In commemorating International Tea Day 2022, the Food and Agriculture Organization of the United Nations (FAO) has highlighted the need for greater economic, social, and environmental sustainability in the tea sector and its vital role in empowering women and youth improved food security and nutrition.
According to the FAO, the tea sector contributes to socio-economic development, representing a major source of employment and income for millions of poor families, yet it faces several challenges.
The tea sector needs to achieve greater sustainability, from tea leaf to cup said FAO Director-General QU Dongyu in an address for the celebration.
“Environmental sustainability involves using innovation and production methods that preserve resources for the future. Sustainability also needs to capture the social side of the sector, by empowering women and youth and ensuring that production throughout the value chain is respectful of social norms and standards.”
Qu Dongyu
During the COVID-19 pandemic, the demand for tea saw a substantial increase, spurred by purchases for in-home consumption. Market information collected by the FAO Intergovernmental Group on Tea (IGG/Tea) showed that tea consumption expanded in all markets, even those that recorded a declining trend in per capita consumption over recent years.
The data showed a surge in demand for tea among young people. The surveys highlighted that young people rediscovered their love for tea during the lockdown due to the hydration benefits and the “feel good” factor.
FAO has underlined that the tea sector can play an important role in improving lives and restoring the livelihoods of millions who have been impacted by the successive shocks of the past two years.
“Global tea production amounts to over $17 billion annually, while world tea trade is estimated at $9.5 billion, accounting for an important source of export earnings. Tea generates productive jobs and empowers individuals, especially women and their communities.”
FAO
Price level and volatility another challenge, IGG warns
In addition to sustainability, the sector also faces the challenge of market price levels and volatility. In real terms (adjusted for inflation), international tea prices have declined as production increased faster than demand for the past four decades.
Actions are also required to tackle some of the issues impacting smallholders, who account for 60 percent of global tea production, Qu said.
The FAO stressed that if small-scale tea farm operations remain viable in an increasingly competitive market environment, they need to innovate constantly.
Marketing options explored, particularly by the FAO IGG/Tea, include raising the value of tea products through standards, specialty teas, product innovation, and generic promotion. The tea sector must demonstrate its value to command higher prices.
Tea cultivation is attractive to smallholders in many low-income countries because it creates jobs and income throughout the year and requires relatively little investment. At the same time, the risk of crop failure is generally small.
However, smallholders’ issues include low farmgate prices, poor extension services, limited market channels, and poor access to credit and technology. There is a pressing need to strengthen the smallholders’ business ecosystems. The IGG has warned that tea smallholder growers can suffer the most if not well protected.
Qu said, we need to do things differently, embrace new and innovative approaches and move to action for the tea sector to succeed in balancing the need for growth and the requirements of sustainability at all stages of the value chain.
The FAO Intergovernmental Group on Tea, one of FAO’s oldest commodity groups and a subsidiary body of the Committee on Commodity Problems (CCP), leads the multilateral actions in all aspects of the world tea sector. These include coordination efforts to harmonize standards, guide the generic promotion of tea, and develop tea strategies for climate change adaptation and mitigation.
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