Exploring the export opportunities in value-added agricultural food products in Sri Lanka.

Abstract

Value-added agricultural food products refer to processed or transformed agricultural goods, and these products are often created by adding value through processing, packaging, branding, and incorporating additional ingredients or features. The export agriculture industry currently focuses on value addition to increase the economic value of agricultural goods due to the high demand for value-added agricultural food products in the global market. Sri Lanka has been exporting raw agriculture to a greater extent, which contributes less to this value-added agriculture global demand. As one of the developing Asian countries that are agricultural based, it faces a notable performance gap in this industry. Therefore, this study aims to explore the export opportunities for value-added agricultural food products in Sri Lanka. In alignment with research objectives, to identify the current export market and explore new export opportunities for valueadded agricultural food products in Sri Lanka, a qualitative methodology has been adopted, and the study employs an expert purposive sampling method, selecting 20 participants for data collection. In this research, in-depth interviews and focus group discussions were conducted with specific groups of individuals. These included 5 agricultural sector experts, 6 current agricultural exporters, 5 Sri Lankan expatriates, and 4 foreign buyers. The data collected from these interviews and discussions were analyzed using a thematic analysis approach. Additionally, statistical data and information from sources such as the Export Development Board, the Central Bank of Sri Lanka, food and agricultural organizations, and global market research companies were also utilized in the analysis process. The study's findings reveal that coconut-based products, spices, fruits and vegetables, and tea possess considerable export potential within the value-added industry. Major export destinations include European countries, with a specific emphasis on tea for Middle Eastern countries. In addition, high-nutrition and immunity-developed products, convenience foods, animal cruelty-free products, and innovative beverages are identified as emerging product categories in global food trends. These trends have gained widespread traction worldwide due to their convenience for busy lifestyles and their perceived health benefits. This study is useful for entrepreneurs and exporters to identify the existing and emerging export opportunities in the value-added food sector in Sri Lanka.