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Monday, June 28, 2010

The World and Sri Lankan Spices

A spice is a dried seed, fruit, root, bark or vegetative substance used as a food additive for the purpose of flavoring, and sometimes as a preservative by killing or preventing the growth of harmful bacteria in food. Many of these spices are also used for other purposes such as medicine, cosmetics, perfumery or as religious rituals. For example, turmeric is used as a preservative; licorice as a medicine Some times they are also being referred to by different terms. Spices in spice gardens of Sri Lanka can be distinguished from herbs, which are leafy, green plant parts used for flavoring purposes. Herbs, such as oregano, basil can be used fresh. Spices in spice gardens of Sri Lanka however, are dried and often ground or grated into a powder. Small seeds, such as fennel and mustard seeds, are used both whole and in powder form.
Essential Oils and Oleoresins
Essential oils are aromatic, odorous oily liquids obtained from plant material, for example flower buds, leaves, seeds, bask fruits and roots. Essential oils, the most flavorful part of many spices & herbs, Therefore of highs value than the spice itself. Essential oils can be obtained from the plant material by distillation or extraction. Sri Lanka has a long history for exporting essential oils.
These are three different distillation methods.
Water distillation
Water & Steam distillation
Steam distillation

Major Markets
Essential oil Exports – 1998 ( Value in US $ Mn )
U.S.A., India, France, U.K., Netherland, Germany, Italy, Hong Kong, Spain, Switzerland
Quality & Grading Standards
The quality of essential oils is assessed by a buyer on the basis of a number of criteria.
Odour and flavour character
Physical properties and the chemical compositions

The Standard Specifications include
A definition of the acceptable botanical source and processing method for the particular oil, specifications for physico – chemical properties such as:Relative density, Ester value, Freezing point, Optical rotation analysis. CISIR certification gives general analysis of essential oils.
Packaging
There are different ways of packaging. The 200 L metal or tin lining drums are normally used for shipping high volume essential oils. These drums contain app. 180 Kg of oil. Special attention must be paid to sealing the drums, to avoid dilution of the essential oils during transport.
Market segmentation
Essential oils can be used in various end-use products. It depends on the kind of oil and the quality of the oil in what kind of end-use product they are processed.
Some of the different industries, which use essential oils are
Perfume industry, Pharmaceutical industry ,Food industry ,Bakery ,Confectionery ,Beverages


The Labeling on the drums must include a short description of the product and country of origin and the date of production.Further it is recommended to include the following aspects on the label.
Name / address of the producer / exporter
Net weight
Recommended storage conditions

Spices
Sri Lanka has been famous for her natural spices from ancient times. Spices now play an important role in Sri Lankan agricultural economy in respect of export oriented trade. The important spice crops in Sri Lanka comprise cinnamon, pepper, clove, nutmeg and mace. Spices are cultivated in the wet and intermediate zones of the country.

Cinnamon Cinnamomum verum Lauraceae Bark
Pepper Piper nigrum Piperraceae Fruit seed
Cardamom Elettaria cardamomum Zingiberaccae Friut seed
Clove Syzigium aromaticium Myrtaccae Flower Bud
Nutmeg Myristica fragrans Myristicaceae Seed
Mace Myristica fragrans Myristicaceae Aril of seed

Exports of Spices and allied products are in the range of Rs.5700 mn and provides many socio-economic benefits to the rural economy.Exports of spices can be divided in to two groups` 1. Primary Form
2. Value added form - powder, oil, spice mixes and various recipes
Major Markets
Mexico, U.S.A., U.K., Colombia, Germany, India
Quality and Grading Standards
The bulk of spices entering international trade is in whole and ungrounded form.When ground or mixed spices are exported specially testing for contamination or other residues needed.Sri Lanka follows SLSI standards but actual quality standards required are set by importers and major end users against the health and safety requirements of Food and Drug Act, ASTA Specifications, EU regulations or ESA standards.The main quality factors considered are appearance, flavour, aroma, colour, volatile oil content and cleanliness.
Packing
Spices are required to be packed in clean, hygienic materials which do not interact with the product itself and also depend on the importer’s specificationMost of the spices are packed in jute bags lined with waterproof. Cinnamon is generally packed in bales and for other Spices steel drums or wooden cases and for cardamom black polythene can be used for colour preservation. All spices must be thoroughly dried to avoid the formation of mould before shipment.
Major International Food Fairs…..
Food Ingredients Europe,Anuga ,SIAL ,IFE ,Alimentaria ,Food Ingredients Asia ,Foodex
Food & Hotel Asia

Organic (Bio) Products
Range of Products:Tea, spices, cashew, desiccated coconut, herbs, processed fruits and vegetables.
Sri Lanka's economy has for a long time been based on the export of agricultural produce. In recent years, an effort has been made to break into the international market for organic produce. The first conversion of tea estates to organic production was made as early as the mid 1980s.The Sri Lanka Export Development Board has recognised the potential Sri Lanka possesses to become an exporter of organic produce and with the assistance of Pro-trade has developed and diversified the exports of organic produce - mainly to EU countries.
Supply Position
Twelve companies are involved in the production and the export of organically grown produce. Large amounts of land are being certified for organic agriculture, so as to increase the supply base to enter new markets.The certification is carried out by international agencies accredited to International Federation of Organic Agriculture Movements (IFOAM).
Major Markets
Germany, Australia, UK, Japan, Canada and France.

Organic Agriculture in Sri Lanka - Some Future Considerations

by Kamal Melvani, General Secretary, Lanka Organic Agriculture Movement
email: neosynth@sltnet.lk



Modern organic agriculture* in Sri Lanka is coming of age now. According to IFOAM & FiBL (2006), there are 15,215 hectares of land under organic management, with a share of total agricultural land of 0.65% and a presence of around 3,300 organic farms.1 While data from the Export Development Board seems only available till 2000, suffice it to say that up to that time, 15 organizations, both private and non government were responsible for exporting 753 metric tons of organic tea, spices, essential oils, cashew, desiccated coconut, dried fruits, vegetables and herbs valued at S.L. Rs. 543 million.2 Most of these organic products are exported to Europe, Japan and Australia. The organic directory published in 2006 states that the number of registered exporters had since risen to 30, non governmental and farmer organizations number 34, the number of certified estates number 20 and there are 177 independent growers who come under the umbrella of the Department of Export Agriculture.3

The backbone of a vital organic agriculture is the Sri Lankan farmer and those organizations and persons who work with him/her. The organic movement in Sri Lanka started in the 1980s where a group of local NGO representatives, planters, scientists and environmental officers had drafted a Memorandum of Association to create a movement named Lanka Organic Agriculture Movement (LOAM). This can be seen as the official starting point for the dissemination of organic agriculture in Sri Lanka. The primary objectives of LOAM are to promote organic agriculture, to establish, improve and maintain standards for organic agriculture and to create awareness of organic products among the people of Sri Lanka. In 2001 LOAM was registered as an official legal body.1

The Movement has matured in the past six years where in principle, its achievements can be evaluated in the manner in which it has influenced Government policy. LOAM was instrumental in establishing the guidelines for certification in 2006 that were presented to the Ministry of Environment and Natural Resources. In 2007, at the invitation of the Sri Lanka Standards Institute, LOAM played a decisive role in drawing up the Standards for Organic Agriculture in Sri Lanka. LOAM was also a partner to the EU SL Organic Agriculture Project that sought to set up the first National certification company in Sri Lanka. While LOAM members continue to engage in awareness creation and field work on their own accord, the time has come to consolidate their energies in order to face the many challenges ahead. While the Government seems seriously bent on promoting organic agriculture it behoves us at LOAM to set the direction. Looking closely at the issues at hand it seems pertinent to discuss the role that organic agriculture must play in terms of conserving biodiversity, safeguarding water quality and facing up to climate change for instance.

Biodiversity conservation and restoration

Biodiversity provides the foundation of all agriculture.4 The simplification of agro-ecosystems to monoculture production and the removal of non-crop vegetation from the farm unit (e.g. hedgerows, shelter belts and field margins) has contributed to the homogeneity of agricultural landscapes by reducing botanical and structural variation, resulting in both a reduced capacity of agricultural areas to serve as habitat for wild species as well as to effectively internally regulate populations of pests and disease causing organisms which affect crop productivity5,6. This has resulted in a widespread decline in farm species abundance and diversity across many taxonomic groupings, including high rates of wildlife mortality and reduced reproductive success of many species. 7,8,9,10,5,11&12 This loss of biodiversity has also resulted in a reduced capacity of agro-ecosystems to perform many essential ecosystem functions such as purification of water, internal regulation of pests and diseases, carbon sequestration, and degradation of toxic compounds. 13

However, agriculturalists are now aware of the value of the biodiversity "input" for agriculture. The ecological functions of diverse ecosystems (such as balanced predation, pollination, nutrient cycling, degradation of toxic compounds, carbon sequestration) are today recognized to be central to sustainable food production. Moving away from simplified agricultural systems offers opportunities to produce food while enhancing natural landscapes. 14

At the same time, biodiversity in all agro ecosystems should be seen as being comprised of two primary elements: crop biodiversity and systems biodiversity. Crop biodiversity refers to the species present on the farm that will provide direct economic input to the farm. Systems biodiversity is the non crop component of the biodiversity that is required to sustain the agro ecosystem. It is both of these measures that indicate the state of biodiversity in that agro ecosystem. The gain in biodiversity in an agricultural field is directly proportional to a change in the management regime adopted. Therefore the challenge before us is to evolve a system of knowledge that will enable the use of biodiversity data in monitoring and evaluation of organic farming.15 This is important given that the present National Standards for Organic Agriculture in Sri Lanka state that “the presence of biodiversity (soil, surface and aquatic) is an indication of the health of the agro ecosystem.” 16

Over the last century, population, market pressures and the development of new agricultural technologies have encouraged patterns of agricultural development tending towards agricultural intensification (i.e. increasing scales of monoculture production, intensive mechanical tillage, irrigation, and the use of synthetic fertilizer, pest control agents and a restricted diversity of crop and livestock varieties), often leading to natural resources degradation. The majority of the human population increase is expected to take place in the biodiversity-rich developing countries of the tropics like Sri Lanka.14

The Convention on Biological Diversity “encourages the development of technologies and farming practices that not only increase productivity, but also arrest degradation as well as reclaim, rehabilitate, restore and enhance biological diversity and monitor adverse effects on sustainable agricultural diversity. These could include, inter alia, organic farming, integrated pest management, biological control, no-till agriculture, multicropping, intercropping, crop rotation and agricultural forestry” (Decision III/11, 15 e) 17. While several agricultural approaches make sustainability claims, organic agriculture is the only well-defined agricultural management system, including recommended and restricted practices that aim at environmental protection and food production. However, the main challenge in protected areas is to conserve biodiversity while providing the basis for the social and economic development of local residents.14

In the past twenty seven years an alternative system of land management has been developed in Sri Lanka where the landscapes of farm gardens have been designed to include a variety of both annual and tree crops that provide a host of utility benefits like food, medicine, timber, fuelwood, fodder, fibre etc. They are also designed to provide whole forest products and services like water yield, carbon sequestration, biodiversity conservation and phytoremediation. Of specific relevance is that they generate leaf litter and detritus thus facilitating soil biodiversity and building soil organic matter. This technology called analog forestry has proved to be extremely effective in the restoration of degraded land and has been used in the rehabilitation of watersheds, Tsunami affected lands and ground water that has been contaminated by agrochemicals. Analog forestry is a system of land management that seeks to establish a tree dominated ecosystem analogous in architectural structure and ecological function to the original climax or sub climax vegetation community. Analog forestry moves beyond other current agro forestry practices since it includes an explicit focus on the identification and incorporation of biological diversity. In fact the income generation from these forest gardens has been seen to consistently increase in time; 18 they also reduce the risk from the cultivation of a single or few crops since the products can be harvested all year round. This technology has demonstrated that since all crops in these new forests are grown organically, many species of animals and birds that were once confined to the original forest move in and establish populations. 19

Safeguarding water quality

A Report released in 2001 by the American Association for the Advancement of Sciences states that: “should past dependences of the global environmental impacts of agriculture on human population and consumption continue, 109 hectares of natural ecosystems would be converted to agriculture by 2050. This would be accompanied by 2.4 to 2.7-fold increase in nitrogen and phosphorus-driven eutrophication of terrestrial, freshwater, and near-shore marine ecosystems, and comparable increase in pesticide use. Eutrophication and habitat destruction would cause unprecedented ecosystem simplification, loss of ecosystem services, and species extinctions.20 Already in Sri Lanka we are facing problems of the contamination of our rivers, streams and ground water due to nitrogen based fertilizers and other agrochemicals. The impact on human health has revealed a host of kidney related problems, carcinomas and Methemoglobinemia though more research needs to be done. 21, 22 & 23 The need to influence water policy is therefore critical where organic agriculture must be mooted as the primary land use in watersheds, specifically in the riparian zone.



Climate Change

Agriculture contributes to over 20 percent of global anthropogenic greenhouse gas emissions. Agricultural intensification has had major detrimental impacts on the terrestrial and aquatic ecosystems of the world. The doubling of production during the last 35 years was associated with a 6.9 fold increase in nitrogen fertilization, 3.5 fold increases in phosphorus fertilization and a 1.7 fold increase in irrigated land. Agriculture is also affected by climate change. An increase in global warming will shift cultivation zones polewards, plant growth and production being jeopardized by changes in the distribution of rainfall, the increase of UV-B radiation, and changes in the chemical composition of the atmosphere. In regions with continental climate, soils are subject to desiccation, meaning climate change will aggravate problems of salinity, erosion, and desertification. Extreme climatic events will occur more frequently. Pests and diseases favoured by a warmer climate will continue to proliferate. All these factors will have negative impacts on agricultural yields 24

Two possible courses of action to alleviate climate change are a) limiting the green house gas emissions and b) enhancing the removal or uptake of these gases from the atmosphere to stabilise the pools of sediments, trees and soil organic matter 25

Organic agriculture not only enables ecosystems to better adjust to the effects of climate change but also offers the potential to reduce the emissions of agricultural greenhouse gases. Moreover, mixed farming and the diversity of organic crop rotations protect the fragile soil surface and may even counteract climate change by restoring the organic matter content.26 Managing soils to increase the stocks of carbon stored as soil organic matter can be expected to reduce the rate of increase in atmospheric CO2 and to improve soil quality, thus resulting in additional benefits beyond greenhouse gas reductions.27

Sri Lanka needs to develop better management practices that could increase carbon sinks, energy efficiency improvements and production of energy from crops and residues. This will result in a further mitigation potential, or cumulative carbon storage. Many long-term experiments in the world support the cognition that organic fertilization (animal manure, green manure, catch and cover crops) rebuild soil organic matter. A 20% increase in soil organic matter as a result of organic agriculture would result in an estimated amount of 9 tonnes carbon per ha. There is a considerable potential increase of soil carbon when manure, straw-recycling, minimal tillage, reforestation and energy-saving plant production are combined.24 This research demonstrates the need to focus on the use of paddy straw and encourage farmers to engage in the cultivation of green manure crops in Sri Lanka.

Nitrous oxide emissions not only contribute severely to the greenhouse effect but also to the depletion of stratospheric ozone. Almost 90% of the global atmospheric N2O is formed during the microbial transformation of nitrate (NO3-) and ammonia (NH4+) in soils and water.24 Of significance is the ‘dry farming’ or Nawa Kekulama method of paddy cultivation as promoted by Mr. G.K. Upawansa. This method uses a mixture of neem seed cake and compost to suppress the action of denitrifying bacteria thereby reducing the loss of NO3 and NH4 from paddy ecosystems. 28

Methane emissions: Agriculture is believed to account for roughly two-thirds of the total man-made CH4 mainly from paddy rice fields, burning of biomass and ruminants (enteric fermentation and animal waste treatment). 26 According to Mr. G.K. Upawansa in a paper delivered to the then Minister of Environment in 2005, “under wetland conditions, large quantities of methane are emitted. Since the Nawa Kekulama method requires limited water resources, methane emission is kept at a bare minimum.” 29 This system of rice production has been demonstrated to generate greater profit per acre than that of conventional rice cultivation. It also uses less water for cultivation.

Sri lankan floriculture industry

Typically, floriculture is defined as Science and practice of growing, harvesting, storing, designing, marketing of cut flowers, potted flowering plants, foliage plants, bedding and garden plants, cut cultivated greens and propagative materials.
The floral industry is one of the major industries in many developing and underdeveloped countries. The present day floral industry is a dynamic, global, fast-growing industry, which has achieved significant growth rates during the past few decades. In the 1950s, the global flower trade was less than US$3 billion. By 1992, it had grown to US$100 billion. In recent years, the floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.
Traditionally, the center of flower production has been near their largest consumers: the developed world, where Japan, Western Europe and North America were both major producers and consumers. The major consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent), the United Kingdom (10 percent), the Netherlands (9 percent), Japan (6 percent), Italy (5 percent), and Switzerland (5 percent).
The floriculture industry in Sri Lanka started around 23 years ago and was a very small industry with just a few companies. Today it is a very significant industry, touching close upon one billion rupees on exports last year. There are 3500-4000 people directly involved in the industry. While the floriculture industry was not taken very seriously for some time, its contribution to the economy was highlighted in last year’s budget.
There is a huge growth potential for this industry in Sri Lanka. If this potential is fully met, the turnover can be doubled. The industry's global growth rate is about 15 per cent annually but in Sri Lanka it has been 4-5 per cent over the last few years.
Flowers are mentioned in the social fabric of our country and no function is complete without flowers. Also it is a important industry which earning foreign money through the exporting
Currently it is a growing industry in Sri Lanka. It is growing at an annual growth rate of 10% per annum. And also this industry becoming a profitable agri business in Sri Lanka.
There is a demand for floricultural products locally (weddings, ceremonies, social events etc…). but main target is to export. Therefore Sri Lanka produces wide range of floricultural products including cut flowers (fresh or dried), cut foliage, potted plants, bedding plants and planting materials. These products are mainly export to three destinations are Asian Market (40%), European Market (44%) & Middle east Market (13%)
There are lot of floricultural plants species are grown in commercial level as well as in home garden level. Attempt of preparing this floriculture album is to identify several floricultural plants by morphologically, taxonomically and charactifically.

Sunday, June 27, 2010

IMPORTANCE OF QUALITY CERTIFICATION & VALUE ADDITION IN SRI LANKA EXPORT AGRICULTURE CROP SECTOR TO TAP THE OPTIMUM POTENTIAL IN GLOBAL MARKET

Sri Lanka has a Small domestic market and resource base force, the economy highly depend on foreign trade, export and import. In 2008 export and import represented 25% and38% of the GDP respectively. Therefore, development of the economy is mostly depending on foreign trade, particularly exports. In 2008 our total export is US $ 8,137 million. Main export products are Tea, Rubber and Rubber products, Coconut and Coconut based products, Fruits and Vegetables, Spices, main export markets are U.S.A, U.K, Italy, India, Belgium, Germany, United Arab Emirates, Russian Federation, France and Japan.
Understanding importance of development of exports, to achieve the country’s economic development objectives, institutional infrastructure for development of exports has been established during the last two decades. At present it consists of number of institutions, some are sector specific and others are general. Sri Lanka Export Development Board is the premier national TPO. Sector specific institutions are Sri Lanka Tea Board, Coconut Marketing Board, and Department of Export Agriculture. In addition to that Chambers and Exporters’ Associations are also doing Trade Promotion activities.

Sri Lanka exports wide range of agricultural products such as fruits, nuts, vegetables, cereals, spices, medicinal herbs, floricultural products etc. In world scenario most agricultural products, raw materials are supplied by developing countries while processing and packaging industries are owned by developed countries. By this these countries could obtain higher profit. To get this achievement they have two economic advantages which the producing countries do not have. They are technological advantages and marketing advantages.

This has become a big challenge for many developing countries like Sri Lanka, as agriculture is the basis of sustainable economic development. Sri Lanka has to face this challenge due to lack of technological and marketing advantages. Due to high cost of machineries Sri Lanka is far away from modern technology. On the other hand we are not able to reach quality standards which are accepted by global market with our poor quality processing facilities.

When considering Sri Lankan Export agricultural crop sector, it is a very important sector in national income generation process. Through this crop products country invade lot of foreign markets (especially European countries) finding income. In here Sri Lankan products have to face two consider mainly,
• How to compete with other producing countries like India, Vietnam etc.
• How to penetrate consumer mind attractively

Quality certification and value addition are the potential opportunities to overcome these two problems. Through the quality certification foreign consumers tend to buy our products without hesitate. And also to maintain best quality for our products, quality certification is must. And also recent market trends towards the many value added commodities. There for have a great potential to tap global market through the value addition. Thus through the value addition and quality certification Sri Lankan export crop products can intercept considerable portion from the increasing demand in foreign markets defeating other competing countries.













Quality certification
Quality assurance, or QA for short, is the set of planned and systematic actions necessary to provide appropriate confidence that a product will satisfy the requirements for quality.
Quality assurance applies to all forms of products and services. These protocols introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes to survive in the competitive market, and for which it is essential to satisfy the customer by providing products with zero defects.
This also leads to increased productivity, reduced quality cost and eventually increased sales and market profits.
Benefits of quality certification
• Internationally recognized scheme which incorporates a facility to identify international market.
• Provide consumers an assurance of safety, quality and reliability.
• Provide consumer confidence that products meet and continue to meet the relevant standards

Available quality certifications
1. Good Manufacturing Practices Certification (GMP)
SLSI operates a GMP Certification Scheme to the food industry and services based on the Sri Lanka Standard on Code of practice for general principles of food hygiene. In case where a Sri Lanka Standard on code of practice for the industry or service concerned is available, that specific standard is also considered for granting certification in addition to SLS standards. Regular post certification inspections will be arranged by the SLSI to assess the effectiveness of GM practices.

2. ISO 14001: 2004
(EMS – Environmental Management System)
ISO 14001 Environmental Management System certification is a part of the overall management system which includes organisational structure, planning activities, responsibilities, procedures, processes & resources for developing, implementing, achieving, reviewing & maintaining the environmental policy.The ISO 14000 Environmental Management Standards exist to help organisations minimise how their operations negatively affect the environment (cause adverse changes to air, water or land) and comply with applicable laws and regulations.ISO 14001 is the international specification for an environmental management system (EMS). It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programmes to meet objectives and targets, checking and corrective action, and management review.
3. ISO 9001: 2000
Quality Management System
ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include,
• a set of procedures that cover all key processes in the business
• monitoring processes to ensure they are effective
• keeping adequate records
• checking output for defects, with appropriate and corrective action where necessary
• regularly reviewing individual processes and the quality system itself for effectiveness
• facilitating continual improvement.

4. HACCP(Hazard Analysis at Critical Control Point)
The governments & association of industries in most developed countries has approved industry strand, which require strict management control for buying products as row form. Because of that when export the EAC products this certificate is most impotent so EAC products export as row form. HACCP quality certification evaluate the agro chemical usage such as pesticide, insecticide, weedicide & minimize the trace element level which adversely effect to human. Further they consider the proper harvesting, processing, packaging, storage, level of extraneous materials. If the EAC product has this certificate it has the high demand in global market.
5. SPS(Sanitary and Phytosaitory Standard)
This standard refers the quality of the processing of Export Agricultural Crops and the acceptable strand in packaging. Further it refers the minimum or no usage of agro chemical. If the EAC product has this SPS certificate it has the good demand in global market.

6. Sri Lanka Standards (SLS)
Sri Lanka Standards Institution (SLSI) is the National Standards Body of Sri Lanka, established under the Bureau of Ceylon Standards Act No. 38 of 1964. The institution provides training on standardization and quality management for personnel in the industry with a view to impart the knowledge required for producing good quality products and services. The standards prepared by SLSI are mostly for products and processes. They describe the officially recognized levels of quality, safety requirements, durability, and performance requirements of products and services that are appropriate for the Sri Lanka market. After the certification by SLSI grant to use the SLS mark on the product label.




Value addition

"Value added" means adding value to a raw product by taking it to, at least, the next stage of production.Value addition is an most important area in the development of the export agriculture industry due to the potential of employment generation and increasing forign exchange earning.
The value addition helps to decrease the post harvest losses in EAC. When the production of value added products from the row forms the losses are minimum due to the long storage ability of that product.In addition the value addition helps to increase the demand in global market.Further value added products can be sold higher price than row form.To take advantage of value-added opportunities, one must know and understand customers. What consumer segments might want your product? What are the benefits desired by these potential customers? What criteria are they looking for when purchasing?.
Any business enterprise can be thought of as a value chain. Each activity that is performed should add value to the product. To do this, one must meticulously control the activities at each step in the value chain: procurement of inputs; converting inputs into products; marketing and sales; supply chain logistics; and customer service activities. A new value-added business should focus on the product's uniqueness. The uniqueness of your product or service is what ultimately attracts customers.
however, the sector is facing the following issues and challenges in this area
1) The main issue is the regular supply of export agriculture products in the country. The amount is also small so that the advantage of economy of scale is lost for investors in value addition.
2) New technology for value addition is seriously lacking in the country.
3) Cost of production is high.
In addition to that, by considering available competition in the global market, further processing is needed to produce value added products to tap the optimal potential in global market.Government intervention to solve this problem is very much needed. Because value addition plays an important role in the global market


Some of Sri Lankan Value-Added Export Agricultural Products

Vanilla
• Vanilla flavored tea,
• Vanilla paste,
• Vanilla sugar,
• Vanilla bee honey,
• Organic vanilla beans,
• Vanilla virgin coconut oil
Cocoa
• Cocoa butter
• Cocoa powder
• Cocoa liquor
Cinnamon
• Cinnamon bark oil
• Cinnamon leaf oil
• Cinnamon root oil
Tea
• Flavored tea
• Tea bags
• Tea liquor
• Tea gift boxes
Coconut
• Desiccated coconut
• Coconut cream
• Virgin coconut oil



References
• www.lankaemb-egypt.com/SriLanka/products.htm
• www.srilankabusiness.com/trade_info/srilankaproduct/coconut.htm
• www.lankanewspapers.com/news/2009/5/43852.html

Young Agrians: Check out NUWAN's lane: kiriala cultivation

Young Agrians: Check out NUWAN's lane: kiriala cultivation

NUWAN's lane: වී ප්‍රභේදයක් එහි ප්‍රභේද නාමයෙන් හදුනාගන්න විදිය ඔබ දන්නවාද ?

වී ප්‍රභේදයක් එහි ප්‍රභේද නාමයෙන් හදුනාගන්න විදිය ඔබ දන්නවාද ?

NUWAN's lane: බිම්මල්[හතු] වගාව ඔබ දන්නවාද?[mushroom cultivation]

NUWAN's lane: බිම්මල්[හතු] වගාව ඔබ දන්නවාද?[mushroom cultivation]