Lanka to increase market share of its tea in Canada

Walter JAYAWARDHANA

COLOMBO: Sri Lanka, the world’s largest tea exporter is vigorously trying to increase its market share in tea in North America’s second largest market of Canada by ten per cent in the coming year, says the Sri Lanka High Commission in Ottawa.

“Within the next one year Ceylon Tea imports to Canada can be easily increased from the present level of US$ 4 million by ten per cent ,” said Trade Secretary Susiri Kumararatne of the Sri Lanka High Commission of Ottawa in a telephone interview from Toronto, Canada.

The interview was done on the eve of a two day trade exhibition entitled “Canadian Tea and Coffee Shop” held on September 16 and 17 at the Congress Centre in Toronto. About 20 local Canadian importers of Ceylon Tea among 150 others are taking part in this annual event to promote tea in Canada.

The Sri Lanka Tea Board is running a stall to promote Ceylon Tea and Organic Lanka Incorporated is running a separate stall to promote Sri Lanka’s organic teas to Canada’s health beverages market.

The others among the 20 importers are mostly Canadian and US companies who import Ceylon Teas with other varieties like English Teas, US teas, Indian teas and Chinese teas.

For Asian teas Canada is the second largest market in North America after the United States. With the advent of a new wave of health consciousness in North America, coffee sales have decreased and tea sales have been rapidly increasing during the past few years.

In Canada, during the period of 2002- 2006 the value of tea imports have risen from US$ 73 million to US$ 123 million which is a 68 per cent growth in terms of value imports.

What is important vis-a-vis Canadian imports is 78 per cent of the teas bought are in the form of pre-packed or value added teas and only the rest are imported in bulk form.

Kumararatne said this is very important for Ceylon teas since Sri Lanka is concentrating on their pre-packed or value added teas as it helps the island to promote pure Ceylon teas.

Unlike some other countries Canada does not impose more taxes on pre-packed or value added teas, Kumararatne said. During the last five years, Kumararatne said, Ceylon Tea imports to Canada have increased from US$ five million to US$ eight million.

But the leading exporters to Canada are non-producing countries - Britain and the United States. Among the producing countries Sri Lanka ranks third after China and India.