Unilever Tea Procurement Sustainable Agriculture

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Leo Reynard Allison
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1 Unilever Tea Procurement Sustainable Agriculture WORKING WITH DIFFERENT STAKEHOLDERS TO ACHIEVE SUSTAINABILITY 11 TH JULY 2011 ZAKARIA MITEI SA/GMP MANAGER - AFRICA

2 Why Sustainable Agriculture? Agriculture provides more than 2/3 of raw materials for Unilever brands Consumers and NGOs demand ethical and SA sound production Security of supplies - unsustainable suppliers are unreliable suppliers

3 10+ years of working towards sustainability on our own estates

Current Unilever Commitment on Sustainability All

Western Europe from Rainforest Alliance Certified

certification to all Lipton tea bags globally by

4 Current Unilever Commitment on Sustainability All tea used in PG Tips, Lipton Yellow Label tea bags in Western Europe from Rainforest Alliance Certified farms by Achieved Extend Rainforest Alliance certification to all Lipton tea bags globally by 2015 All Unilever purchases to be sustainably sourced by 2020

5 What is Sustainable Agriculture? It is farming in a responsible manner while enhancing profitability, well being of the people and the environment for now and the future.

6 Lipton/KTDA SA Tea Project (2006-8) DfID funds (BLCF) ( 509,000) STSC Lipton Contribution In Kind (Personnel & assets) ( 449,000) Technical Committee Implementation team KTDA Contribution In Kind (Personnel ) ( 224,000)

1. Demonstrate the economic value of good SA values to the smallholder farmers 2. Reduce cost of tea production in smallholdings by fine tuning inputs 3.

7 1. Demonstrate the economic value of good SA values to the smallholder farmers 2. Reduce cost of tea production in smallholdings by fine tuning inputs 3. Maintain product value in all KTDA traditional markets 4. Facilitate recognition of KTDA farmer by important customers 5. Reduce negative impacts of tea production on the Kenyan environment 6. Enhance farmer earnings through alternative crops e.g. fuel wood Project Objectives

8 Approach To enhance farmer commitment and sustainability of the program, a two-pronged approach used to engage the farmer: Farmer Field Schools (FFS) Learning in groups Participatory approach Hands on The field is the classroom Conventional train and visit approach traditionally used by Kenya Tea Development Agency (KTDA) Mostly one on one approach Demonstrations and field days conducted by technical staff

9 FFS location & group formation Started in 2006 and ended in 2008 In 4 factories Nyansiongo, Momul, Ngere and Mungania 6 FFS per factory 24 in all 30 farmers per FFS 720 farmers in all Joining FFS was voluntary Agreed criteria observed in selecting final FFS members (age, gender, geographical distribution, Farm sizes, range of activities, Education level, Level of sustainability, Availability of farm owners, enthusiasm and potential local champions

10 Rainforest Alliance Certification In 2007 Unilever made a decision embark on a journey leading to sourcing of RA certified tea. The project committee decided to prepare the 4 project factories for RA certification in 2008 RA certification preparation involved: Commitment by farmers Training of staff and farmers Carrying out internal audits Addressing outstanding issues Audit & certification

Fair treatment of workers OHAS Community Relations Integrated crop Mgt, Soil Mgt and conservation

11 Why Rainforest Alliance Biodiversity Ecosystem conservation Wildlife protection Social capital & Human Capital Local economy Soil fertility Soil Loss Nutrients Pest Management Energy Value chain Fair treatment of workers OHAS Community Relations Integrated crop Mgt, Soil Mgt and conservation Integrated waste management Close match Area for improvement Water Policy framework and Management Systems common

12 IDH/KTDA/RA/Unilever Project Following success of the pilot project a new project was set up in 2009/10 with main Partners being KTDA, Unilever, Rainforest Alliance (among others) Run by Steering Committee, Technical Committee, implemented by factory teams Funded by IDH (the Dutch Trade Initiative) and The Dutch Embassy in Kenya The IDH fund is part of a global project covering Kenya, Rwanda, India, Sri Lanka and Indonesia Implemented over the 4 years (2010 to 2014) Partners made match funding for various activities in the different countries Total of 2 million Euros from IDH in 2010/11, 0.9 (45%) of which will be spent in Kenya

13 Main implementing partners RAINFOREST ALLIANCE Overall project management as well as provide training services on the Sustainable Agriculture Network (SAN) standard and Rainforest Alliance Certification services for 20 KTDA factories UNILEVER (LIPTON) Co Manage Project, facilitate training, support KTDA factories through the provision of its key Global and Kenyan personnel and direct contribution to Rainforest Alliance s origin development program and coordinate other activities included in the IDH project. KENYA TEA DEVELOPMENT AGENCY Co-manage the project and facilitate the training on Farmer Field School training methodology and Rainforest Alliance certification through the provision of its key personnel at Head Office and factory level WUR AND ETC EAST AFRICA Manage funds and activities related to Dutch Embassy funding, provide training and support in 2010 and 2011, carry out Monitoring and Evaluation of FFS and carry out & supervise scalability study

14 Project Objectives/status Train and certify on the Rainforest Alliance (RA) program 20 out of 54 factories in 2010 & 2011 (236,000 out of 530, 000 smallholders managed by KTDA) 60 % achieved Train extension staff on FFS methodology for all KTDA factories (part of institutionalizing sustainable agriculture within the KTDA) 100% achieved Support FFS up-scaling program for two years 70% achieved Study wood fuel consumption reduction best practice, in partnership with other actors in the tea sector - done Study FFS and certification programs to determine and share best practice system design for scaling up of training activities well underway Carry out a joint gender study to understand challenges and opportunities for improvement - done

15 Achievements/Benefits of SA & Certification Certification process and system: farmer to farmer training Farmers empowered IMS model to deliver more benefits e.g. quality etc. Better agricultural practices Improved productivity Better controlled inputs and costs Better fuel wood practices Healthier local environment Trees planted and preserved Conservation of riparian areas Better fuel use efficiencies Water bodies protected

16 Achievements/Benefits of SA & Certification Better conditions for the workforce Personal Protective Equipment Healthier working environment Motivation means higher productivity Gender study and workshop done with the Kenyan tea industry Advantage in the market for producers, customers and retailers Stimulates interest from other buyers & farmer groups to commit to sustainable agriculture

17 Challenges in FFS, SA &RA certification Lack of Finances to Set up and run FFS personnel, learning materials, motivational inputs etc Comply with certification criteria e.g. safe use, protection against and appropriate storage of agrochemicals Huge number of farmers involved average is 10,000 per factory 54 factories in KTDA! Most farmers with poor literacy levels need for huge numbers of visual materials in training

SCALING SUSTAINABLE FINANCE PRODUCTION, MARKETS AND. Workshop on Finance Mechanisms for Biodiversity MARCH 12, 2012

SCALING SUSTAINABLE FINANCE PRODUCTION, MARKETS AND. Workshop on Finance Mechanisms for Biodiversity MARCH 12, 2012 SCALING SUSTAINABLE PRODUCTION, MARKETS AND FINANCE ANA PAULA TAVARES EXECUTIVE VICE PRESIDENT Workshop on Finance Mechanisms for Biodiversity MARCH 12, 2012 2009 Rainforest Alliance The Mission of Rainforest