UTZ Tea Statistics Report 2017
More than 107,000 tea farmers and workers benefit from the UTZ program UTZ certified tea is produced in 13 countries In 2017, more than 4.6 billion cups of UTZ certified tea were enjoyed in 48 countries
Introduction The main goal of this report is to present the scope and scale of the UTZ tea & rooibos program in 2017*. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency. The statistics report focuses on the key indicators related to: Program reach: UTZ tea & rooibos production, premiums being paid and multi-certification of this production Market uptake: sales of UTZ tea & rooibos This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal. We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at ME@utz.org 2018 UTZ Information presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom. * Herbal tea is part of the UTZ program but we do not share aggregated data in this report.
Summary Continuous growth of the UTZ tea program is shown by an expanding reach... stabilizing estimated UTZ production growth of market interest for UTZ tea Due to growing market uptake, the UTZ tea program has been able to increase its reach: The program showed further growth in the number of producing countries and producers groups and estates Supply of UTZ tea has steadily maintained over the years: Asia and Africa remained two main origins of UTZ teas Production area increased by 14% The supply-demand ratio increased to 8%, largely due to increasing interest in Asian teas. In line with 2016, global UTZ tea sales grew this year: Total volume sold increased by 38% Market uptake continued to grow Average UTZ cash premium paid to producers groups and estates increased to 4.75 cents / kg
1. Reach 2. Estimated production 3. Multi-certification 4. First buyer sales 5. Premium 6. Supply-demand trend
1.1 Geographical reach Farmers in 13 different countries across the globe are part of the UTZ Tea Program Latin America Argentina Drop-out: Colombia (1 estate) New origins: Rwanda and Mozambique Africa Kenya Malawi Mozambique Rwanda South Africa Zimbabwe Asia China India Indonesia Japan Sri Lanka Viet Nam
1.2 Program reach UTZ Tea Program continued to expand, in both number of farmers and certified area # farmers Area (ha) # permanent and seasonal workers 12,775 12,300 16,700 67,679 77,298 104,335 90,695 9,055 8,685 32,757 38,605 47,828 52,540 57,479 58,429 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 An increasing number of farmers due to: 24% increase in the number of tea estates (from 122 to 151 estates) 36% increase in the number of producers within a group in the UTZ program 14% growth in certified area A slight decrease in the number of workers in the UTZ program, driven mainly by a decline in Asia
MT, made tea equivalent 2.1 Global Estimated UTZ Production Stabilized production of tea and rooibos compared to 2016 119,642 119,883 Origins of production - 2017 86,294 59,979 71,234 49% 1% 50% Africa Asia Latin America 2013 2014 2015 2016 2017 UTZ estimated tea and rooibos production stabilized at 119,883 MT in 2017 Main origins of UTZ supply are Africa and Asia: 32% increase in Africa, with new production from Rwanda and Mozambique. Asia dropped by 18% mainly due to decrease in India, Indonesia, and Sri Lanka. Latin America estimated tea production decreased by 45% Estimated production is based on license information from licenses valid on December 31st 2017 *From 2014 onwards the estimated production volumes are converted to Made tea equivalent ** Extension volumes are included
MT, made tea equivalent 2.2 Estimated Production per Country India certified volume decreased by 19%, while Kenya increased by 14% 44,285 31,627 16,543 16,501 2015 2016 2017 5,638 5,289 India Kenya Malawi Sri Lanka Indonesia Others* Relative growth 16 17-19% 14% 44% -15% -31% 43% Malawi estimated production increased by 44%. This was linked to an increase in the certified area and a more favorable weather condition in 2017 Less certified tea from Indonesia and Sri Lanka due to a decrease in certified producers *Others includes: China, Zimbabwe, Rwanda, South Africa, Mozambique, Argentina, Japan, and Viet Nam.
2.3 Estimated Production per type Black teas continued to account for more than 80% of UTZ tea production (102,092 MT) 100% Share of Sub-products per origin - 2017 75% 50% 25% 0% The following types of tea were also certified (not reflected in graphs): 225 MT White tea, 74 MT Oolong Tea & 31 MT Pu-er (raw + ripe) Tea Some origins are highly specialized, for example: China, Japan, and Vietnam for Green tea, South Africa for Rooibos
3. Multi-certification Nearly 90% of tea producers are multi-certified 88% 64% 2015 2016 24% 31% 29% 2017 Multi-Certified Fair Trade RFA Organic Other* Similar dynamics of multi-certification between 2016 and 2017. Combination with Rainforest Alliance still the most common. *Other includes GlobalGAP, Trustea, HACCP, ISO 22000, Demeter, BRC, GMP, SAGAP
MT made tea equivalent 4.1 Global sales of UTZ certified tea Total volume sold by UTZ producers increased by 38% 9,171 6,640 38% Origins of 1st buyer sales - 2017 5,763 3,892 16% 4,527 27% 15% 54% 1% 45% 2013 2014 2015 2016 2017 Africa Asia Latin America Global share of certified tea from Asia increased from 33% in 2016 to 54% in 2017 and first buyer sales from Asia increased by 126% compared to 2016 Africa remains one of the two main origins of UTZ tea sold (45%) though first buyer sales slightly went down by 4% between 2016 and 2017 First Buyer Sales are all the confirmed sales from the producer to the first buyer. *Volumes include tea and Rooibos From 2014 onwards the sales volumes are converted to Made tea equivalent
MT, made tea equivalent 4.2 First buyer sales by country India and China tea sales increased significantly by more than 200% while Malawi and South Africa sales gradually recovered from previous year 3,311 1,989 1,119 1,079 1,033 2015 2016 2017 640 India Malawi China South Africa Zimbabwe Others* Relative growth 16 17 199% 19% 260% 14% -27% -40% India sales grew to become the largest origin China made it into the top 3 with more green tea sales Tea sales slightly increased in Malawi and South Africa by 19% and 14%, respectively *Others includes: Indonesia, Kenya, Sri Lanka, Argentina, andrwanda. First Buyer Sales are all the confirmed sales from the producer to the first buyer. *Volumes include tea and Rooibos
MT, made tea equivalent 4.3 Sales by product Black teas continued to dominate UTZ tea first buyer sales while share of green tea increased by 5% 3,411 Share of sub-products in total sales 2,644 18% 14% 12% 2,011 17% 16% 22% 1,079 20% 24% 29% 24 44% 46% 37% CTC/STP Black Tea Green Tea Orthodox Black Tea Rooibos White Tea 2015 2016 2017 Black teas continued to account for more than 60% of UTZ tea sales (5,422 MT). Sale of Black tea types slightly changed compared to 2016 with 6% increase in share of Orthodox Sales of Rooibos in 2017 was 1,079 MT and accounted for 12% of total sales First Buyer Sales are sales from the producer to the first buyer. *Volumes include tea and Rooibos
4.4 Market uptake Interest in the program continued to grow steadily Number of licensed Supply Chain Actors* 106 90 82 29% 44 53 2013 2014 2015 2016 2017 Number of licensed Supply Chain Actors increased by 29% 53% of the licensed Supply Chain Actors are based in Europe, followed by Asia (34%). In 2017, there were 476 new UTZ labelled SKUs* launched on the market. * Including also herbal tea
5. Premium Average premium paid to producers experienced a large increase to 4.75 cents /kg Average premium (cent/kg) 4.81 4.66 4.59 4.32 4.75 2013 2014 2015 2016 2017 The UTZ Premium is an additional cash amount paid above the market price for a similar conventional product. It is mandatory and agreed upon between the certified group or producer and the first buyer Premium of 4.75 cents /kg of tea was paid on average to producers - one of the two highest premiums over the last 5 years The premium paid to producers differs highly within and between origin countries UTZ premium calculations are based on transaction data recorded in the UTZ traceability system
6. Supply-demand trends 8% of estimated production was bought by supply chain actors as UTZ % of estimated production sold as UTZ 8% 7% 6% 7% 6% 2013 2014 2015 2016 2017 Supply-demand ratio is based on first buyers sales and estimated production The supply-demand ratio for Asia increased to 8% due to a large increase in demand for Chinese and Indian tea 7% of tea in Africa was sold as UTZ, down from 10% in 2016 due to a large increase in supply in both South Africa and Malawi The ratio for Latin America stayed almost the same, down by 1% compared to 2016