Sri Lanka looking at biotech, eco-farming to boost food sector - Rishad

Exports from the Sri Lankan processed food sector have increased by 31.7% in comparison to 2009. Sri Lanka is looking at biotechnology and even eco-farming to expand the processed food sector. And Sri Lanka’s Packaging sector is also growing in size similar to tea or coconut sectors, says Rishad Bathiudeen, Minister of Industry and Commerce. 

Minister Bathiudeen was addressing the Press Conference held on 11 August to announce the 10th “Profoods Propack 2011” annual exhibition by the Ministry of Industry and Commerce. 

The event, launched in 2001 has been the main platform to showcase Sri Lanka’s Processed Foods and the innovative Sri Lankan Packaging options to the local and international consumers and investors. It will be held from 26 - 28 August at the Sirimavo Bandaranaike Hall of the BMICH, Colombo 7.

The food industry is one of the fastest growing and most diverse manufacturing sectors in Sri Lanka. Sri Lanka’s growing Food and Beverage industry sector has more than 4,400 establishments with more than 132,000 people engaged in it.  It has an estimated average annual output around Rs. 365 billion as of 2008 and is growing rapidly.

“This event takes place at a time when the sectors of processed food as well as packaging are rapidly growing in their importance with regard to the economy of Sri Lanka. 

Exports from the processed food industry last year stood at 62.21 million US dollars and this was a considerable increase of 31.7 percent in comparison to 2009. 

 This sector has been growing steadily throughout the last decade at an average rate of 10%.  The processed food sector achieved its growth from two directions that is from exports and the through local market expansion.  

This is not only due to the diverse crops and various food items naturally available in the country but also due to the boom in tourism, the rising income levels of people, and increase in domestic processed food consumption as a result of changing life styles. Therefore the processed food industry will only see continuous growth. I stress that we should continue to enhance the processed food supply chains not only in diversification efforts but even by adopting new strategies such as biotechnology initiatives, eco farming and showcasing our food in international events such as this week’s Sri Lanka food show held in the Scout Jumboree of Sweden,” Minister Bathiudeen said. “This sector does not use any raw material imports for value addition and almost all produce exported are directly from Sri Lanka itself. Therefore, this will become a key sector in our exports in future,” the Minister said.

Speaking about the packaging sector, Minister Bathiudeen said: “Similar positive trends are evident in the packaging industry too. As I revealed on 26 March this year, it is a worldwide norm that a country’s packaging industry is around 2 to 3 percent of its GDP. 

This benchmark alone shows us that our packaging industry value is a minimum of one and a half billion US dollars given that our GDP now stands at US dollar 49.5 billion mark in the first quarter of 2011. What is important to understand in this regard is that the scope of our packaging industry is now expanding towards the sizes of the tea or coconut industry sectors in the country. Therefore, the packaging sub sector is not a mere value adding, low key sector for us anymore but a strong segment that promises vast potential for in our economic upswing.” 

The Profoods Propack was launched in 2001 and has been the main platform to showcase the Sri Lanka processed foods and the innovative packaging options to the local and international consumers and investors. The forthcoming International Exhibition of Food Processing, Packaging and Agribusiness that we are announcing today will showcase Sri Lanka’s complete food supply chain, among others. 

Speaking on ‘Profoods Propack’, Minister Bathiudeen said: “The show is a public private partnership effort, with the Ministry of Industry and Commerce and the Ministry of Agriculture supporting the event for the tenth anniversary in the series. This year’s event will have over 300 stalls and will highlight food supply chains, opportunities for investors, traders and consumers and will help the visitors to see first-hand of the emergent opportunities in this promising industry. This year’s event will also showcase many overseas companies participating especially from the SAARC region. I am glad to stress that this event also is an opportunity for existing manufacturers to showcase new products, technologies and services.” 

Rohantha De Fonseka, President of Sri Lanka Food Processors’ Association, addressing the press briefing, said that as of now Sri Lanka sees a domestic processed food market of Rs. 388 million which saw over 400% growth in the last few years. “Sri Lanka Food Processors Association is now planning to form an Institute of Food Technology” he added.