Sustainable Tea Production International Tea Convention Sri Lanka August 2007 I.R.Neathercoat Unilever.

Sustainable Tea

Production

International Tea ConventionSri Lanka

August 2007

I.R.Neathercoat

Unilever

A Portfolio of Leading Brands

Fairtrade

Agricultural Environment

Organic &Nutrition

Ethical and Social

Issues Legislation

ProductQuality

and GoodPractice

Global Operating Environment

Pesticides and

Contaminants

The Consumer

“I am reassured that a product is natural by

transparency of natural material/imagery”

“I am reassured that a product is natural by

transparency of natural material/imagery”

“The closer you are to your origin, the more natural you

are”

“The closer you are to your origin, the more natural you

are”

“Since I do not know what to trust

anymore, I want to go back to the

origins”

“Since I do not know what to trust

anymore, I want to go back to the

origins”

“Processing destroys the

goodies in food”

“Processing destroys the

goodies in food”

“I do not understand how (the product) is

made”

“I do not understand how (the product) is

made”

“Butter is real, margarine is

artificial”

“Butter is real, margarine is

artificial”

Why Sustainable Agriculture?

• Growing competition for arable land

• Agricultural impact on soil fertility -

– negative/positive

• Agricultural impact on water quality

– nutrients run off into water

– pesticides run off into water

• Agriculture impact on conservation

– contributes to climate change

– biodiversity reduction (plant/animal)

• Agriculture impact on global energy issue

– energy requirements for

fertilisers/pesticides

– use of fossil fuels and energy efficiency

• Agriculture impact on air pollution

• Agriculture essential to survival of mankind

• The debate between intensive and organic

farming

Why Sustainable Agriculture?

Long term survival = sustainable business

• Products must fit in with consumer aspirations and concerns• Corporate behaviour must be seen to be responsible, and take

into account political, social and environmental concerns.• Business is dependent on society.• Society is dependent on the environment• A sustainable business means

– sustainable production & sourcing of raw materials– products that can be used and disposed of in sustainable

manner– corporate and company behaviour that maintains credibility

with stakeholders

For agricultural crop producers too !For agricultural crop producers too !

– sustainable production sustainable production – sustainable sourcing of raw materialssustainable sourcing of raw materials– corporate and company behaviour that maintains credibility corporate and company behaviour that maintains credibility

with stakeholderswith stakeholders

– Meaning a sustainable business propositionMeaning a sustainable business proposition

Long term survival = Sustainable business

Lead Sustainable Agricultural Programmes

Crop Country Project Status

Peas U.K. Field Started 1997

Spinach Germany/ I taly Field Started 1999

Tea Kenya/ I ndia/ Tanzania Field Started1999/ 2001

Oil palm Malaysia/ Ghana Field Started1999/ 2001

Tomatoes Australia/ Brazil/ USA Field Started1999/ 2000

Rape seed Poland/ GermanyGermany

DeskField

Started 2000Started 2002

Generic Sustainability Indicators

Soil fertility and health

Soil loss

Nutrients

Pest management

Biodiversity

Product Value

Energy

Water

Social capital

Local economy

Animal Welfare

Tea - Camellia Sinensis and Unilever

12% of the WorldsBlack Leaf Tea Consumption

Unilever Tea Sales - Global Reach

Sell leaf tea in over 100 countries

•Spend - EUR 500 million per annum

•Buy 300,000 tonnes

•200 suppliers

•1500 tea estates

•over 2 million small farmers

The World of Leaf Tea Supply

Black Tea: 2.35 million tons

Green Tea:0.95 million tons

1. India 860k

3. Sri Lanka 300k

4. Kenya 290k

5. Indonesia 120k

2. China 750k (90% Green)

Generic Sustainability Indicators

Soil fertility and health

Soil loss

Nutrients

Pest management

Biodiversity

Product Value

Energy

Water

Social capital

Local economy

Animal Welfare

Soil fertility, soil loss & nutrients

• Terrace land, line ditches and plant covers to reduce soil loss at planting

• Return prunings to field to maintain organic matter levels

• Focus on nutrient balance

Pest management & biodiversity

• Integrated Pest Management to minimise pesticide use and associated disruption to the environment

• promote biodiversity on the estate and in neighbouring community areas

Energy & water

• Focus on efficient use of sustainable sources of energy

• Hydro power

• Development of own fuelwood sources

• Water conservation

Social capital & local economy

• Housing and clean water supplies

• Hospitals and schools

• Healthy well-educated people

• Buying and resourcing locally

Unilever and Sustainable Development

Unilever is committed to sustainable development

Meet the needs of the present without compromising

the ability of future generations to meet their needs

SA Communication Material: booklets

Good Agricultural Practise guidelines

Information booklets

SA report with RASC & FWN

GFTF II

Good story booklets

Lipton-KTDA Sustainable Agriculture Project

• Project idea started in 2003• Joint Project with KTDA• Partially funded by £ 500k UK

government grant• 3 year business project to introduce

and train smallholder farmers in Sustainable Agriculture practices

• Pilot with 4 Zones ( 12 total ) and 4 factories ( 57 total ) starts in April 2006

• Employs 2 full time and 3 part time people

• Mission is to evaluate and prove that SA practices at farm level are a Sustainable long term business proposition

• Final goal is to extend these practices from the pilot group to all 400,000 KTDA smallholder tea farmers.

The Unilever Commitment to Sustainable Tea

1. Communicate Sustainable Agriculture in Tea.

2. Ongoing Dialogue on the Guidelines themselves with all stakeholders

3. Help for the Small Farmer.

4. Promote International SA Standards in Tea

5. Time is necessary, but NOT unlimited

Back to the Consumer

“I am reassured that a product is natural by

transparency of natural material/imagery”

“I am reassured that a product is natural by

transparency of natural material/imagery”

“The closer you are to your origin, the more natural you

are”

“The closer you are to your origin, the more natural you

are”

“Since I do not know what to trust

anymore, I want to go back to the

origins”

“Since I do not know what to trust

anymore, I want to go back to the

origins”

“Processing destroys the

goodies in food”

“Processing destroys the

goodies in food”

“I do not understand how (the product) is

made”

“I do not understand how (the product) is

made”

“Butter is real, margarine is

artificial”

“Butter is real, margarine is

artificial”

?

A picture tells a story

A LOGO is therefore worth a thousand words.

Two pictures tell a bigger story

THANK YOU