As falling prices on the tea markets affect millions across the developing world, Cafédirect is once again raising the bar in ethical standards.
Teadirect
The only major brand to guarantee a minimum price for its tea growers has announced it is increasing the amount it pays for tea by 8%, following increases in tea organisations’ production costs. At current market prices (w/c 9th July), this means that over 85% more goes back to benefit the growers compared to what they would receive from non-Fairtrade brands. The uplift will also help to strengthen tea grower organisations, build sustainability and secure a stable income for its growers and workers.
“The reality is that when selling at auction, some tea organisations are currently not covering their costs of production, let alone making a profit”, says Sylvie Barr, Head of Marketing for Cafédirect.
"Our new pricing policy is the result of working closely with our grower partners. Just as we do for our coffee and cocoa growers, we wanted to create a system for our tea growers that rewards quality and also shields them from the damaging impact of low market prices.”
Cafédirect introduced its pioneering minimum price for tea in 2003. The impact it has had on its tea partners is summed up by Charles Newe, Financial Controller for Kibena (Tanzania): "Agriculture employs over 80% of people in Tanzania, as such the only way out of poverty is by helping the industry. The move by Cafédirect to introduce a minimum price for its tea purchases in 2003 has had a very significant impact in fighting poverty as it is making agricultural business more predictable and sustainable. If all producers can be assured of a minimum price then more investors will come into the business and with the fair trading in place as advocated by FLO (the International Fairtrade Labelling Organisation) a lot more people will break the vicious cycle of poverty. From this part of the world we wish that there were more businesses in the developed world that trade like Cafédirect.”
The price change has already come into effect for Kayonza and Igara, Teadirect grower partners in Uganda, where tea market prices are very low. Since the introduction of the scheme on 8th May the average of the highest auction prices has only been $1.52 per kilogram, which is below the tea growers’ production costs. In contrast, Cafédirect is currently paying $2.33 per kilogram.
I think it is a good initiative and hope other importers and companies follow the same minimum pricing standards as long as the quality remains the same.
http://www.tealaden.com
Email this to a friend
Want more stories delivered to your inbox?
