This document summarizes the discussions of the 22nd session of the Intergovernmental Group on Tea, held in Naivasha, Kenya in May 2016. It discusses intergovernmental actions on issues like maximum residue levels, tea trade and quality, organic tea, and climate change. It also summarizes discussions on the current and future outlook of the global tea market, market developments in selected countries, and the impact of demand-side and supply-side factors. Finally, it discusses factors driving growth in small tea growers, organic tea production, and the goals of the Confederation of International Tea Smallholders.

1. Committee on
Commodity Problems
Intergovernmental Group on
TEA

2. INTERGOVERNMENTAL GROUP ON TEA
TWENTY-SECOND SESSION
Naivasha, Kenya, 25-27 May 2016
INTERGOVERNMENTAL ACTION
• Working Groups on Maximum Residue Levels (MRLs) and on MRLs
in the brew
• Working Group on Tea Trade and Quality
• Working Group on Organic Tea
• Working Group on Climate Change
• Working Group on Smallholders
• Task Force on Projections and Statistics
• Update on the Tea Website Development
• Internationally coordinated actions on tea development projects

3. CURRENT MARKET SITUATION AND MEDIUM-TERM
OUTLOOK
• Current and longer term prospects for the
production, consumption, trade and prices of
tea in the world market
• Impact on the sustainability of the global tea
economy.
• Market information pertaining to country
• Reconciling any apparent differences
• Market transparency
• Strategies for sustainable development of the
world tea economy.

4. MARKET DEVELOPMENTS IN SELECTED COUNTRIES
• Market Demand and Supply Balance - Its
influence on TEA prices
• Consumption in Producing countries
• Promoting consumption more effectively to
achieve better prices
• Consumption targets (e.g. 400 gms. per capita)
set for promotional campaigns
• Maximum residue levels (MRLs) for exports and
cost of compliance
• Demographics and Consumption patterns.

5. IMPACT OF DEMAND SIDE FACTORS ON
THE GLOBAL TEA ECONOMY
• Implications of MRLs on Tea trade.
• MRL standards have different effects on Consumption
and Trade flows
• Deterring factor on Trade when exporters are unable
to comply with them
• MRL standards had a much larger effect on trade than
import tariffs
• Cost-related disruption in supply could increase prices
and lead to increased price volatility, reducing
consumer welfare
• Examining the impact of MRLs on Trade flow

6. IMPACT OF SUPPLY SIDE FACTORS ON THE GLOBAL TEA
ECONOMY
• Climate Change to review the methods of
climate change impact assessment
• Evaluate the analyses carried out on the impact
of climate change on the tea sub-sector in
selected countries
• Identify/suggest the mitigation and adaptation
strategies required to develop appropriate long
term technologies for mitigation/adaptation.
• Possible strategies to address socio-economic
adaptation policies

7. FACTORS DRIVING THE GROWTH OF
THE SMALL TEA GROWERS SECTOR
• Small Tea growers continue to face a number
of challenges - high cost of production
associated with the farming system in some
countries.
• The contribution of Tea production and
Exports to smallholder welfare in the major
producing countries,
• The effectiveness of the smallholder value
chain in select Tea-producing countries.

8. ORGANIC TEA
• Conversion of non-organic Tea plantations to
Organic Tea gardens ? ….
• Decline in crop production
• High cost of cultivation
• Organic Tea should expand its mandate to
encompass green farming methods and
gradual reduction of pesticides and chemical
fertilizers, rather than be restricted to organic
tea (Time consuming and with slow results).

9. Confederation of International
Tea Smallholders (CITS)
• To provide a forum for the development of
policies and solutions to strengthen the global
Tea smallholder sector by acting as a convener,
catalyst & source of reference
• To improve the consistency of Tea policy-making
at global level
• To enhance market access by providing statistics,
research results, studies and other information
required for the world Tea economy

10. • To encourage communication, public outreach and
disseminate knowledge on the world tea economy -
through project activities, microcredit programmes,
workshops, training and knowledge sharing and
seeking financial support for such activities
• To promote the development of a sustainable global
Tea smallholder sector
• Contributing to its environmental sustainability
• Generating increased income and employment
• Improvements in the living standards and working
conditions of Workers’ families in member countries.