EU Mission to assist Sri Lanka in improving spices exports
View(s):The European Union Mission has expressed willingness to assist Sri Lanka in improving the export of spices to EU countries amidst increasing consumption of ethnic foods in those countries.
Head of Mission, European Union (EU), David Daly said, “the usage of spices and herbs by consumers in the EU is increasing because these products are appreciated as completely natural ingredients, rather than artificial additives”.
He noted that that exporting to Europe is challenging; the market is very competitive, so Sri Lankan exporters must have a quality product and they should meet high food and health standards.
Mr. Dale noted that EU mission in Colombo will assist Sri Lanka Spice Council to register some spices under Geographical Indications (GI).
A geographical indication (GI) is a sign that identifies a product as originating from a particular location which gives that product a special quality or reputation or other characteristic.
He pointed out that by exporting to any single EU country exporters are effectively exporting to all of them because their spices can thereafter freely circulate from the country of import to all the other EU countries.
An important development in this sector is that European buyers are increasingly looking to control their supply chains, which could provide opportunities to enter into cooperation with European buyers especially for value added products which in turn could develop into long-lasting business partnerships, he revealed.
Adding value by investing in further processing such as ground or crushed spices, mixed spices and herbs, consumer packed spices and herbs, etc could increase margins of Sri Lankan exporters due to less labour costs, he said, adding that ‘phytosanitary’ regulations and other buyer requirements are even stricter for processed spices and herbs than for raw spices.
The EU market for herbs and spices has grown steadily over the years. Last year the EU imported 285,000 tonnes, worth almost Euro 900 million from developing countries, he disclosed.
According to Sri Lanka’s exports statistics in the last five years, Sri Lanka’s spice exports to the world have consistently grown year after year, he revealed.
In 2008 Sri Lanka exported US$152 million worth of spices worldwide out of which $11 million worth of spices were exported to the EU.
In 2012 Sri Lanka’s exports to world had grown to $236 million (which is an increase of more than 55 per cent in five years) out of which $16 million worth went to the European Union.
Mr. Daly noted that interestingly the 2013 export statistics up to September (9 months) show that Sri Lanka’s world export values have already reached the 2012 level of $236 million out of which $21 million was exported to the EU.