ceylon tea industry

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Introduction History of Ceylon TeaTea Growing Areas in Sri LankaTea producing processEnvironmental AnalysisTea Hub ConceptRecommendations for industry Conclusion


Names Index NumberWijekumara K.G.M.MADBM-F-151143Rishan M.P.IADBM-F-151114Yasanthi J.A.RADBM-F-151149Rankapuge Y.LADBM-F-151111Peiris L.K.A.DADBM-F-151093Karunathilake R.S.KADBM-F-151065

Tea is globally one of the most popular and lower cost beverages.Tea is consumed by a wide range of age groupsEven 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


History of Ceylon Tea1867 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 LankaSources-Sri lanka tea Board,2011 annual report

Tea producing process

Tea PluckingWitheringRollingSorting TeasTea Bag PackingPackingCarton PackingStoring

Current situation of Environmental factors

Political & Legal environmentTechnological environment

Environmental factorsEconomical environmentSociocultural environment


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 2013The average price received by tea smallholders for green leaf increased to Rs.68 per kg in 2014 from Rs.65 per kg in 2013

Source-CBSL 2014 Annual report


Rs. MillionYearsSource-CBSL 2013 Annual report

Tea export sector

Sociocultural environmentSocial culture is the most basic course of a persons 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 environmentMaturity 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 EnvironmentDemographic DistributionDistrictTotalpopulationNo. ofestatesEstatepopulation% of populationon estatesKandy District738,00062581,47631.53Badulla District309,00013015,55512.06Matale District654,00011113,05218.2Kegalle District482,000403,7903.6Ratnapura344,000373,2273.5Nuwara Eliya District443,000213080.85Kurunegala District335,000212,3931.15Matara District654,000111,0720.75Total3,979,000996123,65411.84

Average daily wage of tea industry

Source-CBSL 2013 Annual report

Natural Environment

Landscape -:

High vacancy rate is a contributory factor for low productivity in mid country tea landsLow 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 NO. OF RAINY DAYSYEARSSource-CBSL 2013 Annual report


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

RecommendationsGovernment & 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


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