ceylon tea industry

CEYLON TEAINDUSTRY

Introduction

History of Ceylon Tea

Tea Growing Areas in Sri Lanka

Tea producing process

Environmental Analysis

Tea Hub Concept

Recommendations for industry

Conclusion

Content

Names Index Number

Wijekumara K.G.M.M ADBM-F-151143

Rishan M.P.I ADBM-F-151114

Yasanthi J.A.R ADBM-F-151149

Rankapuge Y.L ADBM-F-151111

Peiris L.K.A.D ADBM-F-151093

Karunathilake R.S.K ADBM-F-151065

Tea is globally one of the most popular and lower cost beverages.

Tea is consumed by a wide range of age groups

Even though tea is not indigenous to Sri Lanka and is an area where the country can take a lot of pride.

Tea Industry have dominated history The tea industry was introduced to Sri

Lanka in 1867 by Mr. James Taylor

Introduction

History of Ceylon Tea• 1867 saw the first commercial field of tea (19 acres).

Some estates already had played with tea in 1840.

• 1873 - 23 lbs. of tea exported to London.

• 1883 - 30,000 acres of tea established. 1,665,768 lbs

of tea exported

• 1884 - 70,000 acres established

1900 - 384,000 acres established. 1965 a peak of

590,000 acres. By 1997 worth 44 billion Rs. Over 90

% of this total production was exported to the U.K.

who to day takes less than 3 million kilos of tea

from this island.

• 2006 – Total production reached 310.8 Million kilos

(683.76 Million Lbs.)

sources -: S.L. Tea Board official web page.

Tea Growing Areas in Sri Lanka

Sources-Sri lanka tea Board,2011 annual report

Tea producing process

• Tea Plucking• Withering• Rolling• Sorting Teas• Tea Bag Packing• Packing• Carton Packing• Storing

Current situation of Environmental factors

Political & Legal environment

Technological environment

Environmental factors

Economical environment

Sociocultural environment

Demographicenvironment

Natural Environment

Political and Legal environment

Sri Lanka tea board(SLTB),Tea Research Institute(TRI) and Tea Small Holdings Development Authority(TSHDA) continued regulatory and development activities for the Development of the tea sector in 2014.

15 Tea factories were modernized in 2014 under the factory modernization subsidy scheme(FMSS).

SLTB established a fund for Tea promotion and marketing in 2010.

Source-CBSL 2014 Annual report

SLTB successfully implemented a program “Best Leaf 60”

SLTB suspended the registration of tea factories which showed Low Net Sales Average (LNSA)

Due to non compliance of GMP standards while increasing the fine imposed under the Tea control act up to Rs.500000 from Rs.50000 for such factories

Budget proposal

Establishing a committee in cooperation with government and privet sector in order to face the problems of price reduction.

Source-CBSL 2014 Annual report and 2016 budge proposal.

Economic environment

Tea prices at the Colombo Tea Auction

(CTA)remained buoyant in 2014 except during the

last quarter of the year.

The average tea prices in 2014 increased to

Rs.461.86 per kg from Rs.444.42 per kg in 2013

The average price received by tea smallholders for

green leaf increased to Rs.68 per kg in 2014 from

Rs.65 per kg in 2013


2009 2010 2011 2012 20130

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

64,47672,314

67,89675,201

88,540

Tea productionRs

. Mill

ion

Years


Tea export sector

Sociocultural environment

Social culture is the most basic course of a person’s wants and behaviors. Every group or society has a cultural influences or buying behaviors may vary greatly from country to country.

Cultural aspects, health consciousness , population growth rate ,age distribution

Organizational culture , attitudes to work management style , staff attitudes.

Ethical issues , diversity , immigration ethnic ,religious factors.

Media views , law changers affecting social factors , trends , advertisements , publicity .

Demographics age gender race family size.

Tea Technology and Value Addition Degree Program started at Uva wellassa university.

Technological environment

Maturity of technology competing technological department research

funding technology legislation new discoveries.

Information technology internet global and local communications.

The highest percentage of the tea production goes to labor wages.

The second generation of Indian labors are not willing be the workforce

of plantation.

There is no much technology advances find in tea industry – tea plucking

machines.

Distribute machinery and equipment among a small holders through tea factories with a view to popularizing mechanization

It is a study of human population in terms of size, destiny, location, age, gender, race, occupation and other statistics.

Demographic Environment

Demographic DistributionDistrict Total

populationNo. ofestates

Estatepopulation

% of populationon estates

Kandy District 738,000 625 81,476 31.53Badulla District 309,000 130 15,555 12.06Matale District 654,000 111 13,052 18.2Kegalle District 482,000 40 3,790 3.6Ratnapura 344,000 37 3,227 3.5Nuwara Eliya District 443,000 21 308 0.85Kurunegala District 335,000 21 2,393 1.15Matara District 654,000 11 1,072 0.75Total 3,979,000 996 123,654 11.84

20132014

0

100

200

300

400

500

600

700

800

900

Malefemale

year

Rs..

Average daily wage of tea industry


Natural Environment

Landscape -:

• High vacancy rate is a contributory factor for low productivity in mid country tea lands

• Low country has higher percentage of VP tea that gives higher yield compare to low VP percentage in mid and high grown area.

Source-Tea Board

Climate

2008 2009 2010 2011 2012 20130

50

100

150

200

250

179.6 180.2 177

213

149170

Series 1

Series 1

NO

. OF

RAIN

Y DA

YS

YEARSSource-CBSL 2013 Annual report

AGRO-CLIMATIC TEA GROWING REGIONS OF SRI LANKA

Set up free trade zone (FTZ) within Sri lanka.

Allow enterprises and Dilmah to set up blending facilities.

Liberalize tea imports from other countries.

Enforce 50% -70% Ceylon tea in the blending process,

New logo enable differentiation between pure Ceylon tea and FTZ tea.

Test market and expand.

Benefits from blending and commercialization are directly passed on to the producer in Sri lanka

THE TEA HUB CONCEPT

Recommendations Government & cultivators try to add new facilities

of tea cultivation improve production. –change

stock ,use new technology for packing tea packets.

Introduce new procedures in tea processing & new

machineries to the industry.

Government should take necessary action to curve

these illegal exporting rackets.

Introducing tea picking machines for providing an

attractive salary to workers.

Government should provide necessary incentives to

the small scale tea planters to

encourage them.

Find new foreign markets from trade agreements.

Government should pay their attention to improve

infrastructures to develop distribution system & other

facilities.

Training workers about technical side &

management sides.

Introduce different taste & aroma of tea to markets

– flavored tea ,ice tea

Conclusion

Thank you for the

participation

ceylon tea industry

Education