Tea Certification Data Report 2019 - Rainforest Alliance€¦ · 2019 was a good year of the UTZ tea program where we saw positive trends for both demand (+ 27%) and supply (+ 5%),

Tea Certification Data Report 2019

Rainforest Alliance & UTZ programs

May 2020

Tea Certification Data Report 2019Rainforest Alliance and UTZ programs

2

Introduction

The main goal of this report is to present the scope and scale of the Rainforest

Alliance and UTZ tea certification programs in 2019 – calendar year. The report is

created to inform our stakeholders and is part of our commitment to transparency.

The report focuses on the key indicators related to:

• Market uptake: sales of Rainforest Alliance Certified™ and UTZ certified tea;

• Program reach: estimated Rainforest Alliance Certified and UTZ certified tea production, premiums being paid and multi-certification.

This report is part of the Rainforest Alliance monitoring and evaluation system. Most of

the data in this report is collected via our online certification and traceability systems.

We do our best to ensure that all the information in this report is accurate and

reliable. As much of the data is collected by third parties, we are aware that there

may be some shortcomings.

Please note, this reports covers the certification data of ‘regular’ tea (Camellia

sinensis). If you are interested in the 2019 data for UTZ certified rooibos or herbal teas

get in touch with your Rainforest Alliance contact.


3

Summary

In 2019, the Rainforest Alliance Tea program saw a 4% increase in terms of volume. On area certified we saw a 3% increase, breaking through the 600,000 hectares mark for the first time. There is also a milestone on the number of certified tea farmers which now exceeds 900,000 farmers. Even though the number of farmers, volumes and certified area went up, the number of workers saw a decrease of 4%, which we attribute to continuing efforts of producers to mechanize production wherever possible in order to mitigate labor costs and shortages.

Rainforest Alliance welcomed its first tea producer from Brazil in 2019, while certified tea has once again become available from Burundi. We also saw the departure of certified tea from Ethiopia. Demand of Rainforest Alliance certified tea increased significantly, with a particularly strong uptake for producers in Kenya, Turkey, Vietnam and Indonesia. More than 30% certified tea is now bought as certified.

2019 was a good year of the UTZ tea program where we saw positive trends for both demand (+ 27%) and supply (+ 5%), leading to a positive increase in the supply and demand ratio overall.

The increase in UTZ certified tea supply and in particular demand outpaces overall growth in the tea industry. The number of certificate holders went down as a result of members switching to the Rainforest Alliance certification program. The 4% decrease in the number of certificate holders has led to a drop also in certified area (- 4%), number of farmers (- 27%), and number of workers (- 7%).


Geographical program reach

Rainforest Alliance program

UTZ program

Rainforest Alliance and UTZ programs

The Rainforest Alliance

and UTZ tea programs

reach farmers and

workers in 26 countries

worldwide.


5

Program reach: Rainforest Alliance and UTZ

Number of farmers

900+ K Area (hectare)

600+ K

Combined estimated production area Combined number of farmers

Combined figures are calculated by subtracting the figures of dual certified producer groups and individual farms from the total of UTZ and Rainforest Alliance.

Tea Certification Data Report 2019

Rainforest Alliance program

UTZ program

Rainforest Alliance

Tea program

Program reach

AfricaBurundi

Kenya

Malawi

Mozambique

Rwanda

Tanzania

Uganda

Zimbabwe

Latin AmericaArgentina

Brazil

Ecuador

9

Geographical reach

Tea Certification Data Report 2019Rainforest Alliance program

AsiaAustralia

Bangladesh

China

India

Indonesia

Japan

Nepal

Sri Lanka

Taiwan

Turkey

Vietnam

We welcomed the first

farm in Brazil, and are

happy that certified tea

from Burundi has once

again become available.

With the addition of

these two countries and

Ethiopia no longer

featuring Rainforest

Alliance Certified™ farms,

the number of countries

with Rainforest Alliance

Certified tea producers

increased to 22.


Program reach

+3%

Relative growth

2018-2019:

+7%

Relative growth

2018-2019:

+4%

Relative growth

2018-2019:

-4%

Relative growth

2018-2019:

Area (hectare)

613,582 Number of farmers

936,981

Estimated production (MT)

1,226,708Number of workers

(seasonal and permanent)

734,647


Program reach

Area (hectare) Number of farmers

Estimated production (MT) Number of workers


In 2019, the estimated production area increased slightly by 3% compared to 2018. This is mainly due to Sri Lanka, Burundi, and Indonesia.

In 2019, the number of farmers increased by 7% vs. last year. Asia saw an increase of 39%, mainly driven by Sri Lanka. The top 3 countries with most farmers are: Kenya, Burundi (with five certificate holders back in the program), and Turkey.

In 2019, the estimated certified volume increased by 4% compared to last year. The top 3 producing countries are: Kenya, India, and Sri Lanka.

In 2019, the number of workers decreased by 4% vs. 2018, mainly driven by a decrease in Bangladesh, Kenya, and Sri Lanka. This is due to several factors, like more mechanical production e.g. in Kenya.


Program reach

436.863468.631

550.646593.481 613.582

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

762.469813.308

879.481 878.182936.981

2015 2016 2017 2018 2019

911.456

1.084.910 1.087.5921.178.965

1.226.708

2015 2016 2017 2018 2019

0 0 0

767.378734.647

2015 2016 2017 2018 2019


+3%

Relative growth

2018-2019:

+7%

Relative growth

2018-2019:

+4%

Relative growth

2018-2019:

-4%

Relative growth

2018-2019:

No data available

Global sales


14

Global tea sales

168.307

192.309219.938

228.209

369.344

2015 2016 2017 2018 2019

MT

ma

de

te

a e

qu

iva

len

t

+4%

+62%

+14%+14%

The global Rainforest

Alliance tea sales saw a

strong market uptake

(+62% vs. 2018), driven

by a stronger

commitment from

brands to certified

products.

Specific origins of

importance to these

brands have seen a

relatively strong

increase in certified

volumes sold. 0

‘Global sales’ are all the confirmed volumes sold from a certified producer to the first buyer. Years are calendar years.


15

Global sales per origin


The global sales

increase is mainly

driven by purchases

from Kenya (31% of the

global sales), India

(15%) and Argentina

(12%).


116.270

54.214

44.20239.236

20.092 18.48815.056 14.708 14.550

11.572

7.710

5.024

4.410

3.812

0

20.000

40.000

60.000

80.000

100.000

120.000

Kenya India Argentina Indonesia Malawi Turkey Rwanda China Vietnam Sri Lanka Tanzania Zimbabwe Uganda Other

MT

co

co

a b

ea

n e

qu

iva

len

t

2015

2016

2017

2018

2019

16


Relative

growth

2018-2019: +122% +208% +147% +10%+17% +146%+29% +100% -36%+204% +33% +101% +22% -59%


The global sales

increase is mainly

driven by purchases

from Kenya (31% of the

global sales), India

(15%) and Argentina

(12%).


17

Registered supply chain actors

268

414

716

986

1.252

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include traders, blenders, manufacturers, retailers and brand owners.

In 2019, the number of

supply chain actors

increased by 266 (+27%).

In Asia, the number

increased by 141; in

Europe by 95; in North

America by 18; in Latin

America by 8; and in

Africa by 4.

Supply chain actors from

7 new countries joined

the Rainforest Alliance

tea program: Sudan,

Kazakhstan, Bulgaria,

Estonia, Romania, Serbia

and Peru.

Estimated Production


19

Global estimated tea production

911.4561.084.910 1.087.592

1.178.9651.226.708

2015 2016 2017 2018 2019

MT

ma

de

te

a e

qu

iva

len

t+8%

+4%

+0.2%+19%

In line with previous

years, the estimated

certified volume

increased in 2019 (+4%

vs. 2018). 0

Estimated production is based on information from certificates valid on December 31, 2019.


20

Estimated production per origin

The top 3 producing

countries are: Kenya,

India, and Sri Lanka.



458.853

269.266

87.17372.962 61.894

47.180 45.88730.698 27.289 26.916 24.835 21.312 20.434 32.007

0

100.000

200.000

300.000

400.000

500.000

Kenya India Sri Lanka Indonesia Argentina Malawi Turkey Rwanda China Tanzania Uganda Vietnam Burundi Other

MT

co

co

a b

ea

n e

qu

iva

len

t

2015

2016

2017

2018

2019

21


Relative

growth

2018-2019: -7% -2% +29% -12%+7% -28%+47% +37% +11%+1% +11% +3% +10% +100%

The top 3 producing

countries are: Kenya,

India, and Sri Lanka.

In India, the estimated

certified volume

increased (+7%) due to

new certificate holders.

Also, Burundi produced

certified tea again due

to 5 certificate holders

rejoining the program.

Estimated certified

volumes dropped in

Uganda (-12%) and

Kenya (-7%), primarily

due to weather

conditions.


Supply and Demand ratio


23

Supply – Demand ratio

21%20%

19%

30%

2016 2017 2018 2019

% of estimated production sold as Rainforest Alliance CertifiedTM

Producers sold on

average 30% of their

estimated certified

volume as Rainforest

Alliance Certified™.

The supply and demand

ratio for the Rainforest

Alliance tea program

increased by 11

percentage points,

compared to 2018.

This is based on producer sales and estimated production. It indicates an estimation, not an absolute number.


24

Supply – Demand per region

Supply

Demand

% of estimated certified production sold as Rainforest Alliance Certified™ per region in 2019

We saw a steep increase

in Africa and Asia/Pacific

vs. last year, while the

supply and demand

ratio in Latin America

slightly decreased.

This is based on producer sales and estimated production 2019. It indicates an estimation, not an absolute number.

Multi-certification


26

Multi-certification

11% UTZ

14% Organic

12% Fairtrade

of the Rainforest Alliance

producer groups and

individual farms were certified for at least one

other standard

27%

Multi-certified represents the number of Rainforest Alliance CertifiedTM tea producer groups and individual farms that were also certified for one or more of the following schemes: UTZ, Organic, and Fairtrade.

Double-certification

Rainforest Alliance and

Organic is the

predominant

combination with 14%.

Certification data

27


28

Estimated production (MT) Global sales (MT)

2017 2018 2019

Global 879.481 878.182 936.981

Africa 809.744 811.454 844.065

Asia / Pacific 69.211 66.158 92.216

Latin America 526 570 700

Number of farmers

2017 2018 2019

Global - 767.378 734.647

Africa - 203.697 182.395

Asia / Pacific - 562.588 550.980

Latin America - 1.093 1.272

Number of workers (permanent & seasonal)

2017 2018 2019

Global 550.646 593.481 613.582

Africa 276.007 302.775 304.525

Asia / Pacific 261.035 274.854 291.818

Latin America 13.604 15.852 17.238

Area (Hectare)

Country 2017 2018 2019

Global 1.087.592 1.178.965 1.226.708

Argentina 42.342 45.236 61.894

Burundi 10.930 20.434

China 16.009 21.186 27.289

India 240.025 250.995 269.266

Indonesia 69.044 74.782 72.962

Japan 1.901 2.371 2.371

Kenya 439.858 492.999 458.853

Malawi 44.561 46.758 47.180

Nepal 419 427 1.130

Rwanda 29.334 29.873 30.698

Sri Lanka 69.193 59.317 87.173

Tanzania 20.811 24.280 26.916

Turkey 22.382 41.427 45.887

Uganda 23.497 28.368 24.835

Vietnam 18.314 19.296 21.312

Zimbabwe 13.611 16.813 10.039

Other* 25.360 24.835 18.467

Country 2017 2018 2019

Global 219.938 228.209 369.344

Argentina 27.890 34.295 44.202

Burundi 71 28 91

China 4.189 7.320 14.708

India 40.689 46.526 54.214

Indonesia 6.889 12.729 39.236

Japan 357 231 208

Kenya 42.740 52.400 116.270

Malawi 18.070 10.060 20.092

Nepal 1 8 188

Rwanda 12.476 11.361 15.056

Sri Lanka 22.452 18.045 11.572

Tanzania 14.834 7.025 7.710

Turkey 5.852 6.075 18.488

Uganda 12.907 10.810 4.410

Vietnam 6.524 5.888 14.550

Zimbabwe 3.553 4.125 5.024

Other* 444 1.284 3.325

*Other countries are Australia, Bangladesh, Brazil, Ecuador, Ethiopia, Mozambique, and Taiwan

UTZ Tea program

Program reach

AfricaKenya

Malawi

Mozambique

Rwanda

South Africa

Zimbabwe

Latin AmericaArgentina

Colombia

31

Geographical reach

Tea Certification Data Report 2019UTZ program

AsiaChina

India

Indonesia

Korea

Sri Lanka

VietnamWith South Africa and

South Korea added to

the map and the only

UTZ Japanese producer

switching over to the

Rainforest Alliance

program, the number of

countries with UTZ

certified tea producers

increased to 14.


Program reach

-4%

Relative growth

2018-2019:

-26%

Relative growth

2018-2019:

+5%

Relative growth

2018-2019:

-7%

Relative growth

2018-2019:

Area (hectare)

62,450 Number of farmers

12,949


122,751Number of workers


82,249


Program reach

Area (hectare) Number of farmers

Estimated production (MT) Number of workers


In 2019, the estimated production area decreased by 4% vs. 2018. This is mainly due to a drop in Sri Lanka (-49%) and Kenya (-25%). Largest increase in Mozambique (+61%) and

South Africa, both as a result of new producer groups and individual farmers joining the program.

In 2019, the number of farmers dropped by 26% compared to last year, due to a decrease in both number of estates (-23%) and group members (-26%). Kenya continued having the largest

number of farmers, although this country contributed the most to the global reduction in 2019.

In 2019, the estimated certified volume increased by 5% compared to 2018. The top 3 producing countries are: India, Kenya, and Malawi.

In 2019, the number of workers decreased by 7% vs. last year, with the largest absolute change registered in Asia (-8,700 workers) and the largest relative change in Latin America (-63%).


Program reach

41.772

60.992

66.665 64.87262.450

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

12.767 12.293

16.69017.435

12.949

2015 2016 2017 2018 2019

85.031

118.080 117.207 117.125122.751

2015 2016 2017 2018 2019

57.376

103.333

89.306 88.31182.249

2015 2016 2017 2018 2019


-4%

Relative growth

2018-2019:

-26%

Relative growth

2018-2019:

+5%

Relative growth

2018-2019:

-7%

Relative growth

2018-2019:

Global sales


36

Global tea sales

4.687

5.693

8.092

6.538

8.299

2015 2016 2017 2018 2019

MT

ma

de

te

a e

qu

iva

len

t

+21%

+42%

-19%

+27%

0

After a decline in 2018,

global sales went up

again with 27% in 2019.

We saw an increase in

all regions, with the

largest growth found in

Asia (+36%).



37



The global sales is mainly

driven by purchases

from India, Malawi, and

China. Together they

accounted for about

75% of global sales with

India being the lead.


38


3.537

1.783

909

375

67

1.627

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

India Malawi China Kenya Sri Lanka Other

MT

co

co

a b

ea

n e

qu

iva

len

t

2015

2016

2017

2018

2019

Relative

growth

2018-2019: +51% +8% +49% -22%-2% +34%

The increase of 27% in

global sales is

considerably driven by a

large growth in India.

Newly joined origins

Rwanda (2017) and

Mozambique (2018)

continued showing

increasing sales

compared to previous

years.



39

Registered supply chain actors

90

82

106

114

136

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include traders, processors, blenders, packers, and retailers.

In 2019, the number of

supply chain actors

increased by 22 (+16%).

Most supply chain actors

are based in Europe,

followed by Asia, Africa,

and North America.

Germany showed the

highest number of supply

chain actors (34) with

also the largest increase

(+21%) compared to

2018.


40

Premium

4643

48

4240

2015 2016 2017 2018 2019

Average UTZ premium in EUR/MT

UTZ global average tea

premium saw a decline

of 5%, to 40 EUR/MT.

The UTZ Premium is an

additional cash amount

paid above the market

price for a similar

conventional (non-

certified/non-verified)

product. It is mandatory

and agreed upon

between the certified

group or producer and

the first buyer.

Estimated Production


42

Global estimated tea production

85.031

118.080 117.207 117.125122.751

2015 2016 2017 2018 2019

MT

ma

de

te

a e

qu

iva

len

t

+39% -1% +0.1%+5%

0

In 2019, the estimated

certified volume

increased by 5%

compared to 2018. The

top 3 producing

countries are: India,

Kenya, and Malawi.



43


Asia showed the largest

growth in estimated

certified volume (+13%),

mainly driven by an

increase in India (+18%).

In Africa the estimated

production went up

sharply in two relatively

new origins, i.e.

Mozambique (+70%)

and Rwanda (+31%). This

is expectedly linked to

an increase in number

of certificate holders

and certified area.



44


57.971

24.953

9.869

6.549

3.474

19.937

0

10.000

20.000

30.000

40.000

50.000

60.000

India Kenya Malawi China Sri Lanka Other

MT

co

co

a b

ea

n e

qu

iva

len

t

2015

2016

2017

2018

2019

Relative

growth

2018-2019:

+18% -10%-8% +0.4% +19%-48%

India has seen an

increase in estimated

production over the

past few years mainly

from the small growers,

and to a lesser extend

from the large estates.

Kenya showed a drop of

8% in certified volume,

due to a decline in

certified area. Also,

lower production was

attributed to less rainfall

recorded in the tea

growing regions in the

first five months of 2019.


Supply and Demand ratio


46

Supply – Demand ratio

% of estimated production sold as UTZ

6%

8%

6%

7%

2016 2017 2018 2019

In 2019, producers sold

on average 7% of their

estimated certified

volume as UTZ certified.

The supply and

demand ratio

increased by 1

percentage point

compared to 2018,

mainly thanks to the

positive growth of

global sales in 2019.

This is based on producer sales and estimated production. It indicates an estimation, not an absolute number.

Multi-certification


48

Multi-certification

75% Rainforest Alliance

35% Fairtrade

42% Organic

of the UTZ producer

groups and individual

farms were certified for at least one other

standard

90%

Multi-certified represents the number of UTZ tea producer groups and individual farms that were also certified for one or more of the following schemes: Rainforest Alliance; Organic and Fair Trade. Other schemes are excluded from the total Multi-certification figures.

Double-certification UTZ

and Rainforest Alliance

remains the

predominant

combination with 75%.

Certification data

49


50

Estimated production (MT) Global sales (MT)

Number of farmers Number of workers (permanent & seasonal) Area (Hectare)

Country 2017 2018 2019

Global 117.207 117.125 122.751

China 3.569 6.521 6.549

India 44.285 49.138 57.971

Kenya 31.627 27.042 24.953

Malawi 16.543 10.955 9.869

Sri Lanka 5.638 6.699 3.474

Other* 15545 16770 19937

Country 2017 2018 2019

Global 8.092 6.538 8.299

China 1.119 843 909

India 3.311 2.335 3.537

Kenya 386 251 375

Malawi 1.989 1.813 1.783

Sri Lanka 112 86 67

Other* 1.174 1.210 1.627

*Other countries are Argentina, Colombia, Indonesia, Korea, Mozambique, Rwanda, South Africa, Vietnam and Zimbabwe.

Country 2017 2018 2019

Global 16.690 17.435 12.949

China 480 411 423

India 2.331 2.477 2.445

Kenya 12.512 12.872 8.215

Malawi 22 194 381

Sri Lanka 219 284 338

Other* 1.126 1.197 1.147

Country 2017 2018 2019

Global 89.306 88.311 82.249

China 987 2,399 1,586

India 45.690 55.751 51.640

Kenya 6.088 5.226 3.995

Malawi 15.674 8.520 12,210

Sri Lanka 7.308 6.369 2.619

Other* 13.559 10.046 10.199

Country 2017 2018 2019

Global 66.665 64.872 62.450

China 1.765 2.967 2.690

India 26.504 31.205 32.165

Kenya 19.070 12.980 9.696

Malawi 5.288 3.923 3.912

Sri Lanka 4.935 5.177 2.622

Other* 9.102 8.620 11.365

rainforest-alliance.org

51

Documents

Tea Certification Data Report 2019 - Rainforest Alliance€¦ · 2019 was a good year of the UTZ tea program where we saw positive trends for both demand (+ 27%) and supply (+ 5%),