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By Charumini de Silva
Food and beverage experts on Friday issued a clarion call for Sri Lanka to revitalise its crop cultivation efforts to seize greater market access, boost earnings, and emerge as a formidable player in the global arena.
The urgency for this transformation was emphasised during the National Food and Beverage Conference 2023 held last Friday, which brought together industry experts, policymakers, and stakeholders to chart a course towards maximising the international market potential of Sri Lanka’s unique produce.
Hosted by the Industrial Development Board (IDB) in collaboration with the Industries Ministry and the United Nations Industrial Development Organisation (UNIDO) BESPA-FOOD Project funded by the European Union (EU), the conference was a rallying point to catalyse the growth of Sri Lanka’s food and beverage sector. Plantation and Industries Minister Dr. Ramesh Pathirana participated in the event.
The focus of the discussions was the pursuit of strategies that could elevate production and exports, aligning the country’s industrial direction with the global demand landscape. One of the major themes that emerged was the need to tackle the challenge of limited commercial farming capacity, which has implications for meeting both high-volume and niche-product demands.
The conference also underscored the importance of addressing various facets of the supply chain, ranging from production, supply, packaging, labelling, distribution and logistics to effectively harness market opportunities.
Ceylon Plant Food Chairman Annes Junaid pinpointed inadequate production as the core obstacle preventing Sri Lanka from meeting soaring international demands for fruits and vegetables.
“Finding the produce is the key problem, not the buyers. This is why our pineapples and cashews are so expensive despite their incomparable quality and nutritional value. But there’s no way that companies want to buy at high costs when there are plenty of other suppliers. Thus, the Government needs to look at ways in which the abundance of land can be used to boost the production of highly profitable crops,” he stressed.
Emphasising that Sri Lanka’s fruits are superior to any in the world, Junaid insisted on having good agricultural practices to sustain production and export growth.
He said that if businesses already operating in the industry are willing to take it seriously to maintain their market position, acquiring organic certification will increase existing profitability by at least 20%.
He also highlighted the importance of addressing social aspects throughout the value chain to unlock opportunities for Sri Lankan fruits and vegetables in the global market.
Junaid singled out China as a low-hanging fruit with enormous potential for Sri Lanka due to close bilateral ties. “China is a sizable market with great potential. Despite the difficulty of entering this massive market, capitalising on the opportunity before the market becomes oversaturated is critical,” he added.
Nelna Agri Development Director Punya Nanayakkara called for broader market access to yield better returns for both exports and the farming community.
Noting Sri Lanka’s export earnings from fruits and vegetable accounts only for 1% or $ 65.75 million annually to markets like Maldives, UAE, Qatar, UK, and Saudi Arabia from fruits and vegetable exports, she said there is significant untapped potential.
She also underscored the necessity for enhanced agricultural education, technology adoption, and Government support to boost crop yields and export earnings.
She encouraged Sri Lanka to explore major markets such as Japan, Korea, and China while addressing the issue of limited commercial farming capacity. “Often we see there is an abundance of land underutilised with only a part of it is used for crop cultivation. This is a serious issue for lack of production and knowledge on viable agricultural practices,” she explained.
Nanayakkara also emphasised the importance of exploring new markets and exporting niche products to secure higher income. “We cannot compete with certain crops like mango compared to India and Pakistan during the season, but that does not limit our capacity to explore opportunities to export a niche product to larger markets. These are the areas Sri Lanka should tap into to boost export earnings,” she added.
Finagle Lanka CEO Kushan Amarasinghe spotlighted the substantial contribution of the F&B sector to the gross domestic product (GDP).
He elaborated on the significance of focusing on aspects such as irrigation, water, fertiliser, crop rotation, storage, transportation, technology utilisation and innovation. “These elements play a pivotal role in extending shelf life, achieving sustainable farming certification, and paving the way for sector-wide development,” he added.
Further Amarashinghe outlined plant-based food production as a niche that Sri Lanka can easily tap into given the large variety of nutrient vegetables available in the country. However, he said getting the right certification and labelling is imperative to enter export markets.
The outcome of the concerns and suggestions of the conference will be compiled by the IDB to be presented as a policy document to boost the F&B industries.
