Tea exporters target $ 1.8 b on value added brands

The Tea Exporters’ Association (TEA) targets a US$ 1.8 billion export revenue this year from exports of sophisticated value added branded teas popularly known as Pure Ceylon Tea.

Tea exports, one of the highest foreign exchange earners to the country surpassed the US$ 1.2 billion mark last year positioning Ceylon Tea as one of the most admired and preferred brands in the world.

Chairman, TEA, Jayantha Koralage said their vision is to make Ceylon Tea the most admired and sought-after brand in the world.

“Tea exports achieved a milestone last year amid stiff competition in the world market which was due to strategic planning and tireless marketing efforts of exporters”, Koralage said. Sri Lankan tea export earnings for the first six months of this year recorded a U$ 177 million growth compared to the corresponding period last year.

The country exported 156.3 million kilograms at US$ 4.4 per kg.

“Our efforts are focused on discerning, designing and delivery to stay ahead of the competition and offer not only a product but also a wholly satisfying experience to the end- consumer,” Koralage said.

Trade Union action and adverse weather conditions are not looked upon as threats but as a challenge to develop the industry.

The Association ensures the welfare of workers by offering the best price at the auctions.“Our competitor is Kenya which exported around 350 million kgs of tea last year.India produces tea which is three times higher than Sri Lanka but over 90 per cent is used for local consumption,” the Chairman said.

Transforming the industry from exports in bulk to marketing sophisticated value added branded form is no easy task. The transformation required an investment of US$ 600 million to upgrade machinery, infrastructure, provide training and carry out research. Tea processing and packaging plants conform to the highest international specifications to assure the end customer a safe and quality product.

Tea which is the single most consumed beverage in the world is Sri Lanka’s most lucrative export with vast opportunities for growth in the international market.

Despite tea exports being one of Sri Lanka’s main foreign exchange earners policy makers have failed to recognise and support the industry” the Chairman said.

Sri Lanka exports around seven million kgs of tea in value added and bulk form to over 145 countries.