2021, Volume 24, Paper 1
ISSN: 2209-6612

The Ceylon Black Tea Value Chain

Sachila Ruwani Perera Hettiachchige – Postgraduate student, Global Centre for Food and Resources, University of Adelaide.
Chinthani Rathnayake – Postgraduate student, School of Agriculture and Food, University of Melbourne.

Abstract

Sri Lankan tea has been referred to for generations as “Ceylon tea” and is reputed globally for its taste and aroma. The tea industry has played a significant role for more than a century in Sri Lanka’s economy through generating income, foreign exchange and employment. However, the performance of the Sri Lankan tea industry has slumped in recent years. The purpose of this study is, by applying a SWOT analysis, to identify what kind of attributes are directly influencing the recession in the tea industry. The paper is focused only on Ceylon black tea because it is the major tea produced in Sri Lanka. Lack of product diversification, limited factors of production, strict rules and regulations of government and lack of information-sharing networks are identified as the main factors negatively impacting the sustainability of the value chain. Some potential interventions are suggested to overcome these issues and generate important information for decision makers in the tea industry.

Key Words: Black tea, production, price, Sri Lanka, value chain