Export Potential for Export Agriculture Crops (EAC); Challenges and the Way Forward. A.P.P Disna Director Department of Export Agriculture

Similar documents
Supply Chain Support for Production, Processing & Marketing of Organic Export Agriculture Crops in Sri Lanka

Spicing up the local pepper industry

COUNTRY PAPPER ON PEPPER PRODUCTION, PROCESSING AND TRADE FOR THE 42 nd PEPPER EXPORTERS MEETING

CHAPTER 1 INTRODUCTION

CARDAMOM VALUE CHAIN ANALYSIS. Manoj Thibbotuwawa

Commercial Crops in South Asia

COUNTRY CASE STUDY SRI LANKA

Decadal Shift in Cropping Pattern in Karnataka Research Report July 2016

Case Study on Trade and Environment Dimensions of the Food and Food Processing Industries in Sri Lanka

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

Group 3: Anuradha Rucku Gupta Marvis Dan Xiao Duong Nguyen Van

Supply Chain Connectivity and Food Distribution. Sanjeev Asthana

Monday, 17 February 2014 Kochi

CHAPTER 4 DATA COLLECTION AND ANALYSIS

Agriculture in the DDR & South Asian Positions

Linking Sri Lankan farmers to the high-end global markets

Opportunities for SMEs in the Agribusiness Sector

Status of agricultural mechanization, food chain management and Agro based enterprise development in Nepal

VIETNAMESE DISCUSSANT

Trading in Agricultural Products: Past Future Opportunities The African Perspective

Sustainable spice trade

Policies in Ghana addressing market integration of small-scale and emerging farmers. Solomon Gyan Ansah Directorate of Crop Services MOFA

RUBBER PRODUCTS FROM SRI LANKA

Bio-Based Eco Industrial Clustering in Dambulla Sri Lanka

BUSINESS FOR DEVELOPMENT: IMPLICATIONS FOR EXPORT STRATEGY-MAKERS SRI LANKA PRO POOR EXPORTS STRATEGY THE ESSENTIAL INGREDIENTS

Volume -1, Issue-4 (October-December), 2013 Available online at popularkheti.info. Organic Farming: Current Status in India

INDUSTRY STRATEGIES FOR RIO 20+..

QUALITY COUNCIL OF INDIA. INDIA Good Agriculture Practices (INDGAP) Certification Scheme. Certification Criteria

CHAPTER 8. Agriculture and the Malaysian Economy

FARMERS PROBLEMS, RESEARCH NEEDS & CHALLENGES

Terms of Reference- Agriculture Trade Expert

Analysis of chain intervention options: The Case of Mango in East Java, Indonesia. Tiago Wandschneider Mandalay 28 April 2017

The Challenges of Securing Import. Minor Crops. John Hallagan. American Spice Trade Association MRL Harmonization Workshop 1 June 2017 San Francisco

FINANCIAL AND ECONOMIC ANALYSIS

Sreedhar Patil 5/30/2013

Status of Custom Hiring System of farm Machinery in Sri Lanka. Eng. M. H. M. A. Bandara Chief Engineer Department of Agriculture Sri Lanka

Food and Agricultural Trade in the GCC: An Opportunity for South Asia?

Impact of a Cooperative Society on the Arecanut Marketing in Kerala A Case Study of Central Arecanut Marketing and Processing Cooperative Ltd

AGRICULTURAL PRODUCTIVITY MEASUREMENT AND ANALYSIS IN SRI LANKA*

CTA. the queen of Sri Lankan spices, The bride around whom we danced..

HACCP Initiatives of Government of Kerala

Centre for Economic Policy Research. Working Paper on Role of food processing industry in Indian economy

Mapping and Analysis of Agricultural Trade Liberalization in South Asia

2 nd COMESA AGRO-INDUSTRY DIALOGUE

OVERVIEW ON GLOBAL TROPICAL FRUIT PRODUCTION AND TRADE : ISSUES AND CHALLENGES. By International Tropical Fruits Network (TFNet)

Findings of the MSU/MDRI Pulses and Beans Diagnostic Team

SECTOR ASSESSMENT (SUMMARY): AGRICULTURE, NATURAL RESOURCES, AND RURAL DEVELOPMENT 1

INTRODUCTION. Tropical Agricultural Research Vol. 20: (2008) Short communication. Peradeniya, Peradeniya.

SECTOR ASSESSMENT (SUMMARY): AGRICULTURE, NATURAL RESOURCES, AND RURAL DEVELOPMENT 1

Asia Choco Cocoa Congress

Agriculture Beyond Production Market led Opportunities in the Sri Lankan Agricultural Sector

AGRI FOOD CHAIN MANAGEMENT AND PERFORMANCE IN MOLDOVA

ECONOMIC DIVERSIFICATION OF LLDC: CASE OF MONGOLIA, NEPAL, BHUTAN AND PARAGUAY

Asia-Pacific Journal of Science and Technology

Nitya Nanda. Introduction the context Trends and patterns of agricultural trade

Technical Assistance Consultant s Report

Geoffrey Onen. Challenges and Benefits of International Guidelines, Standards and Regulations: The Uganda Case.

FoodTechHolland Seminar on the opportunities & challenges for Dutch (semi-) processed food companies. 12 May 2015 Larive International, Zeist

Presentation OUTLINE ANTI-COMPETITIVE PRACTICES AND FOOD PRICE INFLATION IN SOUTH ASIA Introduction

Challenges In vegetables and fruits exports in Sri Lanka

Trends and Developments in Sri Lanka s Livestock Industry

PRODUCTION, PROCESSING AND IMPORT EXPORT PEPPER (REPORT AT 42 TH CONFERENCE OF EXPORTER) IPC ANNUAL MEETING (Dated 22-26/2011 in Lombok, Indonesia)

Emerging Sustainable Commodity Value Chains in Asia. Ms. Lakshmi Venkatachalam Vice President (Private Sector and Cofinancing Operations) Outline

Key Messages for Annual Review Implementation of Selected Key Messages. Summary of the Medium term Reform Agenda

THE CHILLI & TURMERIC REPORT

By: Mr. Muhammad Mahmood, Secretary to Government of the Punjab, Agriculture Department

Unlocking the export potential of Georgian agriculture - Summary of Results-

Creating Competitive Gaps in upstream supply chains

UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation. 1-3 November 2016 Bangkok, Thailand

Department of Agriculture. Eng. M.H.M.A. Bandara Chief Engineer. Country Report. Sri Lanka

Background of shrimp aquaculture industry in Sri Lanka

Joyce Kinabo Sokoine University of Agriculture Morogoro, Tanzania

and Beverage Trade Flows of Sri Lanka

Horticulture State at a Glance: Manipur, Vol. 1(8), : Value of Output of Horticulture, Fruits and Vegetables and Condiments & Spices

"The Role of Technology in Shaping the Future of the Food Supply Chain".

The Rice Economy in Myanmar and Relevance for the Delta

INVESTMENT POLICY AND PROMOTION WEEK. Vietnam Agribusiness Investment Policy and Promotion Vienna October 15, 2015Viet

Future Action Plan of Biotechnology in Sri Lanka

Direct partnership on cocoa processing in Papua Island, Indonesia For improving farmers access to Japan market

UNNExT Workshop on Promoting Cross-border Agricultural Trade for Sustainable Development November 2016 Bangkok, Thailand

Linking Farmers to Markets through Agricultural Supply Chain

Country Report Sri Lanka

Present Situation of Cinnamon Industry in Southern Sri Lanka

MALAYSIA. This paper updates delegates of the IPC Pepper Exporters Meeting on the following aspects:

National Integrated Food Security and Nutrition Policy (NIFSNP) Manoj Thibbotuwawa, Research Economist

Transformation of Agricultural Sector in Malaysia Through Agricultural Policy. Introduction

Building on Quality Infrastructure for Food Safety

Organic Agriculture & Climate Change in South East Asia. Vitoon Panyakul

Agribusiness and Agro- Industries: Investment Programme Priorities. Doyle Baker Rural Infrastructure and Agro-Industries Division FAO

Action Plan for the Ceylon Cinnamon Value Chain in Sri Lanka

ETHIOPIA BUSINESS DAYS WORKSHOP: OILSEEDS 5 TH NOVEMBER

CHAPTER- I INTRODUCTION AND RESEARCH METHODOLOGY

INDUSTRY CAPABILITY REPORT

THE EU INDIA FTA IN AGRICULTURE AND LIKELY IMPACT ON INDIAN WOMEN

Company highlights. Nedspice Holding BV. Organisation. Group Structure

Alternative and Innovative Financing in the Agricultural Sector in Nigeria A case study of the OLAM Nigeria Ltd (PPP)

AGRIBUSINESS OPPORTUNITIES

Global Biostimulants Market Research Report - Forecast to 2023

Session - II. Livelihood Linkages of Trade in Agricultural Products. A Presentation By

Transcription:

Export Potential for Export Agriculture Crops (EAC); Challenges and the Way Forward A.P.P Disna Director Department of Export Agriculture

Agriculture Sub Sectors in Sri Lanka Food Sector Paddy Vegetables, OFC and other annual crops Fruits and horticulture crops Export Crop Sector Tea Rubber Coconut Other plantation ( sugar cane) Export Agriculture Crops Other perennial Crops (Palmira, Kithul cashew etc.) Floriculture and ornamentals (Fruits/Vegetables) Mixed/ Inter/Homestead Cropping Systems (Includes food/export/tree crops)

Agriculture Contribution to Sri Lankan Economy -2016 Agriculture Contribution to GDP (Gross Domestic Production by Industrial Origin at constant (2010) prices as a % to GDP) 2015 4.8% 2016 7.1% Contribution to employment Employed Persons ( 000) 7,948 Agriculture 27.1% Industry 26.4% Services 46.5%

Export Earnings from Different Agro-Food Sectors Value (US$ mn.) Tea 1289.00 12.30 Rubber 32.70 0.3 Coconut products 366.00 3.5 Spices 317.10 3.1 Vegetables 26.50 0.3 Unmanufactured Tobacco 31.21 0.3 Minor Agriculture Products 114.10 1.1 Sea Food 169.1 1.6 Total Ag. Export Earnings 2386.1 22.6 Share ( % total Export Earnings) Total Export Earnings (Agriculture + Industry +Services) 10309.7

Export Agriculture Crops Spices Cinnamon, Pepper, Clove, Nutmeg, Cardamom Beverages Coffee, Cocoa, Vanilla Stimulants Betel, Areca nut Essential Oil bearing Crops Citronella, Lemon Grass Cultivated as mono crops, inter crops or as mixed crops and each of above crop cultivations have unique features of their own Contribution of EAC to Sri Lankan Economy 2016 To GDP 0.4-0.5% To Total Export Earnings of Sri Lanka- 3.4% To Total Agriculture Export Earnings of Sri Lanka 15% EAC Export Volume (mt.) 44,684 EAC Export Earnings (Rs.mn.) 51,731 Estimated Land Extent (ha.) 110,000 Estimated Production (Mt.) 145,000 Estimated no. of Stakeholders - 600,000

World /Sri Lanka Trade Situation of EAC - 2016 Crop World Sri Lanka Export Volume Mt.) Export Earnings (US $ mn.) Export Volume (Mt.) Pepper 373,665 2,887 7895.54 73 Cinnamon 154,044 484 14,699.09 159 (+cassia) Cloves 59,496 397 1378.9 14 Cardamom 55,409 389 779.39 6 Nutmeg 24,818 173 1509.19 14 Coffee (all) 8.710mn 30,790 13.70 Cocoa (beans) 3.8mn 10,192 1345.5 (all) 5 Vanilla 5621 763 2.06 Export Earnings (US $mn.)

25000.00 Exports of Cinnamon 2000-2017 up to July Export volume (MT) Export Value Rs(Mn) 20000.00 15000.00 MT/Rs (Mn) 10000.00 5000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

25000.00 Exports of Pepper 2000-2017 up to July Export volume (MT) Export Value Rs(Mn) 20000.00 MT/Rs (Mn) 15000.00 10000.00 5000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

8000.00 7000.00 Exports of Clove 2000-2017 up to July Export volume (MT) Export Value Rs(Mn) 6000.00 MT/Rs (Mn) 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

900.00 Exports of Cardamom 2000-2017 up to July 800.00 Export volume (MT) 700.00 600.00 MT/Rs (Mn) 500.00 400.00 300.00 200.00 100.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

2500.00 Exports of Nutmeg 2000-2017 up to July Export volume (MT) Export Value Rs(Mn) 2000.00 1500.00 MT/Rs (Mn) 1000.00 500.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

6000.00 Exports of Cocoa 2000-2017 up to July 5000.00 4000.00 MT/Rs (Mn) 3000.00 Export volume (MT) Export Value Rs(Mn) 2000.00 1000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

180.00 Exports of Citronella Oil 2000-2017 up to July 160.00 Export volume (MT) MT/Rs (Mn) 140.00 120.00 Export Value Rs(Mn) 100.00 80.00 60.00 40.00 20.00-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

6000.00 Exports of Betel 2009-2017 up to July 5000.00 4000.00 Export volume (MT) Export Value Rs(Mn) MT/Rs (Mn) 3000.00 2000.00 1000.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 July

2000.00 Prices of Cinnamon Quills 2000-2017 up to August 1800.00 1600.00 1400.00 1200.00 Rs./Kg. 1000.00 800.00 Farm Gate Price 600.00 400.00 200.00 0.00 Year

1800.00 Prices of Pepper 2000-2017 up to August 1600.00 1400.00 1200.00 Rs./Kg. 1000.00 800.00 Farm Gate Price International Price 600.00 400.00 200.00 0.00 Year

2000.00 Prices of Clove 2000-2017 up to August 1800.00 1600.00 1400.00 1200.00 Rs./Kg. 1000.00 800.00 Farm Gate Price International Price 600.00 400.00 200.00 0.00 Year

3500.00 Prices of Cardamom 2000-2017 up to August 3000.00 2500.00 2000.00 Rs./Kg. 1500.00 1000.00 Farm Gate Price International Price 500.00 0.00 Year

Prices of Nutmeg 2000-2017 up to August 3500.00 3000.00 2500.00 Farm Gate Price Rs./Kg. 2000.00 1500.00 1000.00 500.00 0.00 Year

12,000.00 Prices of Citronella Oil 2000-2017 up to August Farm Gate Price 10,000.00 International Price 8,000.00 Rs./Kg. 6,000.00 4,000.00 2,000.00 - Year

SL Spice Exports to SAARC Region (Mt.) Item India Pakista n Banglade sh Maldive s Nepal Total 2016 Pepper 4801 39 41 32 7895 Clove 493 7 20 9 1378 Nutmeg 154 196 89 0.18 1509 Cinnamon 493 184 0.73 14692 Cardamom 663-0,79 779 2015 Pepper 9068 1556 56 11.04 26.5 16667 Clove 1869 174 50 7 4782 Nutmeg 192 267 127 0.12 1575 Cinnamon 444 266 0.65 13548 Cardamom 100 0.68 119

SL Spice Exports to Non- SAARC Region (Mt.) Country Pepper Clove Nutmeg Cinnamo n Cardamo m 2015 USA 367.00 167 34.00 2170 France 17.00 3.94 2.35 40.55 0.66 Germany 643.17 105.72 128.10 221.54 1.25 Mexico 266.00 5946 UAE 46.39 0.10 209.28 58.74 10.11 Egypt 41.00 25.15 37.17 Japan 18.49 11.96 14.77 33.57 0.18 Australia and NZ 15.43 25.56 3.22 125.52 0.46

SL Spice Exports to Non- SAARC Region (Mt.) Country Pepper Clove Nutme g Cinnamo n Cardam om 2016 USA 563 174 57 1607 France 34.75 1.58 2.26 57.88 1.77 Germany 783.82 167.66 46.05 172.63 1.8 Mexico 74.00 29.5 2.6 5578.26 UAE 497.15 1008.92 205.05 6.68 10.03 Egypt 728.30 53.00 9.55 1.80 Japan 8.14 2.57 27.32 0.15 Australia and NZ 19.57 11.28 4.22 119.48 0.39

Current Value Addition Status of EAC 2016 Commodity VA form Export (mt.) Export Earnings (Rs.mn.) Cinnamon Crushed 11.43 20.16 Ground 245.05 283.5 Cut qills/retail packs below 01kg 1959.82 3424.74 Pepper Crushed 1278.68 328.44 Ground 142.81 288.87 Other 1446.25 2054.49 Clove Crushed or ground 56.76 92.01 Nutmeg Crushed or Other 192.00 198.99 Mace Crushed or ground 5.04 17.27 Cardamom Crushed or ground 12.02 13.18

Current Value Addition Status of EAC (Essential Oils) 2013 Commodity VA form Export (mt.) Export Earnings (Rs.mn.) Cinnamon Cinnamon Leaf Oil 226.36 905.9 Cinnamon Bark Oil 27.31 890.13 Pepper Pepper oil 42.73 429.55 Oleoresin 559.59 3257.22 Nutmeg Oil 122.35 595.37 Cardamom oil 0.69 25.95 Mace Oil 0.13 0.92 Clove Oil 6.2 52.7 Ginger Oil 2.82 44.83 Vanilla Oil 0.03 0.07 Citronella Oil 8.26 114.28 Lemon Grass Oil 0.30 1.1

Trade Agreements and their Relevance for EAC Sector Free Trade Agreement with India 100% duty free for spice imports (2500mt. Cap for mature pepper) and arecanut from Sri Lanka with Country of Origin Sri Lanka or with 35% value addition for imported products Free Trade Agreement with Pakistan 100% duty free imports for Cinnamon, Clove, Nutmeg and Mace Concessionary rate for Betel (changed) SAPTA - 8% duty rate for spice imports to India

Market Chain of EAC Producers ( small, large, mixed, mono, estates) Intermediaries Processors Retail Collectors ( mobile, village, town) Whole sale collectors Brokers Value added products Exporters Importers Auctio n

Strengths in the Sri Lankan EAC Sector Reputation in intrinsic Quality Can cultivate variety of spices Weaknesses Extrinsic Quality Problems in Exports High COP Small Scale unorganized Farmers Base Opportunities World Trade for Spices is growing at 5%, Asian Market is growing at 5% World Trend for spicy foods Increased market for essential oils, oleoresins World trend for flavor enhancers, and fragrances Increased concern over medicinal properties of Spices, food supplements Spa and health care products Threats Emerging Producers (eg. Myanmar, Low cost/high volume, Vietnam/high productivity) Dumping cheap low quality imports (reduce local price, destroy reputation) Increasing SPS measures and quality, traceability, certification needs in high premium markets

Challenges for Export Promotion and Market Access of EAC 1. Inadequate Supply/Production and inconsistency in Supply Large no. of Small farmers, home gardens, unorganized production base No accurate information on producer base (exact situation at ground level is not clear) Difficult to predict raw material supply (consistent supply) High Cost of Production and negligence of maintenance Difficult to maintain the product quality, traceability Crop extent largely limited to traditional areas Considerable extent of over age holdings Harvest fluctuations due to weather and poor management Low productivity and no rapid &consistent growth in production Inconsistency of annual Production flow Barrier to take big decisions on large scale processing, value addition and market promotion

Current Development Programs of the Government Assistance for new cultivations of EAC Promote EAC based Home gardens productivity improvement of EAC cultivations Estate Development programs with EAC Promote inter cropping of EAC under coconut Awareness, training programs Farmer registration

2. Quality problems in Sri Lankan EAC Due to large number of small farms product quality is not unique Major processing method is sun drying Due to long market channel, traceability is difficult Poor commitment of exporters for quality No premium for quality at the producer level Quality policy or regulatory mechanisms are weak Inadequacy of quality infrastructure (eg. few testing facilities in the country, high cost of testing, few accredited laboratories)

Current Development Programs Provide training, awareness Provide machineries, equipments Financial grants, loans Technical expertise Proposed actions National Export Strategy Propose a quality policy Investment for GMP, other certification programs, machineries NES proposes quality infrastructure facilities to be upgraded Low cost testing facilities available throughout the country

03. Primitive nature of market channel of EAC Many collectors, traders compete at ground level Act individually, independently and with personal relations Established family businesses Not subjected to any regulation, registration (other than business registration) Not transparent Aggregate purchases at each point and transfer bulk from hand to hand Forward and backward linkages are informal, business oriented and not seems to consider industry interests Very poor concern over quality, grades Inconsistency and uncertainty of quantity and quality of supply Barrier for quality promotion, large scale investment on processing, value addition, Difficult for new exporters to establish in the trade, reduce competitiveness of Sri Lankan EAC

Current Development Programs Establish Farmer-exporter connections Awareness of market channel segments World bank/eu projects to strengthen value chain by providing support and awareness, capacity building Needed actions Gradual change of the system with minimum effect, Competitive alternatives ( Factory, collecting centre???) Strengthen central processing with defined market Regulatory Framework

04. Low market share to high profit zones Currently more than 70% of EAC exports are reaching developing countries with relatively low profits Why???? Low quality of produce No market mechanism to pay for quality Lack of traceability Largely for raw material for other countries Low Value addition Current activities Provide technologies, machineries Processing facilities raining and awareness Quality testing Programs Needed actions Regulations for quality, product certification facilities establish a norm for paying premium for quality Promote Sri Lankan brands & other market promotion Market links, Expand exporter base

5. Inadequate market promotion in overseas Low investment and less efforts from both from public and private sector Low effort to promote intrinsic values for SL spices and no return for such values poor knowledge on niche markets For cinnamon, current demand and high price over cassia is for inherited values but it reduced competitiveness Needed actions Identify effective methodologies (where, what, how) Branding locally and internationally Market research or research reports research to establish intrinsic/medicinal values Cinnamon promote intrinsic value in high end markets-

06. Inadequate Value addition in EAC sector Low tech products in small quantities (crushed, ground, packed, tinned etc.) Largely done by exporters themselves Only a few large factories export high-tech products Many invented products from DEA and ITI but only a few small VA producers, mainly cater to local market Inadequate knowledge on VA market potentials/prices Inadequate information base on VA producers in the country Low R & D on value addition, product developemt DEA activities Provide research inputs, training, awareness Machineries (for grinding, peeling. Drying) Provide information Other Institutions supports ay the Limited scale

Needed actions Establish Information base on current VA industries and take measures to upgrade effective industries Identify new investors for large scale/high tech investment and support them Changing policies if required, under well regulated environment ( ex. Re-export policy, Policy of having one factory per district ) FDI for value addition Investment for R & D for technology gaps Commercialize innovations Arrangements for raw material supply flows to VA factories

7. Inadequate Market Intelligence Poor Market intelligence for new market links/niche markets/prices Technology, packaging, mechanization, VA products. Potential markets SPS /quality/food safety/testing requirements Local Testing facilities Export procedures/logistics Raw material supplies NES plans to establish One Stop Shop for market information and to expand other facilities for market intelligence (eg. through EDB/Web Potels) Need Market Research Program or invest on market research reports (public investment program)

08. Inadequate Public Private Partnerships EDB Ministry/i es DEA SLSI/ITI Private laboratori es DOC SAPPTA Export Agriculture Crops Sector Producers, collectors, traders, VA producers Custom s BOI Chamber s Spice Counc il In many cases we take decisions independently ( have to recognize and respect each other, share common interests, avoid duplications) Have a common goal- ex. Indian spice sector.

09. Other issues FTAs??? Debatable on current benefits of current FTA More FTA are planned with China and Singapore There should be export ethics/disciplines to be established To reap benefits of FTA Thank You

Challenges