Contribution of Tea Production and Exports to Food Security, Rural Development and Smallholder Welfare in Selected Producing Countries
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The World Food Summit in 1996 reinforced a multidimensional approach to food security: “Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life”. In as far as how international trade contributed to food security, the summit concluded that an important way was by accelerating national income growth. As incomes grew, the fraction spent on food dec lined and the chances of falling into food insecurity decreased. Trade contributed to income growth in a number of ways: enabling countries to reap the benefits of comparative advantage; provide opportunities for production expansion; and greater transfer of capital and expertise, particularly through foreign investment. Export growth allowed firms to expand beyond the respective domestic markets and reap the benefits of economies of scale. Exposure to foreign competition also helped in removing inefficiencies and gaining exposure to ideas, knowledge and new technologies. In the case of tea, production and exports generate foreign exchange and employment and provide a material base for national economic growth. In particular, they make significant contributions to food security by helping to cover food import bills. In 2011, tea export earnings paid for 51 percent and 71 percent of Kenya and Sri Lanka’s food import bills, respectively. Therefore, monitoring and analysing international tea trade is critical for policy makers involved with food security, trade and rural development in developing countries.