sourcing from smallholders...• application & safe use of agrochemicals • worker shortages...

Sourcing from Smallholders Sarah Roberts

All-Party Parliamentary Group Food and Development

Meeting, March 2015

ETP Members

The ETP vision is of a thriving tea industry that is

socially just and environmentally sustainable

ETP Partner Organisations

Overview

We ensure producers in members’ supply chains meet good social and

environmental standards. We improve conditions for workers and smallholders,

and the way tea estates and factories are managed.

We run training and support programmes that make work places better, fairer,

and safer. We also work with partners to reduce poverty and make progress

towards the Millennium Development Goals.

We help smallholders get gain better incomes by assisting them to improve

quality and productivity, and access to international markets. We also help

them to adapt to the impacts of climate change.

We help producers improve their environmental management systems to

protect soil, water, ecosystems, and wildlife. We also help the sector to

understand the implications of climate change and maintain tea production in

the face of changing weather patterns and growing conditions.

Raising

core

standards

Improving

worker lives &

livelihoods

Improving

smallholder

lives &

livelihoods

Climate

change & the

environment

ETP’s Reach

• 40 members

• 1,000 producers

• 800,000 smallholder farmers

• 700,000 workers

8 million

smallholders in

Africa & Asia

=

70% of

production

Smallholder Contribution to Global Tea Production

China

Smallholders: 80%

Estates: 20%

Sri Lanka

Smallholders: 69%

Estates: 31% Kenya

Smallholders: 62%

Estates: 38%

India

Smallholders: 30%

Estates: 70%

Indonesia

Smallholders: 26%

Estates: 74%

Malawi

Smallholders: 10%

Estates: 90%

Rwanda

Smallholders: 65%

Estates: 35%

Key Challenges Facing Smallholders

• Relationship with processors – lack of ownership/control of production facilities

• Leaf pricing structures - lack of organisation and bargaining power

• Lack of understanding of market requirements, including international standards,

lack of business skills

• Productivity & leaf quality - old bushes, gaps in plots, poor agricultural practice,

deterioration of leaf due to poor logistics

• Difficulties in accessing finance for input materials

• Application & safe use of agrochemicals

• Worker shortages

• Climate change e.g. new pests and diseases

• Food security and nutrition

Drought Affecting Stands of Tea Bushes

Incorrect Application of Agrochemicals.

Increasing Instances of pests & disease

due to climate change

Livelihoods – Indonesia

• 2 Cooperatives

• 1,500 smallholders

Raising standards – India


Adapting to Climate Change - Kenya

• 10 Cooperatives


• Resources developed

• Added to FFS curriculum

6 FFSs established -

Rwanda

• 2 Cooperatives

• 8,450 smallholders Expansion of FFS Programme (Africa)

• Kenya: 32,500 smallholders

• Malawi: 7,000 smallholders

• Uganda: 1,500 smallholders Raising Standards - Burundi


Improving smallholder farming through Farmer Field Schools

These work programmes impact positively on the following Millennium Development Goals:

Farmer training

New bushes – better clonal material for in-filling

and to improve quality and productivity

Filling in Gaps/ Increasing Bush Density

Soil Conservation Structures

Significant productivity increases possible

Lead farmer Pak Wawan won the

Governor's Medal for highest productivity increase

Farmer Field School approach can successfully

reach hundreds of thousands of farmers

Farmer Field Schools cover wide range of topics,

selected by farmers

Curriclum from Amani FFS

TEA RELATED TOPICS

• Fertiliser Application

• Tea Clones

• Pruning

• Tea Plucking

• Tea Nursery

• Weeding

• Tipping Standards

• Soil Sampling

• Composting

• Business skills and record-keeping

DEMONSTRATION PLOT TOPICS

• Tea plucking

• Pruning Height

• Pests and Diseases

• Green leaf handling during transportation

• Tea Spacing

• Soil and Water conservation, soil fertility

• Record Keeping

• Planning and Budgeting

• New planting and infilling

NON-TEA TOPICS

• Dairy Farming

• Breeding and breed selection

• Feeding and nutrition

• Housing

• Animal and animal product’s health

• Value addition and marketing

• Heifer management

• Poultry Keeping

• Horticulture – cabbages, pineapples Tomato farming,

banana farming

• Cereals farming (maize, beans, millet)

• HIV and AIDS

• Restraint and Conflict resolution

• Female Genital Mutilation

• Human health and Nutrition

• Family Relationships

• Good Community relations

• Presentation Skills

• Environmental Conservation

• Tree nursery management

• Waste management

• Tree planting

• Energy efficiency; Electricity, Firewood, Biogas,

Solar power, Water harvesting – Energy saving jilko

use

• Mapping of likely impact & awareness raising

• 3 year programme covering 1/5 of KTDA – 100,000 farmers

• Approach now included in FFS curriculum and reaching rest of KTDA

Kenya – Increasing Farmers’ Resilience to the

Effects of Climate Change through FFSs

Adapting to Climate Change Training

Installing Simple Drip Irrigation

Making Compost

Crop Diversification / Kitchen Gardens

Efficient Planting Patterns (Kitchen Gardens)

New Revenue from Livestock

Energy Efficient Stoves

Livelihoods – Indonesia

• 2 Cooperatives


Raising standards – India


Adapting to Climate Change - Kenya

• 10 Cooperatives


• Resources developed

• Added to FFS curriculum

6 FFSs established -

Rwanda

• 2 Cooperatives

• 8,450 smallholders Expansion of FFS Programme (Africa)

• Kenya: 32,500 smallholders

• Malawi: 7,000 smallholders

• Uganda: 1,500 smallholders Raising Standards - Burundi


Improving smallholder farming through Farmer Field Schools

These work programmes impact positively on the following Millennium Development Goals:

2. Tea sector analysis – the

economics of sustainability

Average made tea revenues in 2009 $s per kg of made tea

* Note: Smallholder revenues have been normalised for transport costs, i.e. if farmers pay the cost has been deducted to ensure fair comparison

Source: Primary interviews with smallholders and associations, Bank of Uganda, TechnoServe

27% 25% 27%

Tanzania Uganda Rwanda Kenya

75%

0.72

1.99

0.51 0.46

1.29 1.38

0.66

2.20

Smallholder revenues per kg of made tea (minus transport where appropriate*)

Factory revenues minus green leaf payments per kg of made tea

Percentage share of made tea prices received by farmers

Significant progress towards a living wage

Healthy, motivated productive workforce with greater opportunities for

women

Profitable estate sector investing in its

future

Profitable smallholder sector

investing in its future

2015 2016 2017 2018 2019 2020

Thriving Sustainable Tea Industry

in Malawi

Costed options to improve nutritional value of midday meal for workers

HR assessment

Capacity building of unions, employers and government to improve wage setting process and worker representation

Assessment of finance options to support clonal replanting and engagement with finance institutions

Sustainable procurement commitments voluntarily agreed with interested buyers

Support to industry on HR practices

CBA negotiated between workers and employers

Living income benchmark developed and strategy for progression towards it

Acceleration of replanting and clonal development

Continued investment in quality and factory improvements

Engagement with producers, smallholder associations and financial institutions on increased value sharing with smallholders and equity stakes in factories

Expansion of Farmer Field Schools to improve yields, and quality, business skills and diversify income

Smallholders getting larger share of made tea price through good prices for quality tea and equity stake in production facilities

Analysis of options for improving in-kind benefits

Introduction of improved meals

Links to GIZ Healthcare Programme made

Programme to eradicate discrimination and harassment & identify and develop capable female workers

Financial training for workers and facilitating access to financial services

Skills development programme for workers

Malawi 2020 Programme

Ethical Tea Partnership

[email protected]

+44 207 953 7665

sourcing from smallholders...• application & safe use of agrochemicals • worker shortages...

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