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Sustainable Tea
Production
International Tea ConventionSri Lanka
August 2007
I.R.Neathercoat
Unilever
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
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”
?
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