Smallholder Tea Farmers Research Articles

Climate Variability and the Resilience of Smallholder Tea Production in the East Usambara Mountain Farming System, Tanzania

The complexities of climate change are well-known, and it has immediate and long-term consequences on the environment and natural resources. This global concern adversely affects sustainable development sectors and economic systems including the agricultural sector. The tea sector is among the largest export crops contributing to earnings and revenues. Its production has been declining, and the reasons behind this decline remain unclear. This study proposed to explore the influences of climate variability on the current productivity trend of smallholder tea farmers in Tanzania. The study involves quantitative data analysis, collected from 1990 to 2020 including monthly precipitation, temperature statistics, and Greenleaf production gathered as secondary data from the Tea Research Institute of Tanzania and the Tea Board of Tanzania. The study found that rainfall and temperature change significantly influence smallholder farmers' tea production in the East Usambara Mountains. The optimal climate elements (temperature and precipitation) positively improve smallholder farmers' tea production. In contrast, extreme climate variability triggers negative effects on tea production when precautions and adaptation measures are not considered. To summarize, it is recommended that farmers engage in different programs and training sessions to enhance their perception and adaptability to climate change.

Reflections on promotion of digital payments among smallholder tea farmers in kanungu district

Reflections on promotion of digital payments among smallholder tea farmers in kanungu district

Influence of Farmer Quality Attributes on Farmers’ Participation in Contract Farming in Tanzania’s Tea Subsector

This paper assesses how selected farmer quality indicators influence farmers’ participation in contract farming in Tanzania’s tea industry. A total of 393 smallholder tea farmers from three purposefully selected districts in the Mbeya and Njombe regions in the southern highlands of Tanzania participated in a cross-section survey that yielded the study’s primary data. Data were collected using a structured questionnaire with five-point scale questions. Binary logistic regression analysis was conducted to assess the impact of the four farmer quality determinants on farmers’ participation in contract farming. The results show that farmers’ engagement in contract farming is significantly negatively affected by land access (B=-0.529, Wald value=4.931 and P<0.05). Access to farming equipment was found to have negatively influenced farmers’ engagement in contract farming (B=-0.21, Wald value=0.931 and P<0.30). Further results show that prior contract farming experience significantly positively affects tea farmers’ participation (B=0.551, Wald value=9.656 and P<0.05). Regression results indicate that farmers’ knowledge of the tea value chain seems to have a positive influence on farmers’ engagement in contract farming (B=0.27, Wald=1.757 p<0.20). These findings suggest that access to land and equipment negatively affects farmers’ contract farming participation. Thus, strategies and policies should focus on improving land access to overcome the challenges faced by farmers to engage in contract farming. Moreover, the enhancement of farmers’ access to farming equipment through subsidised programs, equipment rental schemes or cooperative initiatives is crucial. These measures contribute to enhanced and sustainable contract farming practices, thus benefiting both farmers and the tea subsector at large

Technical efficiency and technology gap in Kenya’s tea industry: accounting for farm heterogeneity

ABSTRACT The study used a cross-county survey from Kenya to investigate smallholder tea farmers’ performance using a stochastic metafrontier framework. According to the results, farmers in all four regions are falling short of their potential with the mean technical efficiency ranging from 0.69, 0.77, 0.61, and 0.74, respectively, for the Nandi, Mau, Kisii, and Kericho regions. Comparing its performance with the technology available in the industry, each region faces a technology gap. Even though some variables were not statistically significant, a combination of socioeconomic and farm-specific factors were identified as sources of technical inefficiency among farmers. The farmers in all regions, however, possess the potential to overcome technological constraints and achieve higher levels of productivity. Kenya Tea Development Agency Ltd should, therefore, enhance its efforts to help the farmers improve their management and technical skills on how to use their resources more efficiently.

Farmers Perception of Access and Use of Modern Information Communication Technologies in Enhancing Smallholder Tea Production in Kakamega County, Kenya

The smallholder tea sector in Kenya forms the second-largest agricultural exporter after horticulture, contributing 4 percent to the Gross Domestic Product (GDP). Modern communication technologies (MCTS) are key in supporting production, processing and marketing across the tea sector value chain. Despite the availability of all these technologies, their access and use by smallholder tea farmers for production and tea auction price monitoring are still minimal. Further, farmers’ perception of access and use of modern communication technologies is not well known. The objective of this study was to evaluate smallholder farmers’ perceptions on access and use of modern communication technologies in enhancing tea production in Shinyalu subcounty.The study was anchored on diffusion of innovation that emphasizes on the five attributes of an innovation. The study evaluated the farmers’ perception of access and use of MCTs. The study adopted a descriptive research design where fisher’s formula was used to get 162 out of 1,600 smallholder tea farmers who were systematically sampled and interviewed. Data were collected using semi-structured questionnaires. Likert perception test scale was also used test perception statements. The data was cleaned and analyzed in form of frequencies and percentages and chi-square The results established that majority of the tea farmers (36%) had acquired basic literacy levels of education to use modern technologies in tea production. It also established that modern technologies such as smartcard technology 78%, mobile phone text messages 62% and personal digital assistants 61% were the most essential tools for enhancing access to farm inputs, market information and tea management information. However, extension agents 61% played a complementary role in unpacking and linking modern tea technologies from the source to farmers. A positive association was revealed between farmers’ literacy level and the use of MCTs, which influenced access to MCT. The study, recommended re-tooling agricultural information dissemination agents and farmers on the existing MCT to enhance effective communication, promoting tea production yields and accessing market information.

Assessment of allocative efficiency of smallholder tea farmers in south-western Uganda

Tea ranks third after coffee and fish in terms of export value in Uganda’s crop sector. Smallholder productivity and efficiency in Uganda remains a paradox, especially in perennial crops, with past research presenting mixed results on allocative efficiency. The objective of this study was to determine allocative efficiency and its influencing factors among smallholder tea farmers in western-Uganda. A cross-sectional survey dataset was collected from a random sample of 170 tea farmers from Kabale and Kanungu districts in south-western Uganda. The study employed a Stochastic Frontier Approach and the Value of Marginal Product Approach in determining the input elasticities and allocative efficiency levels respectively. Results showed that average allocative efficiency scorers for land, fertiliser, labour and herbicides were 11.17, 1.68, 3.08 and 4.43, respectively; indicating under-utilisation of the inputs. Ordinary Least Squares estimates indicated that allocative efficiency score of fertiliser was positively related to farm size, herbicide type and extension visits. The allocative efficiency score for herbicides was positively influenced by extension access and herbicide type. Similarly, the allocative efficiency score for land was positively influenced by extension access while that of labour was positively influenced by farm size. The results indicate that increasing the scale of tea production in the region is likely to improve productivity and profitability since the average allocative efficiency scores were greater than unity.

Selling at the farmgate? Role of liquidity constraints and implications for agricultural productivity

ABSTRACT Market trends in many developing countries indicate that selling agricultural produce to itinerant traders at the farmgate has been rising, despite criticism that the practice preys on and exploits farmers. Using a cross-sectional data set of 525 households, we investigate the factors influencing participation in farmgate trading and its effects on agricultural productivity in western Kenya. We specifically consider the role of liquidity–related variables within a context of the perennial export crops, a contribution that has received less attention in literature. Our analysis reveals that variables related to demand for liquidity at the household level are strongly correlated with the selling of tea at the farmgate by smallholder tea farmers in the study area. The results also show that the household context (farmer's age, education and residence), farm characteristics (volume of output and age of tea plantation) and institutional variables (group membership and extension) are key determinants of household selling decisions. In addition, we find evidence that farmgate selling has a positive influence on crop productivity. We recommend strengthening of mechanisms that enable farmers to engage better with the existing market channels and encourage greater competition, in place of policies seeking to curtail the operations of farmgate traders.

‘It’s up to the market to decide’: Revealing and concealing power in the sustainable tea supply chain

In 2007, Unilever, the world’s largest tea company, announced plans to source its entire tea supply sustainably, beginning with the certification of its tea producers in East Africa to Rainforest Alliance standards. As a major buyer of Kenyan tea, Unilever’s decision pushed tea producers across Kenya to subscribe to Rainforest Alliance’s sustainable agriculture standard in order to maintain access to the global tea market; according to a 2018 report, over 85% of Kenya’s tea producers were Rainforest Alliance certified. Drawing on ethnographic material among supply chain actors across different sites along the sustainable tea value chain (from those designing and disseminating standards to tea traders to smallholder tea farmers), this article examines how these actors frequently attributed the power to determine the outcomes of certification to a faceless ‘market’. Deferring to ‘the market’, we observe, served primarily to mask the outsized power of lead firms (in particular Unilever) to determine conditions of tea production and trade. At the same time, ‘the market’ was also in some cases qualified by our interlocutors, allowing them implicitly (and at times explicitly) to reveal power and give it a face. Concealing and revealing power in this way, we suggest, can be seen as a mode of engagement among supply chain actors operating in ‘sustainable’ supply chains, like the Rainforest Alliance-certified Kenyan tea supply chain, in which the power of lead firms tends to be consolidated through market-driven sustainability initiatives. Such a mode of engagement mitigates exclusion from sustainable supply chains while maintaining space for critique.

The influence of privatised agricultural extension on downward accountability to smallholder tea farmers

ABSTRACT Purpose To assess the extent to which privatised extension service, which is premised to be demand-driven, delivers downward accountability to smallholder farmers who are both owners and users of agricultural services. Design/methodology/approach The research collected data through focus group discussions with smallholder tea farmers and key informant interviews after which the information were corroborated with semi-structured interviews with 104 smallholder farmers. Findings Our findings show that KTDA (Kenya Tea Development Agency) extension service has in recent years embraced methodologies that allow two-way information exchange and farmers’ involvement in planning, implementing and evaluation of extension programmes. While this transition has provided opportunities for increased accountability and empowerment of smallholder farmers, downward accountability is limited by among others; presence of multiple accountabilities, a heavy top-down governance structure, higher incentives for upward accountability, limited resourcing of extension delivery, excessive workload and unrealistic targets on the part of extension staff and weak extension–research–farmer linkages. Practical implications The findings of this study may be used by policymakers, extension practitioners and organisations delivering extension services to improve downward accountability and quality of advisory services Theoretical implications The paper contributes to the debate on outcomes of privatisation on extension provision using the accountability lens in an area dominated by perceptions on costs and payment for the services. Originality/value The literature on downward accountability on privatised extension services is lacking. The paper also extends the framework for assessing the performance of pluralistic extension services to develop and apply a framework for assessing downward accountability in privatised extension.

Land Tenure and Technical Efficiency of Smallholder Tea Producers: The Case of Ya’An City, China

70 percent of the world and 80 percent of China’s tea production produced by smallholder farmers. However, the tea production per unit area significantly unchanged in the past decades. Understanding factors affecting the technical efficiency of smallholder tea producers is very important to maximize tea production. Aimed at examining the impact of land tenure security and land certification on smallholder tea producers’ technical efficiency, this paper employs the Cobb- Douglas Stochastic Production Frontier (CD-SPF) and Translog Stochastic Production Frontier (TL- SPF) methods for Maximum Likelihood Estimate (MLE) with cross-sectional data collected from 161 randomly selected tea farm plot households in Ya’an city, China. We found that an 1 mu (0.067 ha) increase in the tea farm size will produce a 1.086 tea yield advantage for smallholder tea farmers. We also found that the values of input-output elasticity of land size, household income and labor decrease in turn with 0.144, 0.105 and 0.010 respectively. The results show that farm size is a more crucial input for tea production than income and labor. Moreover, we identify the determinations which enhance the technical efficiency of smallholder tea producers such as land certification, land tenure security age, education, farming experience, total farm size holding, chemical fertilizer, plot steepness and plot distance from home and find that the elimination of land tenure insecurity through land registration and certification makes a clear difference in that. We therefore recommend that tea farmland need to expand and enlarge for better production through comprehensive land consolidation program. We also suggest endorsing the land certificates of all land holders as this will help improve land tenure security, enhance technical efficiency and promote the tea production of smallholder producers.

The Technical Efficiency of Small-scale Tea Plantation in Sri Lanka

The tea smallholding sector is the leader in national tea production in Sri Lanka. However, it is believed that increasing profit is very difficult without increasing costly inputs, considering the high cost of production. This paper investigates the technical efficiency of smallholder tea farmers (STFs) in Sri Lanka by employing stochastic production frontier using a sample of 120 STFs. The results showed that the average technical efficiency of selected STFs is 78.44 per cent. This indicates that output can be further increased by 21.56 per cent without increasing the level of input. Gender and access to quality extension services were identified as the variables that have the greatest impact on technical efficiency. The results further showed the labour is the most important factor for tea production.

Determinants of livelihood vulnerability of smallholder tea farmers in Lam Dong province, Vietnam

This study constructed and evaluated the livelihood vulnerability index of small scale tea farming households in Lam Dong Province. It then determined the factors that can increase or reduce their vulnerability. The vulnerability to stresses of weather, climate, production linkages, and product consumption was viewed as a function of exposure, sensitivity, and adaptive capacity. The results showed that most of the households had very high exposure indices to changes in weather, climate, and natural conditions, showing that tea farming activities depended immensely on nature. The sensitivity to pressures of livelihoods, product consumption, or damages from climate variability was moderate. Tea farming households in Lam Dong province had relatively low adaptive capacity indices. The composite vulnerability index was calculated and provided an average of 0.56. The moderately vulnerable group comprised of 71 households (equal to 26.3% of the sample), the highly vulnerable group had 198 households (73.3%), and the extremely vulnerable group had one household (0.4%). The regression model revealed that risk-dependent livelihood, poverty, receiving support from acquaintances or the local government could worsen the vulnerability, while training and production experience can help lessen it.

Climate Change Adaptation by Smallholder Tea Farmers: a Case Study of Nepal

Climate change is threatening the livelihood of tea farmers in Nepal. Simultaneously, the production of tea is becoming an increasingly important economic sector for the country. This study aimed to reveal the adaptation behavior towards climate change among smallholder tea farmers, particularly which demographic, institutional, and information source factors are likely to influence the degree of adaptation. We collected quantitative data in the district of Ilam via 91 farmers through a questionnaire survey and applied descriptive statistics, multiple regression, and binary logistic regression models to analyze the collected data. Findings revealed that information sources (peer exchange, internet, and training attendance), as well as institutional factors (cooperative membership and credit access), positively influenced the degree of climate change adaptation among the respondents. Easier credit access and joining cooperatives could enhance the adaptative capacity of smallholder tea farmers. Improving the interaction between the Nepalese government and stakeholders involved in the domestic tea value chain could also increase economic success.

Is It Formal or Informal? Choice of Market Outlets for Unprocessed Tea in Nandi County, Kenya

The tea industry plays a key role in the agriculture sector and the economy at large with tea output contributing about 11% of the agriculture sector’s contribution to Gross Domestic Product. Like many other crops in Kenya, tea is produced both on small and large-scale basis. Smallholder farmers in Kenya make a significant contribution to the industry producing 61% of the total national production and with 66% of tea acreage. Formal market outlets are more profitable than informal ones. However, small tea agri enterprises in Nandi County prefer selling their unprocessed tea to informal market outlets. Empirical evidence on what motivates these agri-enterprises to sell most of their tea to these outlets is scanty. The main objective of this study was to compare the profitability of formal and informal market outlets for unprocessed tea in Nandi County. Multistage sampling procedure was employed and 384 respondents interviewed using semi-structured questionnaire. Data were analysed using gross margin analysis. Formal market outlets are more beneficial because of higher gross margin rate of 12.71% compared to informal market outlets having the gross margin rate of 1.08%.The findings are helpful in guiding smallholder tea farmers in information on the most profitable and efficient market outlets and informing policy makers on how to improve the efficiency of market outlets. DOI: 10.7176/JESD/11-22-10 Publication date: November 30 th 2020

Cash Crops and Food Security: A Case of Tea Farmers in Burundi

Food security is a genuine challenge in developing countries. To combat food insecurity, various means and strategies are being mobilized. The promotion of cash crops in rural areas is one of the main strategies for improving food security. Accessibility to subsistence staples and stable living conditions for rural farmers are made possible by the relatively high and permanent income from cash crops. This paper addresses the issue of food security by discussing the power of tea crop incomes in a rural tea farming area in Burundi. A survey was conducted in 2019 among 120 smallholder tea farmers in two communes located in the Mugamba natural region of Burundi. The results show that the tea plant contributes significantly to food security for both tea farmers and non-tea farmers. By complementing other livelihood resources, tea incomes improve the food security of smallholder tea farmers. In addition, tea incomes ensure the resilience of smallholder tea farmers during lean seasons and against various shocks. Besides, the perennial nature of the tea plant provides a pension for smallholder tea farmers in their old age.

THE CONTRIBUTION OF MICROFINANCE TO THE RESILIENCE STRATEGIES OF SMALLHOLDER TEA FARMERS IN BURUNDI

Microfinance services are of undeniable importance in the development of agriculture and in improving living standards in rural areas. However, their accessibility in developing countries is problematic. The objective of this article is to assess the contribution of microfinance to improve the living conditions of the population in rural areas of Burundi. An exploratory survey was conducted among 120 smallholder tea farmers in 2018 in two zones (Ijenda and Teza). These smallholder tea farmers are between 30 and 86 years old with a basic level of education. The results of the survey showed that the loans made it possible to carry out small projects and met some urgent needs. However, the level of indebtedness was low due to lack of collateral guarantee and the interest rate was relatively high. In addition, the information collected in Microfinance Institutions (MFIs) revealed a lack of support services within MFIs to enable optimal allocation of credits. To compensate for financial shortfalls, smallholder tea farmers are developing mechanisms for saving in kind and tontine systems with multiple socio-economic roles built up. Credit beneficiaries in MFIs are increasingly losing interest in the MFIs credit systems in favour of tontines. In Ijenda zone, only 37.5% want to renew the credits against 41.4% in Teza zone.

Business management of KSU XXX at Sukatani Village in iroet tea agroindustry

Every business people must have a good management and appropriate in managing the business. The process of business activity requires every bussiness people to think systematically in establishing a good and appropriate business management. If it is not done, it will threaten business continuity. Business management KSU XXX is currently facing a problem that threatens the business continuity of the cooperative. There is no bailout, weak competitiveness and many partner farmers out of the cooperative membership. Considering this, a research has done to analyze business management strategy KSU XXX in maintaining agroindustry Teh Iroet. The research was conducted at one of the production centers of smallholder tea farmers in Garut. The KSU XXX, Sukatani Village, Cilawu Sub-district, which is the first cooperative formed by the smallholder tea farmers and obtaining UTZ and Lestari Certificates. This research is a qualitative research conducted in the form of case study. The result of the research shows that KSU XXX business management strategy to maintain Iroet Tea agroindustry is to run a saving program for partner farmers in lieu of cooperative saving and loan program that has been abolished. Conducting information and financial information disclosure system of cooperatives to its partners

Eksistensi Bisnis Agroindustri Teh Iroet

KSU Putera Mekar is the first cooperative to own a tea processing factory directly managed by smallholder tea farmers and produce dried tea products called Iroet t ea. The beginning of Iroet Tea factory, they sell their products to PT Sariwangi AEA (Agricultural Estate Agency) and other small companies such as Agriwangi and Elinkindo, but it does not go long. PT Sariwangi broke his contract with the cooperative so that the cooperative did not have a large customer anymore. Cooperative members are decreasing because the cooperative is unable to absorb wet tea tops from farmers and can not afford to pay farmers with pay-weight system, but the agro-industry business still survives. This makes the cooperative requires the chronological know the main cause of bad business cooperatives and the reasons for cooperatives to survive. The research design used in this research is qualitative with case study technique. The method used in this research is descriptive qualitative. The results showed that the main cause of bad business cooperatives is the loss of large consumers and the absence of bailout funds. The reason for the cooperative still persists to this day because the cooperative management has a good orientation to improve the business of I roet t ea agroindustry, supported by the loyalty of cooperative members. Keywords: agroindustry, cooperatives, loyalty, smallholder tea farmer

Catechins and Plain Black Tea Parameters Variations in Selected Tea Growing Agro-Ecological Zones in Kenya

Over 60% of tea in Kenya is produced by smallholder tea farmers distributed in the East and West of the Rift Valley. With all smallholder tea farmers using the same production technologies including planting materials, the quality of tea from different agro-ecological zones should be the same. However, black teas attract different prices. This study compared levels of leaf quality, catechins, and polyphenols in green leaf and quality parameters of black tea from twelve factories in three different agro-ecological zones in Kenya and assessed the relationships between the green leaf quality parameters and black tea quality parameters. The catechins contents, the black tea quality parameters, and sensory evaluations changed (p less than or equal to0.05) between the factories and with an agro-ecological zone of production. All black teas had high antioxidant activities, which differed (p less than or equal to0.05) across the factories and zones. Despite the use of same agronomic inputs in the smallholder tea growing zones in Kenya, the quality of resultant black teas was largely influenced by the environmental factors in the different regions. It is therefore not possible to produce black teas of the same quality across the country. Despite the variations, all regions exhibited high levels of black tea quality parameters and sensory evaluation, re-affirming the Kenyan smallholder black teas are of high quality. The high antioxidant activities suggest possible beneficial pharmacological activities from consumption the teas. The green leaf quality (leaf count) were significantly (p less than or equal to0.05) correlated with black tea brightness and all sensory evaluation parameters, demonstrating high benefits from good plucking standards. Green leaf gallic acid, epigallocatechin, epicatechin, epigallocatechin gallate, and total catechins levels were related (p less than or equal to0.05) to black tea total polyphenols and all sensory evaluation parameters. In addition, the green leaf caffeine, epicatechin, epigallocatechin gallate, and total catechins influenced (p less than or equal to0.05) theaflavins in black tea. These green leaf parameters are therefore key drivers of Kenyan plain black tea quality.

Technical Efficiency of Smallholder Tea Production in South-Eastern Malawi: A Stochastic Frontier Approach

Tea production contributes 8.8% of foreign exchange earnings in Malawi. A study was undertaken in South-Eastern Malawi to understand the smallholder tea production system, estimate its technical efficiency and establish sources of technical inefficiency. A multi-stage sampling technique was employed to select 230 smallholder tea farmers, who participated in the study. Data analysis was done using SPSS and STATA. Smallholder tea production was characterised using descriptive statistics. A Cobb-Douglas Stochastic frontier model and Tobit Regression model were run in STATA to determine technical efficiency and sources of technical inefficiency respectively. The study found that the technical efficiency of smallholder tea farmers ranged from 16% to 92% with a mean of 67%. Education, distance to factory and farming experience significantly reduced technical inefficiency at 1%, 5% and 10% level respectively; and inefficiency was relatively low among farmers that utilised hired labour, and high among those that were contracted by government cooperative. Access to non-tea income was not a source of technical inefficiency. The findings of the study imply that various policies on extension and training have to be implemented to increase the knowledge of the smallholder tea farmers to ensure increased technical efficiency. Smallholder tea farmers should also be facilitated to access labour-saving technologies to enable them carry out timely farm operations.