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Exposure for Lankan tea firms at int'l fairs

The Sri Lanka Tea Board recently took part in Prodexpo Moscow 2002, the largest food and beverage exhibition in Russia and the CIS. This is the ninth consecutive occasion of the exposition.

The Tea Board participation at this fair was a result of a tea promotional drive initiated by Lakshman Kiriella, Minister of Plantation Industries to increase value added tea exports from Sri Lanka.

Medium and small scale companies totalling 1684 (including 930 Russian companies) from 56 countries, including Sri Lanka, displayed their products at Prodexpo 2002. The number of visitors was over 95,000.

The Russian retail food market is estimated at US$25 billion. Many food and beverage exporters are using this booming economic period to gain market share. The food sector is leading the Russian economic recovery and the annual growth rate was estimated at eight per cent in 2001.

According to Hasitha de Alwis, Director Tea Promotion Division of the Tea Board, Russia is the biggest tea importer in the world with an annual import volume of about 160,000 MT. It is the largest buyer of Ceylon Tea, accounting for 16 per cent of Sri Lanka's total tea exports.

In 2001 Russia and CIS countries accounted for 63,837 MT of Ceylon Tea, an increase of 12 per cent over the 56,646 MT recorded for the same period in 2000. Russia is also the largest buyer of tea packets and tea bags from Sri Lanka. Last year the region imported 24,407 MT of tea packets and 3,826 MT of tea bags from Sri Lanka.

Sri Lanka's major export item to Russia has been tea for many years and accounts for 98 per cent of Sri Lanka's exports to the Russian market. Sri Lanka also accounts for over 30 per cent of the total tea imports to Russia. Sri Lanka's tea trade at Prodexpo 2002 was led by Ceylon Tea Bureau in Moscow and comprised 12 exporting companies. Sri Lanka's participation at this fair was co-ordinated by Upali Kahandawa, Sri Lanka Tea Commissioner, Ceylon Tea Bureau, Russia.

Many trade inquiries and business contacts were established by the Sri Lankan companies and a number of orders are also presently under negotiation. The demand for a Ceylon Tea export warehouse in Moscow was also evident.

The Sri Lanka Tea Board will be participating in 20 international food and beverage fairs this year to increase value added tea exports from Sri Lanka to traditional as well as new markets.

New and virgin markets in Far East Asia i.e. South Korea, China, Malaysia and Singapore, have been identified as potential markets for value added Ceylon Tea in the coming years. The Board is also participating at fairs in Latvia, Kazakhstan and Uzbekistan to help exporters to consolidate the position of Ceylon Tea in these potential markets.

The Tea Board will sponsor around 70-75 Sri Lanka tea exporting companies participating in the Ceylon Tea pavilions at these fairs. Only exporters of pure Ceylon Tea brands which are identified with the Ceylon Tea 'Lion Logo' will be selected for participation under the Tea Board sponsorship. As per the sponsorship package, 50 per cent of the stand rental and construction charges are paid by the Board while the other expenses are to be borne by the company. The Board will also help the companies with other logistics such as obtaining visas, reserving hotel accommodation and dispatching of exhibits. The Tea Board has allocated US$ 213,500 or Rs. 20 million for trade fair participation during 2002.

Sri Lanka exported 294 million kgs of tea in 2001 and maintained her position as the largest exporter of tea in the world. About 40 per cent of this volume was in value added form. The country earned Rs. 61 billion from tea exports, a 15 per cent increase over the earnings of the previous year.

As a result of participation at international fairs, Sri Lanka has been able to find new markets for Ceylon Tea in South Korea, China, Malaysia, Latvia and Moldova while consolidating the strength in target markets such as Russia and CIS, Middle East, USA, Japan and Poland.

The Tea Board also conducts seminars, workshops and tasting sessions at these trade fairs to educate the trade members and consumers about Ceylon Tea. Participation at International Spring Fair in Dubai has already been completed.

The Board is now making arrangements for its participation at Foodex, Japan to be held in Tokyo from March 12 to 15, which will coincide with the 50th anniversary celebrations of Sri Lanka's and Japan's diplomatic relations. About 10 Sri Lankan tea companies together with the Tea Board will represent the Ceylon Tea sector at this fair.

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