Germany’s high potential organic products market yet to be tapped by Lankan exporters

Although trade relations between Sri Lanka and Germany have grown deeper over the years, there still prevail untapped markets, specially in the organic products segment, senior representatives of the Delegation German Industry and Commerce in Sri Lanka (AHK Sri Lanka) said.

German Industry and Commerce Chief Delegate Andreas Hergenröther noted that while Germany has been Sri Lanka’s third largest export market for many consecutive years, there remains room for further improvement, he said.

“German companies have been sourcing for many years’ apparel and food products but there is an unexploited potential, in particular in the field of organic products,” Hergenröther told a German sourcing conference 
held recently.

He pointed out that even during the pandemic, in 2020, Sri Lankan exports to Germany reached Euros 718 million, which indicates the acceptance of Sri Lankan products in that market.

In an effort to pave the way for Sri Lankan exporters to partner with German importers, the AHK Sri Lanka together with the German Asia Pacific Business Association (OAV), organised a forum recently in Colombo.

The event also featured Export Development Board (EDB) Chairman Suresh de Mel, who provided an extensive overview of Sri Lanka’s export capacities.

The event also saw former German Government Human Rights Commissioner Markus Loening highlight the importance of establishing sustainable supply chains, where it can be used as a competitive advantage to get market access to the EU and Germany.

He stressed that Sri Lankan exporters must increase emphasis on sustainability since the majority of German and European importers and retailers request for the products to have sustainability certifications such as BSCI, SA 8000, SMETA and others.

Furthermore, GIZ representative Anika Kiefer introduced the ‘develoPPP.de-program’ of the German Ministry of Economic Cooperation, which co-funds private sector-driven projects with sustainable development-oriented objectives up to maximum of Euro 2 million.

Since July 2020, GIZ and AHK Sri Lanka have partnered to support Sri Lankan exporters of organic food products with German importers and retailers.

Conferences with integrated B2B meetings that were postponed due to the current pandemic, are planned to be held in the upcoming months in Kandy, Dambulla and Trincomalee.

AHK Sri Lanka said that throughout the year, efforts would be made to intensify support for Sri Lankan exporters and matchmaking opportunities will be a key area of focus.