea leaf Following the meeting, Idalgashinna Organic Tea could bring about a dramatic turnaround in the overall Garden was selected as the pilot Estate for the project. productivity of the entire quality chain. On July 24, 2019 the green tea leaf assessment In order to develop the strategy, NAPP will select one procedure being carried out in the tea factory was Tea processing centre as a model for other Fairtrade reviewed and samples were assessed and recorded. factories and the entire national tea industry as opposed to taking up all 25 gardens at once. Depending on the On July 25, 2019 the first classroom training session success of the model, other producers may replicate it. was conducted. The participants were given a detailed This was the same strategy adopted in the star quality description about the mechanism of the task. 25 small improvement and implemented by the Sri Lanka Tea farmers were selected from the Maduwelpathana supply Board about a decade ago and it proved a success. area, the area from where the largest quantity of bought leaf is supplied. The task will initially concentrate on On the 7th of June, 2019, NAPP presented a project these 25 suppliers. Once their leaf standard is raised to proposal to all Tea Estate Managers on “Green Tea Leaf 80% and above and sustained the second batch of and Productivity’’. The main objective was to :- enlighten suppliers will be selected and the same procedure will the participants on the impact of standards on the continue. increase in production of green leaf in the field and
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In the Idalgashinna estate Dunkanda division was 2. Upcoming TRA Training for selected to initiate the task for estate leaf. In the afternoon when the leaf plucked from this division was Fairtrade certified Tea Gardens of brought in individual pluckers leaf were assessed. With Assam on the assessment results the pluckers were introduced to ‘Climate Adaptive Agricultural the task. The pluckers were informed about the payment of n incentive similar to the small growers whenever they Practices, Water Harvesting and attained the required leaf standard. In addition, an Adaptation of Mitigation attendance incentive will also be paid to them. Measures’
In the evening the staff accepting the leaf was trained in theprocedure for the acceptance and assessment of the The training is scheduled to take place form the 18th to first ever batch of leaf supplied by the targeted small 20th, Dec 2019 and will be conducted in a joint growers. The assessors were taught about the tabulation collaboration with Tocklai Tea Research Association, and transmission of data. which looks after the research and development needs on the Indian tea industry. It is the oldest and the largest July 26, 2019 tea research institute in the world and carries out and A seminar was held to introduce the task to the targeted promotes research with the principle objective of 25 small growers. Immediately after the seminar a meeting for the field staff was held where their role in the improving overall productivity and quality. task was explained to them. Participants: Management officials of the FT certified Tea gardens of Assam. Members of the field staff was instructed: 1. To allocate for themselves 5 small growers each and Objectives: be responsible for providing leadership for the allocated small growers in achieving the required leaf standard. An in-house training with a proposed field trip for 2. To convey the leaf assessment results to respective practical training and implementation. individual small growers before the next plucking date. Climate Change and its Impact They are to meet the small growers with the results and Meeting the Challenges of Climate give them the necessary advice to achieve the target leaf Change through Adaptation Strategies standard. Soil Management
A progress review meeting will be held with the targeted Integrated Pest & Disease group and the field staff in the first week of September, Management 2019. Integrated Nutrient Management from GAP Perspective “The strategy basically involves changing the current Abiotic Stress and Sustainability Issues mindset of people (from top managers or land-owners Rain Water Harvesting to pluckers) from producing mature, damaged leaf to a new mindset of producing immature undamaged leaf. Changing the mindset of people is called 'Paradigm Shift' Impacts: and it is not easy to bring them about unless the need is Development of climate smart agricultural felt and there is absolute and total commitment to bring practices about the change. Accordingly, I think it is best to start Reduced carbon footprint/green-house gas with an introductory presentation on the methodology of emission this strategy to the management and the staff Development of micro-climate of Idalgashinna tea factory and get their views about its Improved soil fertility acceptability and practicality. Alternatively, the presentation could be made to the Board of Directors of Improved production NAPP. Thereafter, a decision could taken about committing money and other resources to this activity”
Mr. Nimal Udugampola
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Producer support in areas that go beyond standards compliancE
1. Supply Chain, Occupational 2.Training on participatory Health & Safety Training for Planning, Monitoring and Management of Tea Plantations Evaluation (PME) for tea garden in Darjeeling, India workers in Assam, India
Objective: To sensitize Management Staffs on the need to include Occupational Health and Safety standards, as their core responsibility and how such lapses can affect productivity. To educate Management Staffs on technical know-how about Occupational Health and Safety. To enhance the skills of Management Staffs on understanding all the Risk & Hazards, assessing the Risks, and observe adequate mitigation A three-day training programme on Participatory Planning, plan, in consultation with the workers. Monitoring and Evaluation (PME) was held at Assam, An external Consultant was hired to deliver the training India from 6th March, 2019 to 8th March, 2019. A total of to the Management Staffs, sessions were planned using 29 tea garden workers of which, 15 female workers and different methodology, eg. documentary were screened 14 male workers participated in the training programme. and analysed to understand the damage and lapses, The participants belong to the Fairtrade Premium Group discussion were facilitated to organise the opinion Committee of 11 Fairtrade certified tea estates in Assam, of each participants, Practise session on Risk India. The training was conducted by NAPP Assessment and mitigation plan were facilitated to representatives along with an external trainer appointed acquire practical experience and learning for the by NAPP from Kolkata, India. The objective of the participants. Concept of Occupational Health and training was to enhance the skills of the worker Occupational Safety were elaborately discussed and representatives on participatory processes for Fairtrade understood by the participants. Premium projects planning, to ensure participation of all the workers in the tea estates. The objective was to The Management staffs were very enthusiastic to motivate all the worker representatives to be able to furthers learn more about the requirements/technical collectively identify their core issues, so that they can know-how and Legal values, on different aspects of accordingly utilize the Fairtrade Premium to resolve the Occupational Health and Safety, and how each aspects prevailing problem in order to lead a dignified life. could logically assessed to understand the status of Occupational Health and Safety in the Tea Estates of Objective of the training programme: Darjeeling. Proposed to conducted mock audit on To sensitize and understand the importance of Occupational Health and Occupational Safety in the Tea Fairtrade Premium and its usage Estates of Darjeeling. To introduce the participants with concepts and various approaches of community participation Facilitate to conduct:- (i) Mock Audit on Occupation To familiarize with methodologies, tools and Health & Safety, separately in the Tea Estates of techniques for analyzing various situation and Darjeeling. (ii) Disseminate learning among workers on come up with solutions the topic. (iii) Prepare Training manuals on OHS.
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Participants were introduced to each other and they FAIRTRADE PREMIUM STORIES practiced participatory planning tools such as problem tree, ranking, why-why, project framework, option game, and also learnt interactive games, which ensured learnings on communication, facilitation skills. The entire training was facilitated for the workers representatives to enjoy and learn key skills for Planning, Monitoring and Evaluating (PME) the projects.
The use of the Fairtrade Premium is restricted to investment in the producers’ business, livelihood and community (for a small producer organization or contract production set-up) or to the socio-economic development of the workers and their community (for a hired labour situation). Its specific use is democratically decided by the producers. Objective:
In 2019 10 Premium Projects of Fairtrade Tea Plantations were covered by Network of Asia and Pacific The male participants felicitated the female workers, on Producers (NAPP) for the purpose of highlighting the the occasion of International Women Day on 8th March impacts created in the lives of beneficiaries (workers, 2019. One of the members of the Fairtrade Premium farmers & producers) by the Fairtrade premium Committee from a tea estate spoke on the occasion, investments. highlighting the contribution of women in the tea estates. Methodology: At the end of the programme, the participants requested NAPP to conduct such training programmes in each of Top 10 Premium Projects were mapped. Prior the other gardens so that all the workers can have a permissions were obtained from the respective Producer chance to participate and learn something good and Organisations before authorising the team to visit the positive. Project and capture stories. All the information and pictures were captured and produced in accordance with Fairtrade Communication, Media and Social compliance policies and procedures. Consents have been obtained from the Producer Organisation, Premium authorities of the organisation and guardians or school authorities in case of pictures of person falling under the category of ‘Protection of Child and Vulnerable Adult Policy’ of Fairtrade. Available for downloads at : https://www.fairtradenapp.org/fairtrade-premium- impacts/
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Pic: Women Farmers at UNTE, Chamraj Tea Plantation; FLO ID 508
Data Source: Fao.org Trendrr.net Allied Market Research Mordor Intelligence Industry Report IMARC Group Technavio Industry Analysis
Photo Credits: Fairtrade Foundation (FTUK) English Tea Shop, UK Jalinga Tea Estate; FLO ID 29907 Stassen Natural Foods (Pvt.) Ltd. (Idulgashina Bio Tea Garden) ; FLO ID 1550 NAPP Program Officers Makaibari Tea Estate; FLO ID 501 Chamong Tea Estate; FLO ID 1567 Borengajuli Tea Estate; FLO ID 18013 Chamraj Tea Plantation ; FLO ID 508
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