Kenya: Production of Tea to Hit Record High This Year

The sector registered an increased output of 3.9 per cent from 20 million kilogrammes to 21 million kilogrammes, accounting for 61 per cent of the total production.

The estate sub-sector which is pre-dominant in the west of Rift Valley region, however, recorded a slump of 2.7 per cent from 14 million kilogrammes to 13 million, accounting for 39 per cent of the total production.

Despite a 1.26 per cent increase in production, figures released by the board show that the export volume for October dropped by 12 per cent from 23 million kilogrammes sold in the same period last year to 20 million kilogrammes.

Total export earnings consequently fell by 15 per cent from Sh3.2 billion to Sh2.7 billion during the same period last year.Decreased export volumes, however, pushed auction prices up by three per cent.

for the month of October with the average auction price increasing from $1.81 to $1.87 a kilogramme.

According to the board, over supply of tea in the global market has held prices depressed at $1.50 and $2.50 for the past two decades.

During the month, Kenya exported tea to thirty market destinations with the five major destinations accounting for 71 per cent of the total production.

The UK was leading with 5.4 million kilograms worth Sh643 million followed by Pakistan with 4.9 million kilograms valued at Sh630 million.

The other major destinations for Kenya tea included Egypt with 2.7 million kilograms, Afghanistan with 1.2 and Russia with 0.80 million kilograms.

The highest growth was recorded in Yemen and Turkey with a growth of 1,220 and 304 per cent respectively.

Compared to the same period last year, there were new tea export markets which included China, South Africa and Djibuti.

Various regions in the country contributed to the increased production with the highest increase being recorded in the East of the Rift Valley where output rose by 4.1 per cent from 14 million kgs to 15 million kgs.

Production in the West of the Rift recorded a decrease of 0.87 per cent from 19.8 million kgs to 19.7 million kgs.

"This was due to the effects of hail damage during the month of September while the high production in the East was attributed to favorable weather conditions characterized by well distributed rainfall," said Ms Kariuki.

According to the board, local consumption in October grew by 2.6 per cent from 1.44 million kgs to 1.47 million kgs.

Tea packers benefited from this increase by a growth in sales volumes of 11 per cent from 879,000 kgs recorded in the same period last year to 977,000 kgs.

According to Ms Kariuki, the growth in local tea consumption was attributed to the generic promotion campaign being carried out by the tea board and promotion of brands by packers.

Source: www.allafrica.com