I've been thinking that perhaps some of these speciality tea growing plantations may be threatened by competing agricultural interests, or may want to expand, and could use some extra capitol--not that I have a lot to spare. But I have been wondering if there are ways to invest in tea. I am not interested in the Pu Erh craze, but in something more long-term and stable that would help the growers and perhaps have a modest return. I have no idea how to do this. Any advice would be appreciated.
many thanks,
dave
Re: Investing in tea?
Tea is an ag commodity in which you cannot buy futures shares - there is no established trading market.
You can purchase shares in major tea producer companies; many are traded on the worlds stock exchanges.
Alternatively, you can 'invest' in one or more micro-loan programs that function under the International Fair Trade movement. You donate to an established (10-30 yrs) foundation or trade program that provides small interest free-loans to farmers to support new project startups. These programs generally have a very, very good screening program for loan recipients. Most recipients repay their loans before the due date; the money is then reinvested in another farmer.
Some function as donation-based business support programs, while others are actual loan+plus low interest return programs that function under similar goals.
Kiva is an organization that operates one-layer up, as a lender providing capital for micro-loan financing.
http://www.kiva.org/about
http://www.kiva.org/about/how/
The goal of most of these Fair Trade and Global micro-loan practices are to support fair employment practices, to encourage sustainable agriculture and sustainable incomes, and to protect small farmers from climate change by using sustainable soil management practices that reduce drought, wind/flood soil erosion, and temperature extreme risks to crops.
The Future of Fair Trade Tea
http://www.utne.com/2007-01-01/TheFutur ... deTea.aspx
http://www.fairtrade.org.uk/
http://getinvolved.transfairusa.org/sit ... TE_landing
Example of LaNina ENSO drought in Sri Lanka that severely damaged small tea plots.
http://www.smh.com.au/business/trouble- ... -d1hd.html
Small tea farmers in Kenya who had crops to harvest and sell saw an increase in profit due to climate-reduced yields. They also use a low-interest, micro-loan finance arrangement to help tea farmers.
http://www.standardmedia.co.ke/InsidePa ... 391&cid=14
An even worse drought situation now exists in Central and South America, which is seeing the worst dry conditions in 40 years. It's the second such critical drought in a decade.
So your options depend on your investment return goals and ethic.
You can purchase shares in major tea producer companies; many are traded on the worlds stock exchanges.
Alternatively, you can 'invest' in one or more micro-loan programs that function under the International Fair Trade movement. You donate to an established (10-30 yrs) foundation or trade program that provides small interest free-loans to farmers to support new project startups. These programs generally have a very, very good screening program for loan recipients. Most recipients repay their loans before the due date; the money is then reinvested in another farmer.
Some function as donation-based business support programs, while others are actual loan+plus low interest return programs that function under similar goals.
Kiva is an organization that operates one-layer up, as a lender providing capital for micro-loan financing.
http://www.kiva.org/about
http://www.kiva.org/about/how/
The goal of most of these Fair Trade and Global micro-loan practices are to support fair employment practices, to encourage sustainable agriculture and sustainable incomes, and to protect small farmers from climate change by using sustainable soil management practices that reduce drought, wind/flood soil erosion, and temperature extreme risks to crops.
The Future of Fair Trade Tea
http://www.utne.com/2007-01-01/TheFutur ... deTea.aspx
http://www.fairtrade.org.uk/
http://getinvolved.transfairusa.org/sit ... TE_landing
Example of LaNina ENSO drought in Sri Lanka that severely damaged small tea plots.
http://www.smh.com.au/business/trouble- ... -d1hd.html
Small tea farmers in Kenya who had crops to harvest and sell saw an increase in profit due to climate-reduced yields. They also use a low-interest, micro-loan finance arrangement to help tea farmers.
http://www.standardmedia.co.ke/InsidePa ... 391&cid=14
An even worse drought situation now exists in Central and South America, which is seeing the worst dry conditions in 40 years. It's the second such critical drought in a decade.
So your options depend on your investment return goals and ethic.
Re: Investing in tea?
Thank you Intuit. This is exactly the kind of information I am interested in.
D
D