Sourcing from Smallholders Sarah Roberts All-Party Parliamentary Group Food and Development Meeting, March 2015

Transcription

1 Sourcing from Smallholders Sarah Roberts All-Party Parliamentary Group Food and Development Meeting, March 2015

2 ETP Members

3 The ETP vision is of a thriving tea industry that is socially just and environmentally sustainable

4 ETP Partner Organisations

5 Overview Raising core standards 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. Improving worker lives & livelihoods 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. Improving smallholder lives & livelihoods 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. Climate change & the environment 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.

6 40 members 1,000 producers 800,000 smallholder farmers 700,000 workers ETP s Reach

7 Smallholder Contribution to Global Tea Production Sri Lanka Rwanda China Smallholders: 80% Estates: 20% Smallholders: 69% Estates: 31% Smallholders: 65% Estates: 35% Kenya Smallholders: 62% Estates: 38% 8 million smallholders in Africa & Asia = 70% of production India Smallholders: 30% Estates: 70% Indonesia Smallholders: 26% Estates: 74% Malawi Smallholders: 10% Estates: 90%

8 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

9 Drought Affecting Stands of Tea Bushes

10 Incorrect Application of Agrochemicals.

11 Increasing Instances of pests & disease due to climate change

12 Improving smallholder farming through Farmer Field Schools Adapting to Climate Change - Kenya 10 Cooperatives 100,000 smallholders Resources developed Added to FFS curriculum Raising standards India 6 FFSs established - Rwanda 2 Cooperatives 8,450 smallholders Raising Standards - Burundi 25,000 smallholders Expansion of FFS Programme (Africa) Kenya: 32,500 smallholders Malawi: 7,000 smallholders Uganda: 1,500 smallholders 40,00 smallholders Livelihoods Indonesia 2 Cooperatives 1,500 smallholders These work programmes impact positively on the following Millennium Development Goals:

13 Farmer training

14 New bushes better clonal material for in-filling and to improve quality and productivity

15 Filling in Gaps/ Increasing Bush Density

16 Soil Conservation Structures

17 Significant productivity increases possible Lead farmer Pak Wawan won the Governor's Medal for highest productivity increase

18 Farmer Field School approach can successfully reach hundreds of thousands of farmers

19 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 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) 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 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

20 Kenya Increasing Farmers Resilience to the Effects of Climate Change through FFSs 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

21 Adapting to Climate Change Training

22 Installing Simple Drip Irrigation

23 Making Compost

24 Crop Diversification / Kitchen Gardens

25 Efficient Planting Patterns (Kitchen Gardens)

26 New Revenue from Livestock

27 Energy Efficient Stoves

28 Improving smallholder farming through Farmer Field Schools Adapting to Climate Change - Kenya 10 Cooperatives 100,000 smallholders Resources developed Added to FFS curriculum Raising standards India 6 FFSs established - Rwanda 2 Cooperatives 8,450 smallholders Raising Standards - Burundi 25,000 smallholders Expansion of FFS Programme (Africa) Kenya: 32,500 smallholders Malawi: 7,000 smallholders Uganda: 1,500 smallholders 40,00 smallholders Livelihoods Indonesia 2 Cooperatives 1,500 smallholders These work programmes impact positively on the following Millennium Development Goals:

29 2. Tea sector analysis the economics of sustainability Tanzania Uganda Average made tea revenues in 2009 $s per kg of made tea Rwanda Kenya 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 27% 27% 25% 75% * 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

30 Profitable estate sector investing in its future Costed options to improve nutritional value of midday meal for workers Significant progress towards a living wage Analysis of options for improving in-kind benefits Assessment of finance options to support clonal replanting and engagement with finance institutions Sustainable procurement commitments voluntarily agreed with interested buyers Introduction of improved meals Capacity building of unions, employers and government to improve wage setting process and worker representation HR assessment Support to industry on HR practices Healthy, motivated productive workforce with greater opportunities for women Malawi 2020 Programme Acceleration of replanting and clonal development CBA negotiated between workers and employers Programme to eradicate discrimination and harassment & identify and develop capable female workers Links to GIZ Healthcare Programme made Continued investment in quality and factory improvements Skills development programme for workers Financial training for workers and facilitating access to financial services Expansion of Farmer Field Schools to improve yields, and quality, business skills and diversify income Profitable smallholder sector investing in its future Thriving Sustainable Tea Industry in Malawi Smallholders getting larger share of made tea price through good prices for quality tea and equity stake in production facilities Engagement with producers, smallholder associations and financial institutions on increased value sharing with smallholders and equity stakes in factories Living income benchmark developed and strategy for progression towards it

31 Ethical Tea Partnership