FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» The war in Ukraine is no longer shocking the wheat market
by ResearchMan Today at 9:50 am

» When will supply chain disruptions ease?
by Gowri123 Yesterday at 11:46 pm

» KHL Massive forex gains close to 6 billions
by rajini Yesterday at 10:54 pm

» Tourism in Sri Lanka: One step forward, two steps back
by rajini Yesterday at 9:21 pm

» Expolanka to continue its winning streak
by samaritan Yesterday at 4:12 pm

» Govt gets its priorities wrong
by samaritan Yesterday at 10:25 am

» Ambassador assures U.S. support to Sri Lanka to find solutions to economic issues
by samaritan Yesterday at 10:16 am

» IMF-Sri Lanka bailout talks end without a deal
by ChooBoy Yesterday at 9:16 am

» Sri Lanka Breaks Into Hyperinflation Zone Amid Dollar Crunch
by CHRONICLE™ Yesterday at 8:11 am

» Sri Lanka needs to do more on debt restructuring before a bailout package is finalised, says IMF
by CHRONICLE™ Yesterday at 8:06 am

» Global COVID cases rise as BA.4 and BA.5 expand
by samaritan Yesterday at 7:04 am

» POSITIVES & TARGETS BY IMTIAZ BUHARDEEN
by Gowri123 Wed Jun 29, 2022 4:38 pm

» We’re seeing a shift toward international and value stocks, says Schwab’s Kleintop
by target1 Wed Jun 29, 2022 2:40 am

» Wall Street stumbles as consumer pessimism stokes growth fears
by target1 Wed Jun 29, 2022 2:34 am

» Free Market Capitalism vs. Crony Capitalism
by target1 Wed Jun 29, 2022 2:30 am

» Sri Lankan corporations reap large profits as workers and rural toilers face poverty and starvation
by CHRONICLE™ Tue Jun 28, 2022 6:37 pm

» අද රාත්‍රියෙන් පසු, යක්ෂයාගේ හෝරාව ඇරඹේ!
by God Father Tue Jun 28, 2022 6:13 pm

» Derana 360 with Minister Dhammika Perera
by samaritan Tue Jun 28, 2022 1:07 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by LHW Tue Jun 28, 2022 9:24 am

» Breaking News- Kanchana to go to Qatar ; 2 more ministers off to Russia
by Beyondsenses Tue Jun 28, 2022 8:13 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lankan tea – big fish in a small pond: Hilmy Cader

Sri Lankan tea – big fish in a small pond: Hilmy Cader

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

By Buminda Jayasuriya

"We are only about eight per cent of the global consumption, but I would say the Sri Lankan tea industry is a 'big fish in a small pond'. Why I would say so is because our tea has a considerable demand when taking into account the market it caters to. But the more 'posh' the market is, the more we get pushed out of the market. To be precise, the more sophisticated the market becomes, the more Sri Lankan tea loses its place and gets pushed out," said MTI Consulting CEO and Lead Consultant, Hilmy Cader speaking at the Strategy Tea Forum held recently at The Kingsbury, Colombo.

Explaining to the audience the current status and trends of the global tea market in his detailed presentation, Cader pointed out that in order to achieve an increase of profits with minimum expenditure we need increase of efficiency and productivity. He mentioned the four types of markets in the world – Regularized, Rough, Ripe and Raw which is referred to as the '4R model' and analyzed Sri Lanka's position in the respective markets. He brought to light the fact that the 'ripe' market which consists of the Middle East, North Africa, Russia and the Commonwealth of Independent States (CIS), and amounts to 23% of the global consumption, is where Sri Lankan tea dominates with a striking 78% of exports comprising the market. He also stated that there is a marked preference for Ceylon Tea in these countries and regional packing and lower cost options need to be looked into.

"At present there is lesser taste for our tea and more 'taste' for packaging in the market, and 'branding' has become a significant factor; it is not just some sort of 'tea' that people look for, nowadays. Other major concerns are 'health' and convenience. In order to maintain our position in the global market and cater to the demand, we need to somehow overcome the challenges such as the high cost of packaging and transport," he said.

The importance of value addition and promotion of 'Ceylon Tea' as a brand and strengthening the links between all parties involved, i.e. consumers, retailers, brand owners and packers, the dire need for replanting and barriers to invest were among the key topics discussed at the forum. Emergence of ripe markets and growth of modern trade were issues in concern, with the panel of experts in the field expressing their views and suggestions on how to improve standards and quality of the industry.

According to the experts, lacking critical mass, rising labour costs, lower cost competition, lower plantation productivity and continuity of labour supply are the main problems the industry in Sri Lanka is faced with. "Although 1.2 million people in our country depend on the tea industry, the inability to attract talent is a major problem the industry has faced. Hence there are many strategic decisions to be made in achieving our ultimate target of making Sri Lanka the 'desteanation' by increasing the demand for our tea around the world," Cader said.

"Our industry is highly fragmented, with 883 buyers, 700+ factories, 400,000 small holders and 23 RPCs. The number of factories keeps increasing but whether it really contributes to an increase in productivity is a question. Kenya produces more tea than Sri Lanka, with only 105 factories," he added.

Speaking at the forum, Mlesna (Ceylon) Ltd. Managing Director, Anslem Perera who has over 40 years of experience in the industry, said, "More than three billion kilogrammes of tea is consumed around the world. We are only 300 million which is just 10% of that huge consumption. Ceylon Tea had a niche in the market, but since 1973 we have moved downhill due to nationalization of the industry."

"We need to bring down the number of factories which I think we are unable to do due to political influence on the industry. If we continue this way, production will decline and we would not be a reliable supplier," he said, stressing on the fact that politics should not interfere with any industry, if Sri Lanka is to move forward as a country.

Further speaking Perera added, "The industry we have here is a legacy. There is a huge market for 'quality' out there, and it is a need of the moment to improve the quality of our tea. There was a time we were considered to have the cleanest tea in the world. It is sad that some of the exporters today include 'saw dust' and sand in packs to increase quantity. Consequently the worst possible thing that can happen in future is that the next generations will stop drinking tea!"
http://ceylontoday.lk/22-27823-news-detail-sri-lankan-tea-big-fish-in-a-small-pond-hilmy-cader.html

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum