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The establishment of an International Foundation for generic tea promotion membership from all major tea producers and tea consumers will be a positive step in the right direction, Minister of Plantation Industries Lakshman Kiriella told the opening ceremony of the 15th Session of the Inter-Government Group Tea Conference at the BMICH yesterday.

"I have advised the Sri Lanka delegation to support such a venture wholeheartedly", the Minister said.

The Minister also called for radical thinking in the industry revolving round the targeting of youth and teenagers worldwide to drinking tea. He said:" This great industry needs new revolutionary and may be even radical thinking. It is of significant importance to target the youth and the teenagers all over the world and addict them to tea drinking. He said: "The latest research studies on the human health benefits of tea drinking would be one such tool where the tea producing and tea consuming nations should team up to promote. It may be also worthwhile for the tea producing countries to concentrate on manufacturing better quality teas, rather than merely expanding production which could result in a large volume of poor and plain teas available in the world market."

In many developed countries and societies, teenagers and youth who are going to be decision makers very soon are already addicted to fizzy drinks and other beverages. The concept of tea drinking has to be invigorated with new thinking compatible with modern society. All tea producing and tea consuming countries should team up and complement each other to take this great beverage to a new height in the 21st century, he said.

As you all know, the world tea production reached the magical three billion kilo mark during the year 2001 and maintained a similar level during the year 2002. During the past decade, the global production of black and green tea together has expanded significantly from 2.5 billion kilos to 3 billion kilos. It reflects an increase of 18% for the past 10 years or an annual growth in global tea production of approximately 2 percent.

He said that it was unfortunate that the demand side has not kept pace with the supply level. If we look at the combination of world tea export and retention by tea producer countries which reflect the global tea consumption, the growth during the past decade averages around 1% per annum. This disproportion in the demand and supply equation although marginal has put tremendous pressure on all tea producing countries in the world. The prices fetched at all major tea auction centres in the world whether it is in Colombo, Calcutta, Kochin, Mombasa or any other centre has been declining in real value terms since 1998. As a result tea farmers all over the world are experiencing many hardships.

This is what has happened today resulting in depressed prices at all auction centres. Another important aspect is to move away from selling tea as a primary commodity and encourage the marketing of value added teas in branded products. I am sure, all of you who are experts in some aspects of the tea industry are fully aware that retail shelf prices of tea in branded end products never come down in price. Sri Lanka has taken the initiative already in adding more value and going up the value chain in the tea industry.

However, a more concerted joint effort where tea producing countries complement each other will be necessary for the long term survival of this historic and traditional industry.

"I have noticed that most of the other perennial crops such as coffee, rubber and coconut have established world bodies many years ago. Even natural products such as petroleum has its own global organisation.

Tea may be a commodity and a product which has even a longer international history but it is surprising that tea producing countries and the tea consuming countries in the world are yet to establish a truly global body to discuss matters of common interest. "I sincerely hope that all delegates who are present here will make an honest effort to build a platform in Colombo at the 15th Session of the IGG on Tea towards such an International Foundation", he said. Under such a scenario the Inter-Governmental Group on Tea which was established in 1969 is playing a vital role for the betterment of the World Tea Industry.

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