INTERSESSIONAL MEETING OF THE INTERGOVERNMENTAL GROUP ON TEA Washington, DC, USA, 17-18 September 2012 FINAL REPORT FINAL REPORT INTRODUCTION At its 20th session in Colombo, Sri Lanka, on 30 January to 1 February 2012, the Intergovernmental Group (IGG) on Tea agreed to hold an intersessional meeting before its next regular session to consider progress achieved by its Working Groups (WGs) in examining the issues they were assigned. As a co-sponsor of the Fifth International Scientific Symposium on Tea and Health scheduled for 19 September 2012 in Washington, DC, an event which many delegates were expected to attend, the Secretariat suggested that the intersessional be held in conjunction with this event. The IGG agreed to this suggestion. The intersessional meeting was highly successful as 50 participants representing 10 countries attended. Following the opening, the seven Working Groups (WGs) broke out into groups to discuss issues pertinent to the WG and report their recommendations to the plenary session on 18 September. Some WGs met jointly with others. Apart from the WG on Futures Market, which the meeting decided to put on hold, the objectives assigned to each of the other WGs were met. These objectives were as follows: Working Group on Maximum Residue Levels (MRLs) • Finalize the priority list of compounds in different countries and remove anomalies and duplication of work. Working Group on MRLS in Tea Brew • Report on progress made with the Codex Committee on Pesticide Residue (CCPR) regarding the use of the tea brew as an alternative to measuring MRLs. • Consider the draft action plan outlined in the discussion document, define the framework of a policy document required for CODEX and agree on the strategy to include the tea brew in the dietary risk assessment for tea. Working Group Tea Trade and Quality • Review the status of compliance of ISO 3720, as a minimum quality standard, in member countries. • Develop a strategy to promote minimum quality and safety assurance of ISO 3720 parameters to the governments of consumer countries as well as to the tea trade and consumers. Working Group on Organic Tea • Develop and agree on technical requirements and certification process for organic tea production. • Report on progress made towards considering organic tea as low energy input for financial gain through carbon trading. 1 FINAL REPORT Working Group on Climate Change • Agree on the specification and modus operandi of the coordination and function of the WG on Climate Change so that it can meet the deadlines established at the 20th Session of the IGG on Tea. • Develop a plan of action. Working Group on Smallholders • Agree on the Terms of Reference of the Working Group on Smallholders • Develop a plan of action. The meeting was presented with a mock up of the new tea website that is currently under construction. The participants approved the work done so far, and they committed to assist the Secretariat to populate the new website. Reports of the individual WGs which were adopted by the plenary are compiled below. WORKING GROUP ON TEA MAXIMUM RESIDUE LEVELS IN TEA ACTIONS AND RESOLUTIONS The WG on MRLs agreed on the priority list of chemicals, as follows: Priority List of Chemicals Data Availability Action Required Insecticides Acetamiprid Limited Field trials Bifenthrin Yes Not required Buprofezin1/ Submitted to EU Chlorfenapyr Yes Not required Chlorfluazuron Yes Data submission Chlorpyrifos Yes Not required Chromafenozide Limited Field trials Clothianidin Yes Not required Cypermethrin Yes Not required [US, Canada*] Dimethoate Limited Field trials Emamectine benzoate In progress Field trials Fenpropathrin Yes Not required Fenpyroximate Yes Not required Fipronil In progress Field trials, ** Env Concerns? Flubendiamide In progress Field trials Flufenoxuron Yes Data submission 1/ Members of the WG did not have information on whether sufficient field trial data were already available for this compound. Therefore, they are to provide the WG with this information. 2 FINAL REPORT Data Availability Action Required Insecticides (cont’d) Hexythiazox In progress Field trials Imidacloprid Yes Residue definition Permethrin Limited Field trials Propargite Yes Not required Spiromesifen Yes Not required Thiacloprid Yes Data submission Thiamethoxam Yes Not required λ-Cyhalothrin Yes Data submission Indoxycarb In progress Field trials 1/ Dichorvos 1/ Members of the WG did not have information on whether sufficient field trial data were already available for this compound. Therefore, they are to provide the WG with this information. Priority List of Chemicals (cont’d) Data Availability Action Required Acaricide Abamectin1/ Acequinocyl In progress Field trials Chlofentezine1/ Dicofol Yes Data submitted Ethion Yes Data submission Etoxazole Yes Not required Fenpyroximate In progress Field trials Hexythiazox In progress Field trials Milbemectin No Field trials Permethrin Limited Field trials Polysulphide sulphur Exempted Not required Propargite Yes Not required Spiromesifen Yes Not required 1/ Members of the WG did not have information on whether sufficient field trial data were already available for this compound. Therefore, they are to provide the WG with this information. Data Availability Action Required Herbicides 2,4-D Limited Field trials, ** Diuron In progress Field trials Glufosinate-ammonium Limited Field trials Glyphosate Yes Not required MCPA Yes Not required 1/ Metolachlor Oxyfluorfen In progress Field trials Paraquat Yes Not required 1/ Members of the WG did not have information on whether sufficient field trial data were already available for this compound. Therefore, they are to provide the WG with this information. 3 FINAL REPORT Data Availability Action Required Fungicides Azoxystrobin yes Not required Bitertanol yes Data submission 1/ Chlorothalonil Copper hydroxide Yes Not required Copper Oxychloride Yes Not required Copper oxide Yes Not required Difenoconazol Limited Field trials Hexaconazole Yes Data submission Propiconazole Yes Data submission Pyroclostrobin1/ Tebuconazole Yes Data submission Thiophanate-methyl To be done Field trials Trifloxystrobin To be done Field trials 1/ Members of the WG did not have information on whether sufficient field trial data were already available for this compound. Therefore, they are to provide the WG with this information. OTHER DECISIONS A list and a timetable for those chemicals that are planned for submission to Codex would be distilled from the above table and would be provided to the IGG/Tea Secretariat for advance notice to Codex. The intent was to progress submissions through Codex with the view to achieve global harmonization of MRLs for tea. A paper detailing the correlation between field trial protocol and GLP supervised protocol was to be prepared. This paper would be used to persuade regulators who insist on GLP field trials to accept data generated using the IGG/Tea protocol. The communication plan was to be reviewed and comments were to be returned within two months. The Decision Tree was to be modified to remove the “accepted by secondary standards” box since it was felt that this was premature and currently too restrictive. WORKING GROUP ON MRLs in TEA BREW ACTIONS AND RESOLUTIONS: The group agreed on the following action plans: To prepare a detailed methodology and policy document on how to approach the regulators following acceptance at the 44th session of the CCPR of the proposal to fix MRLs in tea based on risk assessment using the brew factor. This would act as a guidance document for fixing MRLs in tea and would be circulated to all members to assist them to approach national regulators including manufacturers. Target: three months. To organize a ring test on a few widely used pesticides among different tea producing and consuming countries within December 2013. The pesticides, test methods for tea and brew analysis to be followed and the participating laboratories would be decided in next six months. India, China, Sri Lanka, Kenya, UK, USA and Germany would participate in this ring test. 4 FINAL REPORT WORKING GROUP ON TEA QUALITY AND STANDARD 3720 ACTIONS AND RESOLUTIONS: 5 Introduction of a self-regulating code of conduct for continuance compliance of ISO 3720 minimum quality standard Member Nations. India, Kenya, Sri Lanka have confirmed that a selfregulating code of conduct is already in place. Bangladesh, Rwanda, Tanzania, Uganda and Viet Nam have informed that implementation is on-going. A response is awaited from Burundi, China, Islamic Republic of Iran, Nepal and Nigeria, and Indonesia informed difficulties in conforming to the minimum standard at this stage. Collect existing literature on additional quality benefits delivered by tea conforming to ISO 3720 or higher and submission to the Chair of the Working Group. India has agreed to forward literature already available. Other Member Nations were requested to submit any related literature on or before 31 March 2013. Formulation of a road map to undertake further research on the connectivity of teas on ISO 3720 compliant and non-compliant to quality and food safety parameters as well as general health issues. In other words, establish a business model for higher safety levels. A closer synergy between the Working Group on Tea Trade and Quality and the International Standards Organization for a combined collation of information and data. The 19th session of the IGG on Tea held in New Delhi proposed a workshop for exchange of information on ISO 3720 compliant and non-compliant teas among producing and consuming countries. It was also proposed to invite ISO 3720 non-conforming countries, such as Argentina, Islamic Republic of Iran, Turkey, etc. to participate and share their problems. Sri Lanka as the present Chair of the IGG on Tea wishes to take this opportunity to propose to the Member Nations that Sri Lanka is agreeable to host the ITPF Ministerial Meeting during the second half of February 2013 (tentative) and the location to be determined since a counter proposal was made to have a neutral venue such as Brazil. Initiate a pragmatic programme to prevail upon the governments of consumer countries, tea trade and consumers of importing countries to demand tea complying with ISO 3720 parametres or above in view of better quality and safety. It is believed that a lot of research has already been done by consumer countries on tea consumption connected with human health benefits. If such research has been done utilizing teas compliant with ISO 3720 or above, such data could be availed as a starting point for this exercise. Identifying donor funding/technical assistance for countries requiring support in the implementation of ISO 3720 minimum quality standard. The Working Group recognizes the establishment of a minimum quality standard for green tea and the significant growth in the production and demand for green tea globally and therefore proposes to recommend the introduction of a self-regulating code of conduct conforming to ISO 11287 minimum quality standard for green tea manufacturing. Japan agreed to be Co-Chair of this Working Group, which was endorsed by the Members. The Group discussed the need for defining a uniformed global sustainability standard governing the tea value chain and proposed suggestions from Members for arriving at a consensus on this issue. FINAL REPORT WORKING GROUP ON ORGANIC TEA ISSUES TO BE DEALT WITH BY THE WORKING GROUP 1. Generating market information and developing market strategies 2. Technical requirements 3. Certification processes for tea production 4. Collecting and sharing information on production, package of practice, research and development 5. Considering organic tea as low energy input for financial gain through carbon trading 6. Joining the organic movement for sustainability Suggestions of the Working Group: 1. Generating market information and developing market strategies The WG recognized that in the past, excellent market study reports were produced by the Secretariat of IGG on Tea. Given the difficulties in collecting market information from various countries, the WG felt that the Secretariat was well placed to generate market information required for formulating marketing strategies. The WG therefore recommended that the exercise be undertaken by the Secretariat in collaboration with the member countries. 2. Technical requirements The WG recognized that under the overall supervision of the IGG on Tea, the technical requirements had been sufficiently codified under a project on organic tea funded by the Common Fund for Commodities: in China, Phase I (completed) and in India, Phase II (nearing completion). The WG therefore recommended that the outcome of the projects – particularly the package of practices recommended – be adopted by member countries if possible, with appropriate adjustments suiting the local conditions. 3. Certification processes for tea production The WG recognized that several developed countries have put in place their own National Standards for organic agriculture. The WG recommended that the IGG on Tea Secretariat collate common features of such National Standards and that they be made available to organic tea producing counties to enable them to align their standards in order to gain equivalency in the importing countries. 4. Collecting and sharing information on production, package of practice, research and development The WG recognized the pioneering research and development work already undertaken by China and India under the CFC-funded organic tea project. The WG therefore recommended that this issue be jointly dealt with by the Tea Board of India (TBI) and the Tea Research Institute, Chinese Academy of Agricultural Sciences (TRI CAAS). TBI was to collect and share information on production, package of practice and research and development relating to black organic tea. TRI CAAS was to collect and share information on production, package of practice and research and development relating to green organic tea. 6 FINAL REPORT 5 & 6. Considering organic tea as low energy input for financial gain through carbon trading and joining the organic movement for sustainability The WG recognized that both technical and administrative aspects for gaining carbon credit were being studied by the TRI CAAS. The WG felt that quantification was important for possible carbon credit marketing. It was noted that two critical technical issues were being studied by the TRI CAAS: Carbon sequestration in organic tea soils and its quantification; and Mitigation of greenhouse gases emission in organic tea fields compared to the conventional ones and its quantification. It has also been noted that TRI CAAS has taken up a project on “Tea safety and key standardization”, and that TRI CAAS might be requested to share the protocol of the on-going studies with the other tea research institutes for replicating the trials and quantification. The sustainability issues needed to be addressed fully before encouraging any one to join the organic movement for sustainability. WORKING GROUP ON CLIMATE CHANGE ACTION PLAN 1. Database Development Spatio-temporal data Biophysical (meteorological, soil, crop, management etc.) Socio-economic (demographic, costs, income etc.) (Data quality check, bridging missing data gaps, fairly good resolution for both spatial and temporal data for bio-physical database) 2. Impact Analysis –Methodology Trend analysis Meteorological data Long term trends and comparison with long term normals Frequency of extreme events Crop data (production & quality) (Tea quality data on long term basis from the same area/cultivar– if available TF, TR to start with) Future scenarios development Using appropriate model or consortium of models (preferably 1km grid) Long term future climate (For IPCC, A1B scenario) Immediate future weather Socio-Economic analysis (Potential partners FAO –e.g. for Global Agro-ecological zones) 3. 7 Work out interaction between Genotype (G) x Environment (E) x Management (M) which is the prime driver of productivity Test existing and emerging cultivars for future climate scenarios (in OTC to begin with) Use GIS to identify vulnerable regions and suitable areas FINAL REPORT 4. Identify adaptation strategies/Agronomic practices – via developing decision support system framework Combine surface, satellite and simulation data (model outputs) – nowcasts/ forecast and future climate scenarios Timelines: Points 1-3 – report by the next IGG on Tea meeting Reasonable progress on point No 4. WORKING GROUP ON SMALLHOLDERS ACTIONS AND RESOLUTIONS 1. Collect and collate information on smallholder profile a) Total area under cultivation (Hectares) b) Area under smallholdings c) Economic size d) Total number of tea factories e) Number of factories handling smallholder leaf f) Total production in the country – Black and Green Tea ( Indicate separately) g) Percentage contribution by smallholders to the country’s production – Black and Green Tea separately h) Size class distribution of smallholdings Below 0.4 Ha - Number of smallholders - Extent (Ha) >0.4 <1 Ha - Number of smallholders - Extent (Ha) >1 Ha <5 Ha - Number of smallholders - Extent (Ha) > 5 Ha - Number of smallholdings Extent (Ha) i) Availability of labour for harvesting (Migration of labour from tea growing areas) j) Any regulation governing the payment for green leaf to smallholders k) Community based organizations for smallholders/ Smallholder societies / Cooperatives l) Marketing What percentage of production is sold - Via Auction - Via Direct Sales m) Technology transfer and monitoring GAP/quality issues n) Government Interventions/Government regulations Any subsidies /Assistance for - Land development activities - Inputs - Any other o) Specific issues (if any) confronting smallholders Timeframe: Provide information to the Chair of this WG by 31 December 2012 8 FINAL REPORT 2. Action Plan Analysis of data by origin Identify challenges and issues amongst smallholders, including enabling policies, capacity building, education, food security, land tenure Arrange exchange/exposure visits amongst member countries WG recommendations to be submitted by 31 March 2013 Education and training of smallholders WORKING GROUP ON FUTURES MARKET ACTIONS AND RESOLUTIONS The progress made since the group was set up at the 20th session on the FAO IGG in Colombo was reviewed and the inputs presented by the group chair, India were examined. The following concerns were noted that: Tea, being unique in its heterogeneity, perishability, quality variations and production patterns vis-à-vis any other commodity, would not lend itself to being traded as a commodity future. This was reinforced by the literature on the subject cited by the WG’s Chair and Coordinator. The introduction of index futures in tea, though theoretically feasible and perhaps desirable, posed several challenges, even assuming that a credible, reliable and transparent index could be identified and maintained. The evidence found by different researchers on the introduction of index futures in many other commodities upon their price level and variability was mixed and often divergent. The introduction of appropriate indexes and their maintenance also posed a problem. Auction price indexes were thought to be suitable proxies, but countries with a robust tea auction system often lacked developed capital markets, and countries with developed financial infrastructures either had no tea auction centre or had auction centres which were no longer representative of the true market dynamics in the country. A futures market in tea would result in its further commoditization whereas, in view of its heterogeneity, it might be able to be sold as a niche product rather than a commodity which would assist it to move up the value chain. Existing price stabilization mechanisms by way of forward contracts and private sales, already exist in different producing countries. Futures contract might destabilize these mechanisms. Hence the WG concluded that there may be more cons than pros in introducing tea futures and until adequate, consistent evidence was available to demonstrate that the introduction of index futures in a commodity was beneficial to its spot price behaviour in terms of level and variance, further steps on the development and introduction of tea futures be kept in abeyance. Conclusion To revisit the issue when the situation demands in the medium term. 9 FINAL REPORT NEW WEBSITE OF THE IGG ON TEA The intersessional meeting approved the mock up of the new website that was presented by the Secretariat, and commitment was provided to assist the Secretariat to populate it. The website was still very much work-in-progress, and the Secretariat would present an update at the next regular session of the IGG on Tea. 10 FINAL REPORT ANNEX I LIST OF PARTICIPANTS Canada Ms Louise Roberge Tea Association of Canada louise.roberge@tea.ca China Zongmao Chen Professor Tea Research Institute Chinese Academy of Agriculture Sciences chenzm@mail.tricaas.com Wenyan Han Professor Tea Research Institute Chinese Academy of Agricultural Sciences hanwy@mail.tricaas.com Zhi Lin Professor Tea Research Institute Chinese Academy of Agricultural Sciences linz@mail.tricaas.com Cai Jun China Chamber of Commerce CFNA chinatea_cfna@163.com Qu Xinying China Chamber of Commerce CFNA quxinying@cccfna.org.cn India M.G.V.K. Bhanu Chairman Tea Board of India chairmanteaboard@gmail.com A.K. Barooah Tea Research Association of India ak.b@rediffmail.com R.M. Bhagat R&D Coordinator Tea Research Association of India rmbhagat@tocklai.net 11 India (Cont’d) C.S. Bedi Chairman Indian Tea Association cs.bedi@rosselltea.com Mr Biswajit Bera Tea Board of India biswajittra@yahoo.co.in Mr P.K. Bezboruah Managing Director Bokahola Tea Co. Ltd. and Addl. Vice-Chairman Tea Research Association of India bezboruah@gmail.com Ashok Kumar Bhargava Managing Director APJ Group Adl Vice-Chairman Indian Tea Assn. akbhargava@apeejaygroup.com Gangan Boriah Director Tea Board of India boriah01@gmail.com Ms Nandini Datta Deputy Director of Tea Promotion Tea Board of India Nandini.teaboard@gmail.com Damodar Prasad Maheshwari Chairman Tea Research Assn of India dpm@jayshreetea.com P. Mohankumar Director UPASI Tea Research Institute of India drp.mohankumar@gmail.com N. Muraleedharan Director Tea Research Assn of India tratjorh@rediffmail.com FINAL REPORT India (Cont’d) Joydeep Phukan Secretary and Coordinator, FAO-IGG/Tea for India Tea Research Association of India joyphukan@gmail.com Arijit Raha Addl. Secretary Indian Tea Association ita@indiatea.org Indonesia Rachmat Badruddin Chairman Indonesia Tea Board indotea@indosat.net.id Japan Mr Takafumi Katsumata Japan New Business Council Tsuchinokok812@yahoo.co.jp Naoyuki Hashimoto Member Japan Tea Exporters Assn. Japantea1953@yahoo.co.jp Kotaro Tanimoto Vice President Japan Tea Exporters Assn. Japantea1953@yahoo.co.jp Yumiko Serizawa Secretary Japan Tea Exporters’ Assn. Japantea1953@yahoo.co.jp Katsuyuki Yoshida NARO Institute of Vegetable and Tea Science naro-cms@ml.affrc.go.jp Kenya Ms Sicily Kariuki Managing Director, Tea Board of Kenya and Vice-Chairperson of the IGG on Tea info@teaboard.or.ke David Kamau Soil Chemist Tea Research Foundation of Kenya info@tearesearch.or.ke 1 Kenya (Cont’d) John K. Bore Horticulturist Tea Research Foundation of Kenya info@tearesearch.or.ke Peter N. Kibiku Tea Board of Kenya pkibiku@teaboard.or.ke Samuel Onyango Ogola Engineer Tea Board of Kenya ogola@teaboard.or.ke Sri Lanka H.E. Jaliya Wickramasuriya Ambassador Embassy of the Democratic Socialist Republic of Sri Lanka in the United States of America Ms Janaki Kuruppu Chairman Tea Board of Sri Lanka and Chairperson IGG on Tea janakik@pureceylontea.com I. Sarath B. Abeysinghe Director Tea Research Institute of Sri Lanka isarathb@yahoo.co.uk Methmal Ariyasena Director Danduwangala Factory (Pvt) Ltd methma@gmail.com Hasitha de Alwis Director, Promotion Sri Lanka Tea Board promotion@pureceylontea.com Jayantha Keragala Chairman CTTA jayantha@impratea.lk FINAL REPORT Sri Lanka (Cont’d) Sudata Munasionghe Chief Executive Officer John Keely PLC sudath.jkl@keells.com United Republic of Tanzania (Cont’d) Mr Mustafa H. Umande Tanzania Smallholders Tea Development Agency mustafaumande@yahoo.com Lalith Obeysekere Chairman Ceylon Planters Association lalithobey@bgdpl.com United Kingdom Ms Katie Donnelly Tata Global Beverages katie.donnelly@tataglobalbeverages.com Anil Perera Chief Executive Officer Tea Smallholder Factories PLC anil.tsfl@keells.com United States of America Mr Joseph Simrany President Tea Association of the USA simrany@teausa.org Sarath Sirisena Managing Director Lanka Commodity Brokers saraths@lcbl-sl.com Peter F. Goggi Executive Vice President Tea Association of the USA Peter.goggi@teaUSA.org M.A. Wijeratne James Hayes-Bohanan Professor Bridgewater State University JHAYESBOH@bridgew.edu madawalawije@yahoo.co.uk United Republic of Tanzania Mr Mathias Assenga Benedict Tea Board of Tanzania info@teaboardtz.org Emmanuel F. Simbua Executive Director Tea Research Institute of Tanzania esimbua@trit.or.tz Andrew Scott Tea Expert Nestlé PTC Orbe Andrew.Scott@rdor.nestle.com 2