Sri Lankan Tea Exporters to target 1000 MT exports to China 2008




(October 22, Beijing , Sri Lanka Guardian) Sri Lanka participated at the Beijing China Tea Expo held from 12 -15 October at the China World Exhibition Center, promoting Ceylon Tea at a very high profile and the biggest tea show in China. Center stage was captured by Sri Lanka and Ambassador Karunatilaka Amunugam was interviewed by the organizers, where he explained in detail the fine quality of Sri Lanka Black Tea and the potentiality it has for securing a bigger share in the Chinese market.

More than 1000 varieties of Tea brands and over 500 produces/companies attended the Fair. A flair for black tea is rapidly gaining ground amongst the Chinese people, which will create a host of opportunities for the Sri Lanka tea industry to capture the ever growing Chinese Market. Sri Lanka is slowly but steadily building a reputation in China as exporter of the World’s finest black teas.

Tea Industry in Sri Lanka has performed exceptionally well in the Chinese market and achieved a remarkable growth of more than 65% in comparison with export figures for 2007. This outstanding growth continued in 2008 due to the strong and unswerving effort by tea exporters who were guided and led by the Embassy of Sri Lanka in China and the Tea Promotion Unit of the Sri Lanka Tea Board.

Commonly known as red tea (hong cha), black tea accounts 1-2 % of China's huge RMB 80 billion tea market. However innovative marketing strategies adopted by the Sri Lanka industry such as different flavours and modern packaging are winning new consumers from the younger generation. The results clearly indicate that though black tea consumption is a new experience, it is gaining a wider popularity in China. The volume of exports which stood at 172 MT in 2003 has merited in a gradual increase recording its highest in 2007 with 967 MT. So far this Sri Lanka has exported 765 MT and it is expected to exceed a record of 1000 MT mark for the first time ever by December 2008.

As a result of representations made by the Embassy of Sri Lanka in Beijing, adjustments were made to the tariff regulations in the year 2007 by the Chinese Customs with regard to Ceylon Tea giving the industry the much needed boost in its growth. Sri Lanka tea exporters enjoy a preferential Tariff rate of 7.5% under APTA as against the general tariff of 15% to China.

Furthermore the Embassy together with the Sri Lanka Tea Board led promotional campaigns at several high profile trade fairs held in main cities such as Beijing, Shanghai, Tianjin, Jilin, Macau SAR, Shaanxi, Guangzhou and Kunming covering a wide area of the Chinese territory affording excellent opportunities for the growth of Ceylon Tea in the rapidly developing hospitality and retail markets in China.

At the recently concluded Tea Expo, four tea companies exhibited their Products, namely the BPL Teas (Pvt) Ltd, Eswaran Brothers Exports (Pvt) Ltd, Gemi Teas Colombo Pvt Ltd and Imperial Tea Exports (Pvt) Ltd, yielding a very high feed back with all projections of China becoming one of the top emerging markets for Sri Lanka teas. During these events exhibitors established contacts with potential buyers and they received many inquiries for Imports/dealership/local agents.

The Commercial Section of the Embassy together with the Sri Lanka Tea Board organized the Sri Lanka participation at the Expo. The objective was to minimize the cost while gaining the maximum positive results. Sri Lanka Tea Exporters pointed out that the Beijing Tea Expo should be a regular feature in the promotional calendar of the Sri Lanka Tea Board with a focus on the gradual increase of the number of exhibitor.
- Sri Lanka Guardian