“New technology only viable option to mitigate labour shortage in plantations”

The tea workforce has reduced by over 50% since the time of privatization, creating a significant labour shortage that impacts both field and factory operations. “The only viable way to sustain production and ensure the long-term future of the plantation is through the adoption of new technology,” says Chairman of the Planters’ Association of Ceylon,(PAC) Sunil Poholiyadde.(Pictured)

To mitigate the labour shortage, the industry must become more receptive to mechanization and automation in both field and factory work. There are already technologies available to mechanize much of the field work, from harvesting and pruning to aerial spraying using drones. Automation of factories, including conveyorized production lines, is also helping to fill the labor gap and maintain competitiveness in the market.

Embracing technology and innovation is pivotal for competitiveness. Mechanization of field and factory operations is essential, especially given the declining labour force. One of the most pressing issues facing the plantation industry has been wage negotiations, which remained at an impasse for several years until the most recent breakthrough.

“With labour costs comprising over 60% of total production cost and plantations being price takers in the heavily regulated auction system, producers face considerable risk.”

Sustaining the plantation sector has become as a result an increasingly complex task, requiring correcting several embedded issues from past management structures. Meanwhile, a series of ill-conceived policy decisions taken by previous governments, coupled with prolonged wage disputes, low productivity in the backdrop of continuous labour outmigration from the estates and the nation itself, pose challenges that demand urgent and strategic action.

Climate change, which is widely recognized as having a direct impact on plantations, is occurring globally, and affecting Sri Lanka’s agricultural sector. To face global challenges and meet current requirements, the Regional Plantation Companies (RPCs) have taken several proactive initiatives.

These include securing international certifications, which enhances the competitiveness of Sri Lanka’s plantation products in international markets. Environmental protection efforts have also been a priority, with RPCs investing in sustainable practices. Significant investments have also been made in upgrading plants and machinery to enhance operational efficiency.

Additionally, RPCs have embraced green energy solutions, such as solar power and have adopted zero-carbon initiatives to align with global environmental goals, thereby contributing to the sustainable future of the plantation sector.

Tea remains the cornerstone of Sri Lanka’s plantation industry and has delivered a stable performance despite significant challenges.

“However, recent data shows a contraction of 5.3% in exports for August 2024, signaling difficulties in maintaining output. Initially, the target for 2024 was to produce 300 million kilograms of tea, but this now seems unlikely, with projections suggesting production might not even reach 250 million kilograms.”

“A declining workforce and low productivity levels have contributed to this shortfall. Despite these challenges, the industry is implementing measures to stabilize output and regain lost momentum.

Unfavorable climate conditions and diseases, such as Circular Spot Leaf Disease, have led to a significant decline in rubber production, rendering some traditional growing areas economically unsustainable. Diversifying into high-value secondary crops such as spices and fruits have seen success in expanding exports, helping to mitigate the risks associated with over-reliance on primary crops like tea and rubber. Other initiatives aimed at diversification, including forestry and hydropower have also shown great success. RPCs have made significant investments and progress in commercial timber cultivation.

However, following another ban on harvesting commercial timber above 5,000 feet elevation, RPCs have been cut off from their own sustainable sources of fuelwood. Without an effective policy on sustainable commercial forestry, the absence of proper regulation is likely to gradually lead to a reduction in forest cover.

The industry has also ventured into horticulture and more recently, a large-scale push for solar power alongside modernization of factories. Since 1992, extensive replanting efforts have been made, particularly in rubber and oil palm, with 11,000 hectares of oil palm planted along with the establishment of an AEN mill. Many companies have also pursued diversification into other crops and value addition initiatives. The main method of sale remains the auction, which imposes considerable regulatory requirements on those seeking to sell directly.

In the past, our plantation industry was largely unchallenged globally and the largest contributor to the Sri Lankan economy. However, today there are numerous other competitors. (SS)

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