Revitalising Ceylon Tea: Call for modernisation and strategic transformation

by Dammike Kobbekaduwe,
FIPM(SL),Member-CIPM-SL-MBA(HRM)www.vivota.lk

Ceylon Tea, celebrated for its unparalleled quality and heritage, is at a critical juncture. Despite its esteemed global reputation, the industry struggles under outdated practices, structural inefficiencies, and resistance to reform. Addressing these challenges requires a paradigm shift in management, productivity, labour practices, and marketing strategies. This article outlines actionable solutions to transform the tea industry, ensuring its sustainability and global competitiveness while restoring its golden era.

Objectives

Modernise the Business Model: Transition from a colonial, commodity-driven framework to a value-added, consumer-centric approach.

Enhance Yield Per Hectare (YPH):

Employ precision agriculture and innovative planting techniques to achieve sustainable productivity.

Attract and Retain Talent:

Establish fair compensation systems and modern human resource practices to address labor shortages.

Develop Unique Selling Products (USPs):

Create artisanal and medicinal tea products backed by stringent national and international standards.

Integrate Value Chain Management (VCM):

Implement holistic VCM practices to optimise profitability and sustainability across the supply chain.

Key Challenges and Proposed Solutions

Challenge 1:

Low Yield Per Hectare (YPH)

Current yields remain far below the potential, with many skeptics questioning the feasibility of improvement. However, evidence from the Dias method of high-density planting and selective plucking demonstrates that yields of 4,000 kg of black tea per hectare per annum are achievable.

Proposed Solutions:

Adopt Precision Agriculture:

Tailor agricultural practices to specific environmental conditions for maximum efficiency.

Implement High-Density Planting:

Increase planting density and optimise leaf plucking intervals for higher yields.

Promote Research and Training:

Educate estate managers on advanced agricultural techniques and crop management.

Challenge 2:

Talent Shortages and Outdated Compensation Models

The plantation sector faces a growing labor shortage due to inadequate compensation systems and limited worker incentives.

Proposed Solutions:

Introduce a Total Compensation Model: Ensure wages reflect productivity, include livable wage components, and provide non-monetary rewards.

Tri-Partite Discussions:

Facilitate wage negotiations involving employers, workers, and policymakers to establish a fair and transparent system.

Launch Voluntary Pension Schemes:

Secure long-term financial stability for workers to boost retention and morale.

Challenge 3:

Limited Value Addition and Branding

Privatisation in 1992 aimed to drive value addition and marketing, yet progress has been minimal.

Proposed Solutions:

Develop Herbal Medicinal Beverages (HMB): Position teas with unique health benefits under the brand “Ceylon Certified Tea” (CCT).

Establish Quality Standards:

Collaborate with the Sri Lanka Standards Institute (SLSI) to implement ISO 9001:2015-aligned marketing standards.

Leverage Scientific Metrics:

Use polyphenol content and other measurable parameters for grading, pricing, and branding.

Challenge 4:

Inefficiencies in Marketing and Governance

Fragmented tea grades and poor regulation of categories like “Refuse Tea” undermine the industry’s credibility. Additionally, the absence of skilled professionals in decision-making roles exacerbates inefficiencies.

Proposed Solutions:

Streamline Tea Grades:

Reduce the number of tea grades and regulate “Refuse Tea” to eliminate malpractice.

Appoint Qualified Professionals:

Assign experts to leadership roles in regulatory bodies like the SLSI to ensure accountability and informed decision-making.

Integrate Tourism with Tea Marketing:

Strengthen the link between the Tea Museum at Hanthana and tourism boards to promote tea’s health benefits globally.

Challenge 5:

Lack of Value Chain Management

Despite its potential, value chain management (VCM) remains underutilised, stalling the industry’s progress.

Proposed Solutions:

Introduce Comprehensive VCM Practices:

Focus on structure, strategy, technology, and people to modernise operations.

Provide Managerial Training: Equip estate managers with the skills needed for strategic decision-making and efficient resource allocation.

Promote Collaboration:

Partner with organisations like Vivonta and academic institutions to implement innovative practices.

The Way Forward Collaborative Leadership

The Sri Lanka Tea Board (SLTB) must take a proactive role in driving reforms by engaging all stakeholders and ensuring accountability.

Strategic Partnerships

Collaborate with global consultants, industry experts, and academic institutions to introduce cutting-edge practices.

Policy Reform

Advocate for regulatory changes that incentivise value addition, fair labour practices, and the adoption of modern marketing standards.

Public-Private Cooperation

Encourage public-private partnerships to fund modernisation projects and promote artisanal tea products in international markets.

Consumer-Centric Branding

Rebrand Ceylon Tea as a premium product that emphasises health benefits, sustainability, and cultural heritage to capture a broader global audience.

Ceylon Tea stands at a decisive moment. Without immediate and strategic action, its legacy risks being diminished. By embracing modernisation, value chain management, and innovative marketing strategies, Sri Lanka can reclaim its position as a global leader in the tea industry. This transformation demands the collective effort of the government, private sector, and academia to create a sustainable, prosperous future for Ceylon Tea.