Thursday, January 6, 2011

SL ready to drive $50bn global beverage market

* Rs. 7.3 million invested for ‘Cleanest Tea’ proposition

In the back drop of some the revolutionary thinking by the Ministry of Plantations where a 10 million dollar promotional fund was orchestrated with the implementing partner being the Sri Lanka Tea board in 2010, on Monday (3), in a unique partnering gesture the Minister of Industries and Commerce Rishard Bathuideen supported the industry by investing Rs.7.3 million from the government to ensure that the Clean Tea proposition is consolidated with good agricultural practices by way of the minimum residue levels (MRL) of tea exported are within the limits specified to the sensitive markets of EU and Japan, statement from the Ministry of Industries and Commerce said.

Bathuideen said Sri Lanka needed to ensure that all products marketed globally were within the quality parameters expected by its targeted customers so as to avoid any non-tariff barriers. "In fact, we need to set the quality standards for a product such as Tea which Sri Lanka dominates in the global market, even though competition is entrenched," he said.

Sri Lanka tea export earnings reached an all time record of 1.4 billion dollars in 2010 and we need to thank all the stakeholders who made this possible for Sri Lanka, the minister said.

Around 450 million rupees will be invested by the government on a global marketing drive to ensure Sri Lanka achieved the twenty billion dollar export target by 2020.

The Chairman of the Sri Lanka Tea Exporters’ Association said that Sri Lanka will be able to beat the 1.4 billion dollar performance in 2011, given that tea prices at the auction in the 1st week of 2011 has been positive but cautioned on the adverse weather conditions and the looming wage discussions that are to take place later during the year.

The Director of the Sri Lanka Tea Research Institute of Sri Lanka Dr. Sarath Abeysinghe ensured that with the field trials done on the 27 chemicals that Sri Lankan tea growers use, a new standard could be developed that the world can accept.

The Chairman of the Ceylon Tea Traders Association(CTTA) Avindra De Silva highlighted the new trend seen around the world where propositions like ‘Rainforest Alliance’ can further differentiate Ceylon Tea in the Global market place to which Minister Badurdeen said we should work towards after compleating the Minimum Residual Level(MRL) standadisation.

Chairman of the Tea Advisory Committee for the Ministry of Industry and Commerce Rohantha Athukorala asserted that until the recent past, tea was considered a commodity but now it is categorized in the very competitive and stringent quality standards expected as a beverage that is worth globally over 50 billiion dollars, with many value addition activity that many a Sri Lankan exporter has successfully entered into already. With this initiative of ensuring that all teas exported are as per global hygiene standards, Sri Lanka can now drive the global industry stronger, he said.

The development of tea being classified as a beverage globally has led to the product being subject to the biological and physical food standards to ensure food safety of the global customer which is why this initiative is a key national project. "In fact, with this initiative, it further consolidates our proposition of being Ozone Friendly and we can derive a premium in the global market," commented the Director Tea Research Board Hasitha De Alwis.

The Secretary to the Ministry Tilak Collure, Additional Secretary Hasitha Senneviratne and Rohan Perea was also present with the other senior officials of the Minister, Tea Board and private sector.

source - www.island.lk

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