This question came up over the past few days. We met a foreign buyer who said ‘Ceylon tea the best in the world? Forget it. Not any more’. The ‘best’ tag line is not tangible. True the Russian states and the Middle East still buy Ceylons but their volumes are gradually decreasing.

This was the shocking reality for future of Ceylon tea. What are the alternatives?: Sell cheaper, was the answer he said.

The unfolding sequence of deteriorating volumes did not seem to disturb producers and buyers here. To them it was business as usual. But ominous signs were there.

Viet Nam was now increasing their production simultaneously finding new markets. Asia Siyaka weekly tea market report Thursday week said Viet Nam would set new export targets. Their expectations were exports of approximately 117,000 tons end 2009, an increase of 12 percent which in real terms was substantial. At a conference in Hanoi January this year official focus was on quality, attention to food hygiene and safety regulations. A Minister of the Viet Nam Government, Minister of Industry and Trade, Nguyen Thanh Bien said at this venue the industry would modernize through new technology and increase quality. and productivity.

Viet Nam now has 700 processing plants across the country in a total tea growing area of about 131,500 hectares of land.

They were also looking at expanding their markets.

Faced with the specter of gradually dwindling markets the industry here has not expanded their market area world wide. The United States was largely ignored. ‘Not ignored, but cost out-lay was prohibitive; more so there was not a single trading source that would risk marketing tea in the US’ said a brokering source.

Our observations were that the industry lacked innovation and risk taking.

Joint Managing Director Dilmah Tea, Dilhan Fernando did not agree that Ceylon tea was not the best in the world. He said it was, but simultaneously there were other competing elements that presented fragmented product variety which influenced consumer choices. For instance iced tea. Iced teas was 95 % water, and only 5 % tea. That too poorer quality, but it sold well. In real terms similar products bridged the generation gap where time was a factor. There was no tradition in tea drinking in this and age.

Did the Lion logo have as much clout now than then? Unfortunately ‘No’, was his answer. Particularly other ‘hypothetical’ tea centers located in non tea growing countries world wide; importing tea from tea growing countries, not necessarily Sri Lanka; blending their product with perhaps negligible quantities of Ceylon Tea and sold as Ceylon Tea.

The sum total of our findings were that if Ceylons would retain their prestige and traditional image of ‘best in the world’, starting with the Tea Board, needs for the industry would have to be examined in clinical depth to arrive at workable options.

Majority acceptance from those we consulted who did not wish to be named, said rather than hark back to 100 years of Ceylon Tea we had to re-focus and align the industry to this day and age.

Meanwhile this weeks sale would see marginally increased volumes on offer..4.4 million kilos would be auctioned 21st , 22nd this month. Brokers said the market would continue to hold well. Particularly Western high growns, and the higher elevation mediums. Nothing sensational would happen to the Uvas, and Uda Pussellawas, but they were all good teas that would be offered.