Sri Lanka Tea Industry

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Sri Lanka Tea Industry

• Hasitha De Alwis
• Director (Promotion)
• Sri Lanka Tea Board

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Sri Lanka Wonder of Asia

• Island is united ending 30 years long conflict.
• Multi-ethnic, multi-cultural, multi-religious and
  multi-linguistic nation once again in harmony.
• Immense opportunities for sustainable growth in
  all sectors and tea industry is no exception.
• Probably the safest country today in South Asia.
• Peace dividends results in leap-frog development
  in Sri Lankas infra-structure other sectors of
  economy.

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INTRODUCTION

• Sri Lanka tea industry proudly celebrates 145
  years of commercial history in 2012.
• Tea industry continues to occupy a pivotal
  position in terms of foreign exchange earnings
  employment.
• Tea export earnings reached USD 1.5 Billion in
  2011 a historical high contributing 15 to the
  nations foreign exchange.
• Generating 65 of export agriculture revenue, tea
  industry contributes approx. 2 of islands GDP.
• With 2 Million employed directly indirectly 10
  of the population of Sri Lanka depends on the
  industry.

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AGRO-CLIMATIC TEA GROWING REGIONS OF SRI LANKA
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SRI LANKA TEA PRODUCTION ELEVATION WISE (Mn.
KGS)
Year High Grown () Mid Grown () Low Grown () Total
2005 80.3 25 55.1 18 181.7 57 317.1
2006 74.7 24 51.6 17 184.5 59 310.8
2007 72.5 24 54.4 17 177.7 59 304.6
2008 84.4 26 49.0 15 185.3 59 318.7
2009 72.8 25 44.7 15 173.1 60 290.6
2010 79.1 24 56.1 17 196.2 59 331.4
2011 79.2 24 52.5 16 196.6 60 328.4
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CATEGORY-WISE TEA PRODUCTION (Mn.KGS)
  2006 () 2007 () 2008 () 2009 () 2010 () 2011 ()
Orthodox 288 93 283 93 297 93 271 93 310 94 303 92
CTC 18 5 16 5 17 5 16 5 18 5 22 7
Green Tea 3 1 4 1 3 1 2 1 3 1 3 1
Others 2 1 2 1 2 1 2 1  -  -  -  -
Total 311 100  305 100  319 100  291 100  331 100 328 100
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AREA OF TEA PLANTED IN SRI LANKA
Elevation Planted (Ha) Share
High Grown 41,137 19
Mid Grown 71,018 32
Low Grown 109,814 49
Total 221,969 100
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SRI LANKA TEA EXPORTS (Mn. KGS)
2006 2007 2008 2009 2010 2011
Bulk 197.8 179.9 178.0 164.6 176.8 179.9
Packets 79.4 72.7 84.3 75.5 89.8 95.8
Tea Bags 19.1 22.0 20.3 18.7 25.7 24.6
Others 18.6 19.7 18.6 21.2 1.8 2.9
Re- Exports 12.5 15.6 18.6 10.6 18.6 20.5
Total 327.4 309.9 319.8 290.6 305.7 323.7
Value Billion USD 0.882 1.01 1.26 1.18 1.37 1.51
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RE-EXPORTS (CEYLON TEA BLENDED WITH OTHER
ORIGINS)
Year Qty (MT) Value (Rs. Mn) Value (USD Mn)
2005 11,456 4,154 41.33
2006 12,499 5,330 51.20
2007 15,597 6,617 59.80
2008 18,577 10,683 98.61
2009 10,574 5,089 44.27
2010 18,607 11,567 102.30
2011 20,529 13,363 118.30
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Tea Imports to Sri Lanka
Year Quantity (Kgs) Value Value
    (Rs. Million ) (USD M.)
2007 13,683,732 3,141.6 28.56
2008 14,598,248 3,754.8 34.13 
2009 9,960,129 2,979.4 27.08 
2010 12,172,753 3,768.0 34.25 
2011 11,406,044 3,770.4 34.28 
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Tea Imports to Sri Lanka(Country Wise)
Qty in Kgs.
2009 2010 2011
India 4,708,695 4,776,141 4,353,513
China 1,755,521 2,802,873 2,895,761
Kenya 2,867649 3,871,167 3,690,453
Vietnam 240,725 352,203 97,909
Indonesia 203,260 207,068 182,620
Malawi 129,580 143,104 150,660
Germany 33,080 10,805 23,898
Taiwan 8,888 7392  -
Japan 5,600 900  -
U.K 5,130  - 9980
Nepal 2,001 1100 1250
TOTAL 9,960,129 12,172,753 11,406,044
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MAJOR DESTINATIONS FOR CEYLON TEA
2009 2009 2009
Country Qty.
Russia 42.4 15.1
UAE 30 10.7
Syria 29.4 10.5
Iran 27.7 9.9
Turkey 15.7 5.6
Jordan 13.4 4.8
Kuwait 10.1 3.6
Iraq 9.8 3.5
Japan 9.5 3.4
Libya 8.1 2.9
2010 2010 2010
Country Qty.
Russia 45.5 15.2
UAE 29.6 9.9
Iran 27.6 9.2
Syria 26.3 8.8
Turkey 18.4 6.2
Jordan 17.3 5.8
Iraq 13.6 4.6
Libya 10.9 3.7
Kuwait 10.8 3.6
Japan 10.3 3.4
2011 2011 2011
Country Qty
Russia 47.3 14.8
Iran 30.8 9.6
Syria 28.5 8.9
Iraq 22.2 6.9
UAE 21.5 6.7
Turkey 18.9 5.9
Azerbaijan 11.8 3.7
Japan 11.3 3.5
Kuwait 9.1 2.8
Ukraine 7.8 2.4
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DOMESTIC CONSUMPTION
Year Qty. (Mn. Kgs) Approx.
2005 27.5
2006 27.5
2007 28.0
2008 28.5
2009 28.5
2010 28.4
2011 28.9
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DISTRIBUTION CHANNELS

• Type Percentage
• Supermarkets 25
• Grocery retailing 30
• Convenience stores 30
• Tea Shops / Tea Houses 5
• Others 10

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TYPE OF PRODUCTS (Domestic Market )
Domestic Market Volume 2010 2011 Volume 2010 2011 Value 2010 2011 Value 2010 2011
Loose Tea 68 67 61 59
Packet Tea 30 30 36 37
Tea Bags 2 3 3 4
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Value Growth on Consumer Prices for Share of
Throat
Item Share of Throat Value Growth (per Annum) Average Price
Tea 26.5 9 Rs. 715/Kg
Coffee 2.5 22 Rs. 1,335/Kg
Malt 15.5 23 Rs.167/Ltr
Soft Drinks (Carbonated) 36.0 43 Rs.124/Ltr
Others 19.5
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Household Expenditure
2009/2010 (Rs. 1,750B.)
Monthly Household Expenditure Rs. 32,446/-
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MACRO ECONOMIC FUNDAMENTALS IN SRI LANKA 2005
VS. 2011
2005 2011 (Est/Prov)
Real GDP Growth 6.2 8.3
GDP (US ) 24.4 59.1
GDP per capita (US ) 1,241 2,830
Trade Exports (US bn) 6.3 10.5
Imports (US bn) 8.9 20.0
Workers Remittances (US bn) 1.9 5.2
Tourist Arrivals [phone]
Earnings from Tourism (US bn) 0.3 0.8
FDI (US bn) 0.3 1.0
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Thank You

• Hasitha De Alwis
• Director (Promotion)
• Sri Lanka Tea Board