Dilmah owners establish 830 acres of cinnamon on Kahawatte estates

Kahawatte Plantations PLC, a member of the Merrill J. Fernando group, has emerged as the country’s biggest cinnamon grower with 830 acres (336.05 ha.) of the spice, unique to this country, already established in several estates within its portfolio.

Ekerella, a Kahawatte plantation boasts the largest contiguous cinnamon plantation (90 ha.) in the country, Dilhan, C. Fernando, younger son of the late Merrill. J. Fernando said last week after Dilmah had launched a landmark ‘Renaissance of Finest Ceylon Cinnamon’ event at the Galle Face Hotel with President Ranil Wickremesinghe as chief guest.

“Our involvement with cinnamon began in 2001 with my father’s investment in Kahawatte Plantations. While expanding the area under cultivation and further investing in downstream value addition with Ceylon Spice Company, a state of the art low temperature steam sterilization facility with milling capability, the tragedy that led to the launch of Dilmah Finest Ceylon Cinnamon is the unrealized value of our precious spice,” Fernando said explaining his company’s entry into cinnamon growing, processing and exporting.

“While expanding the area under cultivation and further investing in downstream value addition with Ceylon Spice Company, a state of the art low temperature steam sterilization facility with milling capability, the tragedy that led to the launch of Dilmah Finest Ceylon Cinnamon is the unrealized value of our precious spice.”

Several Regional Plantation Companies (RPCs) and other plantation owners have in recent years diversified into small blocks of cinnamon plantation but none on the scale of Kahawatte.

Merrill J. Fernando devoted his life to promoting the uniqueness of pure Ceylon Tea and establishing the global Dilmah brand which is now globally reputed. His company has now stepped into growing and adding value to another unique Ceylon product globally acknowledged as the best with its new thrust into cinnamon.

Cinnamon has largely been a smallholder product and its peeling one of the most labour intensive among crops grown in Sri Lanka. Kahawatte’s entry into this field has among others led to training of cinnamon peelers, substantially improving their working conditions and much more.

“Most Ceylon cinnamon is exported in bulk with minimum value addition, for milling, packing and effective value addition overseas by foreign brands. Like tea, there is no reason for that since the product is effectively ready to use when produced in Sri Lanka and the technology required for safe sterilization, milling, packing, branding and value addition also available locally,” Fernando said.

“However, the difference in terms of economic benefit for Sri Lanka and the onward social benefit for workers involved in the industry as well as the future of Ceylon cinnamon could be phenomenal if we realized that value.”

Fernando said that in addition to Ekarella where 90 ha. of contiguous cinnamon has been established, Kahawatte has cinnamon on Rilhena Estate (47.7 ha), Pelmadulla (39.53 ha), Poronuwa (11.85 ha), Opata (16.18 ha), Hunuwella (66.10 ha), Houpe (28.12 ha) and, Endana (14 ha).