Development of Development of Organic Tea CultivationOrganic Tea Cultivation

in in Sri LankaSri Lanka

The Role of ESD in Germany

Daichi KOHMOTO

Organic AgricultureOrganic Agriculture• Originally developed as a typical alternative

to the mainstream global food supply system and productivism

• Expected to be an environmentally, socially, and economically just and sustainable farming method

• Rural dev. & Env. conservation

Proportion of organic areas in agricultural areas in each countries (Yu

ssefi and Willer, 2004)

(%)

No data

Stassen Natural Food (Pvt) Ltd.Stassen Natural Food (Pvt) Ltd.Idulgashinna Bio Tea GardenIdulgashinna Bio Tea Garden

BackgroundBackground

Most of developing countries in the world　 Still depend on the export of small number

of agr. crops and mineral resources

Plantation Agriculture Plantation Agriculture grown under colonial economy is typical

• A usually large estate in a tropical or subtropical region • Cultivated by unskilled or semiskilled labour under central directi

on• The term arose during the period of European colonization in the

…New World, essentially, wherever huge tracts of crops cultivated by slave labour became an economic mainstay

• The typical plantation was a self-sustained community, an economic and political institution governed with a monopoly of authority by the planter

• Thousands of square miles of forest land have been cleared since 18th century for the cultivation of sugarcane, coffee, tea, cacao, rubber trees, oil palms, sisal, and bananas.

• Frequently depend on foreign capital and tend to exploit the labour forces of native populations.

(The New Encyclopedia Britannica 1985)

Definition and characters of Definition and characters of “Plantation”“Plantation”

Productivism

1. The tea industry in Sri Lanka, particularly the plantation estate sector, has structural problems in terms of environment, economy, and social sustainability.

2. These problems have been mainly caused by decreasing consumption of tea in industrialized countries and former policies of nationalizing Sri Lankan tea estates.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

Year

Mt

China

India

Kenya

Sri Lanka

Change in production amount of tea in 4 major tea producing countries

High /Mid Country …Plantation estates

Started by British CapitalServiced by immigrant Indian Ta

mil laborersNationalization in 1972-75

　→ - Stagnant productivity - Declining international competitiveness

Revitalization from 1992= Establishment of 22 RPCs (Regional Plantation Companies)

Low Country …Small farmers (<4ha)

0

20

40

60

80

100

120

140

160

180

200

1955 1965 1975 1985 1995 Year

Mkg

HighlandMidlandLowland

Changes in production amount of tea by elevations in Sri Lanka

0 10000 20000 30000 40000 50000 60000 70000 80000

高地

中間地

低地

ha

小農部門 プランテーション部門

Tea areas in Sri Lanka

High

Mid

Low

Small farmers

Plantation estates

Source: Sri Lanka Tea Board (2005)

1956

Proportion of tea areas(1956)

1980s

Proportion of tea areas(1980s)

Avg. price/year of tea(1987-89)

2002

Proportion of tea areas(2002)

Avg. price/year of tea(2002-04)

Stopping the operation and Abandonment of the land

–Delay of replanting tea bushes

(Vegetative Propagated)

VP

Seedling

Altitude

– Delay of modernization for processing

– Increase of wage– Outflow of the workers

– Increase of chemical use

Low sustainability of tea estates is a structural problem

Organic farming methods in tea plantation estates have been introduced mainly in disadvantaged mountainous areas, characterized by many abandoned tea areas and old tea bushes.

= Organic farming is an alternative strategy for developing the estates in such areas.

Stassen Natural Food (Pvt) Ltd.Stassen Natural Food (Pvt) Ltd.Idulgashinna Bio Tea GardenIdulgashinna Bio Tea Garden

Development of OFDevelopment of OF in Tea Estates in Tea Estates

World-first certified organic tea estate in 1986

Cultivated and processed by 9 companies (5 are dealing with only organic)

Mainly in Up-country

Exporting to GER, USA, JPN, AUS, FRA …

0200400600800

10001200140016001800

1994

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

Year

kg/ ha

Koslanda Organic Tea Garden

Maskeliya Plantations Ltd. Total

Changes in Yield/ha

1980s

Proportion of tea areas(1980s)

Avg. price/year of tea(1987-89)Haldummulla

Haputale

・Decreased 38.0％　 since 1956

Haldummulla

2002

Proportion of tea areas(2002)

Avg. price/year of tea(2002-04)

0

20

40

60

80

100

120

140

Germany Italy France Australia USA Japan

(t)

Export amount of Stassen Natural (Pvt) Ltd. by countries in 2003

Fair trade certifications

• ex. B Estate　 ・ Pepper &Coffee　　　 … as shade trees　 ・ Coffee…Bought the neighbor land (15

acre) in 2004 for this　 ・ Herbs &Woods ...as manures

Diversification of Crops…Demand from Buyers

Ecotourism

Social welfare policy for the workers• One estate bought sawing machines for the

workers by using the premium of fair-trades

• Other estate has an idea that OF practices need social responsibility as well as env. consciousness

　⇒” Organic Concept in Social Progress”　 Community based social development programs 　…

56 /72 staffs are engaging in

No problems in outflow of the workers

• These organic tea estates are trying to brand themselves, diversify crops, promote biodiversity, conduct eco-tours of estates, enhance social welfare system for residents, and introduce fair-trade certifications, as well as obtain organic certifications.

• Thus, organic farming in the tea estates can be understood as a strategy of diversified management, which is a combination of the elements of post-productivism.

• However, the cost of production (COP) is higher in organic tea estates than in conventional estates, especially the cost of composting and weeding.

• Due to their labor-intensive character, organic estates are affected enormously by increasing labor costs, and in the near future the outflow of labor might also be a problem. These issues are common in the Sri Lankan tea industry.

Higher COP 　⇔　 No profit

Cost of production (April 2004 – March 2005)

050

100150200250300350400450500

C有機茶園 Ampitiakande Poonagala B有機茶園

(Rs./ ha)

その他化学肥料除草堆肥づくり茶摘み

OthersChem. FertilizerWeedingCompostingPlucking

C OrganicC Organic B Organic

• Delay of the improvement in some estates

- Outflow of younger generation- Strikes

• Marketing to acquire new consumers in industrialized countries is not easy for organic estates, and the bought price is not increasing.

• This trend will not lead to the establishment of more organic tea estates. Some existing organic estates are also on the verge of closure under these circumstances.

26

Buyers

Agri-business

Int’l. Orgs.

NGOs

SmallFarmers

EstateWorkers

Certification Bodies

Gvt.

Consumers

PlantationsSmall farmers’

groups

Industrialized Countries

Global Southex. Sri Lanka

Actors and InterrelationshipsActors and Interrelationshipsin OF in Global Southin OF in Global South

• To ensure the sustainability of organic tea estates, it is necessary to expand their social welfare policies especially for younger residents, and communicate these efforts to society along with environmental conservation policies. Moreover, consumers in industrialized countries need to understand and support the challenges affecting disadvantaged estates.

26

Buyers

Agri-business

Int’l. Orgs.

NGOs

SmallFarmers

EstateWorkers

Certification Bodies

Gvt.

Consumers

PlantationsSmall farmers’

groups

Industrialized Countries

Global Southex. Sri Lanka

Actors and InterrelationshipsActors and Interrelationshipsin OF in Global Southin OF in Global South

Vielen dank!!

Target Agriculture Target Agriculture (Pvt.) Ltd.(Pvt.) Ltd.

Support from the Support from the GovernmentGovernment

Gov. had been negative toward OF　 … Subsidizing Chemical fertilizer & Low input agr.

1/18 major policies in “National Policy on Agr. & Livestock 2003-2010” 　↑ - Expanding the market =Increasing opportunities for export　　 - Lobbying activities by NGOs

Tea Research Institute

R&D for organic cultivation method for tea

Test growing of organic tea together with plantation estates

GTZ