Sri Lanka Tea Sri Lanka Tea IndustryIndustry

Hasitha De AlwisHasitha De AlwisDirector (Promotion) Director (Promotion) Sri Lanka Tea BoardSri Lanka Tea Board

Sri Lanka – Wonder of AsiaSri Lanka – Wonder of Asia Island is united ending 30 years long conflict.Island is united ending 30 years long conflict. Multi-ethnic, multi-cultural, multi-religious and multi-Multi-ethnic, multi-cultural, multi-religious and multi-

linguistic nation once again in harmony.linguistic nation once again in harmony. Immense opportunities for sustainable growth in all Immense opportunities for sustainable growth in all

sectors and tea industry is no exception.sectors and tea industry is no exception. Probably the safest country today in South Asia.Probably the safest country today in South Asia. Peace dividends results in leap-frog development in Sri Peace dividends results in leap-frog development in Sri

Lanka’s infra-structure & other sectors of economy. Lanka’s infra-structure & other sectors of economy.

INTRODUCTIONINTRODUCTION Sri Lanka tea industry proudly celebrates 145 years of

commercial history in 2012.

Tea industry continues to occupy a pivotal position in terms of foreign exchange earnings & employment.

Tea export earnings reached USD 1.5 Billion in 2011 a historical high contributing 15% to the nation’s foreign exchange.

Generating 65% of export agriculture revenue, tea industry contributes approx. 2% of island’s GDP.

With 2 Million employed directly & indirectly 10% of the population of Sri Lanka depends on the industry.

AGRO-CLIMATIC TEA GROWING AGRO-CLIMATIC TEA GROWING REGIONS OF SRI LANKAREGIONS OF SRI LANKA

YearHighGrown (%)

MidGrown (%)

LowGrown (%) Total

2005

80.3 25

55.1 18

181.7 57 317.1

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

SRI LANKA TEA PRODUCTION SRI LANKA TEA PRODUCTION ELEVATION WISE (Mn. KGS)ELEVATION WISE (Mn. KGS)

CATEGORY-WISE TEA PRODUCTION CATEGORY-WISE TEA PRODUCTION (Mn.KGS)(Mn.KGS)

  200

6 (%)200

7 (%) 2008 (%)200

9 (%) 2010 (%) 2011 (%)

Orthodox 288 93 283 93 297 93 271 93 310 94 303 92

CTC 18 5 16 5 17 5 16 5 18 5 22 7

Green Tea 3 1 4 1 3 1 2 1 3 1 3 1

Others 2 1 2 1 2 1 2 1  -  -  -  -

Total 311100

  305 100  319 100  291 100  331 100 328 100

AREA OF TEA PLANTED IN SRI AREA OF TEA PLANTED IN SRI LANKALANKA

Elevation Planted (Ha) Share

High Grown 41,13741,137 19%19%

Mid Grown 71,01871,018 32%32%

Low Grown 109,814109,814 49%49%

Total 221,969221,969 100

SRI LANKA TEA EXPORTS SRI LANKA TEA EXPORTS (Mn. KGS)(Mn. KGS)

2006 2007 2008 2009 2010 2011

Bulk

197.8

179.9

178.0

164.6 176.8 179.9

Packets

79.4

72.7

84.3

75.5 89.8 95.8

Tea Bags

19.1

22.0

20.3

18.7 25.7 24.6

Others

18.6

19.7

18.6

21.2 1.8 2.9Re-Exports

12.5

15.6

18.6

10.6 18.6 20.5

Total

327.4

309.9

319.8 290.6

305.7 323.7ValueBillion

USD 0.882 1.01 1.26 1.18 1.37 1.51

Year Qty (MT)Value

(Rs. Mn)Value

(USD Mn)

2005 11,456 4,154 41.33

2006 12,499 5,330 51.202007 15,597 6,617 59.802008 18,577 10,683 98.61

2009 10,574 5,089 44.27

2010 18,607 11,567 102.30

2011 20,529 13,363 118.30

RE-EXPORTS RE-EXPORTS (CEYLON TEA BLENDED WITH OTHER ORIGINS)(CEYLON TEA BLENDED WITH OTHER ORIGINS)

Tea Imports to Sri LankaTea Imports to Sri Lanka

Year Quantity (Kgs) Value   Value 

    (Rs. Million ) (USD M.)2007 13,683,732 3,141.6 28.562008 14,598,248 3,754.8 34.13 2009 9,960,129 2,979.4 27.08 2010 12,172,753 3,768.0 34.25 2011 11,406,044 3,770.4 34.28 

Tea Imports to Sri LankaTea Imports to Sri Lanka(Country Wise)(Country Wise)

2009 2010 2011India  4,708,695 4,776,141 4,353,513

China  1,755,521 2,802,873 2,895,761

Kenya  2,867649 3,871,167 3,690,453

Vietnam  240,725 352,203 97,909

Indonesia  203,260 207,068 182,620

Malawi 129,580 143,104 150,660

Germany 33,080 10,805 23,898

Taiwan 8,888 7392  -

Japan 5,600 900  -

U.K 5,130  - 9980

Nepal 2,001 1100 1250

TOTAL 9,960,129 12,172,753 11,406,044

Qty in Kgs.

2009Country Qty. % Russia 42.4 15.1UAE 30 10.7Syria 29.4 10.5Iran 27.7 9.9Turkey 15.7 5.6Jordan 13.4 4.8Kuwait 10.1 3.6Iraq 9.8 3.5Japan 9.5 3.4Libya 8.1 2.9

2010Country Qty. % Russia 45.5 15.2UAE 29.6 9.9Iran 27.6 9.2Syria 26.3 8.8Turkey 18.4 6.2Jordan 17.3 5.8Iraq 13.6 4.6Libya 10.9 3.7Kuwait 10.8 3.6Japan 10.3 3.4

MAJOR DESTINATIONS FOR CEYLON TEA MAJOR DESTINATIONS FOR CEYLON TEA

2011

Country Qty %Russia 47.3 14.8Iran 30.8 9.6Syria 28.5 8.9Iraq 22.2 6.9UAE 21.5 6.7Turkey 18.9 5.9Azerbaijan 11.8 3.7Japan 11.3 3.5

Kuwait 9.1 2.8

Ukraine 7.8 2.4

DOMESTIC CONSUMPTIONDOMESTIC CONSUMPTION

Year Qty. (Mn. Kgs) Approx.

2005 27.52006 27.52007 28.02008 28.52009 28.52010 28.42011 28.9

DISTRIBUTION CHANNELSDISTRIBUTION CHANNELS

Type Percentage

Supermarkets 25% Grocery retailing 30% Convenience stores 30% Tea Shops / Tea Houses 5%

Others 10%

TYPE OF PRODUCTSTYPE OF PRODUCTS (Domestic Market ) (Domestic Market )

Domestic Market

Volume 2010 2011

Value 2010 2011

Loose Tea 68%68% 67%67% 61%61% 59%59%

Packet Tea 30%30% 30%30% 36%36% 37%37%Tea Bags 2%2% 3%3% 3%3% 4%4%

Value Growth on Consumer Prices for Value Growth on Consumer Prices for Share of Throat Share of Throat

Item Share of Throat

Value Growth

(per Annum)

Average Price

Tea 26.5% 9% Rs. 715/KgCoffee 2.5% 22% Rs. 1,335/KgMalt 15.5% 23% Rs.167/Ltr Soft Drinks (Carbonated)

36.0% 43% Rs.124/Ltr

Others 19.5%

Household Expenditure Household Expenditure

Food & drink40%

Other19%

Cultural Entertainment

2%

Education3%

Consumer durables

3% Transport & Comm's 10%

Personal & Health care

5% Housing11%Fuel & Light

4%

Clothing & personal effects

3%

2009/2010 (Rs. 1,750B.)

Monthly Household Expenditure Rs. 32,446/-

2005 2011(Est/Prov)

Real GDP  Growth  6.2 8.3GDP (US $) 24.4 59.1GDP per capita (US $)  1,241 2,830Trade :   Exports (US$ bn) 6.3 10.5                Imports  (US $ bn) 8.9 20.0Workers’ Remittances (US$ bn) 1.9 5.2Tourist Arrivals (‘000) 549 850Earnings from Tourism (US $ bn)  0.3 0.8FDI (US$ bn)  0.3 1.0

MACRO ECONOMIC FUNDAMENTALS IN SRI LANKA2005 VS. 2011

Hasitha De AlwisHasitha De AlwisDirector (Promotion) Director (Promotion) Sri Lanka Tea BoardSri Lanka Tea Board

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