SustainabiliteaLogistics the key to freshness

Anil Cooke

Siyaka Research 1

The Value Chain

Speed and flexibilityThe Producer

Multi product cluster capacity developmentDual capacity Low Country factories,

State of the art technology

Siyaka Research 2

The Value Chain

Trader/ Marketers

Value addition as a USPHigh investment in technology

Most competitive – depth of know how

Siyaka Research 3

The Value Chain

Sri Lanka Competiveness

40% Value addedState of the art pre auction logistics

High concentration of tea bagging capacityAdvanced design printing packaging

Siyaka Research 4

The Value Chain

Broker – barnacle on the back side ofcommerce

Contribution of critical link ignoredCapturing and transferring intrinsicvalue of tea quickly and effectively

Taken for granted

Siyaka Research 5

Who makes the world oftea go round?

3.5 Billion world production33% of all tea produced

11 Auction centers1 Billion + Kilograms

1.5 Billion world tea exports65% of exported volume

Siyaka Research 6

Once upon a timeOnce upon a timethere was a littlethere was a little

2oz sample2oz samplethat just arrivedthat just arrivedand just arrivedand just arrived

and...and...Siyaka Research 7

Comparing auction centers

Speed of cataloguing / Speed of sale after cataloguing

Colombo has the quickest speed of cataloguing – 05 to 07

Mombasa auction takes up to 20 days and morefor other origin teas, Kenyans – 10 - 14 days

Average time taken in Calcutta is 14 days

Siyaka Research 8

Comparing auction centers

Colombo 9 to 10,000 lots a week,300 + Million Kg a year

Shortest tea to cash cycleMombasa 2 to 3000 lots300 + Million Kg a year

Longer lead time and tea to cashKolkata 130 + Million Kg a year

Siyaka Research 9

Comparing auction centers

Colombo therefore has the highest efficiencyrating of any of the major centres

Siyaka Research 10

Logistics adding value

WarehousingPreserving quality

ProtectionAccuracy

SpeedEffective

Siyaka Research 11

Some thoughts for the Future

Mechanisation of samplingIncreasing Logistics centres

Blending Vacuum packing

Electronic imaging - MPEG, AVI

Siyaka Research 12

Sustainabilitea

Logistics the key to freshnessAnil Cooke

Siyaka Research 13

Thank You

Siyaka Research 14