Lee Byers is Fairtrade International’s Senior Advisor, Coffee and Tea with the Global Product Mangement team

As global Senior Advisor for Fairtrade tea and coffee, I am often struck by the difference in these two sectors. Generally speaking, the tea sector is very well established with good long term demand and in recent years, has achieved good prices for bulk-made tea. Tea is also largely an all-year-round, weekly crop with a relatively stable supply base. Market prices are also somewhat predictable driven by physical supply and demand of made tea.

In contrast, coffee is a seasonal, annual/bi-annual crop, requiring high investment/working capital while market pricing is highly volatile, dictated by a global NYC commodity price, driven by physical availability but also increasingly commodity speculation, creating high uncertainty and price risk. One of the key reason’s Fairtrade offers small coffee farmers a minimum price (US$ 1.40 per lb) plus an additional Fairtrade Premium (20 cents per lb) versus a current NYC price of around $1.33.

On this basis, the tea sector looks in good shape, but beneath the surface there are a number of structural weaknesses which must be addressed if we are to have a sustainable tea future. After 30 years of enduring low profitability, many tea growers have struggled to make sufficient investments in infrastructure and labour welfare, so there is a compelling need for change.

The Oxfam tea wage report, published today is therefore a timely and helpful contribution to a wider industry debate as to how we can improve worker welfare and move toward a living wage. As the Fairtrade International representative on the steering committee for this report, I have been privileged to help shape the scope and design of the study as well as facilitate key meetings with industry experts. While the results are indeed challenging, they are perhaps a spur to action for everyone on the tea sector, recognising that enduring solutions cannot be delivered by Fairtrade alone.

This week, I attended the second in a series of workshops hosted by Forum for the Future as part of the Tea 2030 project. While we are some way yet from finding solutions to complex sustainability issues, I am encouraged to find myself alongside representatives of major tea brands, retailer’s NGO’s, industry bodies and tea boards from around the world.

Fairtrade is not alone, the journey has begun and together I think we can begin to make a real difference to tea workers, their families and communities through a vibrant and sustainable tea industry.

Take a look at the recent Malawi study conducted by NRI University of Greenwich, which examines Fairtrade tea Premium impacts for workers and farmers.

Read Fairtrade International’s response to the Oxfam-Ethical Tea Partnership report.

Fairtrade Mends Bridges to Fill your Teacup

Amos Thiong’o, Regional Coordinator at Fairtrade Africa, had a tough journey to visit Kayonze tea estate in Uganda. But what he saw when he got there more than made up for it, as he reports in this piece.

Kayonza Growers Tea Factory is one of the four Fairtrade certified tea producers’ organizations in Uganda. The beautiful cooperative is located in the Kanungu district, in Western Uganda, close by the border with the Democratic Republic of Congo (DRC).

I visited the Kayonza at a time when the area had received extremely high rainfall. A major bridge linking the district to the rest of Uganda had been swept away. Before embarking on my journey, I inquired how long it would take me. A smiley hotel receptionist informed me that instead of 1.5 hours the journey would now take four times as long, using roads not worthy of the name. To cut a long story short; the journey was not for the weak hearted. It took us more than 6 hours, driving through the beautiful Queen Elizabeth National Park, on wild animal tracks, often passing through swollen streams.

However, on arrival to Kayonza I totally forgot all the travails. A most welcoming Marcel Asiimwe, the general manager, and his team were at hand to receive me. I was housed in a beautiful small guest house located in the centre of a tea estate. The breathtaking view lifted all weariness away.

Kayonza Growers Tea Factory has been Fairtrade certified since 1998, making it one of the oldest holders of Fairtrade certification in Africa. The factory, which prides itself for having one of the best quality teas in the country, is owned by over 600 small-scale tea farmers. On more than one occasion tea producers from the DRC have applied to join Kayonza but complications of cross border trading prevent the collaboration.

Fairtrade certification has enabled Kayonza to improve its governance and leadership structure. Last year the factory received a grant from Fairtrade Africa to fund IT training for its management and staff.

‘We are gradually modernising our operating systems and procedures,’ attests Human Resources Manager Jotham Musinguzi. ‘The training has been instrumental to improve our services to our members and customers.’

In the 1990s, a key challenge for Kayonza farmers was to deliver green leaf to the factory during the rainy season. Many farmers lost their lives trying to cross the swollen streams in the valley. Using Fairtrade Premiums, the farmers started constructing bridges on all feeder roads leading to the factory. The bridges have provided a massive boost to the region, ensuring the Kayonza factory distinguishes itself as a supplier of high quality tea across the world.

Fairtrade Africa represents African producers in the global Fairtrade system to ensure that Fairtrade standards and policy reflect their needs. Fairtrade Africa also provides prodcuers with technical, organisational and financial support. Find out more at www.fairtradeafrica.net.