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22 Jun 2006

Kenyan tea prices rise on better quality

Kenyan tea prices rise on better quality

Prices of Kenyan tea were generally higher on increased demand for the better quality teas on offer at this week's auction, and brokers said cold weather conditions in tea growing areas was improving quality.

Of the 111,464 packages offered only 4,280 were unsold, the African Tea Brokers (ATB) said in a statement.

Cold weather causes better leaf quality but reduces the volumes harvested, the ATB said.

Kenya's coldest season starts in June.

"There was strong demand right across the board for everything that was available, particularly KTDA teas and Dust Ones," an official of the ATB told Reuters.

"All markets were active."

The Kenya Tea Development Agency (KTDA) groups small-scale farmers who produce 60 percent of Kenya's total tea output.

Brigher Best Pekoe Ones (BP1s) $2.17-$2.63 per kg compared with $2.15-$2.49 at last week's sale.

Brighter Pekoe Fannings Ones (PF1s) sold at between $2.40-$2.89 per kg compared with $2.29-$2.71 at the previous sale.

Kenya is one of the world's top three producers of black tea together with India and Sri Lanka.

 

Source: Reuters

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