OUTLINING THE PROGRESS OF ‘CEYLON TEA’ AND ITS FUTURE GROWTH
By Nuzla Rizkiya
With a heritage spanning for over 150 years, tea production is cited today as the 2nd leading industry in Sri Lanka, just under tourism.
Sri Lanka is also known as an ‘island made for tea with the availability of the pertinent climate and varied elevation in the country’s landscape, which allows the cultivation of Camellia sinensis -the evergreen shrub used to produce tea.
Sri Lanka today is a leading producer and exporter of tea in the world with tea production also playing critical role in the country’s economic development in terms of its contribution to national output, employment, and net foreign exchange earnings.
Amounting to 2% of Sri Lanka’s Gross Domestic Production (GDP), the industry provides direct and indirect employment to nearly 1 million people. Earnings from tea production in the previous year were estimated to be US$1.3 billion.
Replacing coffee as the islands main cash crop
In 1867 Scottish planter James Taylor pioneered the commercial cultivation of tea in British Ceylon using a 19-acre plot of land in Loolkandura estate located in Kandy. With the record of an epidemic of the coffee rust disease at that time, coffee cultivations all over the island were almost decimated by the late 1860’s. Afterwards tea soon replaced coffee as the main cash crop of the country.
More than 80% of the tea estates were owned by British Companies from the time of James Taylor until 1971 when the government of Sri Lanka introduced a Land Reform Act which granted the ownership of tea estates to the government.
Expansion in land and in its importance
Beginning from a 19-acre plot of land tea plantations today cover almost 4% of Sri Lanka’s land area amounting to nearly 203000 hectares. These tea-growing areas are mainly concentrated in the central highlands and southern inland areas and are divided into 7 main regions namely Nuwara Eliya, Uda Pussellawa, Uva, Dimbula, Kandy, Sabaragamuwa, and Ruhuna. Each of these areas produces a unique flavor of tea due to its varied climate, elevation and terrain.
After nationalization of the plantation, the first public Colombo auction for tea took place in 1883 under the guidance of the Ceylon Chamber of Commerce.
The Colombo Tea Traders’ Association was formed in 1894 and in 1925 the Tea Research Institute was established. These organizations have been cited to have helped boost the production and export of Ceylon Tea in its early stages.
Distinct flavor and priority to quality
The distinct rich flavor found in many varieties of Ceylon (Sri Lankan) tea when compared to products of other countries is credited to tea leaves being exclusively handpicked according to the 2 leaves and bud method.
Almost 93% of Ceylon Tea produced annually is produced according to artisanal and orthodox methods and is known to the world as the cleanest tea in terms of minimum pesticide residues. Packaging methods to delivers a fresh product to the consumer are encouraged among production companies. Sri Lanka’s tea industry also maintains the highest quality in the global tea market with ISO 3720 as the minimum standard applied for its products.
The lion logo legally owned by the Sri Lanka Tea Board only appears on consumer packs of tea containing 100 percent pure Ceylon tea. The tea should also be packed in Sri Lanka, and the brand should satisfy the quality standards set out by the Board. Moreover, Ceylon Tea also became the world’s first ozone friendly tea to be produced under the global food regulations.
Contribution to the national economy
The industry generates a significant amount of valuable foreign exchange and was the highest foreign exchange earner until about the 1980s. A large portion of the country’s tea is exported today as Ceylon Black Tea which continues to be country’s specialty. In 2016, 12.3% of total export earnings were from black tea alone.
The industry also provides employment directly and indirectly to a million people, supporting livelihoods of poor communities in estates and remote rural areas of the country. At the farm level, tea cultivation acts as a cash crop that generates income for both farmers and workers.
Product range and stance in the global market
Sri Lanka’s total tea production sits at about 340 million kilograms per annum and provides a wide range of products which includes varieties such as Organic Ceylon Tea, Oolong Tea, White Tea, Black Tea, Herbal Tea etc. Ceylon White Tea, categorized into silver and golden tips is celebrated around the world for its finest flavor and is featured among the most expensive tea varieties in the world.
Sri Lanka satisfies over 11% of the global demand for tea with a good export market in the Middle East and Europe. A good number of bidders worldwide also bid for tea produced in high country zone, Nuwara Eliya.
Challenges faced and factors of future growth
The tea industry faces major challenges in a global level, notably the decline in production. Inadequate replanting, inconsistent fertilizer applications, high wages, shortage of labor, poor living and working conditions, high cost of production, and low profitability are listed to be major factors confronting the industry.
With the advancement of technology, tea workers now look for alternative work while the young generation aspires for more social exposure.
Climatic changes taking place in different parts of the world, contribute to the change in quality of tea. Accordingly the change of the buyer’s interests, increasing health and environmental concerns, and stringent regulations has increased the number and nature of standards governing the industry, making it more difficult for production.
Sustainability of Sri Lanka’s tea industry remains on how well the production land is conserved and the priority given to human capital.
Experts recommend the conservation of natural resources, development of human capital and infrastructure especially roads, maintaining solid macro-economic policies, adopting appropriate trade policies in terms of imports and increase engagement in international marketing activities for the sustainability and the future growth of the industry.