Kenya: Local Tea Output Rises By 108 Percent

Improved production was attributed to well distributed rainfall experienced in tea growing areas particularly in the west of the Rift Valley.

There production for the first quarter rose by 181 per cent to 62 million kg from 22 million kg recorded during the corresponding period last year.

However, the increased output comes at a time of declining tea prices in the global market.

Average export unit price dropped by six per cent to $1.85 (Sh127.65) a kilo from $1.97 (Sh135.93) recorded between January and March last year.

In a statement yesterday, Tea Board of Kenya said the trend is expected to continue and has started sending jitters to the industry.

"The situation is made worse by the strong shilling against the US dollar, which has held at below the Sh70 mark during the quarter," managing director Sicily Kariuki said. East of Rift recorded a remarkable production increase of 70 per cent to 46 million kg from 27 million kg.

As are result of this, plantations which are predominant in the west of Rift registered an increased output of 251 per cent to 48 million kg from 13 million kg while the small scale farmers, who are largely concentrated in the east of Rift, recorded a production increase of 68 per cent to 60 million kg from 35 million kg.

With the onset of the long-rains season, the board expects production for the second quarter of the year to be maintained at more or less the same volume as that of the same period last year.

Due to increased tea production, total export volume for the first three months of the year increased by 32 per cent to 100 million kilos from 75 million kg registered the same period last year.

During the first quarter, Pakistan maintained its position as the leading export destination for Kenya tea accounting for 27 per cent of the total exports.

The country imported 26 million kg of tea from Kenya.

It was followed by Egypt, which imported 19 million kg and United Kingdom with 15 million kg.

Source: allafrica.com