Need for a Proprietary Planters Association of Sri Lanka
Introduction
Mr.Dammike Kobbekaduwe
Plantation crops have long been the backbone of Sri Lanka’s agricultural economy. The national plantation sector is primarily driven by two main groups: Regional Plantation Companies (RPCs) and Proprietary Planters. RPCs, organised under the Planters Association (PA), manage just 20 per cent of the country’s plantation crop production,
Proprietary Planters possess significant executive power but lack the organisation and unity to leverage their full potential. Given their contribution to the national economy, the establishment of a strong Proprietary Planters Association (PPA) in Sri Lanka could provide the unity, coordination, and strategic direction required to elevate the sector and maximise its impact on the country’s GDP.
In this article, we will explore the comparative landscape of private planter and agricultural associations globally, and examine how the PPA could be formed under the Sri Lankan Company Act, its potential benefits, membership criteria, and the steps it must take to establish itself as the largest and most competitive private sector plantation body in Sri Lanka.
Global Comparisons: Private Planters Associations
Across the globe, various private planter and agricultural associations have played pivotal roles in enhancing the productivity, sustainability, and marketability of plantation agriculture. Here are examples from leading countries in plantation management:
India – The United Planters’ Association of Southern India (UPASI): UPASI represents the interests of private planters in India, particularly in the regions of Tamil Nadu, Kerala, and Karnataka, covering tea, coffee, and rubber plantations. UPASI’s role has been critical in promoting research, training, and policy advocacy, enabling the sector to grow sustainably and profitably. Their success stems from a strong membership base, a focus on environmental sustainability, and fostering unity among small and large planters.
Brazil – The Brazilian Association of Coffee Exporters (ABIC): In Brazil, private coffee planters benefit from organised associations like ABIC, which not only works towards promoting Brazilian coffee but also ensures the adherence to quality standards, sustainable practices, and market development. ABIC’s collective power allows small-scale producers to have a global voice in policy and trade discussions, which strengthens the entire sector.
Kenya – The Kenya Tea Development Agency (KTDA): KTDA is a cooperative body that manages the interests of smallholder tea farmers in Kenya, making up the largest producer of tea globally. The KTDA provides a robust infrastructure, including processing plants, marketing, and research, to ensure high-quality tea production. While KTDA is cooperative in nature, its model demonstrates the importance of infrastructure and support for smallholders to reach global markets.
These associations demonstrate the power of collective bargaining, research and development, shared resources, and market access in making private planters globally competitive. Sri Lanka’s Proprietary Planters need to take inspiration from these models to form a cohesive and powerful association capable of competing at the global level.
Formation of the Proprietary Planters Association of Sri Lanka
To achieve a significant impact on the national GDP and become the largest private sector plantation body in Sri Lanka, the Proprietary Planters Association must be formally established under the Sri Lankan Company Act. This legal framework provides the structure necessary for sustainability, governance, and transparency.
1. Legal Framework and Governance
The PPA must be incorporated as a non-profit or membership-based entity under the Sri Lankan Company Act, allowing it to operate as a registered association that can interact with government bodies, manage resources, and promote the interests of planters. Governance structures should include a board of directors elected by members, representing both large and small planters. The constitution of the association should emphasise inclusivity, transparency, and long-term sustainability.
2. Membership Criteria
The membership of the PPA should be open to all proprietary planters engaged in the cultivation of plantation crops, including tea, rubber, coconut, oil palm, and spices. The criteria for membership could include:
- A minimum landholding size (e.g., 5 acres)
- Evidence of sustainable agricultural practices
- Commitment to modernising operations through research and development
- Active participation in the association’s objectives
A tiered membership model could be introduced, where large-scale planters have more significant representation but small-scale planters can also benefit from technical support and market access.
3. Potential Benefits of the PPA: The establishment of the PPA will provide numerous benefits
Unified Voice: A single representative body for planters can influence government policy on issues like land tenure, lease agreements, subsidies, and export tariffs.
Research and Development: The PPA can collaborate with research institutions and universities to drive innovation in crop management, pest control, and sustainable practices.
Market Access: Through collective bargaining, planters can negotiate better prices for their products and access premium markets, both domestically and internationally.
Training and Capacity Building: With a unified approach, training programmes on modern agricultural practices, technology adoption, and environmental sustainability can be rolled out to increase productivity and quality.
Sustainability: By adopting sustainable practices, planters can not only reduce costs but also improve environmental impact, contributing to the global demand for certified organic and ethically produced products.
Way Forward: Growth Aspects for the Proprietary Planters Association
To ensure the PPA’s success and its role in making proprietary planters the largest private sector plantations in Sri Lanka, the association must focus on several key aspects of growth:
1. Infrastructure Development
Investing in modern processing plants, warehouses, and distribution networks will allow planters to optimise operations, increase product quality, and reduce costs. By adopting automation and precision farming techniques, planters can further boost yields.
2. Integration into the Global Supply Chain
The PPA should focus on integrating Sri Lankan plantation crops into the global supply chain by forming partnerships with international buyers and retailers. The association should also focus on branding Sri Lankan crops as premium, sustainable products to command better prices in international markets.
3. Focus on Innovation and Sustainability
The PPA must champion research and development in crop improvement, water management, soil health, and pest control. Additionally, it should focus on renewable energy use, carbon footprint reduction, and waste management to ensure the long-term sustainability of plantations.
4. Advocacy and Policy Influence
The PPA must actively lobby for favourable policies and lease agreements, aiming to secure long-term land tenure and more equitable trade terms. They should also address issues like taxation, labour laws, and import tariffs that affect the competitiveness of Sri Lanka’s plantation sector.
Achieving Sustainable Competitive Advantage through Porter’s Value Chain Model: To ensure that Sri Lanka’s Proprietary Planters can become world leaders, the PPA should adopt Michael Porter’s Value Chain Model, which focuses on creating a competitive advantage through various stages of value creation:
Inbound Logistics: The association must ensure a streamlined supply of high-quality inputs (seeds, fertilisers, equipment) and optimise sourcing practices to reduce costs.
Operations: Implementing state-of-the-art farming techniques, automation, and sustainable practices will improve operational efficiency and reduce environmental impact.
Outbound Logistics: Strengthening the transportation and distribution infrastructure will allow planters to deliver products to markets more efficiently.
Marketing and Sales: Branding Sri Lankan plantation crops as premium, sustainable, and high-quality will differentiate them in the global market.
Service: Providing post-harvest services such as processing, packaging, and customer support will enhance the value proposition of Sri Lankan plantation crops.
Conclusion
The formation of the Proprietary Planters Association of Sri Lanka is a crucial step toward making Sri Lanka’s plantation sector globally competitive, enhancing the national GDP, and positioning the country as a leader in sustainable and innovative agriculture. By adopting a strong legal structure, focusing on research and development, fostering unity among planters, and aligning with Porter’s Value Chain model, the PPA can revolutionise the plantation industry, creating world-class products and securing long-term growth. Through such efforts, the Proprietary Planters Association can help Sri Lanka’s plantations achieve a sustainable competitive advantage and reach the global stage. The value chain consultants at www.vivonta.lk provide a comprehensive range of services under one roof, including the formation of the PPA of Sri Lanka and driving the transformation needed to establish 1,000 new agroforestry plantations across the country. The additional initiative aims to mitigate the impacts of climate change and support effective biodiversity management.
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