Sustainable Tea Production International Tea Convention Sri Lanka August 2007 I.R.Neathercoat Unilever

A Portfolio of Leading Brands

Fairtrade Agricultural Environment Organic & Nutrition Ethical and Social Issues Legislation Product Quality and Good Practice Global Operating Environment Pesticides and Contaminants

The Consumer “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” “Since I do not know what to trust anymore, I want to go back to the origins” “Processing destroys the goodies in food” “I do not understand how (the product) is made” “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 ! –sustainable production –sustainable sourcing of raw materials –corporate and company behaviour that maintains credibility with stakeholders –Meaning a sustainable business proposition Long term survival = Sustainable business

Lead Sustainable Agricultural Programmes

Generic Sustainability Indicators Soil fertility and health Soil loss Nutrients Pest management Biodiversity Product Value Energy Water Social capital Local economy Animal Welfare

Tea - Camellia Sinensis and Unilever

12% of the Worlds Black Leaf Tea Consumption

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” “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” “Processing destroys the goodies in food” “I do not understand how (the product) is made” “Butter is real, margarine is artificial” ?

A picture tells a story

A LOGO is therefore worth a thousand words.

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