Value Chain Struggles E-Book

Jeff Neilson

• Herausgeber: John Wiley & Sons
• Kategorie: Wissenschaft und neue Technologien
• Serie: RGS-IBG Book Series
• Sprache: Englisch

Seitenzahl: 582

Veröffentlichungsjahr: 2011

Beschreibung

Adopting a 'global value chain' approach, Value Chain Struggles investigates the impact of new trading arrangements in the coffee and tea sectors on the lives and in the communities of growers in South India. * Offers a timely analysis of the social hardships of tea and coffee producers * Takes the reader into the lives of growers in Southern India who are struggling with issues of value chain restructuring * Reveals the ways that the restructuring triggers a series of political and economic struggles across a range of economic, social, and environmental arenas * Puts into perspective claims about the impacts of recent changes to global trading relations on rural producers in developing countries

Leseprobe

Contents

List of Figures

List of Tables

Series Editors’ Preface

Acknowledgements

List of Abbreviations

Numbers, Dates and Measurements

Indian Administrative Geography

Currency Exchange

Chapter One Introduction

Tea, Coffee and the Crisis in Tropical Commodities

Governance, Institutions and Struggle

Towards buyer-driven governance in global tea and coffee industries

Local flavours: An introduction to tea and coffee production in South India

Our Blend: An Outline of the Book’s Structure

Chapter Two Re-inserting Place and Institutions within Global Value Chain Analysis

Part One: Commodity Analysis

Part Two: Global Value Chain Analysis

Part Three: The Institutional Dimensions of Global Value Chains

Part Four: From Words to Deeds – Methodological Considerations in GVC Research

Conclusion

Chapter Three How to Make a (South Indian) Cup of Tea or Coffee

The Input–Output Dimensions of South Indian Tea

The Input-Output Dimensions of South Indian Coffee

The territoriality of South Indian coffee

Conclusion

Chapter Four The Institutional Environment of the South Indian Tea and Coffee Industries

Managing agents and plantation life: The insertion of South Indian tea and coffee into Britain’s colonial project

Institutional reconfigurations after Independence

Institutions and organizations in the South Indian tea and coffee industries in the contemporary period (1990s–)

Conclusion

Chapter Five Struggles over Labour and Livelihoods

What is Ethical Accountability?

Ethical Accountability in Tea and its Influence in South India

Labour Welfare on South Indian Tea Estates

Struggles and Silences: The Interstices of the Ethical Accountability Agenda in South India

Conclusion

Chapter Six Struggles over Environmental Governance in the Coffee Forests of Kodagu

Product Certification in the Coffee Industry

The Coffee Forests of Kodagu

Conservation and Coffee in Kodagu

Conclusion

Chapter Seven Smallholder Engagement in Global Value Chains: Initiatives in the Nilgiris

Smallholders and Global Value Chains: The General Argument

Tea Smallholders in the Nilgiris

Nilgiris Smallholders and the Tea Crisis

The Quality Upgradation Programme

The role of women’s Self-Help Groups and factory participation

Is the Quality Agenda Sufficient to Improve the Lives of Smallholders? The Role of Government Supports

Conclusion

Chapter Eight Making a Living in the Global Economy: Institutional Environments and Value Chain Upgrading

Process Upgrading

Product Upgrading

Functional Upgrading

Intersectoral Upgrading

Summary: The Future of Upgrading for South Indian Tea and Coffee

Chapter Nine Conclusion: What We Brewed

Institutions and Governance in GVC Theory

The Struggles of Upstream Producers: Surviving the Tropical Products Crisis

Appendix A The Role of Managing Agents

Appendix B The Operation and Intended Reform of South India’s Tea Auctions

Appendix C Restructuring of Tata Tea’s Munnar Operations

Notes

Bibliography

Index

RGS-IBG Book Series

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This edition first published 2009

© 2009 by Jeffrey Neilson and Bill Pritchard

Blackwell Publishing was acquired by John Wiley & Sons in February 2007. Blackwell’s publishing program has been merged with Wiley’s global Scientific, Technical, and Medical business to form Wiley-Blackwell.

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The right of Jeffrey Neilson and Bill Pritchard to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.

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Library of Congress Cataloging-in-Publication Data

Neilson, Jeff.

Value chain struggles : institutions and governance in the plantation districts of South India / Jeff Neilson and Bill Pritchard.

p. cm. – (GS-IBG book series)

Includes bibliographical references and index.

ISBN 978-1-4051-7393-3 (hardcover : alk. paper) – ISBN 978-1-4051-7392-6 (pbk. : alk. paper) 1. Coffee industry-India, South. 2. Tea trade-India, South. 3. Globalization–Economic aspects–India, South. I. Pritchard, Bill. II. Title. III. Title: Institutions and governance in the plantation districts of South India.

HD9199.I42N45 2009

338.4′76337309548-dc22

2008037693

List of Figures

1.1Struggles over global value chains with institutional realignments1.2Plantation districts in South India2.1The economics of institutions3.1Basic composition of South Indian tea global value chains3.2Shade cover at Silver Cloud tea estate, Gudalur, Tamil Nadu3.3The difference between orthodox and CTC teas3.4Change in volumes of tea exports between 1990 and 2005, major producing countries3.5Shade-grown coffee, Kodagu District, Karnataka3.6Post-harvest processing stages for coffee3.7Hand-sorting (garbling) of coffee green beans (Tata Coffee curing works, Kushalnagar, Kodagu, Karnataka)3.8ICO composite price for green coffee (1987–2007)4.1Organizational interconnections in South Indian tea production4.2A typical tea planter’s bungalow (Pattumalay Estate, Central Travancore planting district, Kerala)5.1The ethical landscape of the South Indian tea sector5.2Daily minimum adult wages in tea plantations, 1997–20075.3Degraded tea landscape in Central Travancore, 20065.4Abandoned tea factory, Hope Estates, Central Travancore, 20066.1Landuse map and coffee expansion in Kodagu, 1977–20076.2Ainemane house, Kodagu6.3Tala Kauvery, Kodagu7.1Average tea export price (Rupees per kg), North and South India, 1985–20067.2A typical Badagas village7.3Value chains for Nilgiris tea, 20007.4A village-awareness campaign meeting for the Quality Upgradation Programme7.5Tea Board poster mandating that smallholders are not to use sickles in tea plucking

List of Tables

1.1Distribution of value for tea sold into Western European markets1.2Four estimates of the distribution of value for coffee sold into varying markets2.1Methodological strands in product/commodity analysis2.2Key determinants of global value chain governance3.1Indicative estimates of tea production by smallholders, major countries, 20053.2Tea grades used in Indian auctions3.3Average yearly prices (US$) at major tea auctions, 1985, 1990, 1995 and 2000–63.4Role of tea auctions in major black tea producing countries3.5The world’s major tea producing countries, 20053.6The world’s major tea importing countries, 20053.7Coffee production by State and District, 2006–73.8Major exporters of Indian coffee, 2006–73.9Major coffee grades set by the Coffee Board of India3.10The world’s major coffee producing countries, 20063.11The world’s major coffee importing countries, 20063.12The input-output and territoriality dimensions of South Indian tea and coffee4.1South Indian tea growing areas and how they are described in the 2007 ‘Golden Leaf’ awards brochure5.1Status of tea estates in Central Travancore, 20066.1Stated objectives of various ‘Sustainability’ codes in the coffee sector6.2Distribution of coffee farm holdings in India8.1Upgrading initiatives in South Indian tea and coffee industries8.2Functional activities of major corporate groups in the South Indian tea and coffee industries

Series Editors’ Preface

The RGS-IBG Book Series only publishes work of the highest international standing. Its emphasis is on distinctive new developments in human and physical geography, although it is also open to contributions from cognate disciplines whose interests overlap with those of geographers. The Series places strong emphasis on theoretically-informed and empirically-strong texts. Reflecting the vibrant and diverse theoretical and empirical agendas that characterize the contemporary discipline, contributions are expected to inform, challenge and stimulate the reader. Overall, the RGS-IBG Book Series seeks to promote scholarly publications that leave an intellectual mark and change the way readers think about particular issues, methods or theories.

For details on how to submit a proposal please visit: www.rgsbookseries.com

Kevin Ward

University of Manchester, UK

Joanna Bullard

Loughborough University, UK

RGS-IBG Book Series Editors

Acknowledgements

One benefit of researching South India’s tea and coffee industries was that an invigorating brew of these local beverages was never far away whenever we sat down with our interview informants, colleagues and friends. During our eleven research visits to South India spread over the period 2004–8, we consumed literally hundreds of cups of tea or coffee in offices, living rooms, verandahs, restaurants, hotel lobbies, roadsides, and factory floors. They ranged from the archetypal steaming steel cups of milky chai masala of everyday India, to fine leaf black orthodox teas served in exquisite porcelain cups, and to foaming lattes in oversized paper cups in western-style ‘Coffee Day’ and ‘Barista’ outlets. Sitting over a cup or tea or coffee provided the social micro-climate in which the stories of transformation presented in this book were divulged and debated.

It comes as no surprise, therefore, that in these Acknowledgements we want to recognize the support and generosity of people associated with the South Indian tea and coffee industries. Without their assistance, this book could not have been written. We hope that this book may go some way towards securing a more viable and just future for this regional industry.

Mr Ullas Menon, Secretary-General of the United Planters’ Association of Southern India (UPASI), was extremely generous in sharing with us his extensive knowledge of his industry, and warmly introducing us to many of his colleagues. Also at UPASI, R. Sanjith was a fount of information about the industry, and always bore a friendly smile. We cannot name all those in the planters’ community who gave us their time in support of this book, but specific thanks are due to the following individuals who went out of their way to help us along our path: T. Alexander, N. Dharmaraj, H. Huq, C.P. Kariappa, D.B. King, B. Mandana, R. McAuliffe, T. Pinto, S. Perreira, A. Ponnapa, R. Bajekal, J.K. Thomas, and V. Ramaswamy.

For assisting our fieldwork with small growers, we wish to acknowledge the former Head Scientist at UPASI-KVK, Dr Ramu, his replacement, Mrs Dhanalakshmi Devaraj and all her staff. We also thank the Directors and staff of the Tea Board of India, especially Mr Nazeem I.A.S., and the Directors and staff of the Coffee Board of India, especially Dr Ramamurthy at the research sub-station at Chettali. The directors and staff of the UPASITea Research Foundation are owed a debt of gratitude, as is Mr Lakshman Gowda, President of the Karnataka Grower’s Federation.

In the Indian research community, we acknowledge the assistance of Prof. T. Vasantha Kumaran, Prof. P.G. Chengappa, Dr Ajjan Nanjan, C.P. Kushalappa, Dr C.P. Gracy, Dr A Damodaran, and Dr Claude Garcia (of CIRAD and the French Institute at Pondicherry). Dr Shatadru Chattopadhayay (Partners in Change) and Sanne van der Wal (Dutch Tea Initiative/SOMO) assisted our participation in an NGO Workshop in Darjeeling in 2006, which we gratefully acknowledge.

We enjoyed the good company of Ashish Rozario and family, Steve Rebello and Sanjay Cherian during our fieldwork in India, and also wish to thank the staff at Wallwood Guest House in Coonoor, which became something of an occasional ‘home away from home’ during parts of our field research.

The project to which this book has contributed was funded by the Australian Research Council. We thank and acknowledge our former colleague within the project team, Prof. John Spriggs, who gave us key insights about institutional economics that now see the light of day with this book. Niels Fold, from the Department of Geography at Copenhagen University, spent a productive sabbatical with us in 2006–7 and helped us to hone our ideas. Lindsay Soutar, Nathan Wales and Jasmine Glover assisted in various technical ways in making this manuscript come into being. Our colleagues in Geography at the University of Sydney and our fellow members of the Agri-food Research Network form the basis of our researcher networks, and it is an honour to be part of these scholarly communities. Kevin Ward at the University of Manchester provided supportive and sound advice in bringing our manuscript to final publication, and we thank two anonymous referees for their vigilance in asking us to fine-tune our arguments.

Finally, this project involved considerable time away from home, to the disruption of our families. We dedicate this book to Relyta, Eden and Jemma, and Kerry and Arizona.

Jeff Neilson

Bill Pritchard

Chapter One

Introduction

November 2004, Bangalore. In a downstairs conference room of the four-star Hotel Atria, a special closed session of the 46th Annual Meeting of the Karnataka Planters’ Association (KPA) is under way. The KPA is a member organization of the United Planters’ Association of Southern India (UPASI), which goes back more than 100 years to the age of British planters’ clubs on the subcontinent. A senior economic researcher from one of India’s leading universities, just returned from Europe, is setting forth a series of issues to which the Karnataka coffee industry will be forced to respond. In association with the German development agency Gesellschaftfür TechnischeZusammenarbeit (GTZ), the European coffee community is developing what it refers to as a ‘common code’ for the industry. Under the code, coffee producers wishing to sell to code signatories, which include Kraft and Nestlé, will be required to extensively document the histories of chemical use on their plantations, the environmental conditions under which coffee is grown, and their compliance with labour standards. The code is perceived as essentially a means for defensive brand management by the major coffee companies, and the planters fear that it will soon become a requirement for market access. This being the case, abiding by the code may give the planters an edge in the global marketplace. Yet at the same time, implementing these systems will be costly and time-consuming, especially onerous at a time of low coffee prices when many growers are already struggling to make a living. ‘This is just East India Company imperialism in a new guise’, says one of the planters. ‘The Europeans are setting down new standards, and we have to pay the cost of implementing them.’ The planters around the table nod their heads in agreement.

September 2005, a tea factory in the village of Bitherkad, in the Gudalur district of Tamil Nadu. A crowd of 200 smallholder tea growers awaits officials representing the Tea Board of India. Smallholders have been major losers from changed priorities of international tea buyers in local auctions, who have increasingly bypassed the generally lower-quality teas they produce. The associated slump in tea prices received by smallholders is cutting deep into these growers’ livelihoods. With average tea plantings of less than one hectare each, the 15,000 local tea growers have seen their farm incomes halved, with most now receiving gross incomes of less than US$600 per year from tea. The officials have come to explain a subsidy payment scheme aimed at alleviating the desperate plight of this segment of the rural population. The scheme has been developed after considerable political agitation by growers but, when it becomes apparent that bureaucratic problems will restrict the eligibility of many growers from receiving these payments, the smallholders’ frustrations boil over. Speaker after speaker rails against what they perceive as the evils of globalized markets, industry deregulation, and low tea prices.