SRI LANKA – Sri Lanka has taken a significant step towards enhancing its tea industry’s sustainability by signing a Memorandum of Understanding (MoU) to establish the country’s first national standard for sustainable tea production.
The MoU, signed between Sri Lanka’s Ministry of Agriculture and Plantation Industries and Unilever Sri Lanka, underscores a mutual commitment to advancing the Sri Lankan tea industry towards a more sustainable and ethical future.
Unilever Sri Lanka’s ‘Ceytea’ factory, a major supplier of black tea extract to the Global Pepsi-Lipton JV, stands as a beacon of innovation and sustainability in value-added tea production.
Damith Abeyratne, Unilever Sri Lanka Supply Chain Director said, “This collaboration with the Ministry of Agriculture and Plantation Industries is a significant step forward in our efforts to drive sustainable sourcing of agricultural raw materials under the Unilever Climate Action Transition Plan.
The initiative positively benefits ‘Ceylon Tea’ because today’s global demand is for sustainably farmed agricultural produce.”
B.L.A.J. Dharmakeerthi, Secretary of the Ministry of Agriculture and Plantation Industries, hailed the partnership as a crucial step towards bolstering the global competitiveness of the Ceylon Tea industry.
He emphasized that the MoU reflects Sri Lanka’s commitment to establishing itself as a leader in ethical and sustainable tea production.
The proposed national standard aims to address three key areas: minimizing environmental impact through regenerative and deforestation-free agriculture, ensuring fair treatment for tea industry workers through ethical workplace practices, and guaranteeing the safety and quality of Sri Lankan tea through stringent testing and monitoring procedures.
Sri Lanka, ranking among the top five tea exporters globally, has witnessed steady growth in tea exports despite challenges.
According to the Sri Lanka Tea Board (SLTB), export value increased to US$1.31 billion in 2023, albeit with a lower volume of tea compared to the previous year.
Exports earned US$1.26 billion in 2022, reversing declines in 2020 and 2021. Sri Lanka tea shipments accounted for 15.7 percent of global exports by value in 2022.
Tea production saw a modest increase of 1.7 percent to 256 million kilos, maintaining an average export price of US$5.41 per kilo.
The announcement coincides with Browns Investment’s move on Limuru Tea in Kenya, signalling potential developments in the global tea industry landscape.
Through its subsidiary B Commodities, Sri Lanka’s Browns aims to acquire a majority stake in Limuru Tea, whose shares are listed on the Nairobi Securities Exchange.
The move follows Browns’ successful takeover of James Finlay last year and its interest in acquiring Lipton Kenya’s assets, pending regulatory approvals.
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