Tea industry records excellent performance in 2021
Sri Lankan tea industry has recorded an excellent performance during the year ended 2021, despite many challenges like C-19 fertiliser and labour and high cost of production issues faced by the stakeholders.
Jayampathy Molligoda, Chairman, Sri Lanka Tea Board said according to provisional numbers, the total export revenue from tea for the period of January to December 2021 is Rs. 264 billion (approximately US$ 1,320 million).
The total export quantity is 288 million kilos. During the year 2020, the export revenue was Rs 230 billion (US $ 1,213 million) and the export quantity was 266 million kilos.
“It is significant to mention the average fob price at customs, which was Rs 867 per kilo in 2020 has further increased to Rs 915.97 per kilo, whereas in 2019 it was only Rs 823 per kilo of tea exported. The sales and tea production statistics for the month of December are yet to be finalised, however some 296 million kilos have been sold and closer to 300 million kilos tea production have been achieved for the full year.’
Last year tea production was only 279 million kilos.
‘’The negative side is that our tea estate productivity has been declining over a period of time; in 2000 the tea production was 305 million kilos and has increased to 328 million in 2010. The peak production of 338 million kilos in was reported in 2013- since then there has been a gradual decline of tea production, which is 2.6 % decline based on CAGR.”
The cost of tea production has been increasing and Ceylon Tea is the most expensive tea in the global market. The overall performance is satisfactory, however, achieving any further increases of higher prices for Ceylon Tea has become a challenge, because Kenyan and Indian auction prices are much lower than Colombo auction prices.
“Nevertheless, we need to focus more on the front end of the value chain by implementing the already approved promotional activities under ‘Ceylon Tea’ global campaign coupled with aggressive marketing strategy formulated with the support of all the industry stakeholders’ participation. Therefore, the brand story that the cleanest tea in the world has to be reinforced through maintaining minimal level of chemical residues and demonstrating sustainable credentials including purity and wellness factor of Ceylon Tea.”