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M T Z M CIC Tea Advisory Services Pvt Ltd.

M T Z M CIC Tea Advisory Services (Pvt) Ltd.. Market imposed requirements 1. ISO 3720 - Minimum Quality Standard2. Food Safety Management Systems (FSMS): - HACCP (Hazard Analysis and Critical Control Points) - ISO 22000 : 2005 - Eurep GAP 3. ISO 9001:2000 ? Quality Management System

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M T Z M CIC Tea Advisory Services Pvt Ltd.

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    1. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    2. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    3. M T Z M CIC Tea Advisory Services (Pvt) Ltd. 4. ISO 14000– Environmental Management Systems 5. Maximum Residue Levels (MRLs) of Pesticides – Becoming a non-tariff trade barrier?? 6. Corporate Social Responsibility (CSR) Certification - Ethical Tea Partnership (ETP) - Fair Trade Labeling (FLO) (OHSMS- Occupational Health and Safety Management Systems)

    4. M T Z M CIC Tea Advisory Services (Pvt) Ltd. ISO 3720 Water extract - 32 % (w/w) (minimum) Total ash - 4 % (minimum) - 8 % (maximum) Alkalinity of water soluble ash - 1- 3 % Crude fibre content - 16.5% (maximum) Acid insoluble ash - 1.0 % (maximum) SL strictly follows/adheres to this standard

    5. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    6. M T Z M CIC Tea Advisory Services (Pvt) Ltd. ISO 9001:2000 QMS Initially ISO 9002:1994 was demanded - Although this standard had fair amount of benefits, it did not guarantee the product quality!! ? Not very useful? Factories ISO 9002 certified, but poor prices for tea Too much of documentation(!) and staff did not have the time to supervise processing…?? Role of consultants……made it worse… - Consistency in processing but not on quality of the final product

    7. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    8. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    9. M T Z M CIC Tea Advisory Services (Pvt) Ltd. ISO 14000 – Environmental Management Standards (ISO 14001, 14010, 14011….19011 etc.) Tea cultivation – although agrochemicals are used, by following GAP, requirements could be easily met Tea processing – no additives added no hazardous wastes released By following GMP, requirements could be easily met No difficulties in achieving ISO 14000 certification Documentation is crucial…..

    10. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    11. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    12. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    13. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    14. M T Z M CIC Tea Advisory Services (Pvt) Ltd.

    15. M T Z M CIC Tea Advisory Services (Pvt) Ltd. CSR – Corporate Social Responsibility: Ensure social and ethical conditions are met (right through the supply chain): Towards the business itself, in order to sustain the industry - Through optimum investment, inputs etc., towards maintaining productivity of the plantations, while preserving the environment etc. (eg: Soil conservation measures by planting vetivar grass) ii. Towards employees – more emphasis No exploitation of work force – affordable wages, decent living conditions, healthcare, no child labor.. Highly encouraged and practiced - ? could expect more commitment ? improved productivity

    16. M T Z M CIC Tea Advisory Services (Pvt) Ltd. CSR - Met to a great extent - (Guaranteed employment after 18 years of age, positive approaches towards healthcare, children’s education, housing (even after retirement) and sanitation facilities). - Continuing/striving to expand / improve. - With support from the state, NGOs & INGOs - Industry is mindful of the return on investment related to CSR practices Fair Trade Labeling (FLO certification) – Somewhat positive response from the producers Ethical Tea Partnership (ETP) – Reservations from the producers

    17. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Fair Trade Labeling (FLO certification): (+) - incentive (US $ 0.50 – 1.00/kg?) to be used towards welfare of the employees – i.e health, education, housing and sanitation facilities Issues (-) High certification fees & (-) Tough FLO generic standards for hired labour (-) The tea produced/sold is blended with other teas & not many producers know, who the ultimate buyer/ consumer is ? Difficulties in claiming incentives!!!

    18. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Ethical Tea Partnership: - No direct incentives, although ETP certified tea may be preferred in certain destinations - Country to country (producer), requirements do differ (based on country specific laws/ regulations) - Taking the above reservations, the conditions/ requirements are revised and piloted in Kenya!!

    19. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Issues Tougher certification requirements, compared to other food products (non tariff barriers..) Non-homogenous raw material Type of processing – batch process Being a perennial crop Harvesting the vegetative part, Costs involved in a) upgrading the processing units b) certification c) Third party auditing (ETP, FLO..) (COP is the highest in SL, about US $ 1.7 – 2.2/kg)

    20. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Producers not knowing the ultimate consumer (difficulties in claiming incentives and additional costs involved, in satisfying requirements set by all buyers) ?Higher COP, without much return on investment Negligible quantity sold as direct sales ? blending i. Each component of the blend should conform ii. Operations at blending plants and warehouses too need to be certified (Major warehouses and blending plants are HACCP/ ISO 22000 certified)

    21. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Challenge/s faced Conform to those standards, to stay in business Initiatives taken by the industry - being pro-active (CQC, TASL standards…) In case of difficulties, with regard to meeting the requirements, request for concessions through strong/sound arguments/ representations (eg: making representations to FAO/WTO etc.)

    22. M T Z M CIC Tea Advisory Services (Pvt) Ltd. Thank you

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