Accredited lab can boost spice prices

The Sri Lankan Spice industry needs a laboratory accredited by the world's three largest spice agencies including the US Spice Traders Association, European Spice Agency and the Japanese Spice Agency if we are to move upmarket and fetch a premium price for Ceylon spices, Chairman The Spice Council Sarada de Silva said.

He said though we have laboratories, the certificates given by them are not recognised in these three markets and therefore when the goods are exported it has to be tested again which is double the cost for us.

He was addressing a meeting held to mark the success of a mission conducted by The Spice Council (TSC) to the USA which secured export orders worth US 3 million for Ceylon spices. The products that secured orders included oleoresins extracted from pepper, organic spices such as hand picked cloves, aflatoxin-free nutmeg, white sesame, ginger and tumeric.

It was supported by the USAID through its Competitiveness Program (TCP). This program was initiated as a part of TSC's plan to provide international awareness on Ceylon Spices and to establish it as a recognised brand in the international market.

TCP consultants evaluated the potential of the Sri Lankan companies and selected eight companies of which six companies participated in the program.

The delegation members visited an export fair and met spice brokers, importers, agents, grinders and processors and explored avenues to expand business linkages and opportunities.

Program Specialist TCP Alex Ponweera said that the organic food ingredients sector is small at present but the demand is doubling annually. The US buyers are concerned about the cleanliness of spices as well as traceability, social responsibility and the sustainable agricultural practices practised by spice growing countries. Another area that the demand is increasing is in the sector of hot and spicy ethnic foods.

He said that in USA nobody sets up factories to process and blend spices as several certificates are needed and therefore everything is outsourced from India, China and Indonesia and there is a big market potential in this area too for Sri Lanka to explore.

A member of the delegation said that there is an urgent need for accredited laboratories and testing facilities in the country while the industry must collectively move towards improving the quality of the spices. Also similar exposure is a must for all as the whole tour was a learning experience for everybody in the team.

Head of Party TCP John Varley said that Sri Lanka will have to invest more on processing of spices and training of people to cater to markets such as USA.

Mission Director USAID Sri Lanka Dr. Carol Becker said that everybody from the grower to the exporter should get a fair share but adding value, improving the quality and standards is a must to be competitive globally.

(S.G.)