Sri Lanka's Ceylon Tea Brand under Lion Logo to be Protected against Misuse & Counterfeits

20th May 2011, www.lankabusinessonline.com

Sri Lanka's Tea Board aims to hire an international agency for global surveillance of the island's Ceylon tea brand under the 'Lion' logo to prevent its misuse and sale of counterfeits, an official said.

The planned action comes in the wake of the island launching new logos for Ceylon tea to protect the island's best known brand under the Geographical Indicators (GI) international trade regime and promote it as ozone friendly.

"In the past, the Sri Lanka Tea Board has played a defensive role and had been reacting to abuses (of the brand)," said Hasitha De Alwis, the Tea Board's director of promotion.

"The new tea promotional and marketing committee had decided to be proactive to (protect Ceylon tea's brand and GI recognition)," he said.

"We intend to assign an international agency to do global surveillance of the 'Lion' logo violations and origin counterfeiting."

The Tea Board and Sri Lankan exporters have long complained about the misuse of the Ceylon tea name and sale of teas from other origins in the guise of pure Ceylon tea.

De Alwis said local registration of the new Ceylon tea GI logos and its planned international registration will increase its protection and discourage misuse of the brand by use of other origin teas in packaging.

The new GI logos denote seven specific agro-climatic regions where tea is grown; Nuwara Eliya, Dimbula, Uva, Udapussella, Kandy, Ruhuna and Sabaragamuwa in the central hills and southern region.

"The registration of agro-climatic regional names and logos in world markets while giving Ceylon tea and growing regions a high level of protection will add value and help earn a premium price," De Alwis said.

Sri Lanka aims to use the new logos to market Ceylon tea as a premium product just like French champagne, Scotch whisky and Basmathi rice.

It decided to protect the Ceylon tea name and seven major regional tea growing area names as certification marks under the GI of the Trade Related Aspects of Intellectual Property Rights (TRIPS) within the World Trade Organisation regime.

De Alwis also said Sri Lanka is the only country qualified to use the 'ozone friendly' logo for tea after it gave up using Methyl Bromide, an ozone depleting substance in tea production.

Related Info :

• Intellectual Property Protection for Ceylon Tea under Global Geographical Indicators Rules

• Sri Lanka Registers Ozone Friendly Ceylon Tea Logo being the First Country in the World to Produce Ozone Friendly Tea

• Sri Lanka Tea Council Chairman Merrill J Fernando Proposes a 10 Year Plan to Take Ceylon Tea to Its Pristine Glory

Sri Lanka Tea Council Chairman Merrill J Fernando Proposes a 10 Year Plan to Take Ceylon Tea to Its Pristine Glory

16th May 2011, www.dailynews.lk, By Ravi Ladduwahetty

Sri Lanka Tea Council’s (SLTC) new Chairman Merrill J Fernando yesterday implored the government and all industry stakeholders to formulate a 10- year sustainable plan to take the world famous Ceylon Tea to its pristine glory. Sri Lanka’s tea industry has been a sleeping giant over the years and it is high time that all the stakeholders-planters, growers, exporters and brokers united to take the Ceylon Tea brand to its pristine glory, Fernando told Daily News Business.

Fernando, who heads his family-owned MJF Exports, the largest Sri Lankan exporter of value added teas under the world famous Dilmah Teas brand to over 100 countries, also said that the 10-year policy that should be formulated in a manner which should not be changed with changing governments, ministers and bureaucrats. A dialog and consensus should be adopted with all the stakeholders with the Tea Research Institute as well, he said.

He also commended the Sri Lanka Tea Board taking meaningful steps to revive the image of Ceylon Tea and noted that all exporters also should maintain quality standards and homogenous pricing standards.

He also noted that the value additions should benefit the Sri Lankan exporters and not the importer at the other end of the market. It is important to have the Ceylon Tea brand rather than the brand of the importer which is more damaging and a deterrent than exporting bulk teas. They should be packed and shipped out of Sri Lanka and where the benefits of value addition is not taken away from Sri Lanka, he said. Therefore, the Sri Lanka Tea Board campaign is justifiably and rightfully geared to the export of pure Ceylon Tea packed in Sri Lanka, he observed.

“There are instances where there is severe undercutting where there are varying prices adopted by exporters to get lions’ shares of the market which should be avoided. These are mandatory standards and Ceylon Tea should have the Lion logo and if these disciplines are maintained, the Ceylon Tea brand should be revived fast,” he said.

He also stressed the importance of the Tea Commissioner enforcing regulations without fear or favour and underscored the importance of factory capacities being made public, which he said, he believed was for the greater good of the industry.

The need for replanting teas was also stressed, which would add 5 percent year on year to the national output and this is vital in the context of the 318 million kilos of tea achieved last year. “Replanting would bring in the returns in four years and the national production could rise to 340 million kilos, weather permitting,” said Fernando. The Tea Council Chairman also proposed that the members of the 23- Regional Plantation Companies and the Tea Small Holdings Development Authority should make use of the uncultivated lands to add value to the plantations by engaging in value added agri-industry such as vegetable and fruit cultivation and diary farming which will also be revenue yielding.

Related Info :

• Sri Lanka Registers Ozone Friendly Ceylon Tea Logo being the First Country in the World to Produce Ozone Friendly Tea

• Sri Lanka Passes Kenya in Tea Export Earnings in 2010

• Ceylon Tea is Set to Set 3 Records in 2010 : Highest Production, Export Earnings & Net Sale Average

Sri Lanka Registers Ozone Friendly Ceylon Tea Logo being the First Country in the World to Produce Ozone Friendly Tea

20th April 2011, www.dailynews.lk, By Ramani Kangaraarachchi

Sri Lanka being the first tea producing country in the world to be recognized as a producer of Ozone Friendly tea will register the Ozone Ceylon Tea logo in 30 tea importing countries from 2011 to 2012.

The launching of the new logo will take place in Colombo next month.

Sri Lanka Tea Board Promotion Director Hasitha De Alwis told Daily News Business that Sri Lanka Tea Board (SLTB) has completed the registration of the Ozone Friendly Pure Ceylon Tea logo in Sri Lanka.

As a preliminary measure, Sri Lanka Tea Board, in consultation with tea industry stakeholders, finalized the demarcation of tea factories under each agro-climatic region. Suitable descriptive narrations for protection of Ceylon Tea and other seven regional teas were formulated thereafter.

The approval of the Cabinet was obtained for Sri Lanka Tea Board to register Ceylon Tea and other seven tea growing area names under Geographical Indication and Certification mark in Sri Lanka and other foreign countries on behalf of the Government of Sri Lanka.

Alwis said the protection of a GI registration for a particular product in the home country is a pre-requisite prior to applying for international registration.

The main seven tea growing regions (Nuwara Eliya, Dimbula, Uva, Udapussellawa, Kandy, Ruhuna and Sabaragamuwa) as certification marks under the Geographical Indications.

SLTB is now contemplating to initiate action to apply for international registration for the said GIs in 50 target markets during 2011 and 2012 with funding support from the Industry and Commerce Ministry.

He said worldwide demand and popularity for Ceylon Tea has made it a national brand for Sri Lanka. Since Ceylon Tea Propaganda Board time, the country has spent substantial funds to promote Ceylon Tea in important tea consuming countries.

Due to the premium price received regularly for Ceylon Tea, the overseas packers frequently misuse the name by packing other origin teas as Ceylon Tea.

Therefore, Sri Lanka Tea Board (SLTB) decided to protect the Ceylon Tea name as well as seven major regional tea growing areas under Geographical Indications as Certification Marks under the Trade Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organization.

Related Info :

• Regulations Governing the Use of the Certification Mark of Ozone Friendly Pure Ceylon Tea

• Sri Lanka's Ceylon Tea Brand to be Registered in 40 Countries. Only Brand Awarded Ozone Friendly Manufactured Tea

• Sri Lanka Looks for Media Firm for $10mn Ceylon Tea Promotion Campaign

Akbar Brothers Exports Account for 2.8pct of Total Sri Lankan Exports. The Largest Marketer of Ceylon Tea Products in the World

12th February 2011, www.island.lk

Akbar Brothers have once again emerged as the largest marketer of Ceylon tea products in the world with the Group exporting 47.8 million kilograms of tea worldwide during the year ended December 2010, export figures reveal.

These tea exports generated foreign exchange earnings totaling Rs. 24 billion for Sri Lanka. amounting to 2.8% of the country’s total exports of all products – not only tea. This phenomenal growth ranks Akbar Brothers as the second largest tea export company in the world, next to Unilever Kenya, trade sources said.

The Akbar Brothers Group is run by the fifth generation of Akbar family which has been in the tea trade for over 140 years. It is the largest trader of Ceylon teas in the world market with a presence in over 80 countries and accounts for 15% of Sri Lankatotal tea exports.

In 2010, Akbar Brothers tea exports consisted of 73% value-added tea products in the form of teabags and tea packets. The Group has won several awards for outstanding export performance, including Presidential Export Awards for the Best Sri Lankan Brand Exporter and Exporter to the Largest Number of Destinations.

"The rapid expansion and growth of business have been due to the strategic change in policy direction to move away from being a commodity trader to become the marketer of value-added branded tea products.

The aggressive pursuit of this policy change coupled with the company’s focus on quality, innovation and modern technology, have been some of the key factors in the growth of our business. Today, some 65 million cups of Akbar Teas are consumed on a daily basis across the world.

Ninety eight percent of Akbar Exports consists of Pure Ceylon Teas and all our tea brands are one hundred percent Pure Ceylon Tea" said Abbas Akbarally, Chairman of the Group.

Sri Lanka Passes Kenya in Tea Export Earnings in 2010

03rd February 2011, www.lankabusinessonline.com

Sri Lanka earned a record 1.37 billion US dollars in tea exports in 2010, exceeding that of Kenya, which exported more, owing to higher rices and more valued added shipments, brokers said.

The island's tea export earnings from exporting 314 million kilos were 16 percent more than in 2009.

Brokers Asia Siyaka Commodities said exports in 2010 were eight percent higher than in 2009 when drought reduced the crop.

The highest volume ever exported by Sri Lanka was 327 million kilos in 2006.

Kenya is the world's largest tea exporter, having edged past Sri Lanka a few years ago, but its earnings in 2010 were lower as its tea prices are lower than those of Ceylon tea.

"Interestingly, Kenya exported a highest-ever 441 million kilos in the year 2010," the brokers said.

"The approximate US dollar value was 859 million US dollars. Kenya produced a highest-ever 399 million kilos, a sharp improvement on the drought-crippled 2009 figure of 314 million kilos."

Kenya's export volume in 2010 therefore include at least 10 percent of other origin teas, the brokers said.

Sri Lanka restricts imports of teas for blending only to certain specialty varieties.

Asia Siyaka Commodities also said Sri Lanka's exports of value-added were around 65 percent of total exports and that a fall in exports to Russia, the biggest market, had been checked.

Exports in packets now account for 65 percent and total 143.9 million kilos. Exports in tea bags were nine percent of the total or 29.7 million kilos.

Green tea exports amounted to 5.7 million kilos, the greater proportion of which was in value added form, the brokers said.

Russia and other Commonwealth of Independent States rmained the top market for Ceylon tea buying 75.7 million kilos in 2010, an increase of 25 percent compared with 2009.

"The highest quantity exported to this region was 79 million kilos in 2006 and there followed a steady decline until the trend was reversed in 2010," Asia Siyaka said.

The United Arab Emirates was the second biggest importer of Sri Lankan tea even though buying a slightly smaller quantity of 30.2 million kilos in 2010.

Ceylon Tea is Set to Set 3 Records in 2010 : Highest Production, Export Earnings & Net Sale Average

17th December 2010, www.news360.lk, By Prasanna C Rodrigo

A leading Tea Broker says, Sri Lanka’s tea industry is set to achieve 3 records during this year.

According to the CEO of John Keells Tea Broking Arm Sudath Munasinghe, the local tea industry will achieve the highest production levels, the highest export earnings and also the highest “net sale average” during the year 2010.

Munasinghe said, “We expect export earnings to reach US$ 1.5 billion in 2010”.

He also predicts, that the total tea production which up to November stood at 302 million kilograms, will reach a record figure of 324 million kilograms at the end of this year.

The previous high was 318 million kilograms achieved in year 2008.

According to Munasinghe, the “net sale average” for Ceylon tea is also expected to reach a record figure during this year.

He said, as of 7th December, the “Net sale average” of Ceylon tea sold at the Colombo Auction stands at Rs. 369.52 per kilogram.

The previous highest “net sale average” achieved was in 2009 recording a sum of Rs. 362.02 per kilogram.

Reasons for the records

The CEO of the John Keells tea broking arm attributes the excellent global market conditions propelled by the increase demand for tea as one reason for this growth.

He said Ceylon tea has got a better price than the Kenyan tea during 2010.

Apart from that good weather and the fertilizer subsidy for tea small holders too has helped the industries growth in 2010, added Munasinghe.

Intellectual Property Protection for Ceylon Tea under Global Geographical Indicators Rules

22nd December 2010, www.lankabusinessonline.com

Sri Lanka has registered a claim locally for intellectual property protection for Ceylon tea under global 'Geographical Indicators' rules that would help market its main export product, a senior official said.

The government has also registered the logo for ozone friendly pure Ceylon tea to certify its tea is grown without use of any ozone depletion substances, Tea Board director - promotions Hasitha De Alwis said.

"We have to register the GI claim and ozone logo locally with the National Intellectual Property Office before we register them overseas," he told LBO in an interview.

The government also plans to locally register the island's seven tea growing regions under GI indicators in January, De Alwis said.

Sri Lanka has for years been seeking GI protection under the World Trade Organisation intellectual property rights rules known as the Trade-Related Aspects of Intellectual Property Rights (TRIPS).

The industry is keen on getting the GI recognition as it could be used as a marketing tool, like French wines which were among the first products to be registered under the WTO regime.

The seven tea growing areas for which GI recognition is also sought are Nuwara Eliya, Dimbula, Uva, Udapusellawa, Kandy, Ruhuna and Sabaragamuwa, in the island's central hills and southern districts.

The rules for geographical indicators enable registration of products based on defined growing areas as well as distinct product characteristics.

Registration of the ozone friendly pure Ceylon tea logo will help market the product as an environmentally friendly one.

Sri Lanka has stopped using methyl bromide, an ozone depletion substance that had been used in pest management after adopting alternative environment friendly technologies for which it received the 'Montréal Protocol Implementers Award' in 2007.

That allowed the country to market Ceylon tea worldwide as an environmentally friendly and ozone friendly product.

Sri Lanka Looks for Media Firm for $10mn Ceylon Tea Promotion Campaign

15th November 2010, www.lankabusinessonline.com

Sri Lanka will call for expressions of interest internationally to hire advertising and media firms to handle a 10 million dollars a year Ceylon tea promotion campaign, a senior Tea Board official said.

The global marketing campaign to promote Ceylon tea will be launched next year with funds from a new levy of 3.50 rupees a kilo on exports that came into effect in November.

The island exports about 300 million kilos of tea, its main export commodity, a year and the new levy will raise about a billion rupees or 10 million US dollars annually.

"We're going to float an international tender to identify professional advertising, marketing or media organisations who will have to do the promotion campaign," Tea Board director - promotions Hasitha De Alwis told LBO in an interview.

The industry has to decide whether to hire one agency for the entire global campaign or separate firms for different regional markets.

The main markets for Ceylon tea are Russia and other Commonwealth of Independent States, and the Middle East.

Other important but smaller markets are the Far East, Europe and North America.

"That step (hiring an advertising agency) we hope to do very fast," De Alwis said.

"Probably we'll float the tender by the end of this month or the latest by early December."

The Tea Board will police the use of the funds raised from the new promotion levy but how the money will be used will be decided by a committee dominated by exporters and other private sector tea industry interests.

De Alwis said that already, advertising agencies have been sounded out about the Ceylon tea promotion campaign.

"We told them there will be a global tender and they will have to apply when the EOI is announced."

Tea Earns Rs 113bn during First Nine Months of 2010 for Sri Lanka

31st October 2010, www.island.lk, By Steve A. Morrell

Earning from tea surged to Rs. 113 billion during the first nine months of this year, which is an all time high. So too dollar earnings at US$ 995 million being the highest ever figure for the ten month period. These are quoted facts from the weekly tea market report of Asia Siyaka Tea Brokers.

Russia/ CIS and Middle East continue to support Ceylon Tea, except Egypt. We have yet to re-capture the Pakistan market lost to Kenya, and UK, also lost to Kenya. All well and good but what of the rest of the world? The question could be asked ‘Have their taste acquisitions no included Ceylon Tea?’ and ‘Why?’ Tea shippers are collectively on record to have said ‘We buy and sell’. And our responsibility would end there.’

Seemingly the main reason for EU countries to shun Ceylons was price. The exclusivity of a Ceylon Tea Cuppa does not hold that degree of clout any more; but given such negativity and Ministerial innovation we hopefully could look forward to more positive times when budgetary proposals emerge.

The Minister of Plantation Industries, Mahinda Samarasinghe, said about ten days ago that he was concerned with the standard of green leaf from small holder origins and would bring to bear effective legislation to correct the retrograde trend that gradually became accepted norm. ‘This would have to stop’ he said.

Also reported by Asia Siyaka, bulk tea exports had shrunk to 26%. Packeted tea exports rose to 61%. ‘Good marker to this changing trend’, given value addition positive shift in marketing was encouraging, tea sources said.

As reported by us about one month ago resurgence of automation at the auctions again surfaced recently. Indian auction centers have had incessant problems and the switch had not been received well.

Colombo is still reputedly the best tea auction center in the world usually handling about 7 million kilos each week in just two days. An extremely efficient system, and more so totally transparent in its dealings. ‘The question was asked ‘Why mess with something well organized merely for the sake of change’. Director Lanka Commodity Brokers (LCBL) Brian Baptist who visited India at the time is reported to have said, (These columns carried what he had to say), that although Indian auction centers had changed to automation, it was not working smoothly.

However according to the LCBL Tea market report last week this subject surfaced again. Their comment was, ‘We are watching and most probably will introduce automation to pre and post auction operations.’

We also have had some suggestive comment that the Sri Lanka Tea Board and Sri Lanka Tourism pool their options for mutual benefit. That there should now be greater coordination to promote interest in tea and combine such with the exclusive scenic beauty of the hills. Private companies have already combined their visitor destinations to project quite that image. They did this when times were bad. But now that tourist traffic is steadily increasing the ‘Tea and Tourism’, tag line could have effective prominence.

Sri Lanka's Ceylon Tea Brand to be Registered in 40 Countries. Only Brand Awarded Ozone Friendly Manufactured Tea

03rd August 2010, www.dailynews.lk

In a partnership between the Industries and Commerce Ministry and Sri Lanka Tea Board, the ‘Ceylon Tea’ brand and ‘seven regional tea brands’ will be geographically registered in 40 countries worldwide which will be the first step towards the robust drive that is planned for in the Sri Lanka’s export industry under the new administration.

This was the key decision taken when the Industry and Commerce Minister Rishard Bathuideen met the key officials of the Tea Advisory Committee at the ministry premises with the senior officials of the tea industry and Sri Lanka Tea Board.

Minister Bathuideen who is in charge of the Sri Lanka Export Development Board said “Sri Lanka must cross the $2 billion mark in exports proceeds from tea in the near future and the advisory committee of tea must support the Plantations Ministry, Tea Board, Tea Research Institute and the private sector institutions like the TEA and CTTA so that we can achieve this target together for Sri Lanka.” CTTA Chairman Avindra De Silva and TEA President Jayantha Keragala were present with senior Tea Board officials who shared their perspectives of the industry and the importance of GI protection for the country.

Industries Ministry, Advisory Committee for tea Chairman Rohantha Athukorala said that special mention must be made of the Sri Lanka Tea Board that commenced this initiative and thanked the Minister for allocation 9.5 million rupees from the industries Ministry while the Sri Lanka Tea Board invested 3.5 million to spruce up the Ceylon Tea brand globally.

Ceylon Tea being the only brand in the world to be awarded the ozone friendly manufactured tea proposition and is poised to be a two billion dollar brand but the challenge is the marketing and promotional funding that is required.

Currently the country is estimated to invest around 17 million dollars in brand marketing spend from with one million coming from the Government. Sri Lanka is poised to achieve a record 320 million kilograms of tea out put this year and over ninety five percent will be exported globally to over 130 countries.

Image: Industries Minister Rishard Bathiudeen, Tea Advisory Committee Chairman Rohantha Athukorala, Tea Exporters’ Association President Jayantha Keragala and CTTA Chairman Avindra de Silva

Sri Lanka Produces 30pct more Tea 1st Half of the Year

25th July 2010, www.news.lk

Sri Lanka is on track for a record tea crop. Sri Lanka, one of the world’s biggest black tea exporters, produced nearly 30 percent more tea in the first half of the year. Tea is Sri Lanka’s biggest cash crop and is sold in overseas markets as “Pure Ceylon Tea”. The industry suffered a setback last year due to a drought and fall-out from the global commodities crash of 2008. But this year tea output for the six months to June rose 27.8 percent compared to the same period last year to 166.9 million kilos.

The Sri Lanka Tea Board said favourable weather, better fertilizer use and an absence of labour unrest all helped has contributed to the increase in production. Board’s Director General, H.D. Hemaratne aid strong demand from key buyers in Russia and the Middle East helped Sri Lankan tea exports earn 399 million dollars for the four months to April, compared to 300 million dollars earned in the same period in
2008.

Tea production in June 2010 alone was up 18 percent at 29.5 million kilos compared to the same month a year earlier.

Sri Lanka Tea Earns Highest Ever in January-April

08th June 2010, www.island.lk, By Steve A. Morrell

Tea export earning for the period of January-April reached Rs. 45.6 billion, or US$ 399 million in dollar terms, which is not that high when compared to US$ 410 million earnings in 2008.

In 2008, FOB value in dollar terms was US$ 3.91 per kilo, this year it is US$ 4.39, therefore the rupee earnings this year is an all-time-high.

All indicators point to an exceptional year in foreign exchange earnings from tea and this trend is expected to continue well in to the future.

Information at hand from The Asia Siyaka Tea Brokers Weekly Tea market report pointedly suggested although crop was not as high as expected, tea earnings were rising. However 2010 to date, the ‘all time high’ tag was real and singularly outstanding.

Monthly exported quantity to date was however not quite that encouraging whereas April 2008 was exceptional with Sri Lanka shipping 105 million kilos which was a record.

Sales destinations were that of Russia, or CIS countries, which continued to be highest buyers of Ceylon tea increasing their absorption by 21 percent. UAE too recorded higher import quantities, up some 5 percent. But there was no evidence on exports to new markets.

Meanwhile our export markets remain just about the same. Apart from Jordon, Chile, Japan, and Germany, most other destinations are based in the Middle East. Hong Kong has been tried, but apart from media hype about some sort of competition, there was nothing tangible emanating from that source. Not, that is, considering their draconian business and trade ethics, recorded in our Sunday edition about two weeks ago.

End April 2010, exports stood at 91.5 million kilos; of this quantity, bulk exports continued to dominate product quantities. Value additions although talked of ever so often, has not had significant impact on end user influences. Other exported forms were tea in packets at 25.5 million kilos, Tea bags, 5.4 million kilos, Instant tea 509, 000 kilos approximately, and green tea about 1.3 million kilos. There was also 2.6 million in re-exported tea, included in the export figure.

The Tea Board in their recent communication said low-growns continued to dominate production, 61.4 million kilos were produced at this elevation, where as high growns produced 24.2 million kilos, and mid growns 16.6 million kilos.

The market last week staged ‘come back’, returns. All elevations had good price resurgence. Eastern Brokers Tea report said westerns, Nuwara Eliyas, low growns, all recorded positive gains. Off grades, Dusts, and CTCs, too gained about Rs. 10 per kilo.

At this weeks sale, after quite a while, 8.2 million kilos will be on offer. Brokers said the market remains strong.

Sri Lanka Tea Exports to Top $ 1.5bn. Designs Emblems for Niche Brands from Regions

08th May 2010, www.dailynews.lk, By Harshini Perera

Tea export revenue is expected to reach US $ 1.5 billion as a result of the rising trend in tea prices and production.

The improving economic condition and tapping new markets have resulted in an increase of Ceylon tea exports for the first quarter of this year, Sri Lanka Tea Board Chairman Lalith Hettiarachchi told Daily News Business.

He said Sri Lanka Tea Board has encouraged regional tea production. They expect to promote tea internationally going by the region.

“We have already designed emblems for the regions and submitted information to the National Intellectual Property office. Sri Lanka Tea Board is expecting local registration soon and it will be submitted to the World Trade Organization for international registration,” he said.

The Tea Broad Chairman said the classification of tea according to the region of its origin will attract different tastes of the people internationally. The new marketing strategy will increase tea exports further.

Among Sri Lanka’s exports, 58 percent is bulk while 42 percent is value added tea. He stressed the need to increase value added tea exports.

He said that as a means of promoting value added tea, few more incentives will be given to producers.

“There are more than 700 HACCP certificates issued for industrialists and 21 industrialists have already applied for this year. We can expect an increase in the number of industrialists who will apply for HACCP certification in the future,” he said.

He said the authorities should grant necessary funding to issue the HACCP certification for industrialists. Currently, the SWITCH ASIA project provides necessary funding providing free consultancy for industrialists.

Tea Export Targets
* US$ 1.5 billion this year
* 58 percent bulk tea exports
* 42 percent value added tea exports
* 21 new applicants for HACCP

Sri Lanka Tea Output to Rise as Rain Eases Dry Weather

22nd February 2010, www.bloomberg.com, By Anusha Ondaatjie

Tea production in Sri Lanka, the world’s fourth-biggest grower, may increase this year as rain in the main growing areas eases dry conditions that damaged the crop last season, according to the nation’s tea board.

Output may exceed 300 million kilograms, compared with 290 million kilograms in 2009, said Lalith Hettiarachchi, chairman of the Sri Lanka Tea Board, in a phone interview today. Warm weather and a wage dispute reduced the previous crop.

A global tea shortage may widen this year and extend into 2011 as a rebound in production in Africa, Sri Lanka and India trails demand growth, McLeod Russel India Ltd., the biggest tea grower, said last month, predicting the deficit may be as much as 130 million kilograms by April.

“The rise in production is not significant to bridge the global deficit,” said Hettiarachchi. “The biggest suppliers like China and India are increasing local consumption so the exportable surplus is getting reduced.”

Shipments from India, the largest grower, dropped to 191.49 million kilograms last year from 203.1 million kilograms in 2008, after the driest monsoon in almost four decades damaged crops of tea, sugar cane and rice, according the country’s tea board.

“The weather has been conducive and we should reach at least 300 million kilograms provided there is no labor unrest over any unscheduled wage hike this year,” Hettiarachchi said.

Average prices at the Colombo tea auctions reached a record 405.77 rupees ($4) a kilogram in the third quarter of last year. In January, 26.4 million kilograms sold for as much as 440.41 rupees a kilogram, the board said on its Web site.

‘Buoyant Demand’

“Prices should hold through this year or go beyond,” said Hettiarachchi, helped by “buoyant” demand from Russia and the Middle East, Sri Lanka’s traditional markets.

Still, Sri Lanka, the third-biggest supplier of black tea, may earn $1.2 billion from exports this year, little changed from 2009, according to the board. Tea is the country’s second- highest export earner after apparels.

“Although prices compensate, Sri Lanka’s export growth is limited by our production levels,” Hettiarachchi said.

Production last month was 26.9 million kilograms, compared with 17.9 million kilograms a year earlier, the board said.

The board is in talks with plantation companies to increase re-planting programs and grow more high-yielding variety.

“With the production costs high, companies aren’t willing to inject more capital into the business,” Hettiarachchi said.

Labor makes up about 60 percent of total costs, more than double than in other tea-growing countries such as Vietnam, he said. Productivity, gauged by the kilograms plucked per person in an eight-hour period, is less than half of India’s “in a similar terrain,” he said.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.

Tea Trails, Luxury Livings in the Hills of Sri Lanka

www.teatrails.com

In central Sri Lanka, just 4 hours from Colombo by car to the Castlereagh Lake, lies the Bogawantalawa Valley, known as the Golden Valley of Tea and home to old Ceylon, replete with rolling green hills, plantation bungalows, high tea and exquisite service.

Here in solitude, at an elevation of 4000 feet above sea level, lies Ceylon Tea Trails, 4 classic colonial bungalows built for British tea estate managers in the days of the Raj. These historic houses have been restored by Dilmah Tea with the co-operation of Bogawantalawa Tea Estates, to offer guests the unique experience of life on a working tea estate. Bungalow sizes range from 4 to 6 rooms; 20 luxurious rooms and suites in all.

You set your own pace while at Tea Trails. Unwind in our beautiful gardens, visit a factory for a gentle education in the art of Ceylon Tea or spend an adventure-filled day biking, trekking and white-water rafting. We promise you an unforgettable holiday that will rejuvenate your spirit in the heart of the magical world of Ceylon tea.

More Info:
Ceylon Tea Trails

Ceylon Tea Intellectual Property Claims under Geographical Indicators

28th December 2009, www.lankabusinessonline.com

Sri Lanka is readying a claim for intellectual property protection for different types of Ceylon tea under global ''Geographical Indicators' rules that would help market the product, a senior official said.

Sri Lanka Tea Board chairman Lalith Hettiarachchi said they are seeking recognition for GI indicators for seven tea growing districts in the island.

"It would be a marketing advantage for the industry," he said. "The final draft of the registration papers is now with the lawyers."

The Tea Board will then file the claim with the National Intellectual Property Office and expects local registration of the tea growing regions in the first half of 2010, Hettiarachchi said.

That is the first step in seeking GI protection under the World Trade Organisation intellectual property rights rules known as the Trade-Related Aspects of Intellectual Property Rights (TRIPS).

International registration would take more time, Hettiarachchi said.

The industry is keen on getting the GI recognition as it could be used as a marketing tool, like French wines which were among the first products to be registered under the WTO regime.
The seven tea growing areas for which GI recognition is sought are Nuwara Eliya, Dimbula, Uva, Udapusellawa, Kandy, Ruhuna and Sabaragamuwa, in the island's central hills and southern districts.

The rules for geographical indicators enable registration of products based on defined growing areas as well as distinct product characteristics.

The Tea Board has already registered factories in each of the seven agro-climatic regions.

The initiative was begun several years ago and the registration process has been a long-drawn out one.

The industry also expects GI recognition to reduce the scope for misuse of the 'Ceylon tea' image by blended products with only a little Ceylon tea.