Pandithage urges more promotion of Ceylon Teas

Talawakelle Tea Estates Plc Chairman Mohan Pandithage urges the expeditious use of monies of Sri Lanka Tea Fund Cess fund which is said to be presently close to Rs 3 billion for the promotion of Ceylon Teas in the international markets before Sri Lankan teas recede in the minds of consumers.

He made these sentiments in the company’s Annual Report 2012.

Rebranding and consolidation of the Haylese Plantation sector companies made up of Talawakelle Tea Estates PLC , Kelani Valley Plantations PLC, and Mabroc Teas (Pvt) Ltd has begun to yield encouraging outcomes. Further consolidation of work already done to align these businesses would be continued in to the New Year to reinforce our unique positioning as a preferred provider of quality Ceylon Teas.

Replanting and maintaining good agricultural practices will receive priority attention to enhance our agricultural potential and to sustain earnings, Pandithage said. He also stresses the need for early settlement of overdue compensations for lands acquired.

“We need to be aware that despite our teas being of high quality, we are very dependent on global brands to place our teas in their blends where cost is a key consideration.

The prevailing remunerative prices should not detract attention from addressing key industry issues such as high cost of production, low land and worker productivity compared to our global competitors.

The year ahead will be challenging though tea prices may remain at present levels in the first few months of 2013. We are concerned with the outcome of the US sanctions on Iran and the uncertain situation in Syria.

Expected increase in energy cost and additional Cess on auction prices are also concern as their impact on earnings will be material,” Pandithage said.