As part of monitoring and evaluation UTZ publishes annual reports on our certification programs. Below are highlights of the developments in the tea sector – be sure to download the full report and join our Q&A webinar on 6 June to find out more!
The UTZ tea program has grown steadily since it began in 2013. It now reaches farmers in 12 countries, across a total of 122 estates. Last year saw a 42% growth in production area, and 79% increase in number of workers. Total volume sold by UTZ farmers increased by 15%.
Africa remains the main origin of UTZ tea sold with almost two thirds of the sales. There was a 79% increase in first buyer sales from Asia, with 9% in Africa. Africa accounts for two-thirds of sales. Black tea continues to dominate first buyer sales. Despite drought in 2016, the largest share of UTZ tea sales is still coming from Malawi.
Forty-two new supply chain actors joined the program and nearly 500 approval requests for UTZ labeled products were submitted, the number almost tripled compared to 2015.
More than a third of new members are from India. UTZ tea is sold in 42 countries, mostly in Europe, with Albania the latest addition. The main markets for UTZ teas are in Europe, primarily Germany and the Netherlands.
Overall, UTZ premiums decreased slightly, although they have remained fairly stable over the last four years. The premiums are paid directly from the first buyer to the certificate holder.
Almost 40% increase in production for tea was driven by significant increase in Asia, where volumes almost doubled. In India production almost tripled due to the large number of new producers. Certified rooibos volumes increased due to new certificate holders, however production was considerably affected by drought in South Africa.
Supply and Demand
Supply grew faster than demand and 5.5% of estimated production was sold as UTZ certified. The percentage of UTZ tea volume sold as UTZ remains low but stable.