Rose farming in Kenya

Although great progress is being made on sustainability in the rose sector in Kenya, worker’s wages need to double or even triple for them to sufficiently provide for themselves and their families, as suggested in the P+magazine article. The results communicated in this article is sourced from a True Price study made in partnership with the NGO Hivos. This article also describes the vulnerability of women workers to gender discrimination and sexual violations, often trust is abused when depending on overtime and other in-kind benefits. A key CSR study cites that sexual harassment and intimidation occurs in half the Kenyan rose farms assessed.

LWRoses.2

This infographic gives an impression of an actual wage and the gap to reach a living wage for single and double parent households. True Price’s Living Wage study finds that over half of women working in Kenyan Rose farms are single mothers and are the sole provider for their families.

Read our report on the business case for a living wage in Kenyan rose farming. This was an assignment comissioned by the international NGO Hivos.

Follow us @TruePrice to find out how else we contribute to the case for a Living Wage.

Future of Coffee Depends on Adequate Income for Farmers

The coffee sector praises sustainability and yet the chances are the coffee you’re drinking came from farmers living below the poverty line with little security in the future of the farms.

True Price undertook the first study of its kind with Fairtrade International; a detailed analysis of coffee farmer income across seven coffee producing countries: Rwanda, Tanzania, Uganda, Kenya, India, Indonesia and Vietnam.

True Price examined how much farmers earn from coffee and what positive or negative impact the amount has on the overall household income.  This infographic demonstrates the disparity of total household income per country.

In all cases, coffee farming is not the sole income of a household, often it is necessary to make income from different agri-production or non-farming income. Interestingly, the dependence of coffee farming as income varied greatly between different producing countries. Farmers in Indonesia rely heavily on their income from coffee whilst Kenyan farmers earned the majority of their household income from other good or non-farm income. Indonesian farmers also make the highest profit per/kilo due to high yields, whilst Kenyan coffee farmers make a large loss of profit and so must absorb this my earning money by other means.

Looking at income in this way is a critical step to work towards a fair, sustainable Living Wage for Coffee farmers.

Discover more in  the Fairtrade International Executive Summary

 

True Price launches new products

True Price introduces a range of new tools tailored for businesses & financials and NGO’s & Institutions. We leverage on our world leading expertise in impact measurement and valuation to help professionals manage impacts. Our products build onto the familiar concepts that we developed like True Pricing and the Integrated Profit and Loss.

Please explore how we help businesses & financial institutions and NGO’s & Institutions.

Food Tank Report: The Real Cost of Food

Check out the report published by Food Tank on the subject of True Cost Accounting, The Real Cost of Food: Examining the Social Environmental, and Health Impacts of Producing Food. Food Tank’s report includes the case we did for Tony’s Chocolonely in 2013.
Danielle Nierenberg, the President of Food Tank, indicates that this report hopes to give an overview of the current work being done on True Cost Accounting and help point a way forward for future work on this issue. Moreover, Food Tank sees this publication as a call to action, the time is now to instill better accounting measures in food and agricultural production.

Download the report here (to download the report, you have to enter your contact details on the website of Food Tank).

True Price & Tony’s Chocolonely Raise the Bar

At the annual Tony’s Fair, Tony’s Chocolonely published their Jaarfairslag 2014 (annual report, in Dutch), in which they announced that they intend to reduce the negative impact of their bar to zero by 2019. Tony’s has set this ambition on the basis of research of True Price.

Since 2012, Tony’s Chocolonely has been buying their cocoa beans directly from farmer cooperatives in Ivory Coast and Ghana: ‘from bean to bar’.  Besides sourcing Fairtrade and organic cocoa from Ghana, the farmers are even paid an additional premium. Tony’s Chocolonely was looking for a way to know, show, and improve the environmental and social costs of the cocoa. What is the impact of the premium? Which additional steps can they take to improve living conditions and environmental impacts? And how does Tony’s perform compared to non-sustainable alternatives?

“Tony’s Chocolonely is always looking for innovative ways to raise awareness and find solutions. In this context, our collaboration with True PriceTM is an interesting opportunity. This project allows us to quantify our progress, focus our attention, and refine our strategy.” – Arjen Boekhold, Chain Director

True Price’s role
True Price conducted a True Price scan to determine the footprint and monetize social & environmental costs like CO2 emissions, forced labour and income distribution throughout Tony’s supply chain. Our experts executed a similar exercise for non-sustainable cocoa to create a sector benchmark.

First outcomes
The True Price™ scan for Tony’s Chocolonely made negative externalities more visible and provided valuable insights into the opportunities for process improvement within Tony’s supply chain:

Tony’s is on the right track:
– Tony´s footprint was 40% lower than that of the average non-sustainable chocolate bar in 2013.
– Sustainable certifications are not substantial enough and much more investment is needed.
– The premium of at least 25% given to the farmers results in a higher net income & more training for local farmers.

Identified opportunities to improve:
Underpayment, land use, child & forced labour identifies, health care and knowledge-building of farmers are areas where Tony’s makes & can make a difference.
– Around 70% of environmental costs are at farm level. Land use, productivity, cacao prices, offer a room for improvement.

A peek into the future:
If all measures succeed, the future is bright: Tony’s aims to eliminate all environmental and social costs in their supply chain by 2019.