How Good Manufacturing Practices (GMP) Shapes the Selling Price of Ceylon Tea

International Journal of Research and Innovation in Social Science (IJRISS) | Volume I, Issue III, March 2017 | ISSN 2454-6186

How Good Manufacturing Practices (GMP) Shapes the Selling Price of Ceylon Tea

¹D.D.U. Karunathilaka, ² G.C. Samaraweera

  ^1,2 Department of Agricultural Economics and Extension, Faculty of Agriculture, University of Ruhuna, Mapalana, Kamburupitiya, Matara, Sri Lanka

Abstract:- Ceylon tea is a one of most popular beverage all over the world after the water. Now a day people demand for healthy and safe food even though price is high in healthy food. Then they move to the quality food. Therefore, product quality certification is the most important point for that situation. Then Sri Lankan food products should be lined with international standard to facilitate the international trade. However, majority tea factories were not gone for any certification level. A study was conducted to identify the effect of GMP on selling price of Ceylon tea. Multi-stage proportion sampling method was used to evaluate GMP by using pre-tested questionnaire, informal discussion and field observation in all represented administrative regions. Independent sample t test recognized selling price and GMP are significantly different in 50% of GMP value (t=2.471, P< 0.05). When GMP value was less than 50%, the average selling price recorded as Rs. 373.43 and Rs. 404.19 average selling price could be achieved when higher GMP value (>=50%). According to the result, above 50% GMP value was reflected higher price. Therefore, all tea factories must maintain GMP level with above 50%.

Keywords: Ceylon Tea, GMP, Sri Lanka, Tea Factories

I. INTRODUCTION

Ceylon tea is higher demanded and one of the most popular beverages in global. Therefore, tea industry was acquired significant economics influence for tea producing countries such as Kenya, Sri Lanka, India and China (Gunathilaka and Tularam, 2016). However, global tea production is 5,173,471 MT and the global consumption is 4,764,000 MT in 2014(ITC, 2015). Furthermore, in 2015 Sri Lanka tea production was 328.96 m/kg but only 307 m/kg of tea was exported (Sri Lanka Tea Board , 2015). Ceylon tea has a market share of 10% in the international sphere, and one of the world’s leading exporters with a share of around 23% of the global demand gain from Tea Packets, Tea Bags, Tea in Bulk, Instant Tea, Green Tea, Flavored Tea , etc., (Perera, 2016). It is satisfactory level. But in future Ceylon tea may be facing with a big challenge. Because when increase of living stand of tea consumers, they demand for high quality safe food. Therefore, tea industry has to follow the international standard to meet the consumer satisfaction in order to keep the higher demand for Ceylon tea.

Read More