Sri Lanka, volume 15, pp 19-26, Soil Science Society of Sri Lanka, Gannoruwa

Transcription

1 9.0 BIBLIOGRAPHY Baffes, J 2003, 'Tanzania's Tea Sectr, Cnstraints and Challenges', Wrld Bank, May. Central Bank f Sri Lanka, 2002,2003 Central Bank Annual Reprt, Clmb Chack K, Ramakrishna P 1999, 'Cmputerised Prcess Cntrl in Tea Manufacture': In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Chack K, Ramakrishna P,(1999), 'Cmputerized Prcess Cntrls in Tea Manufacture' In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Chakrawartee, J 1999, 'Transfer f Technlgy t Large Tea Plantatins in Nrth East India': In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Dhanapala K, Wijethunga P 2002, 'Ecnmic and Envirnment impact f micrhydr and bi mass based electricity generatin in the Sri Lanka tea plantatin sectr'' Energy fr Sustainable Develpment Vl VI N 1, March Ekanayake PB (2004), 'Management f Tea Lands thrugh "Slping Agricultural Land Technlgy" (SALT) ' Jurnal f the Sil Science Sciety f Sri Lanka, vlume 15, pp 19-26, Sil Science Sciety f Sri Lanka, Gannruwa Fernand RM, 2002 'Recent Innvatins in the Plantatins Sectr' Prceedings Tea Cnference 2002 Ghsh A,' GIS Anchred Integrated Plantatin Management: Tea', pf.lu m (Accessed August 2004) Gnanapragasam NC 1999, 'Sri Lankan Tea Industry': In NK Jain, (Ed.)Glbal Advances f Tea Science (pp!03-120) Vedams, India 106

2 Herath N 1995, ' The Principles f Tea Manufacture',: In Sivaplan P. Gnanapragasam N, Kathiravetpillai A(Ed), Field Guide Bk, Tea Research Institute, Talawakele, Sri Lanka Illukpitiya P, Shanmugaratnam N, KjsavikD J( 2004) 'Tea Agrecsystems in the Uva Highlands f Sri Lanka' Muntain Research and Develpment ( 24,1) pp Jain N K 1999 Glbal Advances in Tea Science, Vedams, India Jshi G ''Infrmatin Resurce Management n Tea Cntributins f Tcklai: A Case Study' Kapur P(1999), 'Electrnic Instrumentatin and Cntrl Systems fr Critical Manufacturing Stages in Tea Industry', In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Khalil T M 2000, 'Management f Technlgy : The Key t Cmpetitiveness and Wealth Creatin' McGrawHill, USA Kuanha C 1999, 'Infrmatin Activities in Tea Industry' : In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Liyanage MPD (2003), 'An Analysis f the reasns fr Quality Decline f Made Tea\ in Twentieth Century Tea Research in Sri Lanka, WWD Mdder (Ed), pp , Tea Research Institute Sri Lanka, Talawakele Ministry f Plantatin Industries, Sri Lanka 2002, 2003 'Plantatin Sectr Statistical Pcket Bk', Clmb Mhamed MTZ 2004, 'Current Trends and Future Challenges in Tea Research in Sri Lanka' Prceedings f the First Sympsium n Plantatin Crp Reseach, Clmb Sri Lanka, July Mhmed MT, Btheju WS, Kneswaramrthy S, Raveendran K, Dahanayake DLDH(2003), ' Tea Prcessing Technlgy in Sri Lanka", in Twentieth Century Tea Research in Sri Lanka, WWD Mdder (Ed), pp , Tea Research Institute Sri Lanka, Talawakele Mhmed MTZ, Dahanayake DLDH(2003), ' Studies and Opinin n upcuntry Tea Manufacture', in Twentieth Century Tea Research in Sri Lanka, 107

3 WWD Mdder (Ed), pp , Tea Research Institute Sri Lanka, Talawakele Muraleedharan N 2004, 'Recent Advances in Tea Research in Suth India' Prceedings f the First Sympsium n Plantatin Crp Reseach, Clmb Sri Lanka, July Prter M 1998,' The cmpetitive Advantage fnatins' Macmillan Business PORTER, M 1985, 'Cmpetitive Advantage: Creating and Sustaining Superir Perfrmance'' The value chain and cmpetitive advantage(pp33-61). Free Press, New Yrk, Rajapakse RMSS, Jayakdy JAAM., Jayawardane M, ' Prepare Sustainable Strategic Develpment Plans fr a Selected Tea Estate in Mid- Cuntry Regin in Sri Lanka using GIS.\ (Accessed August 2004) Rajesshwari CR, 2003, 'Strained by Prblems' Business Line- Internet Editin, Octber. Ramakrishna P 1999, 'Energy fr Tea Manufacture': In NK Jain, (Ed.)Glbal Advances f Tea Science (pp ) Vedams, India Ramanathan K, 1990 'Management f Technlgy: Issues f Management Skills and Effectiveness ' Internatinal Jurnal f Technlgy Management 5 (4) (pp ) Ramanathan K, 1994, ' The plytrphic Cmpnents f Manufacturing Technlgy' Technlgical Frecasting and Scial Change (pp ) Elsevier Science Inc Ranasinghe S, Fnseka M 1998, 'Research Methds in Management' Pst Graduate Institute f Management, University f Sri Jayawardanapura, Clmb, Sri Lanka. Rudramrthy R, Sunil Kumara CP, Velavan R, Sivasubramanium S 2000, 'Innvative Measures fr Energy Management in Tea Industry' Energy 108

4 Engineerign Divisin, Department f Mechanical Engineering PSG Cllege f Technlgy, Cimbatre Sharif N 1993 Technlgy Management Indicatrs fr Develping Cuntries published in TDRI Quarterly Review Vl. 8 N. 2 June 1993, pp Sharif N 2003, Presentatin at the University f Mratuwa, Sri Lanka Sivaram B, 2000, Prductivity Imprvement and Labur Relatins in the Tea Industry in Suth Asia, Internatinal Labur Organisatin September ( tm) Scial Dialgue as a Means f Enhancing Prductivity and Quality f Wrk Life: A Case Study f the Maha Oya Grup f the Bgawantalawa Plantatins Cmpany Tallntire A, 2001, 'The implicatins f value chains and respnsible business fr the sustainable livelihds framewrk: case studies f tea and cc' Nvember ( Tea Research Institute f Sri Lanka 2003, 'A Guide t Tea Research Institute', Talawakelle Tea Research Institute f Sri Lanka 2001,2002,2003 Annual Reprt Tea Research Institute f Sri Lanka, Talawakellie Tea Research Institute f Sri Lanka. 2003, 'Agricultural Prfile f the Crprate Tea Sectr. Reprt fadvisry & Extensin Service', Talawakelle Tidd J, Bassant J, Pavitt K 1998, 'Managing Innvatin integrating Technlgical, Market and Organisatinal Change''' Jhn Wiley & Sns Ltd, England Watsn M, 1986, 'Plucking' In Sivapalam P. Kulasegaram S. Kathiravetpillai A. Ed. Handbk n Tea, Tea Research Institute, Talawakele, Sri Lanka 109

5 Wijeratne MA (2003), Twin Prblems f the Tea Industry, Causes and Wayut', Tea Bulletin (18, 1& 2) pp 5-9, Tea Research Institute f Sri Lanka, Talawakelle. www, kiasia. rg/dwnlad/cmpetitiveness/6sril %20Tea. pdf, beynd tw Iwaves and bud sri Lankan tea cluster Ygaratnam N 2004, Daily News 'Need fr integrated management f agricultural resurces', Octber 15 Clmb Sri Lanka 110

6 10.0 APPENDICES Appendix 1: Questinnaire fr the estate managers Appendix 2 : The general set f questins used fr the interviews with the estate managers Appendix 3 : Analysis f Agalawatta Plantatins Limited Data Appendix 4 : Crprate Appraisal Tea Appendix 5 : Crprate Ranking Tea Appendix 6 : Extracts frm Sme f the Interviews Cnducted 111

7 Appendix 1: Questinnaire fr the estate managers Ranking f Technlgy psitin in the Tea Estate/ Factry Name f Estate: Excellent Gd Satisfactr t_ c Very Pr Assessing the present technlgy status Level f Mechanizatin In the field activities In the tea prcessing activities In Tea packaging activities Cnditin/ Advance ness f machinery Tea Prcessing machinery -level f upgrade Other machinery - transprt equipment Investment in machinery in the last five years Human Resurce Cmpnent Availability (sufficient) f unskilled labur Availability f skilled labur( eg. Technicians) Level f training & skills f the labur frce Labur mtivatin, interest in wrk Scial develpment aspects twards labur issues Opprtunities fr skill develpment Infrware cmpnent- Infrmatin Availability Infrmatin n new machinery Infrmatin n latest prcessing techniques Infrmatin n clnes and field practices Infrmatin abut the latest market directin IT Level f IT utilizatin e- cmmunicatin with the Head Office Access t market infrmatin thrugh / internet IT literacy level f staff Organisatinal Aspects Supprt & encuragement frm head ffice fr the intrductin f advanced machinery Supprt frm head ffice t intrduce better practices t the tea industry Supprt twards skill develpment f labur 112

8 Appendix 2 : The general set f questins used fr the interviews with the estate managers 1. What are the general prblems faced by yu in managing the estate and the factry? 2. Which wuld yu rank as the highest pririty? 3. What is the status f mechanizatin and new advancements in yur estate? - Field activity - planting, pruning, harvesting, transprting - Prcessing activity - factry autmatin, electrnic sensrs, cmputer systems, IT systems - Packaging activity 4. What is the level f wrker invlvement in the technlgical advancements - Wrker training, acceptance f new trends, resistance 5. D yu have skilled peple t maintain the machinery? 6. Hw is the infrmatin availability fr the latest advances in tea science 7. What is the main surce f infrmatin f such advances 8. What is the situatin with regard t adptin f best practices? - ISO Certificatin, HACCP, 5S, - Other agricultural practices 9. Is there any immediate requirement fr the upgrade f machinery in yur estate? 10. What are the main categries f equipment required 11. Wh makes the decisin t buy new equipment? 12. Hw is the management acceptance t the recmmendatins made by yu fr upgrading? 13. What is the main prblem is intrducing better / latest equipment? - Training, cst, availability, attitude 14. Management supprt fr the develpment f innvative ideas 15. What t be dne fr the develpment and sustainability f the industry 16. What is yur pinin n mechanizatin? 17. What are the areas where technlgical advances can play a rle fr the develpment f the tea industry? 18. Hw can Sri Lanka be cmpetitive in the glbal market? 19. What is the rle expected frm the TRI in the intrductin f technlgical develpments t the industry? 20. What is the rle expected by the Tea Bard and the gvernment ministries.? 113

9 Tea Eeuta / / / / / / / ' / Regin L L L L L L L L L L L I H H H H H H Prductin In 2002! kg 000) Mature extent Yield S BuhtLeaf _ , , Own Leal , Financial Perfrmance i COP NSA Overal Prfit f Estate (WO) Prfit per falgram f tea prduced Prfit per Ha Quality carttficatins ISO 9001: 2000 HACCP -- 3 Implemantatln f beat practice* such aa 3S Qualty drde cncept 4 Age f Plantatin Less lhan t years t 25 rears t 40 years Over 40 years Ttal Tea Planted extent VP Tea Seeding Tea Uncultivated extent " " 3 ^ i 0 '

10 2 -t a m 2 Hapugastenne Hrana , Kahawatte Kegalle Kelani Valley Ktagala Madulsima Malwatte Valley Maskeliya Maturata 5, Namunukula Pussellawa ' Talawakelle Udapussellawa

11 «> <t V» \ CORPORATE RANKING TEA j IjAgalawatte ! I j 2iAgarapatana j I 3jBalangda j \ ( 4;Bgawantalawa J~5 Elpitiya » 6 Hapugastenne ^ 7 Hrana j ! / j 8 Ka ha watte I I J j 9iKegalle 13 I I t j 10JKelani Valley 10 I ! j j HiKtagala ! ' ) 12 Madulsima ! fl31 Malwatte Valley * 14jMaskeliya 1 j Maturata j 16-Narriunukula j 17 Pussellawa 16! j ( 18jTalawake«e I 19JUdapusseilawa j _ 20iWatawala 14 i i ;

12 Appendix 6 : Extracts frm Sme f the Interviews Cnducted Interviews The interviews were carried ut with numerus parties representing differed perspectives f the industry. The categries include the estate managers wh are directly invlved with the day t day peratins f the factry and the field activities, the plantatin management cmpany persnnel wh are invlved in administratin and verall management with high authrity levels fr decisin making, industry experts wh have been invlved in estate management, authritative persnnel in Tea Bard, Tea Research Institute persnnel, private estate managers, and plantatin ministry persnnel. The face t face interviews flwed with pen ended questins psed t them which enabled a free flw f infrmatin. The interviews were recrded and have been put in t a written frm belw. Interview 1 Interviewee Designatin Lcatin : Mr. Abeynanda Dias : Directr General, Tea Bard and Directr, Tea Develpment Prject Ministry f Plantatin : Sri Lanka Tea Bard The discussin with Mr. Dias in his capacity as the Directr General f the Tea Bard Sri Lanka and the Tea Develpment Prject in the Ministry f Plantatins, cmbined with his lng standing industry expertise was able t give me a useful insight t the verall industry situatin. The interview with him being ne f the very first interviews I cnducted, the verall insight was a very useful as an entry pint t the research. Q: Can yu give me a brief verview f the status f the tea industry tday? A: Tea industry in Sri Lanka has been a success stry fr ver a century nw. The main players are the plantatin cmpanies and the tea small hlders wh have nw taken ver as the majr prducer f tea. Althugh Sri Lankan is abut the third largest prducer f tea in the wrld it is the wrld largest exprter. Q: What are the majr prblems in relatin t the tea industry f Sri Lanka? A: There are several issues that need t be addressed. They range frm the fields t the market. In the fields, mst f the tea land is wned by the Reginal Plantatin Cmpanies. Hwever their yields are lw in cmparisn t the small grwers. One main reasn is that mst f their teas are unecnmical due t age and lw levels f maintenance 118

13 they have received prir t privatizatin. Replanting is essential t imprve the plantatins hwever it is a cstly affair with a lng payback and mst f the RPCs are nt replanting enugh t at the mment. Ministry prpsed a replanting rate f 2% hwever present rate is less than ne percent. In cmparisn the small hlders are ding well with better yields. Their teas are relatively new and are frm the imprved VP clnes. In additin they are able t maintain the plantatins better due t private wnership with quick decisin-making. This lack f red tape in decisin-making is better seen in the factry imprvements. Taking abut the factries, Sri Lanka prduces abut three hundred millin kilgram's f tea with abut 570 factries where as Kenya seems t be prducing the same amunt with abut 75 factries. There is n real cntrl mechanism fr setting up factry peratins and this abundance f tea prcessing factries has in fact created unnecessary cmpetitin fr the green leaf. This has led t sme factries running under capacity and wasting resurces. Other majr prblem is the issue f labur shrtage specially seen in the lw cuntry tea prductin fr RPCs. The wrkers are mving ut f plantatin wrk t ther types f emplyment making the heavily labur intensive industry suffer. Q: Can mechanizatin be a successful slutin t the labur prblem? A: Mechanizatin is a slutin t the prblem, hwever it has several dwnfalls n its part. Fr example the highest labur requirement cmes in the harvesting and there are certain labur saving devices develped fr this purpse such as mechanical shears. These have the tendency t cut thrugh the leaves f the same level where as in manual harvesting the wrkers d a pick and chse plucking. Thus in manual plucking the quality f the harvest is very high. Further when the leaves are cut in half the cells are damaged and the fermentatin prcess starts frm the pint if harvesting and deterirates the quality. Thus there is a trade ff between quality and mechanizatin. Q: Hw d yu rank the cst f prductin (COP) in Sri Lanka with the cmpeting natins? A: the main cntributrs t the COP are the yields, the labur csts and the fuel csts. In a Sri Lankan cntext nne f these are very favrable. The yields can be better and this is cnstant demands fr the labur rates t be increased fr RPCs. Further the electricity cst is high and the factries shuld be lking in t energy saving methds and alternative energy surces. Q: Why isn't Sri Lankan mving in with CTC prductin which is cnsidered tp^beia lw cst methd. A: Sri Lanka is predminantly in t the prductin f black tea thrugh the Orthdx^ manufacturing prcess. Smetime back there was an initiative t prmte CTC prductin where financial aid was given t set up CTC peratins. Hwever, it was felt that the Sri Lankan tea r Ceyln Tea is demanded mre fr its riginal flavrs thrugh the rthdx prductin system. It is true that we have lst sme f ur

14 market t CTC teas, but verall it was felt that we have better pprtunities in presenting the rthdx teas rather than CTC teas. Q: In terms f prcessing systems what imprvements can be made? A: As far as the prcessing f teas is cncerned we seem t be having a gd system fr prcessing. I dn't think much imprvement is required there. The traditinal system seems t be ding fine and we d have sme imprves machinery such as the clr srters etc that have cme in t the play. But I think there is a shrtage f gd engineering firms in peratin in Sri Lankan at present. In the early seventies there were many engineering firms in Sri Lankan wh designed and prduced lt f machinery fr the tea industry. But nw mst f them are nt in existence and sme f the machinery that cme frm India are nt ideally suited fr ur peratins. I think this is a prblem the industry is facing tday. Interview 2 Interviewee Designatin Lcatin : Dr. Ziyad Mhamed : Directr Rea Research Institute f Sri Lanka, Talawakelle : Clmb Highlights f the Interview are as fllws: The Rle f TRI in the Sri Lankan Tea Industry TRI was established in 1925 with the intentin f carrying ut research and imprving the prductivity f the tea sectr. Sri Lanka is the largest exprter f tea althugh it is abut the third prducer f tea. And ur auctin averages are the highest in the wrld and that speaks abut the vlumes f the tea industry in Sri Lanka. Tea is the largest Net freign exchange earner fr the cuntry. Sri Lankan tea is cnsidered t be ne f the cleanest teas in the wrld with minimal pesticide residue in the tea. These are primary due t the effrts f TRI. TRI has dne research and made apprpriate recmmendatins t the industry.in the pen ecnmy there are many prmters wh are bringing in many prducts and trying t prmte their prducts t the industry. The industry has recgnized and accepted that unless it is recmmended by the TRI nt t use it. This shws the cnfidence the stakehlders have in TRI. We wuld like t cnsider urselves as a 'partner in prgress fr the industry'. Tea Cultivatin Practices Answering a questin n the cultivatin practices as t why TRI smetimes still recmmend seedling tea as ppsed t VP tea, he answered highlighting a hidden prblem assciated with the Sri Lankan tea industry; 120

15 "Unlike VP tea, seedling teas have high withstanding t drught cnditins because f their deep rts. There are certain areas where there is high drughts and we recmmended the seeding tea fr such areas. The seedling teas will never give the high yields f the VPs and there is less unifrmity amngst the plants." "There is anther prblem. When we intrduced ur VP materials in the 1950s the yields f seedling teas were in 800kg range and we wanted a quantum jump. In the prcess f develping the VP with high yield, we have destryed sme f ut quality material. Sme f the seedlings may nt have the yields but culd have the very gd quality ptential. In ur search the high yield we have lst the genetic base fr variety. I am srry t say that 85% f the VP teas we have develped have cme frm the same parent material. This is a bit tricky situatin because fr sme reasn a disease r a pest attracts this variety mst f ur plantatins culd suffer. Luckily this is unlikely fr perennial crps." Replanting f Tea The gvernment suggested that we d a replanting rate f at least 2%. The idea was then within 50 years yu wuld have replanted all yur seedling tea. The reasns fr the lack f replanting - cst f replanting - lack f planting material - In 1999 TRI stated a prgramme t establish mther bushes f 85 Ha. Nw we are in a psitin t issue planting material. When TRI develp new varieties we give ut these fr ther parties s that they can establish mther bushes f these new varieties. Hwever they have nt dne their jb and nt kept prper recrds and t that extent there is a shrtage. Research n Tissue Culture and Mlecular Bilgy He stated that the ptential fr tissue culture in Sri Lankan tea has been very lw, since they have nt been able t achieve psitive results in this area. Hwever TRI is using mlecular bilgy in the research. But it is nt used fr genetic mdificatin but t identify the traits and t speed up the analysis prcess, i.e. rather than putting it in t fields and waiting fr results DNA fingerprints f the plants are analysed fr its qualities. TRI is nt ding any transgenic mdificatins. Earlier what ever the new variety f teas TRI develped was named as CLONES. The western wrld has views n the wrd clne. After several inquires frm the western wrld n genetic mdificatin the new breeds are nw renamed as CULTIVA. Prcessing Highlights When cmpared with Suth India they are far ahead f us in the cultivatin, and are getting yields far beynd us. Hwever their teas are selling at much lwer rate than that f us in Sri Lanka. The reasn is being the fine-tuning that has been dne t ur prcessing. Even cmpared with Kenya we have strength in the prcessing. 121

16 India has dne several mdificatins t the prcessing and machinery hwever they have nt been very successful as we are in fine-tuning them t ur requirements. Sri Lanka has been a manufacturer and exprter f tea machinery in the by gne days. But the pen market ecnmy has made it difficult fr Sri Lanka t be cmpetitive with the imprts frm ther cuntries that have the raw materials and cheap labur. Thus fr example India culd prduce and sell us the machinery at a much cheaper rate. Interview 3 Interviewee Designatin Lcatin : Mr. T T Christie : General Manager Plantatins, Maskeliya Plantatins Limited : Clmb Q: Lking at the statistics f the plantatins, Maskeliya plantatins seems t be ranking the first in terms f NSA, COP and the prfits. Is there any specific reasn as t hw yu utstand in cmparisn t mst f the ther plantatin cmpanies? A: We start with an advantageus psitin frm the lcatin f ur estates, mst f ur plantatins lcated at the Maskeliya regin where the best quality teas are prduced in Sri Lankan. We try t make the best f the climatic and gegraphical advantage that is endwed t us and that is ne reasn we have very gd NSAs in the auctins. Q: What activities have yu carried ut t capitalize n yur existing advantageus psitin? A: Our mtt is 'Best quality and lwest cst. We maintain best pssible standards in ur factries. We fcus n custmer requirement and factry develpment t meet the quality requirements. Tday the custmers are very keen n quality and maintenance f quality standards. Of ur twenty estates, we already have five factries under ISO 9001:2000 certificatin. Our Kslanda estate became the first Tea Plantatin in Sri Lankan t receive ISO envirnmental management certificatin. We try t adpt the best practices such as 5S in factry peratins and we have been winning the Taiki Akimt 5S natinal cmpetitin awards. Laxapana estate secured the winner f the Plantatin Sectr whilst three ther estates wn merit and cmpliance certificates. We have seen that there is tremendus imprvement in the wrk practices thrugh the intrductin f these best practices methds. Q: Maskeliya is plantatin cmpany with largest mature tea extent and yu have the highest tea prductin in year Further yur yields are much higher than the average yields f the crprate sectr. Hw is this achieved? A :We have ur wn plicy and we d stick t the basics and d the basic thing crrect. Thus we fllw the best practices and recmmendatins which are the basic features fr the success in an agricultural business. We maintain ur fields with prper fertilizatin and gd agricultural practices.

17 Q : In additin t the highest NSA yur COP seems lw in cmparisn t the rest f the players. What are the measures twards cst reductin? A: We fcus in the areas f harvesting, fertilizing and energy cst reductin. As mentined befre we have intrduced mechanizatin in the harvesting and pruning which results in imprved prductivity. In additin change f the fertilizer mix enabled us t have the same nutrient levels in the sil with much reduced csts. Specific research in relatin t these were carried ut with the cllabratin with the TRI. In the cmbat f escalatin f pwer csts, we have lked in t the harnessing f Hydr pwer resurces. In additin efficient use f energy is being actively pursued. These have resulted in a saving f 10%-14% f the verall pwer cnsumptin f the respective estates. We have undertaken t replace the liquid fuel heaters with slid fuel bilers with and aim f reducing firing csts and eliminating smke taints. Q: Industry replanting is less than the plantatin ministry target rates. Hw is the situatin with Maskeliya plantatins? A: Replanting is a must fr the sustainability f the industry. Hwever the pririties have changed in the industry setup. The agricultural business has lng payback perids and mst f the cmpanies d have ther pririties. The mney is spent n factry develpment, pwer generatins etc where the returns are high and faster. Other reasn is many plantatins are shrt f wrkers and this is anther reasn the plantatins are nt keen n replanting. They cncentrate n the already cultivated land and try t btain a quality utput ut f that. In ur case t, althugh we are engaged in replanting, it is at a lwer pririty level. We try t reap the best frm the existing extent. Nt that we have stpped replanting, the pririties have changed and we wuld get back t it little by little. Q: In general the plantatin sectr is facing a shrtage f labur. Hw is the situatin in yur case? A: We have excess labur in the Western sectr but shrtage f labur in the ther areas such as Bandarawela and Talawakellie where ther frms f emplyment are available. In the areas f shrtage f labur we have intrduced mechanizatins. t v / v Q: Hw is the wrker receptiveness twards mechanizatin? A: Initially they were resistive against the machinery. Hwever in the areas f labur shrtages they have really welcmed the mechanizatin. We have been prviding them with training and they have accepted the changes. We have gd relatinships with ur wrkfrce and they have been quite well behaved even in the times f wrker unrest in the plantatin sectr. 123

18 We have ur wn wrker ethics have encuraged them t cme up with their suggestins thrugh schemes such as intrductin 5S. Thus we have managed t imprve the attitude f ur wrkers cnsiderable. Q: In mst cases they say there is a trade ff n quality in the mechanizatin. What is yur view n this? A: I think mechanizatin can actually imprve quality. But it needs lt f time t develp the wrkers. And in the case f say harvesting the tea bushes als need t be trained fr mechanical harvesting prcess. Thus it is a learning exercise and with the prper training mechanizatin actually imprves quality and definitely increases efficiency. It is true that Sri Lankan terrains are nt ideal fr the mechanizatin. In ther cuntries fr example in Kenya the tea lands are flat in cmparisn t ur steep slpes. Thus there are practical difficulties invlved in mechanizatin in field activities. Hwever in ur wn way we culd d a lt t intrduce mechanizatin and thus imprve efficiency and reduce csts. Q: Are yu invlved in bught leaf prcessing t? Hw d yu maintain the quality aspects in bught leaf peratins? A: We have sme factries prcessing bught leaf as well. And ur margins are lw with bught leaf because there is a special frmula where we have t pay t the leaf prducer based n ur NSA. The quality assurance is thrugh stringent checking and als with educatin. We educate them abut the handling f leaf and we reject any thing which des nt fit in t ur specificatins. Thus we have managed t maintain ur aspiratins f quality and built up a gd relatinship with the suppliers. Q: What specific measures are dne t ensure the prduct quality? A: The main fcus in achieving a cnsistent prduct quality is the harvesting peratins. Training prgrammes with the participatin f executives and field staff enabled t create and awareness f the planning, implementing and mnitring f the harvesting prgramme. The training is extended t areas in the prcess f manufacturing. In additin ur factries are striving fr highest quality levels. We have adpted latest technlgy in the factries such as cmputer aided withering and fermenting prcesses in five factries and this has actually helped in maintaining ur prduct quality. Quality assurance prgramme with quality mnitring has been implemented bth at the factry level and at head ffice level. We are in a mve twards ttal quality. Q: In the management f estates what kind f authrity is with the estate management? 124

19 A: Subject t a frame wrk f plicies we have given ur estate managers a fair amunt f autnmy. Of curse there are regulatins in relatin t capital investments where there is a tender prcedures t be fllwed thrugh the head ffice. Hwever they send their recmmendatins fr such requirements. Even fertilizer we buy in bulk t get the discunts available. In ther peratins f the estates they have full autnmy in running their day t day peratins. Q: What is the level f IT utilizatin in yur rganizatin? A: We have intrduced a wide area netwrk cnnecting all ur estates. The accunting package is used running parallel in all estates we can mnitr estate accunting system thrugh the head ffice. The WAN has helped reducing the cmmunicatin csts as well. Q: What ther measures have been adpted in the reductin f csts n estate levels? A: with the intrductin f best practices such as ISO and 5S we have reduced the waste and the streamlining has imprved the efficiency levels leading t reductin in csts. In additin, we have intrduced many energy cnservatin mechanisms. Pwer factr crrectin systems, cnverting bilers frm il t fire wd. This actually reduces cntaminatin f teas thrugh smke. We have mved in t mini hydr pwer generatin which reduces the energy cst as well as generating additinal incme thrugh sale f pwer. Q: What pprtunities d the emplyees have fr career develpment and training? A: We d nt have a frmal training prgramme structured fr the emplyees. We see that they trained in huse thrugh the wrk itself. We smetimes ffer thrainign thrugh NIPM, Natinal Institute f Plantatin Management. And we ffer training t the factry staff as and when it is required. We fllw the plicy f prmting ur wn superintendents and we have been successful in retaining them. We have a fairly yung grup f estate managers wh are enthusiastic and energetic. Q: What is yur invlvement with TRI? A : TRI cllabratin is very high and we d lt f cllabrative trial with them. Maskeliya plantatins are well invlved with them. I wuld say that each superintendent has direct access t the TRI. Q: There is lt f criticism abut the inadequate rle f TRI. What is yur pinin n the TRI rle? A: We are in the agricultural business. In agriculture each plt f land is different and it is yur duty t use the basic knwledge frm research activities and use it t serve yur purpse rather than criticizing thers. We fllw the basic rules and have been successful in capitalizing n this practice. 125

20 Fr example if I have a prblem in my plantatin, I can initiate the dialgue with TRI fr finding slutin t the prblem withut waiting fr their extensin service t cme t me. In that aspect by being practive we have actually made use f the TRI resurces extensively. TRI d have their wn prblems, but it is up t the planters and the plantatin cmpanies t get the best ut f the resurces available. Q: What abut TRI rle beynd the field wrk? A: Sri Lankan has develped a gd prcessing practice ver the years and that is reasn behind ur quality teas. In the prcessing we shuld nt be ging fr drastic changes and the TRI have intrduced certain imprvements which are cnsistent with ur quality. We bught sme Indian machinery here and we actually gt in t truble with them. They prmised high utput and efficiency, but we really lst n the quality. Tday the quality tea is the ne which is getting the highest price and we cannt really trade ff with quality. TRI recgnizes this fact and have been very careful in recmmending the changes t the tea prcessing. They have cme up with gd designs and innvatins fr example the FBD drier ( Fluid bed drier) was invented by TRI but presently we are imprting it frm India. Up t nw if we can d what TRI recmmends I think we can be successful in ur peratins. We at Maskeliya are achieving N. 1 NSA in the cuntry accrding t TRI recmmendatins. I think there shuld be mre supprt frm the gvernment t prmte their research. Q: In yur pinin what are the main challenges faced by the tea industry at present? I think the biggest challenge we face at the mment is the adverse plitical interventin. The trade unins are s pwerful and there is n fair play. There is n dubt that the wrkers need a wage increase, but the industry needs a certain amunt f utput as well. Fr example there is demand fr a wage increase and the plantatin cmpanies are finding it very difficult t manage their cash flws in this sudden wage increases. We d agree that the wrkers need a rise in the wages, but what shuld be dne is it shuld be an incentive in relatin t the prductivity and efficiency. With the present situatin there is n net benefit t the plantatins and it des erde away the mney available fr reinvestment. This ultimately affects the lng term sustainability f the plantatin sectr. The ther issues is the lack f supprt frm the gvernment and Tea Bard shuld be mre in prmting Sri Lankan Tea. Still Tea is the majr net freign incme earner fr the cuntry and there are s many millins f peple invlved with the tea industry. Thus the imprving the exprt earnings have a big impact in the Sri Lankan ecnmy. I feel that the rle played by the Tea Bard is nt sufficient. Q: Tea industry is ver 100 years ld. Hw is the general attitude f the industry and its peple? 126

21 A: The industry has seen lt f changes ver its existence, Privatizatin, gvernment wnership, re-privatizatin has necessitated lt f wrker awareness prgrammes t mve in with the changes and attitude changes. Of curse there is the grup f resistive peple which always ppse change. It is a matter f hw t deal with them. Q: In yur pinin are we hw culd the technlgical advances be intrduced t the industry? I think the we shuld be adpting the nly the suitable technlgies t us depending n the envirnment. Fr example we can prpse a fully autmated factry fr prcessing all ur teas as dne in sme ther cuntries. Hwever we have t cnsider the labur issues assciated with the decisin. That is ne extreme case, but what I thin is we shuld g fr apprpriate technlgical advances and they need t be implemented with care. Q: Hw is Maskeliya handling the new prduct develpments? A: Maskeliya has the whle range f tea prducts. The Orthdx, the leafy grades, CTC, bi tea etc. thus we can cater t all the market equipments. Q: Why isn't CTC ppular in Sri Lanka? A: CTC teas are mainly used in the Tea Bags which are widely used in the western wrld. Kenya is gegraphically situated in a better lcatin t the west and we used t value ur CTC mainly t the Pakistan market. Hwever in cmparisn t Sri Lankan Orthdx prductin quality, ur CTC are f lwer grade and are used mainly as the secndary mix in tea blending. Our areas are nt best suited fr CTC teas and are ranked secndary t Kenyan tea. Thus mst f ur cmpanies are really fcusing in the rthdx prductin which fetches high prices in the market as Sri Lankan Teas. Interview 4 Interviewee : Mr. Parakrama Hettiarachchi, General Manager Tea, APL Mr. Ravi Bandaranayake, Mr. Lai Munasinghe Lcatin : Clmb Highlights f the interview are as fllws: Planting and Field Related Activities In the plantatins it was identified that ne majr prblem is the lw yields. Fr APL the main reasn is the aging plantatins in general. The plantatins, which came under APL at the privatizatin, were nt the best that were available. Althugh there were ver 1500 Ha f lw cuntry tea, mst f them were unecnmical and initially the cmpany had t cncentrate f a small area f ecnmical tea t survive in the 127

22 business. State sectr has nt invested in the field develpment and mst f the estate had ld tea. Replanting is the slutin t vercme the prblem. Hwever it is a cstly affair and the bard des nt cnsider investing in replanting very psitively. Replanting csts apprximately Rs 800,000 per Ha f which includes 25% as general charges. The planted bush takes abut 3 t 4 years t reach the harvesting stage. Thus, replanting is lng-term investment with a high pay back perid. Describing the prcess adpted in the planting prcess he als stresses the imprtance f fllwing the basics right. First step is the field selectin prcess, where the land be replanted is identified based n the ld tea, the terrain cnditins, sil ersin, etc. these are specified in mre detail in field guidebks. Land preparatin invlves several imprtant steps. The uprting f ld tea, taking measures fr pest cntrl and disease cntrl which culd prpagate frm ld tea t new tea, sil recnditining and rehabilitating thrugh planting break crp such as Guatemala r Mana. Specific measures has be adpted t prevent sil ersin such as the drainage systems and terraces. With the planting f rehabilitatin grass, shade trees and shelterbelts fr wind barriers shuld be planted. All these infrmatin is available fr the planters as infrmatin bklets and mst f this is embedded within the peple with their experiences. Selectin f the type f tea t be planted is als an imprtant area. The selectin will depend n the terrain, the yield, the quality, resistance t climatic cnditin etc. The TRI has guidance and advisr services fr these. TRI has develped several clnes, which pssess specified qualities, and the grwers can select the clnes frm a range available. Where d the plants cme fr replanting? This is a prcess, which needs planning fr abut a tw-year perid. A nursery has t be set up based n the selected type. Vegetative Prpagatin is preferred as it gives mre unifrm plantatin, hwever if the terrain is subject t sever weather cnditins such as drughts seedling tea develped thrugh previus VP teas are suitable t withstand these cnditins. One majr prblem faced in replanting is the shrtage f the nursery plants. T plant a Ha f tea a nursery f 15,000 plants shuld be develped. A mther bush can prduce abut 30 cuts and a 5000 mther bushes are required t set up the nursery. There is a shrtage f latest clnes such as the 4000 series. Althugh TRI has dne certain develpment in the tissue culture area it had nt been very successful in prviding the industry with planting material. Cmmenting n the success f TRI clnes he said, 'It takes abut 10 years t develp a mther bush t btain cuts, t develp substantial plantatins. TRI tests its clnes in ideal cnditins and when they are field tested f curse we d nt get the yields that are available under test cnditins. Hwever they have cme up with several gd varieties. Hwever cmpared t the Indian cunterpart f TRI, we have nt dne s 128

23 well. Being a crp, which lasts abut years it, is very difficult t assess the success f a new clne in the shrt run. But verall I think they have dne well t intrduce gd planting material t the industry'. Talking abut India, unlike in Sri Lanka they have private cmpanies perating their wn research centers and they d nt wait fr gvernment institutins d the research fr them. Of curse they are multinatinal cmpanies such as Unilever and TATA. APL has pineered in the intrductin f mechanized pruning and harvesting machines, cnsidering the fact that Mackwds is an imprter and distributr in these equipment. Hwever it is nt cnstant users f these as they seem t have deteriratin f quality in the case f harvesting. But in the peak the peak perids f harvest with shrtage f labur APL is als using these. In the quality maintenance f the leaf, the wn estate leaf is sent fr prcessing thrice a day whilst strict rules are applied t the bught leaf t main the quality. In the lw cuntry there is heavy cmpetitin fr the bught leaf as there are several private factries which are cmpeting fr the leaf f small hlders. Estate Management APL has prvided fair amunt f autnmy fr the estate managers, hwever the capital expenditure is mainly cntrlled by the head ffice. We als minitr their perfrmance thrugh reviews and meetings but say the prductin management and catering t the custmer demand etc. they have full autnmy. Factries Althugh APL has the first ISO 90001:2000 certified tea factry in Sri Lanka, there are resurce cnstraints in ther tea factries. Fr example all ur factries des nt wn a clur separatr, which is an imprtant piece f equipment in quality assurance f tea. Sme f APL factries in the lw cuntry are cmpeting with the private estate wners wh perate with latest equipments and the cmpletin is tugh. The majr cnstraining factr is the limited capital availability. Scial Develpment APL has embarked n several scial develpment prgrammes targeting wrker welfare. These are aimed at wrker retentin and mtivatin. We have been successful in sme f the estates t bst the mtivatin levels f the emplyees. Hwever, labur shrtage is sever in the lw cuntry estates. IT Utilizatin APL des nt have a WAN, but recently we have prvided the estates with Dialup cnnectivity where they send their reprts and accunt t the head ffice. Hwever we d nt have a standard accunting package nr a MIS implemented. Still there is cnsiderable amunt f paper wrk flwing between the head ffice and estates. 129

24 Interview 5 Labkellie estate is the ISO 9001:2000 certified tea factry in the Agalawata Plantatins Limited. The interview highlighted the advantages f wrker invlvement and in prductivity imprvement. Interviewee Designatin Lcatin : Mr. Lai Perera : Manager- Labkellie Estate, Agalawatta Plantatins : Clmb & Labkellie Q : what wuld yu cnsider t be ur biggest challenge in managing the estate? A: I think it is t keep the labr mtivatins high enugh s that I can retain them in the estate and reduce their attractin twards the labur unins. Mst f the yunger generatin prefers t avid estate wrk. They will engage in all ther frms f emplyment and nly cme fr estate wrk if nthing else is available. The sad part is the estate prvides fr the whle family with accmmdatin, and certain amunt f supplies and ther facilities and the whle family enjys these facilities while nly may be the ld mther r the father is the nly estate wrker. And the yung girls srt after ther emplyment and may cme fr estate wrk when they are much lder and with family burdens. Thus althugh the estate nurishes them, we usually are n able t use their mst prductive years fr the estate. In additin I have the prblem f dealing with the labur unin pressure and plitical pressure. Q: Taking f mtivatin levels, hw d yu prpse t imprve them? A: Actually I have implemented several prgrammes t keep the labur invlves. The issue is that the wrkers shuld see the manager as a strng leader; therwise it is very easy fr the labur unins t distract them and create prblems fr us. What I mean by a strng leader is nt simply being arrgant r stern, yu shuld make them feel that they can depend n yu and yu listen t their views, ideas and prblems and yu have an interest in them. Then they start t have faith in yu. Q: Hw have yu put yur philsphy in practice? A: The estate emplyees are prvided with husing, electricity, sanitatin, medical, and ther amenities thrugh the estate. In additin I have develped several prgrammes t imprve the participatin specially the yung crwd. Fr example we have rganized sprts events with the participatin f bth men and wmen, cmpetitin and celebratins in relatin t varius festivals, there is a prpsal t set up a mini bank. Further I listen t them and get persnally invlved in their prblems and d a fllw up t see if these are reslves. Smetimes yu cannt agree t sme f the demands but it helps at least t listen t them and they appreciate it. Q: What changes are practiced in relatin t the wrk related activities? 130

25 A: Labkellie is the first factry in Sri Lanka t btain ISO 9001:2000 certificatin. And we are practicing 5S in the factry as well as in the ffice. This has helped us t streamline ur peratins leading t high prductivity and less bttlenecks. In the factry we have changes the designatins f the peple. Earlier they were all called laburers, but nw they are machine peratrs. They are given unifrms and wrking cnditins are imprved. Thus they take pride in what they d and the retentin levels have imprved dramatically. Q: It was mentined nce that skilled staff fr the maintenance f the machine is lacking. Is it a cmmn t yu t? A: Yes. The factry is 24 hur peratin and maintenance crew has t be available thugh ut. Hwever under the cllective agreement there are salary scales agreed upn which is insufficient t retain gd quality staff in an estate. Thus we shuld develp ur wn incentive frm the cmpany t retain the skilled staff. Q: Hw d yu feel abut the supprt yu get frm the tp management? A: I thing I get a gd hearing frm them. They are very receptive t new ideas and are usually enthusiastic abut them. Hwever there is a lack f actin in pushing the ideas in t actin plans. As fr the management f the estates, I have a gd say in what I d within the estate. I think it is a matter f crrectly identifying the requirements f the estate and putting it t the bard in a cnvincing manner t make tern lk at it favurably. Q: what abut issues such as replanting? A: I believe the same rules apply there as well. Fr example if yu think yu wuld nt have enugh labur t maintain the estate in the future them prmting replanting is nt a very gd idea. At the same time yu have t cnsider abut the cst benefit f the idea. I think we shuld g fr a niche in the Labkellie estate. We d nt d bught leaf here and we prmte branded, value added tea frm Labkellie. I feel that we shuld cncentrate mre n this rather than bulk tea prductin. Q: Being the first tea factry in Sri Lanka t btain the ISO 9001:2000 certificatin and the nly tea factry in the grup t btain the certificatin, what benefits have yu achieved thrugh this? A: I believe the certificatin t be a very gd think. Nt s much the certificate, but the practices that were intrduced with the system. We have been able t streamline the peratins t avid unnecessary waste and imprve the efficiency f the peratins. The streamline prcess has given better rder in the peratins. The intrductin f the 5S system within the factry has had benefits beynd the factry. Sme f the wrkers have imprved the cnditins f their wn huses with the practices learned thrugh the peratins. It is very encuraging t ntice that theyar^ themselves making an effrt t use the new gained knwledge in the day t day li.^ 131

26 Q: In additin t the scial develpment and interactin with them are there any ther develpment prgrammes fr yur labur frce? A: definitely. We have regular training sessin fr them n varius tpics. We have set up a lecture rm and auditrium with adequate facilities t prvide regular training t all levels f staff, in additin t the n the jb training. In additin I have develped a practice f taking them t see a factry f a higher standard and lwer standard and let d a bench mark n their factry and t cme up with suggestins and actin plans fr the cntinuus imprvement. Q: The tea factr peratin is an peratin with high invlvement in bth machinery and humans. D yu think that there is rm fr imprvement? A: definitely. We have been using the same ld systems which are almst 100 years ld. I think there are plenty f areas fr imprvement. I think new mechanical systems as well as electrnic system can be used well in these peratins. Q :Can yu give an example f a such instance. A: One area is actually in withering, where ne has t cnstantly mnitr the humidity levels t determine the temperature f the air that Hws t withering trughs. Presently these are recrded every half hur r s using wet-and-dry bulb reading difference f an anemmeter. This is area where electrnic thermstats can cme in t play. Althugh these are available in the industry we have nt yet intrduced them here due t capital budget limitatins. Sme f these are ideas I wuld nt be able t practice withut the help f sme expert knwledge, such as a university research team. I feel that the engineering faculties f the cuntry shuld cme frward t assist the tea industry imprvements. I am very enthusiastic t cperate with them t use the factry fr the test purpses. Hwever I have nt been successful in interacting them s far. Interview 6 Interviewee Designatin : Mr. Herath : Manager- Delgda Estate, Agalawatta Plantatins The Delgda Estate f APL is mainly a tea prcessing factry situated in a small plantatin f five hectares. The factry prcesses mainly bught leaf frm small grwers. Q: Can yu brief me f the peratins f the factry. A: Delgda factry has been set up t prcess green leaf f the small hlders under gvernment regime. And at privatizatin it has been transferred t APL in Althugh the estate tea is minimal fr Delgda, the factry perates at almst full capacity with the bught leaf. 132