Unlocking Growth: Diversification into Spice Cultivation for Regional Plantation Companies
August 30, Colombo (LNW): Regional Plantation Companies (RPCs) in Sri Lanka have significant opportunities to diversify their agricultural portfolios by venturing into spice cultivation, according to Senaka Alawattegama, Chairman of the Planters’ Association.
Speaking at the 40th Annual General Meeting of the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA), Alawattegama highlighted that RPCs could leverage their existing resources and expertise to tap into the spice market, potentially boosting revenue streams and solidifying their market position.
Alawattegama emphasized the numerous advantages of diversifying into spice cultivation, noting that spices can be processed into value-added products, thereby increasing their market value and profitability.
He cited the example of Dilmah, a renowned tea brand that recently ventured into marketing Ceylon Cinnamon, illustrating how integrating spice cultivation can significantly enhance the agricultural output of Sri Lankan plantation companies.
Sri Lanka’s global standing in the spice industry was also a key focus of Alawattegama’s address. He noted that the country is the ninth-largest exporter of spices worldwide, a testament to its reputation for producing high-quality spices.
He praised Sri Lanka’s rich spice heritage, with products such as cinnamon, pepper, cloves, cardamom, nutmeg, mace, and vanilla being recognized globally for their exceptional quality.
Specifically, he highlighted the global renown of Ceylon Cinnamon and Ceylon Pepper, both of which have distinct flavors and superior quality that mirror the global acclaim of Ceylon Tea.
Alawattegama urged the Sri Lankan government to provide robust support to the spice industry to help achieve its ambitious target of $1 billion in export income.
He suggested that such support could include favorable and consistent policies, investments in research and development, and infrastructure improvements to enhance the sector’s competitiveness.
He acknowledged the challenges facing the international spice market, including climate change, market fluctuations, and evolving consumer preferences. However, he viewed these challenges as opportunities for growth and innovation within the industry.
Looking ahead, Alawattegama stressed the importance of prioritizing sustainable practices, innovation, quality assurance, and market expansion for the long-term success of the spice sector.
He advocated for the adoption of environmentally-friendly cultivation methods, minimizing the carbon footprint, and supporting fair trade practices.
Incorporating technology into spice cultivation and processing, he argued, could enhance efficiency and product quality.
Additionally, he underscored the importance of investment in research and development to keep Sri Lanka ahead of global trends and meet the changing demands of consumers.
In conclusion, Alawattegama highlighted the need for rigorous quality control and certification processes to maintain Sri Lanka’s reputation for excellence in the international spice market.
By exploring new markets and expanding the product range, he believes Sri Lanka can unlock further growth opportunities and continue to thrive in a competitive global spice market.
