Quality

In the last 50 years, the tea market has encouraged selling huge amounts of tea, cheaply. And the quality has gone down with the price.

Tea used to cost more than gold and taste special. Now, it costs 2p a teabag. You can't get a penny sweet for that these days.

So it's no wonder that our tea tastes "meh" and we're drinking less of it.

And no wonder the farmers who grow it receive too little.

So, quality is important; for our taste buds and for tea growers.

We only buy great quality tea; it involves craft and good practice and deserves a good price.

Tea farmers in Rwanda work to a formal plucking standard for the best quality tea. They receive a bonus for plucking tea to that standard. And they pluck by hand; hands see better than machines.

Smallholder farmers take their "green leaf" tea to the factory. The factory processes it and turns it into "finished" tea that we can buy and drink.

So when tea companies buy bulk tea, they pay the factory, not the farmer. It's the factory that pay the smallholder farmer.

Paying a higher price for quality tea is the first step. Ensuring the farmer receives a fair share of that is the next.

So, what is a fair price?

Because tea comes from different countries, in different types and in different qualities, the answer isn't straightforward. But there are 2 important things to think about: the market price and the cash in the farmers pocket.

Here's more:

1. The market price

We currently pay $4.03/kg – well above the average market price for better quality tea.

The average price paid in the market through auction is published yearly for each country.

The Fairtrade Minimum Price by country is also published.

Example:

• Average Market Price Rwanda 2024: $2.84/kg
• Fairtrade Minimum Price Rwanda 2024: $2/kg

So SPILL currently pays 42% above market price and 80% above Fairtrade Minimum Price (2024/25).

The market price we pay will fluctuate but we have set a SPILL Minimum Price of $3/kg as a baseline – 50% above the Fairtrade Minimum Price.

2. Cash in the farmer's pocket

Because tea companies deal with the factory, either directly or through middlemen (brokers, auction), the smallholder farmer who has grown the bulk of the tea, is out of sight.

And in typical tea chains, no-one asks or shares what the smallholder farmer is paid.

We will always ask. And always share.

In Rwanda the farmer share is set by law at 45% (+5% quality premium) and is well regulated. Not all tea growing countries regulate farmer share as transparently and effectively.

Quality bonus

We know what the smallholder farmers who grew this tea are paid. We also know that it's not enough. So we pay an additional quality bonus of $0.50/kg directly to farmers.

A lot of work and discussion goes into finding solutions to improve conditions for tea growers. Tea companies and certification bodies pay premiums to help make up for low tea prices and to support good tea-growing practises and tea-growing communities

The premiums are paid to factories to decide where the money is best spent. Funds might go towards a community project like housing or schooling, or to road or factory improvements.

Whilst this is positive, it doesn’t always put cash into the farmer's pocket.

Cash in their pockets is what farmers want; a fair price for quality produce and the freedom to choose how to spend it.

So we're doing that.

SPILL FARMER FUND

We pay an additional $0.50/kilo directly into the SPILL FARMER FUND. This is distributed to farmers periodically and they will choose how it is spent. There's a breakdown below.

Clue's in the name. We'll tell all.

What the farmer is paid and their stories.

Our thinking is - if everyone started asking and telling what the smallholder farmer is paid, we’d get a clearer view of the problem, and be closer to being able to tackle it.

So, we'll only buy where we can talk directly to farmers and can know what they're paid. And we’ll spill the details.