SL Tea Board partners private sector to promote Ceylon Tea

The Sri Lankan tea industry has over the years gained an excellent reputation for itself in the global market. During its 148-year existence even though it has faced several crises, it has proven to be resilient and has always survived because of unity among stakeholders and the strong private sector and public sector partnership where Sri Lanka Tea Board (SLTB) has worked closely with exporters and other stakeholders through their associations. 

Currently the industry is facing several international challenges in its major markets – Russia, CIS countries and the Middle East - due to sanctions and the war, which were beyond the country’s control.

In 2015, the Sri Lanka Tea Board fast-tracked several projects that have been in the pipeline for some time and worked in close consultation with the Tea Trade Associations. 

The global tea promotion campaign is set to take off with two agencies having been selected. The contract has already been signed with one and the Sri Lanka Tea Board is in the process of finalising the other contract. 

Twenty-five target markets have been identified for promotion of Ceylon Tea under the global campaign. Having considered the prevailing ground conditions in key markets and other considerations, the Sri Lanka Tea Board, in consultation with a committee consisting of the private sector, has decided to focus on 12 markets for the first phase in two tiers during 2015/2016 and the rest will be considered during the second phase of the campaign. 

The countries identified under the first tier of the first phase are Russia, UAE, Japan, China, US, Germany, Iran and those identified under the second tier are Turkey, Saudi Arabia, UK, Australia and India. 

In the case of Iran and Turkey it has been decided to evaluate ground realities in Iran based on the effects of US sanctions and the progress made in signing an MOU with Turkey before starting the campaign. 

After a lapse of several years, the Tea Board implemented a subsidy scheme for private sector participation at international trade fairs in 2015, focusing on both the 25 identified markets and also other non-traditional markets for both established and newer exporters. 

The trade fair participation is organised under a Sri Lanka pavilion or group stand and while Ceylon Tea, as a generic product, and the regional specialty teas are promoted by the SLTB to attract importers, individual brands are promoted by participating companies. 

Unique selling propositions like handpicked, ethically produced, ozone friendly and cleanest tea in terms of pesticide residue are also promoted by the Tea Board.  More than 50 beneficiaries have made use of the scheme so far, utilising the 50% subsidy on the cost of space and booth construction. 

A brand promotion scheme was also initiated last month to introduce a matching fund scheme for private sector brands where the SLTB will match the funds up to a maximum limit per brand. The exporting company can come up with its own campaign for their brands and apply for this matching fund grant under the conditions of the scheme. Selected applicants will be entitled to a maximum ceiling Rs. 50 million per brand per company during 2015 /2016.

Based on a request from the Tea Board, the Government, through the Ministry of External Affairs, has already intervened using the Government’s favourable diplomatic relationship with the US to appeal to the US Government to help the Sri Lankan tea trade overcome the problems faced in their exports of tea to Iran taking up tea as an essential food item. A favourable outcome is expected. 

The Sri Lanka Tea Board, along with the Colombo Tea Traders Association and other industry stakeholders, initiated plans a few months ago for the celebration of 150 years of Ceylon Tea during 2017. 

Many large-scale tea industry related events are being planned from February to August 2017 throughout the island which includes the Ceylon Tea Expo, a tea convention, tea festivals, tea workshops and seminars. 

The Sri Lanka tea industry has already started extending invitations to the international tea fraternity to join these celebrations including all tea associations, tea councils and tea boards. It is also expected that a large number of international tea buyers and distributors will also visit these events.