* Heladiv took centre stage last week
By Steve A. Morrell
John Keells Holdings (JKH) weekly Tea market (TM) report said latest information was that Sri Lanka Tourism will work closely with the Sri Lanka Tea Board to promote tourism. The report further said there was much both tea and Tourism could gain through cohesive planning that would benefit both industries. Results of our interview with Chairman Sri Lanka Tourism, (published by us) Dr. Nalaka Godahewa, which we assume prompted the JKH remark, could be positive pre-emptive indicators that both industries could be in a complementary situation. Dr. Godahewa was of the view that although in the past there were no attempts that tea and tourism worked together, that position had now changed and initial discussions were on-going.
Meanwhile late last week the tea world was abuzz that the Heladiv equity issue was a new but positive entrant to the corporate scene through their share issue. At Rs. 16 per initial share Chairman / CEO Heladiv, HVA Foods Ltd., Rohan Fernando said although it was no easy task to break into the US market, their aim was to establish a niche user base to cater to specific consumer needs. This he said was possible, but their main thrust was the already established markets in Europe, the Middle East, and also others where Ceylon Tea was already a recognized Brand.
Reverting to the US he said about four or five containers would be initially exportable but that could increase with greater end user acceptability.
Asia Siyaka Tea Report (AS) indicated value added exports had grown last year to about 62 %.Not that orthodox bulk tea exports were dwindling, but value addition was becoming more popular based on end user responses.
Of monthly export quantity 2010, highest recorded was in July where exports were recorded at about 34 .5 million kilos.
Tea circles were naturally in good humour that 2010 was the best on record, both in crop realization and foreign exchange revenue. Expectations were that tea would bring in at least 1.5 billion dollars. A never before seen revenue potential.
But although indicators were that present crop levels may improve marginally potential will be at around 325 million kilos. This is woefully inadequate if revenue targets are to be met at about five billion dollars annually.
As the report further said that African countries, particularly Kenya, would see depressed crops in 2011. Weather conditions playing a crucial roll in crop returns. Predictions are that the tea growing region of the Rift will see depressed crop intakes. This will benefit other markets. The report said.
Meanwhile good news continued last week as well at the auctions.
Ceylon Tea Brokers reported 1st Quarter prospects were good for Ceylon Tea considering the global shortfall at almost 130 million kilos.
The severe winter conditions in CIS countries, as well as European countries increasing their purchases to higher levels would auger well for Ceylon Tea.
Average price returns last year at Rs.370.61 was the highest recorded, which would auger well for Ceylon Tea users.
source - www.island.lk
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