STiR coffee and tea magazine

28 STiR coffee and tea | 2024 Issue 3 (June / July) Farmers are encouraged to use smartphone apps to help implement regenerative practices. private sector employer in Kenya, with 20,000 workers by the mid-2000s. Unilever invested in expanding production at Kericho and 19 tea estates and 8 factories, earning Rainforest Alliance Certification in 2007 and producing an average of 32 million kgs of tea annually, generating Ksh 5.5 billion in foreign currency in 2008. Roos said proceeds from the long-term partnership with Browns Invest- ments will fund progress in farmer training and climate change mitigation initiatives. Kamantha Amarasekera, chief executive of Browns Investments, ex- pressed his anticipation for the collaborative efforts with Lipton and local part- ners, emphasizing the shared goal of fostering a sustainable, responsible, and prosperous future for all. This mutual commitment to growth and sustain- ability is a promising sign for the tea industry. Troubling Abuse on Kenyan Tea Estates In February 2023, BBC's Panorama TV program "Sex for Work: The True Cost of Our Tea" documented severe mistreatment of women on several tea estates, including those newly acquired by CVC and long-standing operations owned by James Finlays Kenya. Lipton ordered an exhaustive investigation and, a year later, instituted several new governance processes and structures, greater oversight of ground operations by local management, and an Oversight Committee, ac- cording to a company release. The company shared its findings and recommendations to "ensure that all tea estates and their supply chains are free from abuse… to promote a com- prehensive and collaborative industry-wide approach to prevent such issues. We will also work with governments to advocate for legislative and regulatory protection for workers. All this work and actions are part of a bigger effort to drive the whole industry upwards and create value for all, from tea pickers to end consumers, including a broad range of stakeholders, our team, our retail- ers, partners, and the planet." Government Supports Consolidation Lipton buys half of all its tea from Kenya. In February, Kenyan President Wil- liam Ruto agreed to partner with Lipton to benefit local farmers. "Our strategy is to increase farmer incomes," Ruto said. "We need to support the farmers in doing tea farming correctly, in an innovative, scientific manner, and in a manner that respects the ESGs," he added, referring to environmental and sustainability best practices. "Further education funding will expand the reach of the recently inaugu- rated Lipton Tea Innovation and Technology Academy in Kabianga, Kenya. The Academy provides vocational training and bachelor's, master's, and PhD level courses to develop the highest tea cultivation, harvesting, and process- ing standards." Lipton in February pledged $3.43 million (Ksh 500 million). Lipton CEO Roos said the investment "is a long term commitment from us, as a company and from our shareholders CVC Capital, to transform the industry in-depth," she said. "Other initiatives will support climate change mitigation and resilience ef- forts." Lipton Teas and Infusions, for example, will lead the development of a self-sustaining ecosystem for green and/or low nitrogen fertilizers in the region, enabling change for the finances of growers – as fertilizer is typically among the highest costs of production – and achieve an acceleration toward net zero for the entire industry, according to the release. Lipton's Kericho gardens produced 33 million kilos of tea on 14,100 hect- ares, with an additional 3 million kg of green leaf from Limura Tea on 282 hectares. Lipton's Tanzania factories combined produced 9.4 million kilos of tea on 28,572 hectares. Once operational, the Rwanda tea gardens will pro- duce 2.6 million kg of tea on 816 hectares. Transaction proceeds will be reinvested into the East Africa region to drive local and industry- wide progress in relevant areas, such as skills de- velopment. Shares totaling 15% of the main Kenyan op- erating company will be offered to the communi- ties of Kericho and Bomet, where the estates are situated, at a substantial discount, to create acces- sible and communal equity and mutually aligned economic participation. The two companies are also jointly creating a Community Welfare Trust with an initial one billion Kenyan shillings dedi- cated to helping address other needs of local and neighboring communities. This, however, is not the entire story. Sustainability Wins and Losses Some 30 years ago, Unilever, which owned Lipton at the time, was a very early adapter of sustainable agriculture. The Kenyan and Tanzanian tea estates were at the forefront of sustainable agriculture in tea. "It's all kind of gotten out of control now," says Tony Laurent, owner of Bespoke Tea Com- pany, referencing the current tea overproduction dilemma we cover on page 40 of this issue. "Too much tea is being produced, and there's been a shift toward clones from seedling tea from the old days. Clones have been developed many times, not just for disease resistance and quality but also for yields. Kenya, these days, is exporting 450 to 500 million kilos."

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