SL ready to drive global US$ 50 b beverage market

Rs. 7.3 million invested for ‘Cleanest Tea’ proposition

In a unique partnering gesture yesterday, Minister of Industries and Commerce Rishard Bathiudeen supported the tea industry by investing Rs. 7.3 million to ensure that the ‘Cleanest Tea’ proposition is consolidated with good agricultural practices by way of the Minimum Residue Levels (MRL) of tea exported being within the limits specified to the sensitive markets of EU and Japan.  

This comes in the backdrop of some the revolutionary thinking by the Ministry of Plantations, where a 10 million dollar promotional fund was orchestrated with the implementing partner being the Sri Lanka Tea Board in 2010.

Minister Bathiudeen commented that Sri Lanka needed to ensure that all products marketed globally were within the quality parameters expected by its targeted customers so that any Sri Lankan products would not be subject to any non-tariff barriers in any country around the world. “In fact, we need set the quality standards for a product such as tea, in which Sri Lanka dominates the global market, even though competition is entrenched,” he said.

“Sri Lankan tea achieved an all-time record of 1.4 billion dollars in 2010 and we need to thank all the stakeholders who made this possible for Sri Lanka,” said the Minister, who is in charge of exports for the country, which will be investing almost Rs. 450 million in its global marketing drive to ensure Sri Lanka achieves the US$ 20 billion export target by 2020.

Chairman of the Sri Lanka Tea Exporters Association forecasted that Sri Lanka would be able to beat the 1.4 billion dollar performance in 2011 given that tea prices at the auction in the first week of 2011 had been positive, but struck a note of caution over the adverse weather conditions and looming wage discussions that are to take place later during the year.

Director of the Sri Lanka Tea Research Institute Dr. Sarath Abeysinghe asserted that with the field trials done on the 27 chemicals that Sri Lankan tea growers use, we can develop a new standard that the world must accept. This reflects the respect that the world has with regard to the quality standards of Ceylon tea.

Chairman of the Ceylon Tea Traders Association (CTTA) Avindra De Silva highlighted the new trend seen around the world where propositions like ‘Rainforest Alliance’ can further differentiate Ceylon tea in the global market place, which Minister Bathiudeen said we should work towards after completing the MRL standardisation.  

Chairman of the Tea Advisory Committee for the Ministry of Industry and Commerce Rohantha Athukorala asserted that until recently, tea was considered a commodity but was now categorised in the very competitive and stringent quality standards expected of a beverage that is globally worth over US$ 50 billion, with many value addition activities on which several Sri Lankan exporters have successfully embarked.

With this initiative of ensuring that all teas exported fall in line with global hygiene standards, Sri Lanka can now drive the global industry in a stronger manner, he said.

The development of tea being classified as a beverage globally has led to the product being subject to biological and physical food standards to ensure food safety of the global customer, which is why this initiative is a key national project.

In fact this initiative further consolidates Sri Lanka’s proposition of ‘Ozone Friendly’ status that can drive a premium in the global market, commented Tea Research Board Director Hasitha De Alwis, who thanked the Ministry of Industry and Commerce for the continued support.

Secretary to the Ministry Tilak Collure, Additional Secretary Hasitha Seneviratne and Rohan Perera were also present along with other senior officials of the Ministy, Tea Board and private sector.