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Kenya tells tea factories to cut ties with Rainforest Alliance due to costs
Kenya tells tea factories to cut ties with Rainforest Alliance due to costs

The Guardian

time3 days ago

  • Business
  • The Guardian

Kenya tells tea factories to cut ties with Rainforest Alliance due to costs

The Kenyan government has told its tea factories to stop working with the Rainforest Alliance because it says the costs involved in securing the ethical label don't add up for farmers. The non-profit organisation is one of the world's most recognisable certification schemes with its green frog seal on food packaging a sign consumers 'can feel confident that these products support a better world'. However the world's third largest tea producer has ordered tea factories to suspend certification work because the cost is adding to the financial strain on struggling smallholders. A recent Fairtrade Foundation poll found only one in five tea workers and farmers in Kenya are earning enough each month to support their families with essentials. In a memo issued after an industry summit, the agriculture principal secretary, Paul Ronoh, said the 'burden of implementation' of the Rainforest Alliance scheme was vested on tea factories then 'cascaded to the tea farmers and growers'. This cost 'ordinarily should be met by the customers', Ronoh said. Rainforest Alliance is a global non-profit organisation that works to promote sustainable agriculture, forestry and responsible business practices. The green frog seal appears on nearly 240 brands and is almost ubiquitous in UK supermarket tea ranges with big names including Tetley, PG Tips and Yorkshire Tea among those signed up. About half the tea consumed in the UK comes from Kenya. The widespread demand for ethical certification is linked to the reputational risk of sourcing from tea-producing regions with a long list of problems. These include low wages, unsafe working conditions, gender inequality and environmentally unsustainable practices. In addition, countries such as India and Kenya are grappling with climate crisis-related weather changes. However critics complain that while buyers for western markets only want to buy certified tea they rarely offer to pay a premium for it. While UK consumers are happy to splurge on coffee, the same is not true of tea. The average price of a teabag is 'just 2 or 3p' despite the fact that the cost to grow and pick tea is increasing, according to a recent Fairtrade Foundation report on the subject. Although Rainforest Alliance facilitates certification, it does not set the fees charged by external auditors who evaluate whether growers meet its 'sustainable agriculture standard'. The cost of certification depends on factors such as farm size, with growers often grouping together. For a smallholder-managed tea factory the annual cost is estimated to be about $3,000. This could come down however as a streamlined process that cuts the preparation work involved in an audit is being introduced this year. Ronoh said that as the Rainforest Alliance logo 'had not demonstrated solid impact commensurate to the costs of implementation, the meeting resolved to suspend the scheme with immediate effect'. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Tea is a major cash crop for Kenya and the decision comes as the country grapples with the knock-on effect of a moribund tea price on the millions of people who rely on it for their livelihood. The Rainforest Alliance says it is engaging with the State Department of Agriculture in Kenya to 'gain clarity and to work towards a joint resolution quickly'. It has contacted certificate-holders to assure them that the endorsement remains valid until the expiration date, meaning 'farmers are able to sell their tea as certified'. A spokesperson said: 'We remain committed to supporting in Kenya to the fullest extent possible, and our tea brands and companies have communicated that they remain fully committed to continuing to purchase Rainforest Alliance certified tea.' The Kenyan government is said to be considering putting in place a localised certification model. It would likely have similar sustainability goals but lower compliance costs and less administrative complexity. A spokesperson for the Ethical Tea Partnership (ETP), an NGO focused on tackling problems in the tea sector, said it hoped the Kenyan suspension would be 'short-lived and that a solution to this current impasse will be found'. Certification is a 'critical tool to allow all stakeholders in the tea supply chain to ensure that the workers, farmers and communities who rely on tea for their livelihoods are being treated fairly', the ETP added.

The bitter end of bitter
The bitter end of bitter

Spectator

time4 days ago

  • Entertainment
  • Spectator

The bitter end of bitter

'Another pint of bitter, love, when you're ready.' To those of a certain age the request slips off the tongue like the opening line of a sonnet. A pint of bitter is as English as the first cuckoo of spring or the last rose of summer. It brings to mind a pub, the people in it, and that social phenomenon which binds us to those we trust – the round. And, of course, one pint may lead to another. Television adverts used to be full of jolly pint-swillers. Whitbread 'Big Head' Trophy Bitter was 'the pint that thinks it's a qua-art'. Tetley of Leeds, a big player in those days, introduced viewers to their 'Bittermen', with the declaration: 'You can't beat 'em.' Bitter, more than its maltier cousin mild, was the favoured hoppy drink of the pub before the tasteless brute lager swaggered into our taverns. Sometimes, particularly in the north and Midlands, the two went together in a single beaker – though if you try telling the tale of 'mixed' to the hipsters of Camden Town, you might get some funny looks. The trendy modern toper prefers to take his ale from a barrel marked 'craft', as though the indentured brewers of previous decades hadn't the foggiest. Their successors, terrified by the prospect of being behind the times, are running scared. The Wye Valley Brewery, responsible for the superb Butty Bach, has decided to 'rebrand' its best bitter as Pyoneer. Although they insist the change is a way of honouring native traditions – Canon Pyon being the village where the brewery has its roots – a spokesman rather gave the game away by referring to the hunt for 'a new demographic'. We know what that means. Out with the woolly jumpers; in with bucket hats. So fare thee well, bitter beer. It was lovely knowing you. These days, if you promise to behave, you may be passed off as 'amber ale', which, strictly speaking, is true. Sometimes your dance card says 'pale ale', which is more or less true. Bitter and pale ale have always worn each other's clothes – like those hipsters in Camden. Landlord, the world classic brewed in Keighley by Timothy Taylor, is designated a pale ale. Their best bitter has for some years been called Boltmaker – and jolly good it is, too. There is no time for tears so long as brewers offer regulars such sapid stuff. London Pride, the jewel in the crown of Fuller's of Chiswick, is also promoted as an amber ale. There was a deliberate change of tone when Asahi, the Japanese brewers, bought the company six years ago – and you can still get Pride worth a gargle. The Red Lion in Barnes, a white-walled fortress with a garden, is a good place to satisfy your curiosity. But the foreign invasion, represented in part by the rise of those overrated craft beers, has claimed some notable victims. Later this year, the Banks's Brewery in Wolverhampton, which has pleased Black Country boozers for 150 years, will close its doors. Their mild is justly famous so this is a real deprivation. The carve-up of regional brewers by multinational corporations has changed the culture of drinking habits in a land known for its range of ales The carve-up of regional brewers by multinational corporations has changed the culture of drinking habits in a land known for its range of ales. Jennings of Cockermouth and Ringwood of the New Forest are merely the latest brewers to join the likes of Boddingtons in the taproom of history. Who ever thought 'Boddys' could go? It was as much a part of Manchester folklore as rain in July and the gay village. Well, the palace next to Strangeways Hotel, where they brewed what beer guides called 'a distinctive straw-coloured bitter', was pulled down 20 years ago. It can be difficult to keep up with developments. Draught Bass is now brewed under licence by Marston's. It is one of the great beers, characterised by the red triangle – the UK's first registered trademark – that appeared in Manet's Bar at the Folies-Bergère. Is it a bitter, or a pale ale? It doesn't really matter – though you might be stretching the tolerance of Burton folk to call it an amber ale. Sitting outside the Swan Inn at Milton last week, six miles from the brewery, it was possible to close one's eyes and pretend the cataclysm hadn't happened. There are still corking beers to be supped. Bateman's of Wainfleet, Holt's of Manchester, Batham's of Brierley Hill, and Woodforde's of Norwich won't let you down. And there are plenty of local breweries giving it a go without having to pretend they've 'gone craft'. Is there an outstanding candidate? There most certainly is. If we put Landlord to one side, for the sake of argument, then Harvey's Sussex Best of Lewes lands the strongest punch. 'Sussex Best Bitter', to put a proper handle on the jug, must be considered the champion. At the Express Tavern on Kew Bridge you may find this great ale, which has been sluicing through their pumps for 105 consecutive years. There is no excuse for not popping in to see how they are getting on.

Those on the Right should be taking credit for the India trade deal, not sniping at it
Those on the Right should be taking credit for the India trade deal, not sniping at it

Yahoo

time07-05-2025

  • Business
  • Yahoo

Those on the Right should be taking credit for the India trade deal, not sniping at it

Those on the Right should be taking credit for the India trade deal, not sniping at it Let's start with the big picture – big being the apt word, for India is the fourth-largest economy in the world, and about to overtake Germany to be third. So far, India's free trade agreements have been shallow and sparse. For the first six decades of its independence, India retained a Gandhian distrust of commerce. The wheel on its flag derives from a stylised handloom, like the one that Gandhi used to carry around as a symbol of economic self-reliance. This is only the 16th trade deal that India has signed, and it is vastly more ambitious than the previous 15. Britain has pulled off something that no other country has, at least not on anything like the same scale. It has secured a comprehensive trade agreement with a teeming sub-continent that contains the world's largest and fastest-growing consumer class. ADVERTISEMENT We live in a polarised age, and people who dislike Labour are looking for reasons to oppose what it has agreed. They have found three pegs on which to hang their doubts: migration, taxation and uneven tariff reduction. All three are nonsense. But, before we come to that, let us consider some of the other gains. Britain Indian trade deal struck India is a common-law and (for business purposes) English-speaking country. There are more than two million Brits of Indian origin. All these things make for a natural economic partnership and, sure, enough, there has been a great deal of investment. Indians enjoy buying famous British brands, such as Tetley and Jaguar. And British companies that invest the other way are thought of as Indian. Many Indians are astonished when they learn that JCB is in fact based in the UK. In their country, its initials have become a deonym, like Hoover or Kleenex – every Indian digger is 'a JCB'. Trade, though, has not followed on the same scale, partly because India only recently started to open its markets, and partly because Britain only recently left the EU. Our share of India's trade has been falling, not least because we have been ceding ground to the countries that did strike trade deals with Delhi – above all Japan whose FTA, until yesterday, was the most ambitious. ADVERTISEMENT Well, not any more. Apart from reducing or eliminating tariffs on almost all our traded goods, the deal opens India's gargantuan services market. There are chapters covering accounting, auditing, environmental services and some financial services. British know-how in services will boost India's growth, just as Indian imports boost ours. India's sheer size makes this a bigger deal for us than the Australia, New Zealand and Japan FTAs combined. Let's deal with the objections, which are largely based on misunderstandings. First, migration. There is nothing in the deal about migration. Nothing. And nor should there be: it is a trade deal. All the stories about Indian students being allowed to stay here for longer, or easier family reunification, or more visas, are sheer nonsense. The only issue that involves the movement of workers is an extension in the number of sectors for which a still limited number of business visas can be issued. But these are short-term work permits, carrying no right of settlement. Those Indian nationals who overstay their visas do not come here on business permits. They come as students or tourists and disappear when their visas expire. The supposed national insurance exemption is in fact a double taxation treaty of the kind that we have with dozens of countries, designed to ensure that workers who cannot claim benefits in Britain (because they are not here long enough) don't pay social security contributions in two places. All foreign employees get 12 months off, and we have numerous treaties that extend that time reciprocally to two, three or four years. Cutting tariffs might bring some incidental benefits to foreign exporters, but the chief benefit is to the country doing the cutting. Because its products become cheaper, its people have more spending money, and use that money to drive economic growth across the board. ADVERTISEMENT This point is uncontroversial among economists; but it is counterintuitive, and therefore always unpopular with voters. Still, if we are reducing our tariffs on Indian textiles faster than they are reducing theirs on Scotch whisky, we are the bigger winners. (In any case, imported Indian textiles are mainly competing with imported Chinese textiles, not with domestic industries.) This, in short, is a win-win treaty that will make both nations wealthier. It will also mean that each country is invested in the other's prosperity – no small consideration when the orientation of India matters so much in world affairs. It was for precisely these reasons that talks were initiated under Boris Johnson. Instead of carping, Conservatives should be patting themselves on the back for having launched the initiative, and being big enough to congratulate Labour for finishing the job.

Those on the Right should be taking credit for the India trade deal, not sniping at it
Those on the Right should be taking credit for the India trade deal, not sniping at it

Telegraph

time06-05-2025

  • Business
  • Telegraph

Those on the Right should be taking credit for the India trade deal, not sniping at it

Let's start with the big picture – big being the apt word, for India is the fourth-largest economy in the world, and about to overtake Germany to be third. So far, India's free trade agreements have been shallow and sparse. For the first six decades of its independence, India retained a Gandhian distrust of commerce. The wheel on its flag derives from a stylised handloom, like the one that Gandhi used to carry around as a symbol of economic self-reliance. This is only the 16 th trade deal that India has signed, and it is vastly more ambitious than the previous 15. Britain has pulled off something that no other country has, at least not on anything like the same scale. It has secured a comprehensive trade agreement with a teeming sub-continent that contains the world's largest and fastest-growing consumer class. We live in a polarised age, and people who dislike Labour are looking for reasons to oppose what it has agreed. They have found three pegs on which to hang their doubts: migration, taxation and uneven tariff reduction. All three are nonsense. But, before we come to that, let us consider some of the other gains. India is a common-law and (for business purposes) English-speaking country. There are more than two million Brits of Indian origin. All these things make for a natural economic partnership and, sure, enough, there has been a great deal of investment. Indians enjoy buying famous British brands, such as Tetley and Jaguar. And British companies that invest the other way are thought of as Indian. Many Indians are astonished when they learn that JCB is in fact based in the UK. In their country, its initials have become a deonym, like Hoover or Kleenex – every Indian digger is 'a JCB'. Trade, though, has not followed on the same scale, partly because India only recently started to open its markets, and partly because Britain only recently left the EU. Our share of India's trade has been falling, not least because we have been ceding ground to the countries that did strike trade deals with Delhi – above all Japan whose FTA, until yesterday, was the most ambitious. Well, not any more. Apart from reducing or eliminating tariffs on almost all our traded goods, the deal opens India's gargantuan services market. There are chapters covering accounting, auditing, environmental services and some financial services. British know-how in services will boost India's growth, just as Indian imports boost ours. India's sheer size makes this a bigger deal for us than the Australia, New Zealand and Japan FTAs combined. Let's deal with the objections, which are largely based on misunderstandings. First, migration. There is nothing in the deal about migration. Nothing. And nor should there be: it is a trade deal. All the stories about Indian students being allowed to stay here for longer, or easier family reunification, or more visas, are sheer nonsense. The only issue that involves the movement of workers is an extension in the number of sectors for which a still limited number of business visas can be issued. But these are short-term work permits, carrying no right of settlement. Those Indian nationals who overstay their visas do not come here on business permits. They come as students or tourists and disappear when their visas expire. The supposed national insurance exemption is in fact a double taxation treaty of the kind that we have with dozens of countries, designed to ensure that workers who cannot claim benefits in Britain (because they are not here long enough) don't pay social security contributions in two places. All foreign employees get 12 months off, and we have numerous treaties that extend that time reciprocally to two, three or four years. Cutting tariffs might bring some incidental benefits to foreign exporters, but the chief benefit is to the country doing the cutting. Because its products become cheaper, its people have more spending money, and use that money to drive economic growth across the board. This point is uncontroversial among economists; but it is counterintuitive, and therefore always unpopular with voters. Still, if we are reducing our tariffs on Indian textiles faster than they are reducing theirs on Scotch whisky, we are the bigger winners. (In any case, imported Indian textiles are mainly competing with imported Chinese textiles, not with domestic industries.) This, in short, is a win-win treaty that will make both nations wealthier. It will also mean that each country is invested in the other's prosperity – no small consideration when the orientation of India matters so much in world affairs. It was for precisely these reasons that talks were initiated under Boris Johnson. Instead of carping, Conservatives should be patting themselves on the back for having launched the initiative, and being big enough to congratulate Labour for finishing the job.

Tata Consumer eyes US coffee advantage amid proposed tariffs
Tata Consumer eyes US coffee advantage amid proposed tariffs

Mint

time23-04-2025

  • Business
  • Mint

Tata Consumer eyes US coffee advantage amid proposed tariffs

New Delhi: Fast-moving consumer goods company Tata Consumer Products, which sells tea, coffee, and salt, said on Wednesday that any proposed tariffs imposed by the US will give the company a competitive advantage, given that the Western nation primarily imports all coffee. However, it may put pressure on its salt and supplements brands imported from India. During the company's post-earnings call Wednesday evening, management said the impact would depend on the final tariff rates. Given that the US does not produce coffee or tea, the company anticipates a relatively even playing field from a competitive standpoint. In the US, the company sells brands such as Tetley, Good Earth tea, Teapigs, Tata Tea, and Organic India, in addition to Eight O'Clock coffee; it also sells Tata Salt, Tata Sampann, etc. 'If I take 10% as the normative tariff—our big business in the US is coffee; coffee is not produced in the US, it's all imported, and therefore from a competitive scenario we will be on an even keel with everyone else. In fact, because you are manufacturing offshore, we might have a little bit of a handicap in our favour as we go forward. On tea—the US doesn't grow tea, and therefore, on tea, there will be a little bit of difference if someone is manufacturing in Canada versus the UK, but not significant enough,' Sunil D'Souza, managing director & CEO of Tata Consumer Products, said. Tata Coffee acquired Eight O'Clock Coffee in 2006. The US has been flip-flopping on tariffs. Despite recent tariffs announced on goods imported from India—on 10 April, the US announced the suspension of additional tariffs on India for 90 days until 9 July. Meanwhile, Indian and US officials are set to commence deliberations on the proposed bilateral trade agreement later this week. Tata Consumer Products derives about 29% of its revenue from international markets. It does not provide a breakup of the business in overseas markets. For instance, it is the third largest tea player in the UK through its brand Tetley. The remaining 71% comes from its India business. To be sure, the vast majority of coffee consumed in the US is imported. The US is one of the world's largest coffee importers. Brazil and Colombia are the primary exporters of coffee to the US. India's share of coffee exports to the US is relatively small. Interestingly, according to the company's annual report, its recently acquired Organic India brand generated over 40% of its FY24 revenue from the US. Meanwhile, on Organic India, D'Souza said the brand's supplements and infusions are primarily India-made products. 'So, from a competitive perspective, I don't think it changes at all. Balance India foods (salt, Tata tea, etc.), people will be supplying out of India, and therefore, overall category-wise, there might be a bit of pressure as inflation builds up. Your guess is as good as mine, but from a competitive scenario, we don't expect to be way off,' he added. On Wednesday, the company reported a 59% year-on-year jump in its March quarter consolidated net profit to ₹ 345 crore, up from ₹ 216.63 crore in the same period last year. The company's revenue from operations stood at ₹ 4,608 crore during the quarter, up 17% year-on-year as against ₹ 3,927 crore posted in the March 2024 quarter. For the quarter, the India-branded business reported underlying volume growth (UVG) of 5.9% (excluding acquisitions). The company's India beverages business saw a 9% increase in revenue. The company's revenue grew 16% for the full yearto ₹ 17,618 crore. First Published: 23 Apr 2025, 09:00 PM IST

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