Even as Sri Lanka grossed more revenue over 2010, tea production dipped marginally in 2011, according to statistics released by brokers.
In 2011, the production totalled 328.3 million kg against 331.4 mkg in 2010, said Forbers and Walker Tea Brokers. While high growns remained more or less static, mediums declined by 2.9 mkg and whole low growns gained a little. In 2011, Sri Lanka netted about $1.5 billion.
Volatility in export markets, too, has posed a huge challenge to Sri Lankan tea. Right now, Sri Lanka's largest markets are Russia and West Asia. “We cannot put all our eggs in one basket and we will be spreading our markets not to depend too much on one particular market or region,” said Sri Lanka Tea Board Chairperson Ms Janaki Kuruppu on the sidelines of the 20th session of the Food and Agricultural Organisation's Inter-Governmental Group on Tea held here.
“We are first going to the region where we think we have the immediate potential. [In] some markets we have to develop new products because the consumers are asking for something else. Right now we are putting our long-term marketing plan in place,” she said when asked if Sri Lanka was considering the US and China for higher exports. China is one market that Sri Lanka is concentrating on now.
The eighth session of the producer/consumer member meeting of the international tea committee and a half-day session on climate change preceded the global forum. The inter-governmental sessions focuses on areas related to production, marketing, pricing and consumption of tea faced by the global industry players with a way forward for the next 10 years.
Sri Lanka is also pushing for an international tea producers' forum to discuss issues of producer nations. This was formally proposed by the Sri Lankan Plantation Industries Minister, Mr Mahinda Samarasinghe, at the inaugural session. While producers meet behind closed doors, as part of the inter-governmental deliberations, Mr Samarasinghe wants the producer nations to have closer interactions.