Cereal germ market in Sri Lanka

Earlier Report Observations

The market volume for cereal germ in Sri Lanka experienced considerable fluctuations between 2018 and 2023. Starting from 36.1 thousand tons in 2018, it declined to 32.0 thousand tons in 2019, then rose to 38.3 thousand tons in 2020. A subsequent drop to 32.1 thousand tons occurred in 2021, followed by a sharp contraction to 18.0 thousand tons in 2022. A partial recovery to 23.0 thousand tons was recorded in 2023.

The severe market contraction in 2022 aligned with a forecasted 14% decline in Sri Lanka's overall cereal production for the 2022/23 season, primarily caused by an inadequate supply of fertilizer and unaffordable input costs, which constrained the raw material base for cereal germ. The rebound in 2023 was supported by the launch of new locally-produced cereal products. Ceylon Biscuit Limited (CBL) introduced its Nutriline cereal range, including the 'Corn and Multigrain Chips' variant made with 100% locally sourced ingredients, catering to consumer demand for affordable, nutritious breakfast options and providing an alternative to imported goods.

Concurrently, industry investment in quality standards was demonstrated by CBL's OHSAS 18001 certification for its breakfast cereal manufacturing. The state-owned enterprise Sri Lanka Thriposha Ltd also expanded the domestic cereal segment by introducing a new product, 'Suposha', utilizing excess production capacity. Government policies aimed at enhancing food security and import restrictions on cereals further reinforced the market environment for locally produced cereal germ.

Production cereal germ in Sri Lanka

In kind, 2017-2020, t

Top producers of cereal germ, 2017-2020

World map of production of cereal germ, 2017-2020

In 2019, Sri Lanka produced 31,956 tonnes of cereal germ, which was the lowest level during the period. Production then rebounded significantly in 2020, reaching 38,330 tonnes—a 19.9% increase compared to the previous year. Over the entire 2017-2020 timeframe, production grew by 6.8%, averaging an annual growth rate of 2.2%. The most substantial decline occurred in 2019, when production fell by 11.4%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports cereal germ from Sri Lanka

Exports in kind, kg

The export market for cereal germ from Sri Lanka showed considerable volatility during these years. In 2019, exports hit their lowest point at just 13 kilograms, but then surged dramatically in 2020 to 105 kilograms—a year-on-year increase of 729.4%. The period from 2018 to 2019 saw the most extreme fluctuation, with a peak-to-trough difference of 102 times. The sharpest decline was recorded in 2019, when exports dropped by 99.0%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, kg

Between 2017 and 2020, Sri Lanka's cereal germ exports were concentrated in three main destinations. Germany was the largest market, accounting for 48.8% of exports by volume, followed by Canada with 18.8% and Switzerland with 17.0%. Together, these three countries represented 84.6% of Sri Lanka's total cereal germ exports during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, $ US

Export values for cereal germ from Sri Lanka followed an unstable pattern throughout the observed timeframe. The lowest value was recorded in 2019 at just $37 US, while the highest came in 2018. By 2020, export values had recovered to $203 US, marking a substantial 451.9% increase compared to the previous year. The gap between the 2018 peak and 2019 low was particularly wide, with a 60-fold difference. The most significant decline occurred in 2019, when export values fell by 98.3%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, $ US

From 2017 to 2020, Sri Lanka's cereal germ exports by value were dominated by three key markets. Germany led with 42.6% of total export value, followed by New Zealand at 28.3% and Switzerland at 17.9%. Collectively, these three destinations accounted for 88.7% of Sri Lanka's cereal germ export earnings during this four-year period.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports cereal germ to Sri Lanka

Imports in kind, kg

Sri Lanka's imports of cereal germ experienced significant fluctuations between 2017 and 2020. The highest import volume occurred in 2018 at 26,920 kilograms, while the lowest was recorded in 2020 at just 405 kilograms—representing a 67.6% decrease from the previous year. The overall decline from the 2018 peak to the 2020 trough was dramatic, with a 66-fold reduction. The most substantial drop happened in 2019, when imports fell by 95.4%, while the largest increase occurred in 2018 with growth of 1,083.3%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, kg

During the 2017-2020 period, Sri Lanka's cereal germ imports were overwhelmingly sourced from a single country. India supplied 92.6% of all cereal germ imports by volume, making it by far the dominant source for Sri Lanka during these years.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, $ US

Import values for cereal germ into Sri Lanka showed considerable volatility from 2017 to 2020. The peak occurred in 2018 at $28,841 US, while the lowest point was reached in 2020 at just $194 US—a 62.7% decrease from the previous year. The difference between the 2018 high and 2020 low was particularly striking, with a 149-fold gap. The most significant decline took place in 2019, when import values dropped by 98.2%, while the largest increase happened in 2018 with growth of 8,237.1%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, $ US

Between 2017 and 2020, Sri Lanka's cereal germ imports by value were almost entirely dependent on one trading partner. India accounted for 98.8% of the total import value, demonstrating near-complete dominance as the source of Sri Lanka's cereal germ imports during this period.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020