The plantation sector (coffee, tea and rubber) boasts of a rich heritage. However, the industry is at a crossroads in terms of financial sustainability. The soft underbelly of the industry, principally labour costs and poor farmgate price, lies exposed.
Should we introduce new models of land use, such as greenhouse farming, high precision and high productivity agriculture? Israel has shown the way. Governments should not play spoilsport through regulations with respect to labour. Employee cost amounts to 65 per cent of the cost of production (as against a maximum of 20 per cent for other industries).
New techniques
Precision in harvesting through mechanisation is an opportunity for increasing crops and reducing costs. We must change our mindset towards mechanisation — that it’s anti-yield and anti-quality.
We are 50-100 years behind Japan in terms of mechanisation. Taking a cue from what they do we must target eight rounds of harvest a year. The ‘Ride On’ machine is an exciting possibility.
Harvesting can be done round the clock using lights and with the help of a continuous withering system, we can achieve an assembly line concept in tea harvesting and manufacture. Automation in fertiliser application has excellent prospects in terms of optimisation of dosages and effectiveness. The potential of drones will lie in pest surveillance with simultaneous spot application.
Breeding must undergo fundamental changes; incremental yield increases are no longer enough. In tea, the ideal bush will be like lawn grass which can be harvested easily, mechanically. A mechanised green leaf factory, as in the Japanese model, is a good target to pursue. Use of digital technology in improving real time controls of process parameters with specific reference to temperature, moisture and grade recovery will enhance quality and reduce cost. Convergence of mobile phones, blue tooth and sensors offers a wide range of control opportunities and could also be a low-cost alternative. Low price discovery ( vis-a-vis end consumer price) at the primary level of commodities, which does not even cover costs, is the single biggest threat to the industry. Successful marketers no longer need to be producers; in fact, it becomes a burden. When milk is cheap, why own a cow? The evolution of integrated tea companies is a case in point.
Rationalisation of supply through quality upgradation by producing speciality products is the way to go. Speciality products by virtue of higher end consumer price will automatically give a better primary farmgate price. Grade and product differentiation is, therefore, the key. Grades such as OPA and BPS in tea, produced in small quantities, have high demand and offer high value.
In coffee, separation of ripe and semi ripe berries coupled with mucilage removal offers quality improvement avenues. Sustainability framework must be used as a consumer connect. The tenets of this framework include good agricultural practices, biodiversity management, employee welfare, safety at workplace, product safety, and livelihood of communities. These are essential to offer transparency and traceability. This industry must learn to run the business with fewer people — shortage of manpower must be seen as an opportunity and not as a threat. Many productivity milestones have been achieved by industry-led research bodies. However, it’s now time to leverage the power of global technology and best practices.
The writer is a director at Harrisons Malayalam Ltd.