Kenya’s Tea Export Earnings Down

Kenya's tea export earnings hit by dry weather, a strong shilling and global overproduction, dropped by Sh2 billion in the first half-year 2005. A report released by regulator Tea Board of Kenya showed volumes fell nearly half a percentage point, with a total of 171.8 million kilos worth Sh20.9 billion shipped out.
In the first half of last year some 172.5 million kilos worth Sh 22.4 billion traded.
Both production and exports eased moderately. Output fell by 1.85 per cent to 166.7 million kilos weighed down by a dry spell. In the comparable period last year, volumes hit the 169.8 million kilo mark.

Dry weather conditions affected the industry in February and April singularly in tea areas east of Rift Valley where cumulative production dropped by 7.6 per cent or 5.6 million kilos.

In areas west of the Valley, however, output was ahead of 2004 by 2.6 per cent adding up to 2.5 million kilos.

The smallholder sub-sector performed better than plantations to account for 61 per cent of the production. Looking ahead, the board said cold and dry weather of the July-September crop season was expected to negatively affect tea production.

`East of Rift Valley region is forecast to record significantly lower production due to dry weather compared to the west of Rift Valley, where a slight crop decline is expected owing to probable light showers around the Mau and Cherangani hills and Lake Basin regions,` said Tea Board.

Kenya exported tea to 44 countries. Pakistan remained top market soaking some 26.8 per cent of the total exports. Shipments during the first half of the year rose to 46 million kilogrammes valued at Sh5.7 billion compared to 40.2 million kilogrammes worth Sh5.3 billion.

Egypt was placed number two with 37.9 million kilos; UK with 26.9 million was third followed by Afghanistan with 11.3 million kilos.

Sudan was fifth with a growth of 23 per cent in volume from 8.1 to 10 million kilos.

Other traditional markets for Kenya tea that registered growth included Russia, Yemen, UAE, Ireland, Poland and Iran. Nigeria, which is a relatively new market, recorded the highest improved growth with exports increasing significantly from 700,000 to three million kilos. `The significant growth in this market is attributed to the Board's promotional effort aimed at capturing not only the country's huge market potential but also the West African region market,` the Board which forecasts more growth this year. (mes)

Source : www.allafrica.com
July 22, 2005