Sri Lanka Tea Industry Hasitha De Alwis Director (Promotion) Sri Lanka Tea Board.
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Transcript of Sri Lanka Tea Industry Hasitha De Alwis Director (Promotion) Sri Lanka Tea Board.
Sri Lanka Tea Sri Lanka Tea IndustryIndustry
Hasitha De AlwisHasitha De AlwisDirector (Promotion) Director (Promotion) Sri Lanka Tea BoardSri Lanka Tea Board
Sri Lanka – Wonder of AsiaSri Lanka – Wonder of Asia
Island is united ending 30 years long conflict.Island is united ending 30 years long conflict.
Multi-ethnic, multi-cultural, multi-religious and multi-Multi-ethnic, multi-cultural, multi-religious and multi-
linguistic nation once again in harmony.linguistic nation once again in harmony.
Immense opportunities for sustainable growth in all Immense opportunities for sustainable growth in all
sectors and tea industry is no exception.sectors and tea industry is no exception.
Probably the safest country today in South Asia.Probably the safest country today in South Asia.
Peace dividends results in leap-frog development in Sri Peace dividends results in leap-frog development in Sri
Lanka’s infra-structure & other sectors of economy. Lanka’s infra-structure & other sectors of economy.
INTRODUCTIONINTRODUCTION Sri Lanka tea industry proudly celebrates 145 years of
commercial history in 2012.
Tea industry continues to occupy a pivotal position in terms of foreign exchange earnings & employment.
Tea export earnings reached USD 1.5 Billion in 2011 a historical high contributing 15% to the nation’s foreign exchange.
Generating 65% of export agriculture revenue, tea industry contributes approx. 2% of island’s GDP.
With 2 Million employed directly & indirectly 10% of the population of Sri Lanka depends on the industry.
AGRO-CLIMATIC TEA GROWING AGRO-CLIMATIC TEA GROWING REGIONS OF SRI LANKAREGIONS OF SRI LANKA
YearHighGrown (%)
MidGrown (%)
LowGrown (%) Total
2005
80.3 25
55.1 18
181.7 57 317.1
2006
74.7 24
51.6 17
184.5 59 310.8
2007
72.5 24
54.4 17
177.7 59 304.6
2008
84.4 26
49.0 15
185.3 59 318.7
2009
72.8 25
44.7 15
173.1 60 290.6
2010 79.1 24 56.1 17 196.2 59 331.4
2011 79.2 24 52.5 16 196.6 60 328.4
SRI LANKA TEA PRODUCTION SRI LANKA TEA PRODUCTION ELEVATION WISE (Mn. KGS)ELEVATION WISE (Mn. KGS)
CATEGORY-WISE TEA PRODUCTION CATEGORY-WISE TEA PRODUCTION (Mn.KGS)(Mn.KGS)
200
6 (%)200
7 (%) 2008 (%)200
9 (%) 2010 (%) 2011 (%)
Orthodox 288 93 283 93 297 93 271 93 310 94 303 92
CTC 18 5 16 5 17 5 16 5 18 5 22 7
Green Tea 3 1 4 1 3 1 2 1 3 1 3 1
Others 2 1 2 1 2 1 2 1 - - - -
Total 311100
305 100 319 100 291 100 331 100 328 100
AREA OF TEA PLANTED IN SRI AREA OF TEA PLANTED IN SRI LANKALANKA
Elevation Planted (Ha) Share
High Grown 41,13741,137 19%19%
Mid Grown 71,01871,018 32%32%
Low Grown 109,814109,814 49%49%
Total 221,969221,969 100
SRI LANKA TEA EXPORTS SRI LANKA TEA EXPORTS (Mn. KGS)(Mn. KGS)
2006 2007 2008 2009 2010 2011
Bulk
197.8
179.9
178.0
164.6 176.8 179.9
Packets
79.4
72.7
84.3
75.5 89.8 95.8
Tea Bags
19.1
22.0
20.3
18.7 25.7 24.6
Others
18.6
19.7
18.6
21.2 1.8 2.9
Re-Exports
12.5
15.6
18.6
10.6 18.6 20.5
Total
327.4
309.9
319.8 290.6
305.7 323.7
ValueBillion
USD 0.882 1.01 1.26 1.18 1.37 1.51
Year Qty (MT)Value
(Rs. Mn)Value
(USD Mn)
2005 11,456 4,154 41.33
2006 12,499 5,330 51.20
2007 15,597 6,617 59.80
2008 18,577 10,683 98.61
2009 10,574 5,089 44.27
2010 18,607 11,567 102.30
2011 20,529 13,363 118.30
RE-EXPORTS RE-EXPORTS (CEYLON TEA BLENDED WITH OTHER ORIGINS)(CEYLON TEA BLENDED WITH OTHER ORIGINS)
Tea Imports to Sri LankaTea Imports to Sri Lanka
Year Quantity (Kgs) Value Value
(Rs. Million ) (USD M.)2007 13,683,732 3,141.6 28.56
2008 14,598,248 3,754.8 34.13 2009 9,960,129 2,979.4 27.08 2010 12,172,753 3,768.0 34.25 2011 11,406,044 3,770.4 34.28
Tea Imports to Sri LankaTea Imports to Sri Lanka(Country Wise)(Country Wise)
2009 2010 2011
India 4,708,695 4,776,141 4,353,513
China 1,755,521 2,802,873 2,895,761
Kenya 2,867649 3,871,167 3,690,453
Vietnam 240,725 352,203 97,909
Indonesia 203,260 207,068 182,620
Malawi 129,580 143,104 150,660
Germany 33,080 10,805 23,898
Taiwan 8,888 7392 -
Japan 5,600 900 -
U.K 5,130 - 9980
Nepal 2,001 1100 1250
TOTAL 9,960,129 12,172,753 11,406,044
Qty in Kgs.
2009Country Qty. % Russia 42.4 15.1UAE 30 10.7Syria 29.4 10.5Iran 27.7 9.9Turkey 15.7 5.6Jordan 13.4 4.8Kuwait 10.1 3.6Iraq 9.8 3.5Japan 9.5 3.4Libya 8.1 2.9
2010
Country Qty. %
Russia 45.5 15.2
UAE 29.6 9.9
Iran 27.6 9.2
Syria 26.3 8.8
Turkey 18.4 6.2
Jordan 17.3 5.8
Iraq 13.6 4.6
Libya 10.9 3.7
Kuwait 10.8 3.6
Japan 10.3 3.4
MAJOR DESTINATIONS FOR CEYLON TEA MAJOR DESTINATIONS FOR CEYLON TEA
2011
Country Qty %Russia 47.3 14.8Iran 30.8 9.6Syria 28.5 8.9Iraq 22.2 6.9UAE 21.5 6.7Turkey 18.9 5.9
Azerbaijan 11.8 3.7Japan 11.3 3.5
Kuwait 9.1 2.8
Ukraine 7.8 2.4
DOMESTIC CONSUMPTIONDOMESTIC CONSUMPTION
Year Qty. (Mn. Kgs) Approx.
2005 27.5
2006 27.5
2007 28.0
2008 28.5
2009 28.5
2010 28.4
2011 28.9
DISTRIBUTION CHANNELSDISTRIBUTION CHANNELS
Type Percentage
Supermarkets 25% Grocery retailing 30% Convenience stores 30% Tea Shops / Tea Houses 5%
Others 10%
TYPE OF PRODUCTSTYPE OF PRODUCTS (Domestic Market ) (Domestic Market )
Domestic Market
Volume 2010 2011
Value 2010 2011
Loose Tea 68%68% 67%67% 61%61% 59%59%
Packet Tea 30%30% 30%30% 36%36% 37%37%
Tea Bags 2%2% 3%3% 3%3% 4%4%
Value Growth on Consumer Prices for Value Growth on Consumer Prices for Share of Throat Share of Throat
Item Share of Throat
Value Growth
(per Annum)
Average Price
Tea 26.5% 9% Rs. 715/Kg
Coffee 2.5% 22% Rs. 1,335/Kg
Malt 15.5% 23% Rs.167/Ltr
Soft Drinks (Carbonated)
36.0% 43% Rs.124/Ltr
Others 19.5%
Household Expenditure Household Expenditure
Food & drink40%
Other19%
Cultural Entertainment
2%
Education3%
Consumer durables
3%Transport & Comm's 10%
Personal & Health care
5% Housing11%Fuel & Light
4%
Clothing & personal effects
3%
2009/2010 (Rs. 1,750B.)
Monthly Household Expenditure Rs. 32,446/-
2005 2011(Est/Prov)
Real GDP Growth 6.2 8.3GDP (US $) 24.4 59.1GDP per capita (US $) 1,241 2,830Trade : Exports (US$ bn) 6.3 10.5 Imports (US $ bn) 8.9 20.0Workers’ Remittances (US$ bn) 1.9 5.2Tourist Arrivals (‘000) 549 850Earnings from Tourism (US $ bn) 0.3 0.8FDI (US$ bn) 0.3 1.0
MACRO ECONOMIC FUNDAMENTALS IN SRI LANKA2005 VS. 2011
Hasitha De AlwisHasitha De AlwisDirector (Promotion) Director (Promotion) Sri Lanka Tea BoardSri Lanka Tea Board
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