The True Price of Tea from Kenya
In this study the external costs of the tea supply chain (smallholder cultivation in Kenya) were investigated to inform decision making for IDH’s tea program. The external costs of conventional green leaf were compared to green leaf grown by smallholder farmers active in the Farmer Field School (FFS) program.
One barrier to reducing social and environmental costs effectively is the lack of quantitative assessments of the size and materiality of the various environmental and social externalities of tea production in Kenya. Such information is needed to make well informed decisions and
steer future interventions. Moreover, it is valuable to know to what
extent FFS training reduces the externalities of tea cultivation, and
how standard-setting and other organisations can allocate their
resources most efficiently.
This study aims to contribute to these challenges by measuring and
valuing the environmental and social externalities of the tea
supply chain and by comparing conventional tea cultivation to FFS
farm tea. "An FFS farm” refers to a smallholder plantation
owned by a farmer enrolled in the FFS program. Central to
this training is transfer of knowledge and tea management practices
in order to increase green leaf productivity, diversify activities and
optimize input use (LEI Wageningen, 2014). The sustainability of tea
production is improved by increasing the adoption of Good
Agricultural Practices (GAPs). FFS training is led by KTDA staff
or already graduated FFS farmers assisted by the KTDA (LEI
Wageningen, 2012). All FFS farms have as well achieved
Rainforest Alliance certification. "A conventional farm” refers to a
farm that is owned by a farmer who has not attended the Farmer Field
True pricing can be used to
measure the impact of an intervention by comparing the external costs
off armers with those of a real or a modelled control group (the option
scenario vs the reference scenario). Depending on data quality, claims
can be made as to whether and how the intervention creates value by
increasing benefits or reducing costs. The total effect of the
alternative scenario can be broken down into sub-effects. Based on this
knowledge, the alternative scenario can be evaluated and improved. As
mentioned before, measuring impact of interventions requires a specific
data set to be available.
to read the joint report by IDH and True Price.
Tags: Agriculture and food | Supply Chain Management | Natural Resources | Case Studies
Other articles you might be interested in:
The True Price of Cotton from India
The aim of this report is to provide a condensed overview of the true pricing study conducted for cotton from India. This study investigated the external costs of the cotton supply chain and compared it to certified seed cotton.
EU lawmakers back “intellectual property rights” over biodiversity
On 12 September 2013, the European Parliament has agreed to rules that would prevent EU companies, particularly in the pharmaceuticals sector, from exploiting the natural resources of the world's indigenous communities by recognising their 'intellectual property rights' over local biodiversity. An additional step forward towards the inclusion of indigenous communities and the protection against biopiracy.
Voluntary Sustainability Standards and Biodiversity
Understanding the potential of agricultural standards for biodiversity protection - This policy brief provides a summary of the findings of joint research conducted by International Institute for Sustainable Development in collaboration with the Convention for Biological Diversity Secretariat analyzing the potential contribution of voluntary sustainability standards to support biodiversity protection.
Aidenvironment Study: Sustainability Issues and Solutions in the Rubber Sector
Low prices drive natural rubber producers into poverty and serious violations of working rights are common. This is the harsh reality revealed in a new study conducted by Aidenvironment. The comprehensive review of literature reveals numerous cases of inadequate safety standards, inappropriate use of toxic chemicals, discrimination and structurally long working hours and child labour. It points to the need for more responsible sourcing practices by the rubber industry with particular attention to fair trading conditions.
Indigenous and Local Knowledge about Pollination and Pollinators associated with Food Production
Outcomes from the Global Dialogue Workshop - The report includes the proceedings from the Global Dialogue Workshop held in Panama, a series of case studies provided by ILK holders and experts, and based on indigenous and local knowledge and it provides a report by the ILK task force on the piloting of its preliminary ILK approaches and procedures in the framework of the pollination assessment.