Features
Some suicidal strategies in marketing Ceylon Tea
Lackadaisical approach of Tea Board Secretariat and lack of innovation
(Excerpted from the autobiography of Merrill J. Fernando)
(continued from last week)
The remit of this committee covered, not only the formulation of proposals in respect of the Middle East market, but also included a complete re-evaluation of the existing promotional strategy and the submission of recommendations for the development of a comprehensive promotional plan covering all the important overseas markets. In fact, its scope was wider than that of the Advisory Committee appointed by Minister Jayawickrema in 1980.
The intention was to develop a broad promotional plan, valid for three years initially, to be extended for five years after a review at the end of three years, with amendments introduced, subject to market developments which may have occurred in the interim.
This committee, which met in late 1983, proposed a series of wide-ranging reforms, commencing with the organizational structure of the Promotional Division in the SLTB Head Office and the demarcation of specific priority overseas markets for development. It advocated a system for trade liaison between principal exporters and the promotional division, locations, and functions of overseas bureaus, the restructuring of the overseas tea centres, as well as promotional strategies in respect of each marketing region, based on marketing history and informed projections of future trends. The recommendations were based on a comprehensive analysis of both historical data and current performance.
The committee also evaluated the rules and regulations applicable to tea exports, first set out during the colonial era, and proposed reforms to meet new developments and requirements in marketing tea internationally. One of the key issues was the need for differentiation between bulk exports and value-added, private label exports, especially those destined for sophisticated markets, where Ceylon Tea was waging a difficult battle with already-established multinational brands. What was recommended was undiminished regulatory control, combined with adaptation and innovation where necessary, to market environment dynamics.
However, the absolutely lackadaisical approach of the Secretariat, with its instinctive rejection of innovation, ensured that the proposal submitted by the sub-committee to the Board in April 1984 was not implemented. Finally, it proved to be a futile exercise.
Knowledge is strength
When Egypt, Iraq, Syria, and Libya were free markets, the buying in Colombo, on behalf of these countries, was carried out by several parties in each case. This system generated a healthy competition, resulting in good quality tea, especially the low-grown varieties, fetching attractive prices with benefits to the grower as well. Eventually, in most of these countries the tea buying was assigned to central, government corporations, each representing 20 to 30 importers.
Egypt and Iraq established their own buying offices in Colombo, whilst others sent out sourcing delegations from time to time. Tea was frequently purchased through tender procedures. The general result was an unhealthy competition in the country, with local exporters vying with each other to secure the business by lowering prices. The system of large forward contracts, which then came into being, resulted in significant volumes being offered at below prevailing prices, with no consideration for potential price movement dynamics, thus guaranteeing an auction price depression for several months in to the future.
Had we established a common marketing initiative for Ceylon Tea, at the time that the Gulf Corporation Council came in to being, many of the adverse impacts on our tea prices, as described
above, would have been countered by the influence of a combined front, representing Ceylon Tea in the Gulf region.
Consumption patterns vary from region to region, subject to historical preferences, lifestyle, and economic power and, in recent decades, the overpowering influence of multinational traders with persuasive brand promotion strategies. Variations in the latter factors stimulate changes in consumption habits, and an intimate, up-to-date knowledge of such market dynamics is essential, in order for any exporter to stay in the competition. Unfortunately, neither the SLTPB nor the SLTB possessed either awareness or capability, in-house, for them to be able to advise the local exporter on effective overseas marketing strategy.
Given that of all the major tea growing nations, Sri Lanka exports the maximum proportion of its production an average of over 90% annually overseas marketing expertise had to be both a primary focus and a major strength, of our State tea trade regulatory bodies. However, what should have been our greatest strengths were, in reality, our most glaring weaknesses.
The inability to identify and prioritize promotional opportunities and to exploit them at the correct time were among the main shortcomings of both our private tea sector entities and the State bodies responsible for overseeing and regulating the tea industry. This absence of enterprise also reflected our ignorance of market realities. The lack of both foresight and initiative demonstrated in the case of the Middle East market, when it was ripe for development, and later in the case of the Russian market, are very good examples of a submissive, overcautious, and uninformed mindset.
The Tea Board in particular was, for years, quite comfortable in frittering away paltry sums on a multitude of insignificant projects, but balked at allocating even a reasonable budget for a single large project with potential.
Suicidal strategies
Most of our larger exporters were local agents or representatives of multinational or foreign-owned brands, which were then moving from loose-leaf packaging to tea bags, in order to meet a consumer demand created by the multinational giants themselves. As the CTC (Crush, Tear and Curl) type tea, with its strength, uniformity of particle size, and general homogeneity, lent itself easily to tea bag packaging, there was a proposal by members of the CTTA (Ceylon Tea Traders Association) to convert a sizeable proportion of our national production, from Orthodox to CTC.
The stated intent was to eventually convert, over a five-year period, a volume equivalent to about 25% of the national production, drawn from the Low and Mid-Country regions, to CTC. The proponents based their reasoning on the uncritical emulation of the Kenyan model but, actually, were driven by the need to promote the interests of the foreign labels being serviced in the country.
At a meeting of the Sri Lnka Tea Bord (SLTB) at which this matter was first discussed, the then Minister of Plantations, Dr. Colvin R de Silva, and his Secretary. Doric de Souza, were also present. At that point of time I had had no previous acquaintance with either of them. The dominant opinion at the meeting, underwritten and driven by multinational interests, was that we should go with the conversion to CTC manufacture.
Surprisingly, the Minister turned to me and asked me for my opinion. I explained to him in detail the reasons for my opposition to the proposal, but suggested that we could perhaps convert 10% of our
production to CTC, to test the market, and thereafter assess the impact it would have on both prices and selling patterns, of our Orthodox tea.
The Minister immediately requested the Ceylon Tea Propaganda Board to talk to the agency houses and, through them, offer the plantation companies an incentive to manufacture a limited proportion of CTC tea. In fact, the Tea Board provided handsome subsidies for the purchase of machinery.
Had we succumbed to the blandishments of the local servants of the multinational tea bag retailers then, and gone ahead with a large-scale conversion to CTC tea, our wide range of Orthodox tea, which continues to fetch premium prices even today, would have been obliterated by the boring sameness of the CTC product. Prices too would have declined proportionately and, in any event, eventually, we would have lost out to the Kenyan and Indonesian producers, who manufacture and bring the same type of tea to the market at a much lower cost than ours.
It is the artisanal aspect of a large proportion of our manufacture, that is responsible for the variations of style and appearance, which separates Pure Ceylon Tea from the herd. An unregulated conversion of a large proportion of our production to CTC, would have eliminated those features of attractiveness altogether from the Ceylon Tea portfolio.
In this issue as well, the hasty decision making was the result of a combination of flawed logic, ignorance of market realities, and either a lack of understanding of, or a lack of consideration, for the long term impact on our tea industry arising from a sudden, large-scale conversion of our national production to CTC style.
The proposal to convert marginal Mid- and Low-Country plantations to CTC made no sense as, in any event, having failed to produce decent Orthodox tea, the CTC product from such factories would have fared very poorly against the already-established high-elevation competition from North India. Kenya, and some of the other smaller African producers.
Ideally and logically, our CTC production should have been confined to select High-Grown plantations, if it were to offer meaningful competition to then current international market leaders of that type of tea. Since that meeting, in several instances, Doric de Souza sought my opinion on a number of tea industry issues. One such matter was the restriction on auction quantities, which then was limited to 3-3.5 million kilos per auction, leading to accumulation of stocks on plantations, especially during high cropping periods.
The Minister called a meeting of the major exporters to discuss this issue and though I was not in that category then, I attended the meeting at the request of Kenneth Ratwatte, then Chairman of the CTTA. He insisted that I attend at least for a short period, even though at that time I was confined to my home due to ill-health, as he wanted me to explain to the Minister the issues involved.
The Brook Bond and Lipton representatives were totally opposed to an increase of auction quantities, insisting on the continuity of the prevailing limitation of three million kg per auction. Major buyers were also completely supportive of the CTTA position to volume limitation. Finally, the Association relented and, with my total support, the motion to increase volumes to at least 4.5 million kg initially, and to five million kg during cropping months, finally carried the day.
There was no oversupply situation as a result and, subsequently, even larger volumes were disposed of without serious problem. To me, this was another example of the hidebound thinking of the multinationals and their associates, who resisted any kind of change, especially if the change carried even an implied threat to their dominance.
The sad reality is that there has never been a nationally-articulated marketing plan for Ceylon Tea, to place its image before the world, using the unique selling points of singularity of origin, wide grade spectrum, traditional orthodoxy, purity, and quality. Had there been a sustained promotional programme commencing from the 1960s, when Ceylonese-owned firms started to emerge from the daunting shadow of the multinationals, many locally-owned brands would today be out in the international marketplace, competing successfully with the biggest multinationals.
My disillusionment with the Tea Propaganda Board and subsequently with the Tea Board is relevant to their activities of the 1970s and ’80s and is confined to a handful of the bureaucrats in service then. The appointed members of successive boards were, by and large, men of integrity, competence, and vision. In the years following the events described in this narrative, the SLTB, as a body, has been far more proactive and, overall, demonstrated sound judgment in respect of all major issues.
Features
Eastern University and the making of a culture of peace
by Jehan Perera
There is an important change in the way peace is being understood in Sri Lanka. The notion that peacebuilding is not simply the responsibility of governments, politicians and peace organisations, but is also a responsibility of educational institutions, appears to be permeating the consciousness of at least a section of the academic community. This was visible on International Peace Day at an event held at Eastern University by the Faculty of Health-Care Sciences. The event was unusual not least because the medical and nursing faculty of the university had decided that peacebuilding was relevant to its academic and professional responsibilities.
Peacebuilding has too often been treated as something undertaken after conflict, when the fighting has stopped and the immediate task is to rebuild relationships between communities. But peace cannot be sustained by governments and peace organisations alone. If it is to become long lasting, the values and practices of peace have to become part of the institutions through which a society educates its younger generations. Universities and other educational institutions are therefore important to peacebuilding. They are among the places where the foundations of a culture of peace can either be built or neglected.
The experience of the Faculty of Health-Care Sciences at Eastern University provides a practical example of what this can mean. Led by its Dean, Prof Thillainathan Sathaananthan, the faculty organised an event which went beyond the ordinary academic scope of a medical faculty. University academics are experts in writing project proposals and applying for research grants. On this occasion, the members of the Faculty of Health-Care Sciences used those skills to apply for a UNESCO grant that they won to conduct an International Peace Day event. The significance lies less in the Rs 200,000 grant than in the decision to use the university’s institutional capacity and resources to invest in peacebuilding. The event at Eastern University needs to be understood as more than a successful university programme. It represents a possible paradigm shift in peace thinking.
Institutional Commitment
The Peace Day event obtained the support of the university administration, including Vice Chancellor Prof P Peratheepan, and reached out to secondary schools in the vicinity to mobilise their attendance. The event itself was meticulously organised. There were cultural items including traditional and modern dance and song in the three languages, performed by combinations of solo, duet and multiple singers, dancers and actors drawn in part from nearby secondary schools. There was a panel discussion by senior academics on the general theme of peacebuilding and how to prepare for it. A discussion among the students followed, where each student spoke on behalf of a religion that was not theirs. This is significant because peacebuilding cannot remain an idea discussed by specialists at conferences. It has to become part of the way institutions educate and prepare people for life in a plural society.
The Faculty of Health-Care Sciences at Eastern University has provided a model through its Peace Medicine course modules that were introduced to the curricular as a compulsory core course over 10 years ago. Two senior academics, Dr Kuveriel Eliyas Karunakaran and Dr Thillainathan Sathaananthan, have written a book on “Peace Medicine- A Health Care Concern” that was published five years ago. Its Peace Medicine Module integrates principles of medical ethics, compassion, equity, social justice and community engagement into health education and practice. In his introduction, former Vice Chancellor of Eastern University, Prof T Jayasingam noted “This book is an introduction to a theme which had already been operating in the Faculty of Health Care Sciences as a course.”
Doctors, nurses and health workers know better than anyone the harm that war and violence does. They are the people who treat the wounds and trauma that violence leaves behind. In a hospital, a patient is not asked what their religion or ethnicity is before they are treated. Health care is one of the places where peace is practised every day. The Faculty has therefore found a way of connecting its professional responsibilities with the wider social responsibility of peacebuilding. The question is whether this experience can be replicated throughout the country, at universities and at other educational institutions, so that peacebuilding becomes part of the consciousness of education itself. If that happens on a sufficient scale, it can begin to generate a culture of peace that becomes increasingly difficult to reverse.
Local Action
The Eastern University event corresponded closely to the United Nations theme for this year’s International Day of Peace, “Invest in Peace – For Everyone, Everywhere, Every Day”, which honours the “everyday architects of peace”, people driving local action, laying the groundwork for stability and building lasting peace from the ground up. The emphasis on investment is important. An investment means that something is put in: time, courage and resources. There is no more violent conflict in Sri Lanka today. But the absence of war does not automatically produce a culture of peace. The factors that fed the country’s conflict have not disappeared from the world. Racism, corruption and the violation of laws and human rights are the raw materials of conflict. So too are unresolved grievances, discrimination and the failure to recognise the suffering of others.
A country that does not deal with its past does not escape it. The past can return in the next generation. This is why the experience of Eastern University needs to be replicated countrywide, both at universities and at other educational institutions. The objective should not be to turn every academic discipline into peace studies. Rather, peacebuilding needs to become part of the consciousness of education itself. Eastern University shows that a medical faculty can develop Peace Medicine. A law faculty can examine the relationship between justice, rights and peace. Faculties of education can prepare teachers to work in diverse communities, while the humanities and social sciences can examine the different narratives through which communities understand their histories. Every institution can find its own way of making peacebuilding relevant to what it teaches.
Sri Lanka has had many declarations, pledges and programmes in the past. What matters is whether these produce changes in behaviour and institutional practice. Peacebuilding requires confronting difficult issues rather than avoiding them. It requires respect for different identities, but also engagement across those identities. It requires dealing with grievances in the present while also addressing unresolved issues from the past. It requires truth, accountability, reparations and guarantees of non-recurrence. It requires people to learn that the rights of another community do not diminish their own rights. The International Peace Day event at Eastern University was evidence of a change in the way at least some academics in a part of the country deeply affected by war are thinking about their responsibilities. Peace needs to be invested in and the most important investment will be in the minds of those who will inherit the future.
Features
Quality assured education commodities
by Ahilan Kadirgamar
I have always noticed the little paper tags that are inside the packaging of some products that say quality assured or quality control. I often wonder who might have checked the product and stamped that tag, but I also forget the tag soon enough. Decades later, when I entered academia, I was taken aback by the emphasis placed on quality assurance in our universities. It is not something that could be forgotten and done away with; the entire university system is obsessed with quality assurance.
Beginning with the staff induction programme, quality assurance is drilled into the newly recruited lecturers. It is the norm, not seen as doing any harm and only trying to improve quality. It is accepted as given, and not questioned. Quality Assurance Cells and Committees are omnipresent and hover above the Departments and, at times, even the Faculty Boards. Quality Assurance reviews are feared by the Deans and Vice Chancellors. University life itself seems secondary to the rule of quality assurance. What do we make of this system of quality assurance and what are its implications for our university system?
Corporate speak
Universities globally have been going through major changes with neoliberal education policies. In many countries, universities increasingly became corporatised to be run like businesses in the 1980s. As state support for universities declined, cost cutting became the norm. They started hiring adjunct or part-time staff. Many public non-fee levying universities around the world began to charge fees. Decade by decade, tuition fees became more and more exorbitant, forcing students to take student loans. The total student debt in the United States now stands at close to US$ 2 trillion; which is about 20 times the GDP of Sri Lanka. As the higher education landscape transformed in the West, university administrations began to recruit Presidents, Vice Chancellors and administrative officials with corporate backgrounds and experience.
Such corporatisation of universities in the West has since been imported into countries like Sri Lanka, introducing a new corporate vocabulary, including quality assurance, graduate competencies, programme outcomes, intended learning outcomes, etc. University teaching has become secondary to documenting so-called outcomes. The teacher-student relationship, the environment of the lecture hall and even administering the university have been over-determined by the processes of ensuring quality. How did such major changes come about in such a short time? Indeed, academics of just two generation ago, would never have heard of these terms and processes in the Sri Lankan university system.
World Bank Trojan horse
Since the early 2000s there have been a number of World Bank projects that have drastically changed the character of Sri Lankan universities. Quality assurance as a central agenda within universities, and many other changes to the working of our universities, came through these World Bank initiatives. The Improving Relevance and Quality of Undergraduate Education (IRQUE) project and Higher Education for the 21st Century (HETC) project were two such earlier projects that set up the Quality Assurance and Accreditation Unit (QAAU) under the University Grants Commission (UGC) and established systematic quality assurance reviews for state universities. The public often thinks these are grants from the World Bank to modernise our universities. However, they are not grants but loans.
The most recent such project, Accelerating Higher Education Expansion and Development (AHEAD) is a US$ 100 million loan from the World Bank implemented from 2018 to 2023, which consolidated the quality assurance structures from the earlier projects. Furthermore, these projects are implemented with tremendous arrogance, prioritising their implementation over all other concerns in the universities, when the project over six years for example accounts for just one fourth of our budget allocation for universities this year.
The AHEAD project drastically changed course curricula, sought to increase student enrolment in science, technology, engineering, mathematics (STEM) disciplines, commercialise the university research agenda and create university-business linkages. All of this was pushed to supposedly help us face development challenges. We have heard the ideological attack on our universities and even students claiming they are “unemployable graduates”. These changes to our higher education system were supposedly going to create jobs and increase employment.
The irony of the AHEAD project is that just as it was ending in 2023, apparently after having reached its targets, the Sri Lankan economy was collapsing. The World Bank often gets the direction of causality wrong. It is the economy that creates jobs for graduates, and not the training or kind of graduates that create jobs. It is decades of World Bank policies, and those of its ideological twin the IMF, that have led to such high youth unemployment, not only in Sri Lanka but also in many other countries in the global South.
Sri Lanka entered an IMF agreement in March 2023 and started a new Country Partnership Framework with the World Bank in June 2023. These programmes have little to say about, and actively discourage, government initiatives that aim to create an industrial policy or an employment creation policy. Instead, they push for austerity measures, which not only restrict the allocation for education among other sectors, but also end up contracting the economy to the detriment of increasing employment. Their goal is the commercialisation of higher education, to make universities into businesses and run them like factories.
In this context, the ideology of quality assurance is powerful. The International Organisation for Standardisation (ISO), whose different standards are necessary for marketing, is the institution that came up with the concept of “quality assurance”. It promoted quality assurance as a process of identifying defected products. Therefore, when the World Bank promotes this conceptual framing, our students are, in fact, seen as products on the assembly line, with quality assurance processes aiming to prevent the release of defected products from the university system. For the US$ 100 million we borrowed for the AHEAD project and the many more million dollars in similar World Bank projects, there is no evidence of increased employment of graduates.
Commodity fetishism
Over a century and a half ago, Karl Marx critiqued the economic analysis prevalent at that time that associated some inherent or monetary value for commodities without considering the social relations that underlie the production of those commodities. Marx called this commodity fetishism. Furthermore, he theorised that such commodity fetishism was also a reason for the alienation of human beings from the world. If our labour and what we produce is seen devoid of the social relations that underlie them, we lose our connection with the people and the world. In this process we become alienated from what we produce and the world.
We are now in a world where our students themselves are fetishised as commodities for the market. Universities are no longer communities concerned about knowledge and human growth, but mere factories producing commodities, which have to be produced without defects to be marketed. In this way, quality assurance has become the cause for the alienation of students, academics and our universities themselves, from the larger relationship with our economy and society.
Our university system does need reform. It is grossly underfunded and not providing the financial support and facilities for our students. Universities have become hierarchical spaces without the academic freedom and democratic ethos necessary for producing knowledge. Academics and students need to engage more with their communities to make their learning and research meaningful, not to mention their contribution to and integration with society. However, when it comes to even questions of governance and regulation of the universities, such concerns are merely reduced to improving quality. In our contemporary times, this singular focus on quality assurance, as opposed to addressing the larger structural issues, is crippling our universities. There may be no way out, but to put back quality assurance where it started, those little tags on goods, to perhaps be noticed but quickly forgotten.
Ahilan Kadirgamar is a political economist and Senior Lecturer, University of Jaffna.
(Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies)
Features
Thailand’s biggest new global star …
The entertainment scene, globally, is agog with excitement, and, why not!
Yes, a new global star has emerged … from Thailand, and she hit the headlines by winning America’s Got Talent.
Rattikarn Amloy, known to millions by her stage name Nene Royal, was crowned the winner of America’s Got Talent (AGT) Season 21 at the live finale at Pasadena Civic Auditorium, California, taking home the USD 1 million grand prize.
The 16-year-old rocker, from the holiday island of Phuket (I’ve been to Phuket, courtesy Tourism Authority of Thailand), has struck a power chord around the world, and is the first Thai national ever to win the hit NBC show.
She beat nine other finalists, including runner-up magician Geno Ploeger, after a blistering final performance.
Nene’s story is pure rock and roll fairy-tale. She says she picked up a guitar at age seven, fell in love at the first chord, and taught herself mostly by watching videos online. That dedication earned her a music scholarship to Kajonkiet International School Phuket.
Her audition at America’s Got Talent — a swaggering, shredding rendition of The Cranberries’ classic ‘Zombie’ — exploded online, amassing over 200 million views across AGT’s platforms, more than any act this season.
She kept wowing: ‘Hysteria’ by Muse, then ‘Black Hole Sun’ by Soundgarden which earned her Spice Girl Mel B’s Golden Buzzer, sending her straight to the live shows.
For the final, she unleashed ‘Seven Nation Army’ by The White Stripes. Judge Howie Mandel shouted: “You should win. Give her the million, America.” Mel B praised her “mysterious, mystical stage presence”.
And for the grand finale, she lived every teen rocker’s dream — performing on stage, alongside US rock giants Linkin Park.
When host Terry Crews announced her as winner, the teenager collapsed to the stage floor in tears. “I’m very happy and you know I’m emotional right now,” she said.
And Thailand erupted. Her school held watch parties, posting: “You did it, congratulations, champion. We are so proud of you.”
Even Prime Minister Anutin Charnvirakul sent a personal congratulation. He had earlier hosted Nene at Government House in July, where she played guitar while he sang a Thai rock song. His office said her talent “brought pride to Thai people.”
Corporate Thailand also rallied behind her — Charoen Pokphand Foods, owned by billionaire Dhanin Chearavanont, even rented a giant billboard in Times Square, New York, to cheer her on.
With her blistering guitar solos, rock-ballad shrieks and fearless spirit, little Nene Royal has just become Thailand’s biggest new global star.
What’s more, this amazing teenager will be bringing her powerful vocals, guitar skills and signature rock-metal style to the stage, as opening act, before one of the world’s biggest rock bands, America’s Avenged Sevenfold, in Singapore, on 13 October.
Unfortunately, we are still to see a local artiste, grab the spotlight, on a global scale … like Thailand’s Nene.
Yes, they do shine, but mostly on social media, and that, too, with the aid of AI (Artificial Intellegence).
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