CEYLON TEA UPDATE

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• Ceylon Tea
• Sri Lanka Tea Industry
• Always Ahead of Competition
• Alexi Gunasekera
• Commercial Counsellor
• Sri Lanka Embassy
• Beijing

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SRI LANKA, AN ISLAND IN THE INDIAN OCEAN

• Sri Lanka an island with an area of 65,525 sq km
  in the Indian Ocean is today the largest
  producer and exporter of orthodox black tea in
  the world.
• The success story of the countrys tea industry
  is attributed to cont.

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SRI LANKA, AN ISLAND IN THE INDIAN OCEAN

• The countrys location in the east and west trade
  routes,
• Its extraordinary geophysical features, coastal
  lowlands and central mountains,
• The tropical climate,
• The skilled labour force,
• The expertise gained during the past 140 years.
• Lastly and most importantly The Diverstea in
  Specialitea

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TEA AS AN EXPORT COMMODITY

• Tea is the countrys main agricultural export. It
  accounts for 15 of the total export income
• 60 of agricultural income.
• It has surpassed the cultivations of rice the
  staple food in Sri Lanka and other traditional
  export crops such as rubber and coconut.

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CEYLON TEA - THE BEGINNING

• Coffee was the main plantationcrop in the island
  150 years ago.
• With the outbreak of a parasite fungus, Hemileia
  vastatrix, in 1869 the coffee plantations were
  destroyed completely.
• Tea then appeared as a Godsend, and the entire
  local economy shifted to the new crop.

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James Taylor

• James Taylor, a Scottish planter introduced
  commercial tea planting in Sri Lanka in 1867.
• The first plantation of 19 acres at loolcondera
  Estate developed into the major agricultural
  industry of tea in Sri Lanka today.

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CEYLON TEA - TRANSITION

• Ceylon Tea was traditionally sold as a primary
  product mainly in bulk form.
• The first segmentation
• - in 1959 when a consignment of packeted teas
  was sent to Libya.
• The second stage of product diversification
• - in the early 1970s with the introduction of
  tea bags to cater to up-market segments of
  developing countries.

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IMPORTANCE OF TEA

• Sri Lanka is the 4th largest tea producer behind
  India, China and Kenya but the largest producer
  of orthodox black tea in the world.
• It produces around 320 million kg of tea and has
  a share of nearly 10 of the global tea crop.
• Sri Lanka exports over 300 million kg. of tea per
  year to more than 100 different countries.
• Sri Lanka is the largest exporter of orthodox
  black tea to the world. The global export share
  of Ceylon Tea is almost 20.

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SMALL HOLDERS

• The small holders share in the national tea
  output is approx 70 of the total tea
  production.
• They utilize less than 50 of land area under
  tea cultivation.
• The average yield of the small holders is around
  2,000 kilos per hectare.
• They bring in almost 80 of the total income
  from the national manufacture.

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TWO LEAVES AND THE BUD

• This is the main concept of Ceylon tea which
  helped the industry to capture the world tea
  market.

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Ceylon Tea Taste the Difference

• There are six agro-climatic districts in which
  Ceylon tea is grown from which Sri Lanka offer to
  the tea connoisseurs of the world teas of
  different characteristics to suit their
  satisfaction

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Nuwara Eliya Delicately fragrant
The fragrance of cypress trees and the menthol of
wild mint and eucalyptus floating through the air
contribute to the fine flavour of Nuwara Eliya
teas.
Brewed light it makes for a very smooth cup of
tea that can also be iced for a refreshing
difference.
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Uda Pussellawa Exquisitely tangy
This experiences two periods of superior quality.
Traditional eastern quality season from July to
September is the peak but the dry, cold
conditions of the first quarter of the year yield
a range of rosy teas.
Of medium body and subtle character these teas
produce a majestic flavour.
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Dimbulla Refreshingly mellow
Dimbulla Plantations cover the western slopes of
the planting districts. The monsoon rains and
the cold dry weather produce a range of teas from
full bodied to light and delicate .
Enjoy with or without milk
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Uva Exotically aromatic
Grown in Sri Lankas eastern mountains, the Uva
teas have a truly unique flavour. These teas are
commonly used in many different blends but, with
their different characteristics.
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Kandy Intensely fullbodied
These mid country teas grown on plantations at
2000 to 4000 ft. produce a full bodied tea. Ideal
for those who like their tea strong and bursting
with flavour.
Best served with milk
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Ruhuna Distinctively unique
Grown from sea level to about 2,000 ft, the
particular condition of the soil gives the leaves
blackness and imparts in a brew of strong and
distinctive taste.
A perfect cup for those who like their tea thick
and sweet, with or without milk
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MODERN TRENDS IN CEYLON TEA- VALUE ADDITION -

• Today Ceylon Tea is exported in a wide range of
  packets I.E. foil packs, box board cartons, soft
  wooden boxes , poly bags packaging, sachets,
  etc.
• The export of straight-line teas in raw material
  form (without any value addition) is now limited
  to about 5.
• Export of pre-packed teas account for almost 40
  of total tea exports from Sri Lanka.

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TEA BAGS

• The local industry turns out a complete range of
  tea bags.
• They are single or double chambers, heat or non
  heat sealed, with or without tags and with or
  without the envelop etc.
• Today Sri Lanka exports more than 20,000 MT of
  tea bags, which accounts for about 7 of the
  total tea exports.
• There are 130 tea bag shippers currently active
  in Sri Lanka.

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FLAVORED TEAS

• The product range of flavored teas include more
  than 150 different types.
• They are Earl Gray, Lemon, Apple, Peach, Mango,
  Strawberry,Mint etc.
• Recently spice flavors such as cardamom, cinnamon
  and clove were introduced.
• Sri Lankan exporters have penetrated into a
  number of sophisticated markets with flavored and
  spiced teas.

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Instant, Organic and Green Tea

• The production of Instant Tea by Sri Lanka began
  during the 1960s.
• During the year 2007 Sri Lanka exported
  around1,500 MT of instant tea, mainly to
  European countries and Japan.
• The production of organic tea or bio tea
  commenced in Sri Lanka in the mid eighties.
• At present a volume of about 2000 MT of organic
  tea is produced annually.
• Approx. 1500 tons are exported mainly to Western
  European countries, Japan, USA and Australia.

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cont.

• Sri Lanka exported a volume of 3500 MT of green
  tea last year (2007).
• The green tea segment in Sri Lanka is still very
  small (1 of total production) but growing.

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READY TO DRINK PRODUCTS(RTD)

• The first R.T.D. project of commercial scale was
  introduced by M/s HVA Foods (Pvt) Ltd almost a
  decade ago.
• It launched Heladiv brand pure Ceylon Tea in
  iced liquid form in tetra packs of four different
  flavors.
• Today many other brands such as
  Mlesna,Akbar,Impra,etc are successfully marketing
  their own RTD tea products.

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Cleanest Tea
Following schemes for upgrading of tea factories
are used to meet the latest consumer preferences

• 5 S System
• ISO 90012000
• HACCP
• TASL-SGS Certification

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LEADING MARKETS FOR CEYLON TEA- 2007 -
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CEYLON TEA IN THE CHINESE MARKET

• Sri Lanka exported 963,915 kilos to China in 2007
  generating a revenue of 305 million Rs.
• The Ceylon Tea exports to China is growing
  rapidly and reflects an increase of over 80 last
  year.

cont.
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• Trade mark of the Sri Lanka Tea Board.
• To ensure what you drink is Ceylon Tea, lookout
  for the lion logo!

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Thank you God Bless you
Email Ceylontea_at_vesta.icn.ne.jp
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