Barriers to optimize the upstream of the tea smallholding supply chain in Sri Lanka

Abstract

Sri Lanka is the world’s fourth-largest tea producer and prime orthodox variety supplier. In Sri Lanka, tea export earnings peaked in 2014 at USD 1.56 billion, and the industry managed to record USD 1.3 billion in 2021, regardless of the increased cost of production and lower yields. The majority (75%) of total tea production is supplied by tea smallholders whose land extent is less than ten acres [1]. Tea is grown in 14 districts, and smallholder farmers play a significant role in Rathnapura, Galle, Matara, Kandy, Kalutara, and Kegalle districts. Smallholder farmers cultivate 61% of the total tea-grown land, which amounts to 200,000 hectares. According to the Tea Small Holdings Development Authority (TSHDA), approximately 75% of smallholder land plots are less than one acre, demonstrating the notable contribution of micro-level farming to the industry