Increase in Food and Beverage sector output

Ramani Kangaraarachchi

The output of the Food and Beverage sector grew by around five percent with the improved performance in a range of products in the sector.

The Food and Beverages sector in Sri Lanka is a priority industry for development of the rural economy and special attention of the Government is required to further strengthen employment intensive growth of this sector, Colombo University Graduate Studies Faculty Dean Prof Sunil Chandrasiri said.

Revealing this in a policy analysis of the manufacturing sector he said increase access to foreign markets through multi-lateral and bi-lateral trade agreements and multi-lateral trade negotiations is a major intervention that could be done.

The output of the food and beverages sector grew around five percent and the improved performance in a wide range of products such as milk, soy ice cream, fruits and vegetables processing and canning.

There were about 5,041 establishments in the food and beverages industry, out of which 4762 were food and 279 were beverage industries respectively.

The sector has also marked a significant improvement in terms of export earnings particularly since 2004.

“It is very important to maintain quality standards set by foreign buyers which will require investment in technology and skills development.

He said SMEs, employers and employees should be educated on potential benefits of industrial safety and the importance of occupational health.

The image of Sri Lankan food and beverages should be maintained ensuring quality and brand marketing while encouraging production of fruits, vegetables, fisheries sub-sectors through plant cultivation,” he said.

He said that over the past 30 years food and beverages sector has been receiving policy support under various sectors leading to several self employment projects.

Prof Chandrasiri said that F and B sector in the country plays an important role in the manufacturing sector in terms of employment generation, export earnings, value added and linkages with primary sector of the national economy.

It comprises of five sub-sectors namely production,processing and preserving of meat, fish, food and vegetables, manufacture of dairy products, grain mill products, and prepared animal feeds, manufacture of other food products and beverages.

Among these sub sectors, food, grain mill and bakery products sub-sectors account for more than 60 percent of establishments in the F and B sector.

Food products sub-sector accounts for a higher proportion of establishments and employment in F and B sector.