Twenty First Session of FAO/IGG ON TEA 1 Bandung, Indonesia, 5 - 7 November 2014 SRI LANKA TEA...
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Transcript of Twenty First Session of FAO/IGG ON TEA 1 Bandung, Indonesia, 5 - 7 November 2014 SRI LANKA TEA...
Twenty First Session of
FAO/IGG ON TEA
1
Bandung, Indonesia, 5 - 7 November 2014
SRI LANKA TEA INDUSTRYMARKET REVIEW
World Tea Production (Mkgs) Country 2006 2007 2008 2009 2010 2011 2012 2013
Sri Lanka 310.8 304.6 318.7 291.1 331.4 327.5 328 340
YOY % -2 -2 4.6 -8.6 13.8 -1.2 -1.5 3.6
China 1028.1 1140 1257.6 1358.6 1475.1 1550 1790 1924
India 981.8 986.4 980.8 979 966.4 988.3 1126 1200
Kenya 310.6 369.6 345.8 314.2 399 377.9 370 432
Vietnam 142.5 148.3 166.4 175 170 178 190 180
Turkey 142 178 155 153 148 145 147 149
World 3579 3795 3863.5 3944.4 4162.5 4217.1 4624.62 4907
YOY% 6 1.8 2 5.5 1.3 9.6 6.1
Source : ITC Report, London
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At the 20th session in Colombo under the Chairmanship of Sri Lanka, 3 new working groups were proposed:
Working Group on Organic Tea
Working Group on climate change
Working group on Small Holder Farmers
20th Session of FAO - IGG on Tea
VisionTo position tea as the most acceptable, natural and healthy beverage globally
MissionTo position tea as the most preferred beverage universally through stimulating its consumption by facilitating and execution of generic promotional campaigns and raising awareness of the health and life style benefits of tea
Vision and Mission of the ITPF
a. Safe guard interests of tea producer countries.
b. Deliberate and evolve collective solutions on problems affecting producers.
c. Provide technical co-operation, sharing of technology and expertise by member countries.
d. Stimulate demand for tea by promoting consumption of tea.
e. To undertake market studies, surveys, research projects aimed at
addressing any specific issues
f. To undertake and facilitate programs for providing training to members or their executives in various aspects of marketing tea.
Objectives of ITPF
Progress So Far
• 2012: Signing a Resolution in Colombo, Sri Lanka at the 20th Session of FAO/IGG to form an ITPF.
• 10 Countries namely India, Kenya, Sri Lanka, Indonesia, Bangladesh, Malawi, Rwanda, Tanzania, Iran & Burundi signed that MOU.
• Proposal by Sri Lanka as the current Chair of FAO/IGG on Tea to host a Ministerial Forum.
• 2013: Historical gathering in Colombo on 21st January 2013 and ITPF was formally established.
• Seven countries signed the MOU and the constitution (Sri Lanka, India, Kenya, Indonesia, Malawi, Rwanda, Iran)
Consent of Producer Countries
Country 2008 2012 2013 2014India Obtained Govt.
approvalSigned Resolution Founder member Obtained cabinet
approval and completed the process
Sri Lanka Obtained Govt. approval
Signed Resolution Founder member Obtained cabinet approval and completed the process
Kenya Obtained Govt. approval
Signed Resolution Founder member Response is awaited
Malawi Obtained Govt. approval
Signed Resolution Founder member Response is awaited
Rwanda Pending Signed Resolution Founder member Response is awaited
Indonesia Signed Resolution Founder member Response is awaited
Iran Signed Resolution Founder member Response is awaited
Bangladesh Pending Signed Resolution Consented to be founder member
Tanzania Pending Signed Resolution Consented to be founder member
Burundi Pending Signed Resolution ---
Zimbabwe Pending Signed Resolution ---
YearHighGrown (%)
MidGrown (%)
LowGrown (%) Total
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
2012 73.6 22 52.6 16 202.1 62 328.4
2013 75.5 22 56.2 16 208.4 61 340.2Source : Sri Lanka Tea Board
AREA OF TEA PLANTED IN SRI LANKA
Elevation Planted (Ha) Share (100%)
High Grown 41,13741,137 19%19%
Mid Grown 71,01871,018 32%32%
Low Grown 109,814109,814 49%49%
Total 221,969221,969 100100
Source : Sri Lanka Tea Board
2008 2009 2010 2011 2012 2013
Bulk
178.0
164.6 176.8 179.9 130.25 130.09
Packets
84.3
75.5 89.8 95.8 153.8 157.0
Tea Bags
20.3
18.7 25.7 24.6 21.4 24.07
Others
18.6
21.2 1.8 2.9 0.54 1.98
Re-Exports
18.6
10.6 18.6 20.5 14.6 8.51
Total (Mn Kgs)
319.8
290.6 305.7 323.7 320.7 321.65
ValueBillion
USD 1.26 1.18 1.37 1.51 1.44 1.55
SRI LANKA TEA EXPORTS (Mn. KGS)
17
Source : Sri Lanka Customs
DOMESTIC CONSUMPTION
Year Qty. (Mn. Kgs) Approx.
2006 27.5
2007 28.0
2008 28.5
2009 28.5
2010 28.4
2011 28.9
2012 27.8
2013 27.5
Source : ITC Report, London
DISTRIBUTION CHANNELS
Type Percentage
Supermarkets 25% Grocery retailing 30% Convenience stores 30% Tea Shops / Tea Houses 5%
Others 10%
Tea Industry’s Role in Sri Lanka’s Economy
Tea export earnings reached USD 1.55 Billion in 2013 a historical high contributing 15% to the nation’s foreign exchange.
Of the 322 Mn Kgs exported over 55% was in value added form
Tea generates 65% of export agriculture revenue
Tea industry contributes approx. 2% of the island’s GDP
With 2 Million employed directly and indirectly 10% of the population of Sri Lanka depends on the industry.
Sri Lankan Tea Industry’s Role in the Global Tea Economy
Sri Lanka remains the world’s largest orthodox tea producer and the world’s largest orthodox tea exporter with 17% market share
2013 production placed Sri Lanka as the 4th largest producer of tea with 9% share of the global tea crop.
As per 2013 export volume Sri Lanka has been able to sustain the position of 3rd largest exporter exporting to more than 150 countries.
Sri Lanka also succeeded in maintaining her position as world’s largest pre-packed tea exporter and the number one in value added earnings (60%)
24
Ethical & Sustainable Practices
Strict adherence of ISO 3720 Minimum quality Standard across entire supply chain Ensuring certification on Ethical Tea Partnership, Fair Trade Labeling , Rain Forest Alliance etc. Clean as ever in pesticide residues
Compatibility with CODEX, FAO, EU & Japanese standards for Maximum Residue LimitsDrive for re planting and in-filling to increase productivity and reduce cost of productionSupport Forest Garden Tea Growers to protect biodiversity & commitment for ecological sensitivity
PURITY & FOOD SAFETY
ISO
22000:2005
HACCP
ENVIRONMENT
Rainforest Alliance Certification
GLOBAL GAP Certification
Forest Stewardship Council
Agricultural Standards
Beyond the TRI & RRI Guidelines
Committed to CEO Water
Mandate
Signatory to the ‘Caring for
Climate’
Preservation of Biodiversity
Committed to the
Ten
Principles in
•Human Rights
•Labour Standards
•Environment
•Anti – corruption
Ethical Tea
Partnership
ETHICALBUSINESS
Living Environment
Health & Nutrition
Community Capacity
Building
Empowerment of
Youth
SOCIETY
Commitment to Sustainable Business business
25
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Accolade from Montreal Protocol in Canada for first ever Ozone Friendly tea in the world.
Sri Lanka tea industry was awarded Ozone friendly status in 2007 for non usage of Methyl Bromide an Ozone depleting substance.
Ozone friendly Ceylon tea supports the reduction of global warming.
Environmentally friendly & ecologically pure tea.
Helps an earth caring community to free the planet from pollution.
OZONE FRIENDLY CEYLON TEA
Issues Facing Sri Lankan Tea Industry
32
Exported to over 150 countries: No uniformity in standards applied by importing countries
Lack of knowledge of consumer countries about good quality tea
Low quality teas exploiting Ceylon Tea name Price War: undercutting Climate change Consequences – Extreme weather
Dependent – EL NINO/LA NINA Phenomena play havoc
THANK YOU.
SRI LANKA TEA BOARDE-mail: [email protected]
a.com
THANK YOU.
SRI LANKA TEA BOARDE-mail: [email protected]
a.com 33