Research Symposium-2011

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Browsing Research Symposium-2011 by Author "Abeyrathna, S.M.J.C."

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    Analysis of Factors Affecting for Tea Exporters’ Perception on Value Addition
    (Uva Wellassa University of Srilanka, 2011) Abeyrathna, S.M.J.C.; Mahindarathne, M.G.P.P.; Bandara, C.
    Note: See the PDF Version Sri Lanka is a country which is having a predominat agricultural economy. With the effects of globalization, the country is looking forward to strengthen the economy through the export expansion. Tea is one of major exporting crops in Sri Lanka which contributes to the growth of country's economy. Sri Lanka is recognized as one of the largest tea exporter in the world. Ceylon tea enjoys a reputation as world's superior quality tea due to its unique flavor and aroma. Though the Ceylon tea having the best recognition in the world market, it is gradually losing the market share due to escalating cost of production and continuous focus on undifferentiated bulk tea exports. The term "value added" in contemporary use means additional domestic processing of primary commodities, though it is a concept derived from national income accounting, which literally means the return to the factors land, labor, and capital employed (Mauldon, 1991). In general, the earnings from value added forms are about 2.5 times higher than that of bulk form. World is moving towards the value addition and Sri Lanka exports only 42% of teas as value added tea. This implies that the large quantity of tea is exported in bulk form and it could further reduce the market share. Further, because of uncompetitive definition adopted for value addition, even all the exports below 2kg pack size go as value added tea. On the other hand, the benefits from value addition are automatically goes to our competing countries that import our bulk or primary value added tea for value addition and re-export purposes. To retain those earnings within the country and to consolidate our position as leading tea exporter, the focus on value addition should be promoted among the tea exporters. The research study was carried out to ascertain the factors affecting the tea exporters' perception on value added decision and it is also aimed at finding out the gaps between responsible authorities for value addition like Sri Lanka Tea Board (SLTB) and Export Development Board (EDB) and the tea exporters in the course of value addition.