By: Staff Writer
Colombo (LNW): China and Sri Lanka to cooperate in tea trade and promotion by integrating research and development, production and sales with a Chinese premier tea enterprise.
Prime Minister Dinesh Gunawardena has taken this initiative when he visited the Yunnan Xiaguan Tuocha (Group) Co., Ltd., integrating research and development, production and sales of tea in Dali in Yunnan Province on August 18.
“China has emerged as Sri Lanka’s fastest growing “new market” with interest in traditional Orthodox black tea and high-end packaging common amongst the increasing number of Chinese tourists visiting Sri Lanka”officials said.
The Sri Lanka Tea Board (SLTB) forecasts tea production to recover in 2023 to around 290-300 million kg while revenue from the export of Sri Lankan tea is expected to increase to $ 1.3-1.4 billion in 2023
China Imports from Sri Lanka of Tea was US$59.31 Million during 2022, according to the United Nations COMTRADE database on international trade. China Imports from Sri Lanka of Tea – data, historical chart and statistics.
In the first six months of 2023, Sri Lanka’s bulk tea exports witnessed a 31% YoY increase amounting to USD 249 million.
The country experienced notable increases in tea exports to key markets such as Türkiye, Russia, China, and Saudi Arabia. These positive export figures reflect the industry’s resilience and growing demand for Sri Lankan tea in the global market.
The Sri Lankan Prime Minister held detailed discussions with the Chief Executive and top tea researchers about the possibilities of further strengthening the cooperation between tea researches in Sri Lanka.
The Xiaguan Tuocha brand was created in 1902 and has a history over 110 years. The company’s predecessor was the Kangzang Tea Factory founded in 1941.
After privatization reform in 2004 and several generations of hard work, it has become a group company with historical heritage, the CEO explained to the Prime Minister.
The Yunnan Xiaguan Tuocha has already exchange data and expertise with Tea Research Center in Thalawakele and it has expressed willingness to assist research and development undertaken by tea industry in Sri Lanka.
It has a reputation as the national frontier tea designated production enterprise and raw material reserve enterprise, the national tea processing technology research and development center, the national key leading enterprise of agricultural industrialization.
The officials pointed out that the company produces more than 200 varieties of five major teas, mainly Pu-erh tea and it has won several international awards.
The products are sold nationwide and are mainly sold to more than 30 provinces and cities in China, and exported to more than 10 countries including the European Union, Russia, Japan, South Korea and Malaysia. It has been listed as authorized vendor in Vancouver, Canada.
“Our focus is to provide you high-quality tea from Xiaguan Tuocha and we will extend support to the tea research and development in Sri Lanka,” the official assured the Prime Minister.
The Prime Minister invited the Xiaguan Tuocha to send a team to Sri Lanka to further discussions on cooperation in tea research.
