A success story

GOOD times are back again for the tea industry, as our page one lead story reveals. Exports and export earnings are up and this year’s production is likely to exceed that of last year.

Sri Lanka was in the spotlight of the world tea industry barely three weeks ago when Sri Lanka hosted the Colombo Tea Summit with the participation of all exporting and importing countries. The main topic at this parley was the sustainability of the tea industry in the face of various challenges.

Tea is not the only pebble on the beverage beach. Coffee, the traditional arch-rival, is making inroads in many markets thanks to the growth of international coffee house chains and the sheer variety of coffees. Fruit drinks and carbonated beverages are also fighting for a substantial share of the market, in addition to dairy-based drinks.

Innovation is the key to survival in such a hostile market. For far too long, Sri Lanka depended on bulk exports of black tea, without any value addition.

This sometimes led to negative sentiments being formed on Ceylon Tea among foreign consumers, as some top international tea companies used to blend Lankan tea with inferior teas sourced from other countries to reduce costs.

Sending loose black tea also resulted in foreign exchange losses, as value added teas command a higher price.

This picture has changed now, with the industry realising the importance of catering to tea connoisseurs the world over. There is a massive demand for organic teas (teas grown without the use of chemicals) in the West. Green, flavoured and iced teas are also coveted by consumers.

Ready-to-drink canned teas are becoming popular in many markets. Many Western buyers are looking for environmental-friendly packaging as well. It is gratifying to see leading players in the local tea industry following these trends.

Although there is healthy competition among Sri Lanka, China, India and Kenya for the export market, it is becoming difficult for individual countries to take on the beverage market single-handedly.

Hence the recent proposal for an organisation of tea exporting countries, along the lines of OPEC (Organisation of Petroleum Exporting Countries).

It might not have the same political clout of OPEC, but the basic idea is that all countries would be able to secure good prices in the global market without necessarily harming each others’ interests and the industry as a whole.

The global tea industry must speak in one voice. For example, all tea producing countries can start a global awareness campaign on the health benefits of all forms of tea.

They should also introduce tea to new markets where other beverages reign supreme. As our story on the Canadian tea market, which appears elsewhere shows, North American consumers are warming up to the cup that cheers in a big way.

Quality, not quantity, will be the key to success in North America and other discerning markets. All our tea producers including smallholders must strive for perfection and high quality that truly deserve the label Pure Ceylon Tea. Their efforts in this direction will help make tea a truly global beverage.