Lumbini Tea Factory achieves world’s first group ‘regenagri’ certification
Daily FT: Lumbini Tea Factory Deniyaya was awarded the world’s first group ‘regenagri’ certification for regenerative agriculture practices on behalf of the 1,515 dedicated contract farmers through the assistance of the United States Agency for International Development (USAID).
‘regenagri’ is an international regenerative agriculture program for securing the health of the land and the wealth of those who live on it.
Control Union Inspections Ltd. Sri Lanka Managing Director Roshan Ranawake handed over the certification to Lumbini Tea Valley Managing Director Chaminda Jayawardhana at a simple ceremony held at Lumbini’s retail outlet ‘Tea Tent’ at Havelock City mall.
“We are thrilled that Lumbini Tea Farmers have achieved ‘regenagri’ certification, a testament to their commitment to eco-friendly tea cultivation. This achievement would not have been possible without the invaluable support of the USAID and the dedication of our farming families,” said Jayawardhana.
He added that the 1,515 contracted outgrowers cultivate approximately 937.87 hectares and are paid a premium price for the green leaves they produce.
Sri Lanka’s tea industry is a key economic pillar, contributing 4% to the GDP and serving as a major source of foreign exchange. Despite its importance, the industry faces challenges, such as fluctuating prices, rising production costs, and climate change. The USAID’s CATALYZE Private Sector Development (PSD) Activity partnered with Lumbini Tea Valley to promote sustainable agricultural and fair-trade practices through its Food Solutions initiative, which is essential for the long-term viability and resilience of the tea industry.
USAID Acting Mission Director Justin DiVenanzo said: “The partnership between Lumbini Tea Valley and the United States through the USAID addresses critical challenges plaguing the agricultural sector, including escalating production costs and limited market access.”
“The certification of farmers in sustainable agriculture practices will facilitate access to new, higher-value niche markets, leading to higher incomes. We hope this achievement inspires other companies and farmers to adopt these practices, bringing a greater positive impact on the agricultural sector,” he added.
The ‘regenagri’ certification sets a new standard and underscores the benefits of such practices, including improved soil health, increased crop yields, and enhanced livelihoods for farmers.
Additionally, it opens up new market opportunities and potentially higher prices for their produce, as consumers increasingly seek sustainably sourced products.
OSL take:
Sri Lanka’s tea industry is on a growth path with a target of regaining the top slot enjoyed by local teas, popularly known as Ceylon Tea, in the international market. There has been a steady growth in the prices fetched by locally produced teas in the local as well as international markets in the past few months. This is an indication of the growing business potential in Sri Lanka’s tea industry and the expanding business/investment opportunities in the local industry. Given these developments, foreign businesses/investors could explore the expanding business/investment opportunities in the growing tea industry in Sri Lanka.
| Article Code : | VBS/AT/20241011/Z_4 |