LESSONS LEARNED FROM MALAWI TEA 2020 PRESENTATION BY ATU KALINGA, VICE CHAIRMAN OF TEA ASSOCIATION OF MALAWI (TAML) EASTERN AFRICAN TEA ASSOCIATION FOURTH CONVENTION 25-28TH JUNE 2019

Presentation outline Introduction Progress Key interventions Lessons learned Conclusion

Introduction What are the Key Objectives of Malawi Tea 2020 A Profitable Estate Sector Healthier, motivated workforce with greater opportunities for women A living wage for workers A profitable smallholder sector where farmers earn a living income Energy efficient and environmentally sustainable industry

Notable progress Increased wages to close the living wage gap. Improved collective bargaining and capacity of Trade union Development, launch and implementation of Gender Policy investments producers in tea replanting, irrigation, factory refurbishment and crop diversification. Access to finance Training on improved livelihoods for Smallholder farmers Training on green leaf quality via Farmer Field Schools Improved nutrition for estate workers Training on diversified incomes via Village Savings and Loan Associations Training on sustainable use of natural resources in tea communities

Key interventions Bipartite engagement initiated by producers with Trade union. Upscaling Nutrition and Housing programmes Direct investments made by producers Adoption and Translation of Gender policy into vernacular

Lessons Interventions should be realistic and grounded on business and market principles Producers must lead such interventions and take responsibility for their destiny. Interventions at one origin for a product that is sourced from multiple origins can affect the competitive advantage of that origin. Having a development partner such as IDH as convenor has been highly beneficial to provide a balanced perspective A subsidised industry does not work Buyer and producer interventions need to be properly managed. Progression towards living wages needs – realistic expectations

Partners not always aligned Challenges Partners not always aligned Progress towards Living Wages and Living Incomes must be adjusted to reflect the prevailing market conditions Living Wages and Living Incomes are good aspirational targets, but very difficult to achieve Malawi’s competitive advantage has suffered. Sales volumes to coalition partners and prices of Malawi teas have not necessarily increased

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