Sustainable Tea Production

1. Sustainable TeaProduction International Tea Convention Sri Lanka August 2007 I.R.Neathercoat Unilever

2. A Portfolio of Leading Brands

3. Global Operating Environment Fairtrade Organic & Nutrition Pesticides and Contaminants Product Quality and Good Practice Ethical and Social Issues Agricultural Environment Legislation

4. The Consumer “I am reassured that a product is natural by transparency of natural material/imagery” “Butter is real, margarine is artificial” “The closer you are to your origin, the more natural you are” “Since I do not know what to trust anymore, I want to go back to the origins” “I do not understand how (the product) is made” “Processing destroys the goodies in food”

5. Why Sustainable Agriculture? • Growing competition for arable land • Agricultural impact on soil fertility - • negative/positive • Agricultural impact on water quality • nutrients run off into water • pesticides run off into water • Agriculture impact on conservation • contributes to climate change • biodiversity reduction (plant/animal)

6. Why Sustainable Agriculture? • Agriculture impact on global energy issue • energy requirements for fertilisers/pesticides • use of fossil fuels and energy efficiency • Agriculture impact on air pollution • Agriculture essential to survival of mankind • The debate between intensive and organic farming

7. Long term survival = sustainable business • Products must fit in with consumer aspirations and concerns • Corporate behaviour must be seen to be responsible, and take into account political, social and environmental concerns. • Business is dependent on society. • Society is dependent on the environment • A sustainable business means • sustainable production & sourcing of raw materials • products that can be used and disposed of in sustainable manner • corporate and company behaviour that maintains credibility with stakeholders

8. Long term survival = Sustainable business For agricultural crop producers too ! • sustainable production • sustainable sourcing of raw materials • corporate and company behaviour that maintains credibility with stakeholders • Meaning a sustainable business proposition

9. Lead Sustainable Agricultural Programmes

10. Soil fertility and health Soil loss Nutrients Pest management Biodiversity Product Value Energy Water Social capital Local economy Animal Welfare Generic Sustainability Indicators

11. Tea - Camellia Sinensis and Unilever

12. 12% of the Worlds Black Leaf Tea Consumption

13. Unilever Tea Sales - Global Reach Sell leaf tea in over 100 countries • Spend - EUR 500 million per annum • Buy 300,000 tonnes • 200 suppliers • 1500 tea estates • over 2 million small farmers

14. The World of Leaf Tea Supply 2. China 750k (90% Green) Black Tea: 2.35 million tons 5. Indonesia 120k 1. India 860k Green Tea: 0.95 million tons 3. Sri Lanka 300k 4. Kenya 290k

15. Soil fertility and health Soil loss Nutrients Pest management Biodiversity Product Value Energy Water Social capital Local economy Animal Welfare Generic Sustainability Indicators

16. Soil fertility, soil loss & nutrients • Terrace land, line ditches and plant covers to reduce soil loss at planting • Return prunings to field to maintain organic matter levels • Focus on nutrient balance

17. Pest management & biodiversity • Integrated Pest Management to minimise pesticide use and associated disruption to the environment • promote biodiversity on the estate and in neighbouring community areas

18. Energy & water • Focus on efficient use of sustainable sources of energy • Hydro power • Development of own fuelwood sources • Water conservation

19. Social capital & local economy • Housing and clean water supplies • Hospitals and schools • Healthy well-educated people • Buying and resourcing locally

20. Unilever and Sustainable Development Unilever is committed to sustainable development Meet the needs of the present without compromising the ability of future generations to meet their needs

21. SA Communication Material: booklets GFTF II Good Agricultural Practise guidelines Good story booklets SA report with RASC & FWN Information booklets

22. Lipton-KTDA Sustainable Agriculture Project • Project idea started in 2003 • Joint Project with KTDA • Partially funded by £ 500k UK government grant • 3 year business project to introduce and train smallholder farmers in Sustainable Agriculture practices • Pilot with 4 Zones ( 12 total ) and 4 factories ( 57 total ) starts in April 2006 • Employs 2 full time and 3 part time people • Mission is to evaluate and prove that SA practices at farm level are a Sustainable long term business proposition • Final goal is to extend these practices from the pilot group to all 400,000 KTDA smallholder tea farmers.

23. The Unilever Commitment to Sustainable Tea 1. Communicate Sustainable Agriculture in Tea. 2. Ongoing Dialogue on the Guidelines themselves with all stakeholders 3. Help for the Small Farmer. 4. Promote International SA Standards in Tea 5. Time is necessary, but NOT unlimited

24. Back to the Consumer “I am reassured that a product is natural by transparency of natural material/imagery” “Butter is real, margarine is artificial” “The closer you are to your origin, the more natural you are” “Since I do not know what to trust anymore, I want to go back to the origins” ? “I do not understand how (the product) is made” “Processing destroys the goodies in food”

25. A picture tells a story

26. A LOGO is therefore worth a thousand words.

27. Two pictures tell a bigger story

28. THANK YOU