Tagged: smallholders
The Tea Cartel That Worked, and the Farmers It Was Built to Keep Out
In 1933, India, Ceylon, and the Dutch East Indies ran the one tea cartel that ever actually moved the price. The same years, a Kenyan law barred African farmers from growing the crop at all. Both restrictions ended within about a year of each other.
Why Is Tea So Cheap?
Tea's auction price has gone nowhere for 20 years and now sits below what was paid a century ago, in real terms. Here is what the figures say is actually happening, and who is absorbing the squeeze.
Tea Has No Nestle
Coffee has Nestle and JAB. Tea has no equivalent. Here is who actually moves the world's leaf, from a Kenyan cooperative managing 600,000 farmers to a private-equity-owned spinout carrying billions in debt, and why no one has consolidated the trade the way coffee's owners have.
Why Kenya's Tea Factories Never Consolidated
Kenya split its tea sector into roughly 70 small, farmer-owned factories and never merged them, even as Assam's estates consolidated under debt and Sri Lanka's state gardens were carved into fewer corporate players. The reasons are structural, legal, and, once, deliberately blocked at a shareholder vote.
China's Tea Industry
China grows more tea than any other country by a wide margin and drinks nearly all of it itself, the reverse of the plantation-export model that built India's, Kenya's, and Sri Lanka's crops. How a single state trading monopoly gave way to more than a million small growers with no majority brand, why the country runs on wholesale markets instead of public auctions, and why its fastest-growing tea business now sells the leaf as a drink rather than a commodity.
KTDA, the Company That Runs Kenya's Smallholder Tea
One management company runs the factories that process tea for roughly 600,000 Kenyan smallholders, pays them on a two-tier system split between a monthly rate and a year-end bonus, and answers to no single owner. Here is how it is built, how the money moves, and where the fights over it keep breaking out.
Labour in the Tea Gardens
Tea is one of the most labour-intensive crops on earth, and no single system pays for that labour. A resident estate wage paid partly in housing and rations, a smallholder's price per kilogram of leaf, and a hired picker paid by neither company nor law. Where each system came from, what a 1951 law and a 1958 international standard tried to fix, and where the audits still do not reach.
Sri Lanka's Tea Economy
The canonical reference on Ceylon tea as an industry. How coffee's collapse created it, how nationalisation and then privatisation reshaped who owns it, the elevation bands that set what it tastes like, the brand mark that protects its name, and the shocks, agrochemical and otherwise, that keep testing it.
The Price of Tea
The canonical reference on what sets a tea's price. What fixes it at the point of sale, why the real-terms trend has run downhill for a century, where the money goes once the leaf clears the gate, what moves it between sales, and what a certification label actually adds.
Who Grows the World's Tea
The producing economies of tea. The canonical reference on where tea comes from: the big producing countries, the split between estates and smallholders, why the largest grower is not the largest exporter, and the small share of the price that reaches the people who grow it.