Cabinet approval received for the global tea marketing campaign will have positive results in reversing the negative effects at the Colombo tea auctions, HVA Foods Chairman, Rohan Fernando said in the company’s annual report for 2014/2015.
“For five long years, when the tea prices enjoyed a premium at the Colombo Auction, the top bureaucrats were comfortable in assuming that prices will continue to maintain high levels and purposely delayed the global marketing campaign. What we are seeing today are the ill effects of bad decisions taken in the recent past.” Fernando said.
The company will make use of the newly announced scheme for the promotion of indigenous tea brands to propagate Heladiv globally. The scheme which was just launched will disburse a matching grant of Rs. 50 million per company.
The past year has been one of the most difficult periods for the entire tea industry. Sri Lanka’s traditional importing countries continue to experience economic hardships arising out of war, civil commotion and trade sanctions imposed by the US and the Western allies.
The countries affected are the largest buyers of Ceylon orthodox teas, namely Russia, Ukraine, Iran, Syria, Libya and Iraq. Exports to these countries amount to more than 60% of the total exports out of Sri Lanka."There is no need to panic over the current decline in tea prices, as the prices are directly linked to the globalsupply and demand position. Unfortunately, most people have not understoodthis economic phenomenon but blindly hold the tea exporters responsible for the low prices,"Fernando said.
The company has plans to go after two of the biggest markets in the world, China and India to have a strong foothold. Whilst company’s Chinese operations have progressed to 55 tea cafes and outlets, further expansion is anticipated through Heladiv products being marketed online in China.
“India is still a distant dream but with contacts established recently we hope to make an entry soon. Both China and India represent nearly 40% of the world population and both are tea producing and consuming countries. Hence one cannot afford to ignore these giants in global consumerism however hard it may be to overcome the indirect trade barriers practiced by them.
Heladiv hails Govt’s Rs 50 m tea promotion grant scheme
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