Development of Organic Tea Cultivation in Sri Lanka The Role of ESD in Germany Daichi KOHMOTO

Organic Agriculture Originally developed as a typical alternative to the mainstream global food supply system and productivism Expected to be an environmentally, socially, and economically just and sustainable farming method Rural dev. & Env. conservation

(%) No data Proportion of organic areas in agricultural areas in each countries (Yussefi and Willer, 2004)

Stassen Natural Food (Pvt) Ltd. Idulgashinna Bio Tea Garden

Background Most of developing countries in the world 　Still depend on the export of small number of agr. crops and mineral resources Plantation Agriculture grown under colonial economy is typical

Definition and characters of “Plantation” (The New Encyclopedia Britannica 1985) A usually large estate in a tropical or subtropical region Cultivated by unskilled or semiskilled labour under central direction The term arose during the period of European colonization in the …New World, essentially, wherever huge tracts of crops cultivated by slave labour became an economic mainstay The typical plantation was a self-sustained community, an economic and political institution governed with a monopoly of authority by the planter Thousands of square miles of forest land have been cleared since 18th century for the cultivation of sugarcane, coffee, tea, cacao, rubber trees, oil palms, sisal, and bananas. Frequently depend on foreign capital and tend to exploit the labour forces of native populations. Productivism

1. The tea industry in Sri Lanka, particularly the plantation estate sector, has structural problems in terms of environment, economy, and social sustainability. 2. These problems have been mainly caused by decreasing consumption of tea in industrialized countries and former policies of nationalizing Sri Lankan tea estates.

Change in production amount of tea in 4 major tea producing countries

…Small farmers (<4ha) High /Mid Country …Plantation estates Started by British Capital Serviced by immigrant Indian Tamil laborers Nationalization in 1972-75 　→ - Stagnant productivity - Declining international competitiveness Revitalization from 1992 = Establishment of 22 RPCs (Regional Plantation Companies) Low Country …Small farmers (<4ha)

Changes in production amount of tea by elevations in Sri Lanka

High Mid Low Small farmers Plantation estates Tea areas in Sri Lanka Source: Sri Lanka Tea Board (2005)

1956 Proportion of tea areas (1956)

1980s Avg. price/year of tea (1987-89) Proportion of tea areas (1980s)

2002 Avg. price/year of tea (2002-04) Proportion of tea areas (2002)

Stopping the operation and Abandonment of the land

Delay of replanting tea bushes Seedling VP (Vegetative Propagated)

Altitude

Delay of modernization for processing

Increase of wage Outflow of the workers

Increase of chemical use Low sustainability of tea estates is a structural problem

Organic farming methods in tea plantation estates have been introduced mainly in disadvantaged mountainous areas, characterized by many abandoned tea areas and old tea bushes. = Organic farming is an alternative strategy for developing the estates in such areas.

Stassen Natural Food (Pvt) Ltd. Idulgashinna Bio Tea Garden

Development of OF in Tea Estates World-first certified organic tea estate in 1986 Cultivated and processed by 9 companies (5 are dealing with only organic) Mainly in Up-country Exporting to GER, USA, JPN, AUS, FRA …

Changes in Yield/ha

1980s Haldummulla ・Decreased 38.0％ since 1956 Haputale Haldummulla Avg. price/year of tea (1987-89) Haldummulla Proportion of tea areas (1980s)

2002 Avg. price/year of tea (2002-04) Proportion of tea areas (2002)

Fair trade certifications Export amount of Stassen Natural (Pvt) Ltd. by countries in 2003

Diversification of Crops …Demand from Buyers ex. B Estate 　 ・Pepper &Coffee 　　　 …as shade trees 　 ・Coffee…Bought the neighbor land (15 acre) in 2004 for this 　 ・Herbs &Woods ...as manures

Ecotourism

Social welfare policy for the workers One estate bought sawing machines for the workers by using the premium of fair-trades Other estate has an idea that OF practices need social responsibility as well as env. consciousness 　⇒”Organic Concept in Social Progress” 　Community based social development programs　…56 /72 staffs are engaging in No problems in outflow of the workers

These organic tea estates are trying to brand themselves, diversify crops, promote biodiversity, conduct eco-tours of estates, enhance social welfare system for residents, and introduce fair-trade certifications, as well as obtain organic certifications. Thus, organic farming in the tea estates can be understood as a strategy of diversified management, which is a combination of the elements of post-productivism.

However, the cost of production (COP) is higher in organic tea estates than in conventional estates, especially the cost of composting and weeding. Due to their labor-intensive character, organic estates are affected enormously by increasing labor costs, and in the near future the outflow of labor might also be a problem. These issues are common in the Sri Lankan tea industry.

Cost of production (April 2004 – March 2005) Higher COP　⇔　No profit Others Chem. Fertilizer Weeding Composting Plucking C Organic C Organic B Organic Cost of production (April 2004 – March 2005)

Delay of the improvement in some estates - Outflow of younger generation - Strikes

Marketing to acquire new consumers in industrialized countries is not easy for organic estates, and the bought price is not increasing. This trend will not lead to the establishment of more organic tea estates. Some existing organic estates are also on the verge of closure under these circumstances.

Actors and Interrelationships in OF in Global South Industrialized Consumers Countries Certification Bodies Buyers Int’l. Orgs. Agri - business NGOs Small farmers’ groups Plantations Gvt . Small Farmers Global South Estate Workers ex. Sri Lanka 26

To ensure the sustainability of organic tea estates, it is necessary to expand their social welfare policies especially for younger residents, and communicate these efforts to society along with environmental conservation policies. Moreover, consumers in industrialized countries need to understand and support the challenges affecting disadvantaged estates.

Actors and Interrelationships in OF in Global South Industrialized Consumers Countries Certification Bodies Buyers Int’l. Orgs. Agri - business NGOs Small farmers’ groups Plantations Gvt . Small Farmers Global South Estate Workers ex. Sri Lanka 26

Vielen dank!!

Target Agriculture (Pvt.) Ltd.

Support from the Government Gov. had been negative toward OF 　 …Subsidizing Chemical fertilizer & Low input agr. 1/18 major policies in “National Policy on Agr. & Livestock 2003-2010” 　↑- Expanding the market =Increasing opportunities for export 　　 - Lobbying activities by NGOs GTZ Tea Research Institute R&D for organic cultivation method for tea Test growing of organic tea together with plantation estates