Sri Lanka’s tea industry to launch Rs. 4.5 billion international marketing campaign targeting 12 countries
Sri Lankan government has reportedly taken steps to launch a Rs. 4.5 billion international marketing campaign to promote the country’s tea industry across 12 countries. Sri Lankan authorities have signed an agreement with Dentsu Grant to promote Ceylon Tea overseas.
According to local media reports, a Rs. 219 million media contract to commence the global marketing campaign was signed at the Sri Lanka Tea Board on Wednesday in the presence of Plantations Minister Navin Dissanayake and other officials.
The campaign is expected to help Sri Lanka meet its 2018 target of 320 million kilos and earn an estimated US$ 1.65 billion.
Tea is Sri Lanka’s largest foreign exchange earner, recording US$ 1.53 billion last year.
The country’s tea crop has risen by 5% from 292 million kilos to 307 million kilos between 2016 and 2017. On average, auction prices have reached US$ 4.07 per kilo in 2017 as against US$ 3.19 per kilo during 2016, which was markedly higher than the prices fetched at tea auctions in Chittagong, Kolkata and Mombasa.
Exports were 289 million kilos and the average price was Rs. 807.44 per kilo. Total exports during 2017 showed a marginal increase of 213,587 kilos over 2016.
The cess collected from each kilo of tea exported was funneled into a fund since 2011 and will provide the money for the international marketing campaign.
Dissanayake has told the media that he was extremely positive of the move and expressed expectations for a stable 2018 for the tea industry.
OSL take:
The launching of the mega international marketing campaign to promote Ceylon Tea in overseas countries would result in Sri Lanka’s tea exports recording a further growth, in keeping with the existing growth momentum. Therefore, tea exports from Sri Lanka are tipped to yield handsome financial returns. It would be an opportune moment for foreign businesses/investors to enter into Sri Lanka’s tea industry.
| Article Code : | VBS/AT/20180326/Z_1 |