Assessing the social and economic benefits of organic and fair trade tea production for small-scale farmers in Asia: a comparative case study of China and Sri Lanka

Abstract

Organic agriculture has the potential to provide improved livelihood opportunities, increased income and social benefits for resource-poor small-scale farmers. It has thus become a popular strategy for economic development and poverty reduction in many areas of the global south. However, there has been limited empirical research regarding the actual benefits of certified organic production, particularly when organic is combined with fair trade certification, and for small-scale farmers who are not engaged in coffee or banana production. Further research is needed to demonstrate experiences of farmers under diverse socioeconomic conditions, organizational contexts and degrees of market access. To address these gaps, two surveys of certified organic and fair trade tea producers in China and Sri Lanka were undertaken to investigate the contributions of organic crops to the household economy. In both cases, organic production required lower investment in terms of external inputs but a higher input of farmers' labor. The price premium received by farmers for the organic tea compensated for the extra labor input and lower yield, resulting in a net profit. However, given the relatively small plots of tea gardens of each household, organic production could not fully provide for the households' livelihood. Non-farm income dominated the total income of the households across the study cases, despite the earnings from organic farming. In both sites, market-oriented organic tea projects have created more options for paid work locally, which benefits women of reproductive age. Social benefits of organic farming were also reported. Pursuing fair trade certification on top of organic production facilitated farmer organizing, training and community development. Organic agriculture and fair trade certification offer important prospects to improve the livelihoods of small-scale farmers in other, less favored areas of Asia. These forms of certified production could provide economic and social benefits in instances where farm income is the main source of household income.

Is voluntary certification of tropical agricultural commodities achieving sustainability goals for small-scale producers? A review of the evidence

“…The same study region is reported in (Rueda and Lambin 2013) and . b One paper (Qiao et al 2016) includes two study areas for tea. which farmers undertake to maintain options for different markets.…”

A Review of Organic Food Consumption from a Sustainability Perspective and Future Research Directions

“…Chiputwa et al (2015) argue that although consumers in the developed countries are willing to pay significant price premiums for organic food which meets sustainability standards, how effectively these benefits reach the producing countries especially the farmers in the poor countries (e.g., Uganda and Ethiopia) is unknown. According to Qiao et al (2016) although the price premiums could compensate for some extra costs, among other factors, smaller plot sizes in poor countries inhibit gaining all the benefits of organic food production. This definitely indicates an area of further investigation.…”

“…Organic Agriculture goes far beyond organic food certifications as it addresses the issues such as food insecurity, land degradation, poverty, and climate change (IFOAM, 2017a). Thus, it has become a strong contributor to sustainable development at a larger scale (Qiao et al, 2016).…”

A World without Hunger: Organic or GM Crops?

“…Finally, OF has the potential for both mitigation and adaptation strategies, both of which enhance the environment's resilience to climate change [46]. Studies show that farmers are able to obtain various economic benefits from OF, such as saving money through the reduction of input cost by substituting chemical inputs with locally available organic inputs [52]. They can also increase their income through the sale of their byproducts and by entering organic markets with certified products and selling their products at premium prices [23].…”