 CEYLON TEA - THE BEST TEA IN THE WORLD AND A SYMBOL OF QUALITY |
The plantation sector in Sri Lanka has always been a vital component of the economy, contributing a significant amount to Government revenue and a significant percentage to the gross domestic product. According to the Minister of Agriculture , Hon. Jayaratne, the agricultural output which grew significantly in 1999, expanded further in 2000, reflecting largely the significant increases in tea and coconut output. Moreover, the sector is also the largest employer providing employment both directly and indirectly to over one million people. Being the second largest foreign exchange earning industry in the country, the plantation sector, which is represented by tea, rubber and coconut, has a vision to reach the top of the exchange-earning list in three years time, according to Sri Lanka's Prime Minister who is also the Minister of Plantation Industries, Hon. Ratnasiri Wickermanayake.
| FRUITS AND VEGETABLES |
In the plantation sector, tea, known as ‘Ceylon Tea’ is the top grower in the country. Beautifully grown tea bushes, mainly located in the hilly areas of the country would not only bring valuable foreign exchange but they are also a spectacular view that entices the foreign traveller. The major tea producers also contributing to the promotion of the industry abroad are The Tea Small Holdings Authority, the Tea Board and the MJF Group.
60% of the country’s plantations industry are owned by big companies while the balance 40% are owned by small tea holders, who each own less than 10 acres of land, and together produce sixty percent of the tea. Currently, there are certain projects to further develop the smallholder sector through the provision of loans that are conducted by the World Bank and the Asian Development Bank.
The small tea holders are managed by a dedicated organization called The Tea Small Holdings Authority, which promotes tea through global exhibitions and internet. The industry is grateful to the Fair Trade Organization of the world, because they are able to link the producer to the consumer, and thus help the small holders to attract foreign partners and modernize the current technology in the tea sector.
The major institution that is directly related with the promotion of Sri Lanka Tea, or Ceylon Tea, locally and abroad is the Tea Board which is a semi Government Statutory Authority that was established in January 1976.
The promotion of pure quality Ceylon tea is done through trade fairs, and according to the Chairman of the Tea Board, Mr. Ratwatte, the main task of the Board is 'to keep the quality of the tea high. We are very strict in this as there are some factories that try to send low quality tea out of the country.' The symbol of high quality tea that is used exclusively by the Tea Board is the Lion logo, which ' can only be used in Sri-Lanka; it cannot be used for the off shore packing,' Mr. Ratwatte adds.
| The Tea Board's strategy is to capture new markets by attending trade fairs in different parts of the world. Mr Ratwatte mentions that every year they get a new buyer. ‘The main countries to which we are exporting are Saudi Arabia, Oman and Kuwait. The latest on the list are Korea and China, as well as Japan, Australia and Singapore. We also have a good market in the Middle East as they have been purchasing tea from us for the past years.' The Tea Board emphasizes on the identity of pure Ceylon tea and wants to assure the customer through the Lion Logo, that it is a pure Ceylon tea, packed in Sri Lanka.
One of the major players in the tea industry is the MJF Group, which is known to be the world's only totally integrated Tea Company. The company is engaged in growing, packaging and exporting value added tea. They own tea plantations, printing and packaging facilities that are the best in the Asia Pacific region.
| TEA PLANTATIONS |
Tea is commercialised under the brand name - "Dilmah" named after the chairman’s two sons. The brand is exported to eighty-seven countries in the world, and is guaranteed to contain the highest quality Ceylon tea. The company has invested substantially in the last four years, and has three large companies, covering 50,000 acres. Tea quality has improved tremendously in the past years and it is continuing to do so.
Rubber is another foreign exchange earner of the plantation sector. The country has about thirty-eight factories producing a wide variety of items for export. Presently, the country utilises 72% of the local production for in-products, but within the next two years the entire production will be used for in-products. Currently, its main buyers are England, Germany, France, and Australia.
Rubber is planted only in the West part, which is composed of mainly three districts: Colombo, Galle, and Matara. Rubber that is mainly for production does not grow in the other districts due to the dry climate.
In the rubber sector, there may be investment opportunities encouraged by the Board Of Investment, which is the central organization that gives certain incentives to potential investors. "When you compare Sri Lanka with the other countries in this part of the world, I believe Sri Lanka offers a very good package for foreign investors with tax exemptions and tax holidays. Therefore there is a scope for foreign investors to manufacture products in the rubber sector,' says the Minister of Plantation.
The plantation sector contributes largely to the development of the country not only internally, but also internationally. The Ceylon tea is acclaimed to be the best tea in the world with unique characteristics and a reputation running through more than a century. |
