A coalitian of organisations called “Tea 2030” has launched a new global campaign to turn the ubiquitous drink into a sustainable product.
To continue reading, subscribe to Eco‑Business.
There's something for everyone. We offer a range of subscription plans.
- Access our stories and receive our Insights Weekly newsletter with the free EB Member plan.
- Unlock unlimited access to our content and archive with EB Circle.
- Publish your content with EB Premium.
The report called “The Future of Tea: A Hero Crop for 2030”, led by global sustainability non-profit Forum for the Future, aims to turn tea - the world’s most favourite drink next to water - from a regular agricultural commodity into a ‘hero crop’ that provides significant benefits to famers and the entire supply chain, the economy and the planet.
To do so, the Tea 2030 coalition – composed of Unilever, Twinings, Tata Global Beverages, Rainforest Alliance, the Ethical Tea Partnership, Fairtrade International, Finlays, IDH – The Sustainable Trade Initiative, S&D Coffee & Tea, and Yorkshire Tea, among others – intends to address the many challenges facing the industry.
According to the report, there are 10 critical factors that can greatly impact the future of tea around the world. These include: demographic changes; resource constraints; climate change; competition for land and productivity; availability of labour and increase in mechanisation; balance of power across the supply chain; emergence of new business models; sustainability leadership in emerging economies; improvement in wages and labour welfare in the supply chain; and consumer attitudes to the value of food.
These issues will have strong implications for Asia, where over 70 per cent of the world’s tea production is located and where the largest growth in consumption is forecasted, noted Forum for the Future.
“
The shifting and extreme weather conditions, attributed to climate change, are disrupting how tea is farmed and priced. Tea producers have already had to turn to irrigation for a previously rain-fed crop, making them more vulnerable to any water shortages in the future.
Sally Uren, CEO of the non-profit, also added that this region has some of the world’s poorest countries and are “most vulnerable to climate change”.
“We are urging organisations across the sector to collaborate to find solutions that will safeguard [the future of tea] and transform the lives of millions of people working throughout the industry,” she said.
First off, the shifting and extreme weather conditions, attributed to climate change, are disrupting how tea is farmed and priced. “Tea producers have already had to turn to irrigation for a previously rain-fed crop, making them more vulnerable to any water shortages in the future,” noted the report.
Growers will also have to compete for land to cultivate tea, as more food crops are needed to sustain an increasing population, the authors of the 31-page document added.
These changes in demographics are likewise connected to urbanisation, such that “tea estates across the world are also already experiencing the impact of rural depopulation as smallholders and rural workers move to the city to seek better wages and lifestyles”. This means the industry has to provide smallholders and growers better benefits, such as helping them to achieve higher yields, increase land productivity, and improve their agronomy and business skills, according to the report.
It also highlighted that “the whole industry will benefit if growers gain more control over their product and a greater share of its value” as this will give them more reason to continue with tea farming and “ultimately make the sector more resilient and able to cope with changes that lie ahead”.
Also, another impact of demographic changes is the growth of domestic tea consumption in tea-producing nations like India and China. The report highlighted that instead of exporting, many producing countries are now drinking their own tea. From 1.118 million tonnes in tea consumption in India in 2011, consumption is projected to rise to 1.365 million tonnes in 2015.
The growth in demand could exacerbate resource constraints – not just land and water, but also the availability of energy and vital nutrients like phosphorus for fertilising. By 2030, total global energy demand is forecasted to increase by 50 per cent, the Future of Tea report pointed out.
China recently imposed a 135 per cent export tariff to secure the supply of domestic fertilisers, it added, since phosphorus is a non-renewable resource with an increasingly limited supply.
The report is the culmination of a year-long effort comprising desk research, interviews, and industry-wide workshops. The findings are also supplemented with a framework of solutions focused on three key areas, which the Tea 2030 partnership will spearhead:
- sustainable production, to help conserve and manage the environment and the communities where tea is grown;
- market mechanisms, to provide increased value to all members of the supply chain; and,
- engaging customers, by educating them about sustainable tea and encouraging their participation in reducing the detrimental impacts related to tea consumption.
Some of the plans under sustainable production include reforestation and improving biodiversity, water management and soil quality. Tea 2030 is also calling on the industry to explore other possible benefits that tea farming can provide, such as mixed planting of tea and food crops, as well as developing tea estates that can store carbon to attract carbon financing.
Pier Luigi Sigismondi, Unilever chief supply chain officer, noted that these efforts to change the industry and to ensure it will persist in the years to come is not a one organisation effort. He said, “That’s why we are proud to be part of Tea 2030 and believe this important collaboration is key to improving the livelihoods of millions of people in the sector and building a more sustainable future for tea.”
Ron Mathison, group managing director of British tea brand James Finlay Limited, echoed the sentiment “that no business can be truly sustainable in isolation”.
“Today we face many environmental and social challenges. Some of the challenges are similar to those faced years ago, some are different and require new ways of working … We must work with all the key stakeholders to explore all the major factors that might influence and shape the future sustainability of the tea industry,” he said.
