Strategies, constraints for tea growth discussed

Hiran H. SENEWIRATNE

The tea industry stakeholders are looking forward to adopt a differentiation strategy to be more competitive in the international market averting to low productivity level and high cost of production in the sector.

GLOBALIZATION increases the opportunities for firms to think beyond their national boundaries and adopt new trends in management and business to overcome the challenges, was revealed at a workshop in Malaysia on “Winning Strategies for Success in Plantation Companies”.

It was organised by FT Services in collaboration with Peligo Training Solutions, Malaysia and was coordinated by Kushan Dharmawardena - a management trainer and promoted by Director/Ch- ief Executive Officer of Bogawantalawa Tea Estates Ltd, Sarath Fernando.

The importance to consider what strategies and best business and management practices senior executives in plantation companies could adopt to maximise their potential and overcome managerial challenges were chiefly discussed.

Malaysia is successfully promoting tea by adopting various strategies to cater to the consumers of various age groups to penetrate into different market segments in the country, Fernando said.

In the tea sector offering unique products with high value addition should be the strategy for the survival and sustainable growth in the industry, he said.

At present Sri Lanka export value added tea only 35 per cent of the total production, which needs to be increased to 65 per cent within next few years.

Product development, innovation and differentiation to position strongly in the market place and to have the sustainable competitive advantage were valuable lessons learnt by the participating Sri Lankan planters who hitherto have been primarily focused on the production aspect only, he said.

This tour group was well represented by the plantation community from both Regional Plantation Companies and Private factories in addition to brokering companies and consisted of the participants from Companies including Bogawantalawa Tea Estates, Pussellawa Plantations, Hapugastenne Plantations, Malwatte Valley Plantations, Kotagala Plantations, Talaw- akelle Plantations, Ke-galle Plantations, Horana Plantations, Balangoda Plantations, New Hopewell Tea Factory, Gartmore Group, Forbes & Walker Tea Brokers.