Hatton Plantations’ coffee harvest to hit market in 2026 under Rs.1 bn venture

• Eyes to export first consignment in 2030

Gary Seaton

Sri Lanka’s Hatton Plantations PLC expects the first batch of coffee harvest to hit the market in 2026, having a target to enter export markets in 2030 in a bid to position the country once again among key coffee export destinations.

Under the new management led by agribusiness expert and G&G Group of Companies Chairman Aussie-born Gary Seaton, Hatton Plantations PLC three years ago led Sri Lanka’s Regional Plantation Companies (RPCs) to venture into coffee with an earmarked Rs.1 billion investment including Rs.300 million for a coffee processing plant.

In a media roundtable held in Peliyagoda last week, Seaton noted that coffee is already planted in a 100-acre extent with plans underway to plant coffee in another 400 acres. 

With this initiative, Hatton Plantation, which is the largest black tea producer among RPCs, is aiming to reduce reliance on tea in order to mitigate the revenue risks associated with tea production.

With the shrinking labour force in the plantation sector, he pointed out that Coffee offers an opportunity to reduce the reliance on higher labour as opposed to tea. On average, the required labour ration between tea and coffee is at 2.5: 0.6. 

Similarly, the cost of production of coffee is around Rs. two million per hectare as opposed to Rs.5 million in tea.
Seaton also highlighted high prices coffee on the global market continuing to trend upwards while prices for tea remain largely static. At end of last year, the price of Arabica coffee beans rose above US$7,300 per tonne, highest since  1977 and marking  a staggering 83 percent  increase in 2024.  He noted that there’s significant demand for coffee in the local market with changing consumer patterns, which currently relies on imported coffee. Hence, he noted that the country could save a considerable amount of foreign exchange with this initiative.

Speaking of export markets, although too early, Seaton noted that Australia will be a key focus under the export strategy.  Sri Lanka was the third largest exporter of coffee in 1850s, before a rust disease (Hemileia vastatrix) wiped out the coffee plantation. The extent of land under coffee cultivation shrank from the peak of 275,000 acres in 1870 to around just 11,392 acres by the 1900s. However, there’s an increasing interest towards coffee in recent years mainly driven locally. 

Seaton noted that the price discovery of Ceylon Coffee is yet to be uncovered internationally. In 2022, for the first time, Sri Lankan coffee was featured in an international expo, gaining the much-needed traction since 1850s.
Among RPCs, Hatton Plantations PLC is set to become the largest coffee producer in 2026 onwards.

In addition to coffee, Hatton Plantations has also diversified into cinnamon and  commercial timber planting .
The company also moved to introduce leafy grade manufacturing at Tangakelle Estate aiming to optimise our tea product mix and capitalise on market price movements. It has also expanded its portfolio diversification into green tea production, at the newly built Green Tea Factory at Agrakande Estate and ongoing tea plant nurseries.
Hatton Plantations PLC boasts 13 estates covering a total area of 7,206 hectares in the regions of Watawala, Hatton, and Lindula, ranging from Western High to Western Medium elevations in Sri Lanka’s central hills. (NF)