Tea and rubber industries in crisis - Outgoing CPA President

The tea and rubber industries are in a deep crisis and all aware of the reasons that have led to it. Some better managed companies despite financial constraints, maintain basic agricultural practices which are commendable but sadly a few companies have ruined these assets to a point of no return and the entire industry knows who they are, outgoing president of the Ceylon Planters' Society (CPA), Suresh Navaratnam told the 79th Annual General Meeting at the Waters Edge recently.

Speaker Karu Jayasuriya was the chief guest.

Navaratnam called on Ministers Navin Dissanayake and Kabir Hashim to intervene and prevent further erosion of the plantations by a few companies.

He said that the industry finds it difficult to halt the exodus of planters and the research done in this regard by Dr. Dan Seevaratnam should be studied.

New market strategy

Navaratnam said some Management Agencies have run out of funds to even pay statutory dues such as EPF, ETF and gratuity and there were instances when Managers and Superintendents were arrested and later bailed out.

The retiring age of planters should be increased to 60. However, private companies are refusing to accede to this request citing various reasons. Speaker Karu Jayasooriya said the plantation sector was the main backbone of our economy sometime back and the top foreign exchange earner employing the largest workforce in the island.

It made a substantial contribution towards government revenue and should now focus on emerging global markets such as Iraq and European markets.

He said Sri Lanka needs to move away from low productivity and his attention has been drawn to certain issues of the members of the society including the retirement age of planters. Jayasuriya said that he was aware that the Ceylon Planters' Society has a proud history of championing the cause of the planting community and there is no doubt that the planters with their experience, intelligence and innovative skills will meet the future with confidence and increase productivity.

Challenge status quo

The pro.tem chairman Dr. Dan Seevaratnam said that any progressive government, organization, company or family needs to continuously challenge the status quo. The government should have an opposition. Organizations with strategic planning and families do better than the last generation.

He said, "All of us have been talking about a 'Plantation Industry'. What business are we in? A business is defined by its competitors and who are the competitors? Coffee, Colas, soft drinks, milk and water. All these are beverages."

"If it is acknowledged that tea is competing with beverages then we cannot deny the fact that we are in the beverage marketing business and not in the business of managing plantations. Unless and until the tea industry identifies itself as a beverage marketing business it will always be beset with the challenge of shrinking margins that will eventually make the industry nonviable," he said.

Dr. Seevaratnam said, "Our challenge is to create history by transforming this ailing tea industry into a beverage marketing industry."

Target

President elect Ajantha Moonemalle said he would work with the stakeholders towards an annual revenue of US$ 10 billion by 2020. He proposed a fresh start.

He said Dr. Dan Seevaratnam had demonstrated how Human Resources Management concepts could help turnaround the management of plantations at a time when some have confined this knowledge merely to 'lip service'. "We need to be open to alternatives and be a part of global trends, if we really want to be winners," he added.

- Reported by former Editor, Ceylon Planters' Society Bulletin, Lalin I. de Silva