Effect of Good Manufacturing Practices (GMP) on Selling Quantity and Price of Ceylon Tea: A Case Study

Abstract

Ceylon tea as a beverage has been enjoyed by people all over the world for generations. At present people in the world are increasingly moving towards the healthy foods. When the per capita income is increased people move to quality food. Therefore, product quality certification is the most important point for that situation; because in general consumers always find safety food even though price is high. Sri Lankan food products should be lined with international standard to facilitate the international trade. A study was conducted to identify the effect of Good Manufacturing Practices (GMP) on selling quantity and price of Ceylon tea. Multi-stage proportion sampling method was used to evaluate GMP by using pre-tested questionnaire in all represented administrative regions. Independent sample t test recognized the significant difference between selling quantity and GMP value in 58% of GMP value (t= 2.488, P< 0.05) and both selling quantity and price were significantly different with GMP in 50% of GMP value. Selling price and GMP are significantly different in 50% of GMP value (t=2.471, P< 0.05) and there was a significant different with GMP and selling quantity in 50% of GMP value (t=2.377, P<0.05).Based on these results, study reveals the significant effect of GMP on selling price and quantity of tea. According to the results, study recommends the minimum level of GMP as 50% in order to gain profits from Ceylon tea.