A fair cup

towards better tea buying

Tea workers - in their own words

Agnes Onyango* works in a medium sized tea farm not far outside the Kenyan capital, Nairobi. She is from a province in the far west of Kenya, close to Lake Victoria. Agnes is a casual worker. Every two months we are fired for two weeks, then we are hired again by the same person. The farm provides her with housing even when she is in between jobs. The pay she says, is not good, its Ksh. 4.83 (4 pence) per kilo. I have been here a year and the pay has not gone up. But on other farms, they get Ksh. 6. I came here from another farm. The owner heard we wanted to join a union. He sacked all of us. He brought about five lorries of soldiers who surrounded us and asked us to vacate the houses. So we left. They didnt even pay us our dues, she remembers. She has not heard about Kenyas minimum wage.

John Masinde* travelled from western Kenya to close to Nairobi to look for riziki (sustenance) because after completing primary school there was no more money. He has been working mainly on this farm, as a casual employee, for four years. Like many in his industry he works six days a week from 6am. The only days I dont come are when Im sick. Time off is a real problem because it translates to fewer kilos picked, which means less pay. As he puts it, your strength determines your pay. He is paid Ksh 4.83 (4 pence) per kg of green tea leaf picked and when production is high can pick over 100 kgs per day. This is however countered by the dry seasons. Then you pick as little as 9 kgs. John feels consumers of tea should try paying a good price so that workers are paid enough. Maybe they are paying a good price but we dont know because they are far. We are still oppressed. Thats not a good place to be, he observes. But if they buy at a low price our condition will just get worse. Life will become as hard as a rock. That is all. On a good day Agnes and John earn between Ksh. 386 (2.87) and Ksh. 579 (4.27)). In the low season which can be three and a half months of the year it could be as little as Ksh. 43 (32 pence). An average family needs around 100 Ksh. (73p) per day purely for food. On top of this, there is the cost of cooking fuel, soap, clothing, school books, medical fees, and other essentials.

A fair cup: towards better tea buying Page 2

Tea supply chain

Tea plucker/worker

Small farmer Collector

Plantation/Estate

Producing country

Buying centre

Factory

Factory workers

(70% of the worlds tea)

Brokers/auction

Direct sale
(30% of the worlds tea)

Buying agent

Tea company

Consuming country

Food service/ catering company

Restaurants, schools, hospitals and work places

Retailer

Consumers

Whos who where are you?

Workers Tea plantations and small tea farmers employ thousands of workers to help pluck tea, prune and maintain the tea bushes, as well as apply fertilisers or pesticides as necessary. Workers often have to work in difficult weather (extreme temperatures and heavy rain) because any delays will affect tea quality. The quality of tea plucking is a critical factor in determining the final quality of the tea. Large tea plantations are often in isolated places and workers are very dependent on the infrastructure (such as schools or medical facilities) provided by the company. Tea is produced by either small farmers on their own land or on large plantations sometimes owned by tea companies. In some instances collectors employed by the factory collect the tea leaves from the farmers, and in others the farmers deliver directly to buying centres or factories. Process green tea leaves into green or black tea of different grades within hours of picking. Some factories are independent, some are owned by a tea company and some are owned by the farmers. Factories employ significant numbers of workers on varying shift patterns. Sell tea at auction on behalf of the factories. Many of the larger tea companies have their own buyers based in the major tea buying centres of the world or they employ trading companies to make purchases on their behalf. These agents and buyers have instructions as to what quality and quantity of tea is required, and when, and are given maximum prices they are authorised to pay for particular grades of tea. These companies manage the buying, storage, transport, blending and packing of their own or supermarket own-label teas. In the UK tea is mainly sold by supermarkets and convenience stores who may sell their own-label teas, as well as the major brands from the tea companies. Buy tea largely from the tea companies for sale to canteens, cafs , hospitals and schools. Drink tea at home bought from a retail outlet as well as out of home - for example at work, in cafs or restaurants.

Producers

Factories

Brokers Buying agents

Tea companies Retailers Food service companies and caterers Consumers

Governments in Can shape the tea market in their countries through a range of policies tea producing including VAT on inputs, tariffs, investment policies, auction regulations and countries national labour standards. Governments in Can shape the tea market through taxes or other restrictions on imports, tea consuming regulatory standards, competition policies as well as by holding companies countries accountable for their practices and impacts overseas. Investors Can inuence the practice of major UK companies, especially the large retailers and food service companies.

Page 4 A fair cup: towards better tea buying

All about tea

Tea is the most widely consumed beverage in the world after water. Behind each cup of tea is a complex supply chain bringing together some of the worlds most powerful companies with some of its most vulnerable farmers1. And all is not well. Tea farmers and their workers are often in a very weak position in relation to others in the tea industry and reap the lowest rewards. This can mean pitifully low and often erratic levels of pay. Buyers who work for tea companies or retailers are key actors within the supply chain. More responsible purchasing practices can make a huge difference to the livelihoods of farmers and their workers. Conversely, poor purchasing practices may undermine the very stability and efciency of the suppliers businesses on which buyers depend. At the heart of the debate is the question of balancing risks, responsibilities, and benets between the different parts of the supply chain. This report will outline how the decisions of those who purchase tea in the UK to sell or serve to the UK public can better recognise the critical contribution made by tea farmers and workers while delivering good quality, traceable tea which consumers can trust.2

US Dollar Cents 250

200 Sri Lanka 150 North India Kenya Average Indonesia South India Malawi

100

50

1996

1997

1998

1999

2000

2001

2002

2003

2004

Average annual auction prices 1996 - 20057

Fast tea facts

Major producers. Tea is a tropical product and is produced in some of the worlds poorer countries. The major producers are China, India, Kenya and Sri Lanka which together account for almost three quarters of global production.3 Creating jobs and incomes. In India the tea industry is the second largest employer with just over one million permanent workers and a further three million dependent on the industry. Kenya is the worlds largest exporter and tea contributes 17 per cent of the countrys export earnings and employs 10 per cent of the population.4 Top tea drinkers. The UK is the third largest tea importer globally and has the third highest consumption per head.5 Rising production. Globally tea production is rising slightly faster than consumption creating a situation of oversupply. The producer price of tea has plummeted by nearly 40 per cent in real terms since 1980.6 Stable prices. The retail price of tea in the UK has remained fairly constant in real terms over the past ten years. Prices range from as little as 0.30 to 3 for a box of eighty tea bags.

Thousand metric tons 3500 Production

3000 Apparent Consumption 2500

2000
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

World production and apparent consumption of tea 1987-20068

A fair cup: towards better tea buying Page 5

2005

Tea company buyer trends and dilemmas

In a competitive eld, buyers for UK tea companies and for the supermarket own-labels have to be able to get tea onto supermarket shelves at a competitive price while ensuring the quality and the unique taste of their brand. In order to marry these objectives they source different teas from around the world to get the right appearance and taste at the right price. Often this will mean as many as 30 different teas from several countries are blended together in a single tea bag.
Up to 25% Assam (brings a malty avour) Up to 25% Ceylon (brings a owery taste and citrus tang)

Up to 50% Kenya (brings a bright, golden colour)

Components of a Typical English Breakfast Tea Bag.

Each countrys tea is often substituted for cheaper alternatives

There are a number of trends in the UK tea market which are posing new challenges for tea company buyers.
Tea trends Declining market UK tea consumption is declining with consumers preferring soft drinks or bottled water. The value of tea sales in the UK declined by 12% between 1999 and 2004.9 Growth in speciality tea Speciality teas (such as single estate) are booming, with a 50% rise between 2002 and 2004. Fair Trade teas continue to grow rapidly in both the in and out of home markets. According to Euromonitor, novel, speciality and premium products are the bright young things of the UK hot drinks market, stealing the limelight from the stalwarts.10 Price pressures led by own-label Supermarket own-label teas have grown rapidly and are often on the shelf at low prices. Supermarket power is growing rapidly as they consolidate, giving each a larger market share. Standards and traceability New and increasingly stringent standards apply to tea including HACCP (hazard control system), ISO 22000 (new Food Safety Management System) and the European Unions new pesticide residue levels. At the same time there is a trend towards standards that encompass social concerns, including the Ethical Tea Partnership and Fair Trade. Buyers challenge The competition between tea companies is increasing.

There is a need to ensure greater product differentiation, to work towards improved traceability and to raise quality.

Tea companies are under pressure to cut costs - one obvious way is by securing the cheapest possible source of tea supply.

New standards put pressure on tea company buyers to ensure a greater level of traceability, right down the supply chain.

The UKs favourite brew

Ninety-six per cent of tea in the UK is bought as tea bags and 165 million cups of tea are drunk each day.11 Across Europe over one fth of all hot beverages are consumed out of home particularly in the workplace.12 Five companies dominate the UK market. Tetleys (27%), Unilever Best Foods which has PG Tips brand (25%), Apeejay Group (Typhoo), Bettys and Taylors of Harrogate (Yorkshire Tea) and Associated British Foods (Twinings and Jacksons of Piccadilly).13 In 2006, just four large grocery retailers (Tesco, ASDA, Sainsburys and Morrisons) accounted for nearly three-quarters of all grocery sales.14

Page 6 A fair cup: towards better tea buying

Shared responsibilities the role of retail and out of home buyers

Buyers who work for the supermarkets, other retail outlets (such as convenience stores) or for food service companies supplying the out of home market have to consider: Keeping prices competitive and matching promotions of other retailers Providing a range of products to respond to customer demand Ensuring maximum product availability Supporting innovation and growth of new products in their category to help differentiate themselves. Some supermarket buyers may also have to balance the need to give their customers choice with the pressure to promote own-label products. Because the tea market is declining it is increasingly difcult for tea retail buyers to achieve growth from their section. There are a number of techniques that they can try, but each of these has knock-on effects further down the supply chain which may be at odds with the companys efforts to source more responsibly. This can create a worrying disconnect between company policy and buyer behaviour. Price promotions are common in tea. Usually these are set out in advance so tea companies are able to plan for them. But because the tea company often has to pay the cost of the price cut, there is a drive to pass these costs further down the supply chain on to the factory and farmer. Similarly in a declining market the increasing price pressures - in part led by own-label - may be directly felt by the tea factories at the end of the supply chain. The lack of security of tenure that tea companies have with many retailers is particularly problematic. If a supermarket buyer needs to cut costs they may put the whole of their tea range, or a sub-sector within it, out to tender. This process is sometimes run through e-auctions. Bids are often live which drives the price down and the lack of face to face contact makes discussion of issues other than price difcult. This practice can make tea companies vulnerable, as at short notice they could lose their business with a big institution or retailer. Given the concentration in the supermarket sector this could mean large and sudden losses for the tea company. In turn this provides a disincentive for tea companies to build longer-term relationships with their suppliers.

Disabling supply chain

Consumer gets cheap but mediocre tea posing possible health and reputation risk for tea company and retailer. Tea consumption declines.

Enabling supply chain

Consumer gets good quality tea from a source they can trust. Tea consumption increases.

Risk and costs passed on to farmers. No bargaining power with factory. Low wages and very poor working conditions and standards of living.

Retailer demands low prices, frequent promotions and offers no security of tenure.

Retailers support their suppliers through a contract specifying a notice period. Pay sustainable price.

Risk shared, farmers have good understanding of the tea trade, enjoy decent living conditions and are productive.

Tea company forced to cut costs and has no security to plan or build relationships - instructs agent to buy from cheapest source. Factory as price taker. No idea where tea goes, the price it makes or where next order coming from. Has to cut costs. Factory has the information necessary to improve their quality and negotiate a reasonable price with buyer.

Tea company willing to pay a good price in return for a high quality product. Instructs agent to buy from known source.

Buyer has no relationship with tea factory.

Buyer builds relationship with certain suppliers to ensure a quality product and traceability.

A fair cup: towards better tea buying Page 7

Impact on lives
Despite their importance in determining the quality of tea, farmers are the most vulnerable in the supply chain. Pressures originating higher up are pushed down, translating into increased risk, higher costs and lower returns for farmers. The implications of this are serious as most tea producing regions in the world are poor, so farmers and workers do not have the social security support Farmers/factories in the best position Farmer relationship with factory Farmers either own, manage or are sufciently well organised to be able to negotiate effectively with factory management. to protect them against such shocks and risks. In Kenya more than 52% of the population live below the poverty line and life expectancy is just 47.5 years. In India nearly half of all children under ve are malnourished.15 This table identies key areas where buyers affect the tea factories position and in turn that of the farmers, their workers and their dependents. Farmers/factories in the worst position Farmers and their workers are price takers - they are kept waiting at buying centres, there are delays in collection and the resulting costs not compensated. There is limited support or extension from the factory. Middlemen/collectors (sometimes called leaf agents) take a large slice of the factory price.

Relationship with buyers Factories know who their principal buyers are and what quality and quantity of produce is required, whether the sale is made directly or through an auction. There is an established relationship with buyers which enables factories to plan ahead and invest.

Factories sell their tea through brokers or middlemen at auction. They have no idea who buys it, where it goes next or the price it makes. Factories with cash ow problems make direct distress sales of tea at very low prices.

Support from buyers Factories are provided with market information by their buyers, and are helped to make business improvements - whether to the quality of their tea or through social programmes such as improved water supplies or better safety equipment. Price matters Whether selling through auction or through direct sales, the factory receives a sustainable price in return for a consistent supply of good quality tea. This ensures a living wage to pluckers and factory workers which can provide decent health care and schooling for children. It also covers the costs of meeting quality and traceability standards and of making other business improvements. Helpful standards Standards are jointly agreed between buyers and factories/farmers. The standards are locally appropriate and relate to issues that farmers nd important. The farmers and factories investment in meeting standards is recognised in the price paid.

No support from buyers at all as no relationship exists. Farmers do not understand why the prices they are offered vary so widely, and are not supported to improve quality.

Receive prices below what is needed to survive. This can translate directly into unsafe working conditions such as long hours or inadequate protective equipment. In the worst scenario this means that pluckers and workers have limited medical care, are unable to provide education for their children or eat a sufcient diet.

Standards are imposed from the outside focusing on protecting the buyers reputation, rather than on issues that matter to farmers and workers. Factories have to comply with a multiplicity of confusing, competing and time-consuming standards which add cost and threaten their businesses viability without the guarantee of sales.

Page 8 A fair cup: towards better tea buying

Dreaming of a better future

Newton Nyambane* has worked as a casual tea plucker on a large estate in Kenyas Rift Valley for eight years. I am housed though I am temporary. I work 6 days a week for 8 hours a day starting at 6am. We are paid Ksh. 6.34 (5 pence) per kilo picked. I earn all my income here. I am a union member. I have heard of the minimum wage and I save Ksh.700 (5.20) every month. Despite higher wages than non-unionised workers, Newton feels that most of the prot is made by the owner of the farm. When the bosses say prices are bad at Mombasa (tea auction), pay becomes bad. But when the grade (tea quality) is good, the price cannot go above what was agreed. Newton eats only one main meal a day and is only able to afford to eat meat twice a month. On his free Sunday, Newton likes taking his children for bird walks in a nearby forest. I pray God helps me to work and save so if they pass primary, I can pay for secondary (school). If I hear my children want to become tea pickers, its like pain entering my head. I have struggled in this job for a while. I would prefer them to be mechanics, or join the army.

A fair cup: towards better tea buying Page 9

Recommendations
The following recommendations seek to identify ways to improve purchasing practices to meet the ultimate goal of ensuring that good working conditions and basic human rights are respected Tea company/own-label buyers throughout the supply chain. This is a discussion document and we would welcome comments on the following recommendations to tea company, own-label, retail and out of home buyers. Retail/out of home buyers Benet to buyer Benet to factory and farmer
Builds trust and commitment Improves transparency and clarity about exactly what product is required

1. Develop a relationship with your supplier Whether buying tea directly or through the auction system, it is important to develop a relationship with the individual factories you buy from. As well as helping with traceability, once you know who your suppliers are you are in a better position to understand their problems and work together towards improvements.

It is important to develop an understanding of the tea supply chain and how your decisions or those of the tea companies you deal with impact on farmers and workers. Agree a contract with the tea companies you buy from specifying the notice period. This will give some security of tenure to the companies and enable them to invest in building positive relationships with their suppliers. Developing a more secure relationship with tea companies and paying a reasonable price can enable those companies to develop more supportive ways of working with their partners further down the supply chain.

Improves traceability Facilitates quality improvements Avoids reputational problems

2. Be clear about the terms and length of the relationship Develop a contract or memorandum of understanding with the factories you buy from specifying the length of the relationship or notice period required for termination of the relationship. This facilitates trust, loyalty and makes it easier to make positive long term investments.

Facilitates trust and loyalty Improvements in consistency of quality and supply

Allows longerterm planning and investment Enables investment in social improvements

3. Work together Tea factories, tea farmers and their workers are important partners in delivering a quality tea product. The more you can work together the better. You could develop specic programmes that: support business or management improvements at the factory help improve tea quality, for example through improved agricultural extension work support improved working conditions for farmers and factory workers provide market information or training to enable factories and farmers to understand the supply chain provide clear communications about pricing decisions. help factories to add value to their tea through local blending and packing operations.

Facilitates quality, business and social improvements Reduces the risk of supply chain disruptions Avoids potential reputational problems

Helps farmers improve quality and achieve a higher price for their tea Leads to better run, more efcient factories Improves working conditions for tea pluckers and factory workers

Page 10 A fair cup: towards better tea buying

Tea company/own-label buyers

Retail/out of home buyers

Benet to buyer

Benet to factory and farmer

Improves product quality, social standards, management and business performance Leads to more sustainable livelihoods for workers, farmers and their families

4. Pay a sustainable price for your tea Paying a sustainable price reinforces positive trends and allows for real social improvements for farmers and their workers. At the moment some company buyers simply instruct their agents to get the range of teas needed in their blend at the lowest price but this may mean prices and therefore wages below the cost of living. This causes social hardships as well as posing reputational risks. Instead, together with your chosen tea factories: Work out what would be a minimum sustainable price to ensure that the factory meets its costs of production, has sufcient capital for investment and can ensure that farmers receive a living wage Instruct your agent to honour this price in direct contracts or to top up auction price as required. Standards which help rather than hinder Tea producers already receive the lowest share of benets in the supply chain. In a declining tea market, standards which place signicant additional cost on factories and tea farmers may serve to undermine - rather than support - the type of improvements that the standards are designed to bring about. As a buyer there are a number of issues related to standards you should consider: Ensure that the investment made by suppliers in complying with your standards is reected in the price you pay particularly if you are asking them to make major investments of capital Assess the impact of your standards. Are they designed to benet farmers and their workers by addressing real needs or are they designed purely to avoid reputational risk? If you are insisting on social standards, develop and review these in consultation with your suppliers. This will ensure they address issues that are important to them and do not inadvertently disadvantage smaller growers. By working with local actors (such as NGOs or trade unions) you can develop verication methods which are appropriate to local needs Consider working with other companies to rationalise the number of standards required moving towards best practice and those most locally relevant Under pressure to cut costs or source sufcient quantities, buyers sometimes buy from outside the standards they require. This sabotages the whole relationship, undermining trust and condence, leading to mistrust of standards or a temptation to fake compliance. Instead work to maintain and improve the integrity of your standards.

Consider the impacts of your price demands (as well as demands for promotions, loyalty payments etc) on actors further down the supply chain.

Quality improvements Reputational advantage

If your company has guidelines around responsible sourcing, make sure these are translated into the way buyers actually purchase from tea companies. As a retailer or out of home buyer make sure you are aware of the number and nature of the different food safety and social standards schemes operating, including their impact and credibility.

Greater consumer trust in standards. Avoids reputational risk Allows companies to show consumers steady, meaningful and veriable improvements for tea farmers and their workers

Standards help rather than hinder real quality and social improvements

A fair cup: towards better tea buying Page 11

Responsible purchasing in practice

It is not easy for buyers to ensure that they have a positive impact on the farmers and workers who produce the tea they sell. There are no quick x solutions or easy answers. However, buyers are important players in the chain with considerable power and opportunity to improve conditions. Some businesses are already practicing more responsible purchasing and are reaping the benets.

Yorkshire Tea: Quality approach pays

Yorkshire Tea is part of Bettys and Taylors of Harrogate a family-run business. Their emphasis is on building relationships. They only buy from factories where they have built up good relationships. Even when they buy through auction they inform that factory what they have bought from them when they next visit. This allows them, despite being a relatively small buyer, to support those factories to produce the type of tea Yorkshire needs for its blend. Tasting with the growers is particularly important as it allows buyers to discuss requirements directly with those involved in production, helping them to adjust production techniques to what works. They believe that their success is intrinsically linked to that of the grower and they are happy to put their money where their mouth is. They have concrete quality incentives - if a factory produces exactly the right type of tea for them they are paid a price premium. There are clear commercial benets for Yorkshire Tea to this way of doing business. They have tailor-made quality product from producers who they know and trust. This allows them to plan for the growth of their brand. And despite the declining UK tea market, Yorkshire Tea is growing in value and volume year on year.

Teadirect: A shift in attitude

Teadirect is the tea brand of the UK Fairtrade company Cafdirect plc. In addition to buying directly only from known, mostly smallholder, suppliers and working on yearly forecasts that allow suppliers to plan, Teadirect operates in a number of innovative ways. Together with suppliers, the company holds workshops annually to review and set a locally appropriate minimum price based on the cost of sustainable production. The company sees its suppliers clearly as supply chain partners leading to a more equitable sharing of risks and responsibilities as well as benets from the tea trade. In fact all partners/suppliers now hold ve per cent of shares of the parent company and their representatives sit on the Board to shape strategy. In terms of working together and demonstrating long-term commitment, Teadirect has been supporting its partners factories over many years in a variety of ways to strengthen their business capabilities and skills. Some recent examples are assisting factories efforts to become HACCP compliant, nd new markets, improve quality and in Uganda supporting a factory to develop local tea packaging facilities. This approach is delivering tangible benets - Teadirect is growing at over seven per cent year on year.

Page 12 A fair cup: towards better tea buying

Wider recommendations
All the different actors in the tea supply chain have a role to play in making sure that risks and opportunities are more fairly balanced. Individual consumers Ask questions at work or in cafes about how tea is purchased. With enough pressure from consumers, supermarket and tea company practices will start to change. Ask the tea company you buy from to tell you where and who they buy their tea from. Do they chop and change depending on where they can get the cheapest deal or do they commit to a group of suppliers over a longer time period? Demand more information from the tea companies about their pricing policies especially if its cost less than 1p a tea bag! Ask them to publish what they pay and how much tea workers are paid. Demand more information from tea companies and retailers about the impact of their efforts to be more responsible has this just added to the pressures that factories and farmers face or has it brought real benefits? Put pressure on the UK Government to implement the recommendations below. UK Government Support tea farmers to have a stronger voice in international bodies as well as in EU or private sector standards setting. Ensure that aid programming does not contribute to the global oversupply of tea. Support the initiative that African countries have taken at the WTO to improve policies for producers of primary commodities, including mechanisms such as supply management and greater value-addition in-country. Support initiatives which help farmers to organise themselves into groups to help with joint marketing, buying inputs or negotiating prices. Investigate the impact that the concentration of buying power in the hands of a few retailers and a few brands has on competition, consumer choice and on international development targets such as the Millennium Development Goals. Ensure UK companies understand, report on, and are held accountable for, their actions overseas. Investors Understand and take into consideration the impact that the purchasing and pricing practices of the companies you invest in have on the viability and profitability of their supply chain partners on whom they depend for the final product. If you are not happy with their practices, consider moving your investment.

A fair cup: towards better tea buying Page 13

Buying Matters
Traidcraft Exchange is the UKs only development charity specialising in making trade work for the poor. In collaboration with local partners we work to create opportunities for poor people to harness the benefits of trade, helping them to develop sustainable livelihoods and offering them hope for a better future. Traidcraft also aims to use the experience of its sister fair trade company, Traidcraft plc, to improve wider trade practices. This report is part of The Responsible Purchasing Initiatives work to improve the purchasing practices of EU companies so that minimum human rights standards are realised by the workers and farmers in the developing countries involved in producing products. We would welcome your feedback on this report. Please e-mail your comments direct to: responsible-purchasing@traidcraft.org.uk Or visit our website www.responsible-purchasing.org

Acknowledgements
We would like to thank all those businesses, researchers, investors and NGOs who have helped in compiling this report. In Kenya we would particularly like to thank Jacob Omolo of IPAR for the initial research and Ian Gatere of IEC Strategy Ltd for researching and writing the case studies.

Photo credits
Cover photo by Shailan Parker. All other photos by Charles Kamau, IEC Strategy Ltd.

References
* 1 2 Names have been changed and faces blurred to protect the identity of these workers. Throughout this report tea is used to refer to products made from the shrub camellia sinensis, whether green tea or black tea. Tea made from fruit or herbs is not included. The report draws on research conducted for Traidcraft by Jacob Omolo of IPAR in Kenya, Impact of UK Purchasing Practices on Small and Medium Business in Kenya September 2006. International Tea Committee, Annual Bulletin of Statistics 2006 Tea Board of India, Tea Board of Kenya, websites 2007 International Tea Committee, Annual Bulletin of Statistics 2006 Food and Agriculture Organisation The State of Agricultural Commodity Markets 2004 International Tea Committee, Annual Bulletin of Statistics 2006 International Tea Committee, Annual Bulletin of Statistics 2006. Please note these figures are approximate and are based on the assumption that all tea retained in producer countries and all imports into countries have been consumed. Mintel, Tea and Herbal Tea, UK Market report February 2005 Euromonitor Hot Drinks in the UK Executive Summary August 2006. Speciality tea figures from Mintel 2005 as above UK Tea Council website 2007 UK Food and Drink Federation Out of Home Group various, see www.outofhome.org Mintel Tea and Herbal Tea Market report February 2005 UK Competition Commission, Emerging Thinking, January 2007 United Nations Development Programme Human Development Report 2006

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9 10 11 12 13 14 15

Traidcraft Exchange Unit 306 16 Baldwins Gardens London EC1N 7RJ UK Tel: +44 (0)207 242 3955 Fax: +44 (0)207 242 6173 Email: policy@traidcraft.org.uk www.traidcraft.org.uk

The publication of this report has been funded the Department for International Development