SOFA
Third largest tea producer and the global leader in tea exportation with nearly 300 million kilos per year; Sri Lanka is definitively the world’s “teapot” after being that of Indian Empire. Who doesn’t know about “Ceylon Tea”?
State Intervention, the Economic Situation and the Management Model
The farming of tea and spices are two very important activities for the Sri Lankan economy. However, even with these products enjoying a respected international reputation, low salaries and poor working conditions are enough to shame the multinationals that hold a huge buying power in this nation. This occidental hold on the supply chain is due to state interventions that modified the nation’s economic situation in the 1970s. In opposition to their neighboring countries, the low-yield of the labour force in Sri Lanka in addition to higher salaries prompted the government to nationalize plantations measuring over 20 hectares.
From 1978, tea production and commercialization were under state control. It was not until 1992 that plantations began being handed over to the private sector. This public-private transfer provides a partial answer to the questions surrounding the current management: tea production in Sri Lanka, which is managed by agro-industrial groups operating large plantations extending over hundreds of hectares.
Joining Forces
Vis-à-vis the power of many of these large tea plantations, small producers in remote areas can’t measure up to the competition; incomes from tea and spices production are so low that farmers abandon fields gradually. In this situation, small producers from Sri Lanka are grouping together to pool their expertise and technical resources. In 1993, a small group of producers is supported by Bio Foods, a company that collects, processes, exports and sells organic products in the region. Bio Foods encouraged families to create an association in order to improve managing practices regarding the production process and plantations. Four years later, in 1997, Small Organic Farmers Association (SOFA) is officially established. At that time, there are a total of 182 members. The same year, the cooperative, located in the center of the island of Sri Lanka, in Gampola Region, obtains organic certification. To convert farmers to organic agriculture has been a challenge for SOFA. The rules are strict: no chemical fertilizers and no burning. Four years later, in 1997, Small Organic Farmers Association (SOFA) was officially established. It has 183 members then. The same year, the cooperative, located in the center of the island of Sri Lanka in the region Gampola, obtain organic certification. Farmers convert to organic farming has been a challenge for SOFA. The rules are strict: no chemical fertilizers and no burning.
Once these good practices adopted by the producers, SOFA initiates steps to get fair trade certification. In 1998, SOFA’s members are taking a new direction, the one of fair trade. Fair Trade premiums have direct impacts on producers. The money is used to fund various programs. One of them is the diversification of agricultural production. In 2005, spices like pepper, cloves, cinnamon and cardamom are Fair Trade certified by FLO (Fairtrade Labeling Organizations). Today, Fair Trade Certified spices grown by SOFA are exported on the world market, including Canada.
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Impacts of fair trade
As part of the fair trade movement, the cooperative has adopted a democratic functioning; the council is elected annually, the decisions taken during meetings are written in books, readings were made before each meeting and a majority must be consensus to adopt decisions. Giving a voice to the small producers encourages horizontal management instead of a pyramid-shaped.
Green Practices
The implementation of organic and fair trade standards not only improved product quality, but also increase incomes coming from their sales. Joined this commercial alternative allowed to revalue land and agricultural practices almost abandoned by farmers located in remote areas.
The benefits of fair trade are also felt in all villages where SOFA’s members grow tea and spices. Entire communities benefit from social activities organized by the cooperative or infrastructure funded by SOFA.
The premium has also been employed to:
- In 2000, each farmer received 30 tea plants to increase the arable land and his production. The same year, the cooperative distributed dolomite, a material used as natural fertilizer for tea plant. Thanks to Fair Trade, each producer has received 40 kg of dolomite, a product accepted in organic agriculture.
- In 2001, SOFA has distributed 50 tea plants per member. The cooperative has also built a community room for the village. This room is used for meetings and social activities. Fair Trade premiums have financed the purchase of chairs for the local and also sheet metal to renovate housetops.
- In 2002, 15 plants are given to each farmer. And so on for subsequent years.
- Fund scholarship programs for farmers’ kids.
- Provide training programs about organic production and technical assistance. For example, the compost is now used as a fertilizer. Nothing is lost!
- Buy goods that meet the needs of SOFA’s members. For example, 40 cows were purchased in 2001. Drinking water has also been installed in strategic locations.