28/11/2022
KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR MAY 2017
PRODUCTION
Tea production for the month of May 2016 was 38.82 Million Kgs, against 37.20 Million Kgs recorded during the corresponding month of 2016. The marginal increase in production was largely attributed to scattered precipitation which was experienced in the East of Rift following which the region’s output rose from 13.66 Million Kgs to 16.17 Million Kgs. Consequently, good production was recorded within Smallholder sub-sector with output increasing from 21.62 Million Kgs to 23.58 Million Kgs. However, owing to consistent cold weather conditions coupled with with less rainfall, the output within the West of Rift decreased from 23.53 Million Kgs recorded in May 2016 to 22.64 Million Kgs. Production within the Plantation sub-sector decreased from 15.57 Million Kgs to 15.23 Million Kgs.
Cumulative production for the period January-May 2017 was significantly lower at 160.37 Million Kgs against 214.71 Million Kgs recorded during the corresponding period of 2016 owing to unfavorable weather conditions.
TEA SALES
AUCTION
During the month of May 2017, 30.84 Million kgs of Kenyan tea was sold through Mombasa Auction against 37.18 Million kgs recorded in May 2016. The average tea auction prices for Kenyan tea for the month of May 2017 was higher at USD 2.95 per Kg against 2.21 for the corresponding period of last year. However, it was slightly lower compared to over USD 2.90 recorded in the months January and February 2017. Cumulative average price for first five months of 2017 was also higher at USD 2.97 per Kg compared to USD 2.36 for the corresponding period of 2016. Improved prices to-date were attributable to good demand against lower supply of tea due to hot and dry weather conditions.
EXPORTS
The total export volume for the month of May 2017 was 28.05 Million Kgs compared to 43.36 Million Kgs recorded same period of last year, representing a 35% decrease. During the month, Kenya tea was shipped to thirty nine (39) export destinations compared to forty five (45) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 11.36 Million Kgs, accounting for 40% of the total export volume. Other key export destinations for Kenyan tea were Egypt (3.55 Million Kgs), UAE (3.16), UK (2.06 Million Kgs), Yemen (0.92 Million Kgs), Sudan (0.86), Russia (0.72), Afghanistan (0.63 Million Kgs), Iran(0.44) Million Kgs), and USA (0.37 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 86% of Kenya tea export volume. The Pakistan market recorded higher tea imports from Kenya while other markets recorded lower imports.
Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Oman, Jordan, japan, Djibouti Hong Kong, Mynmar, and Singapore.
The total export volume for the period January-May 2017 was 174.54 Million Kgs compared to 213.77 Million Kgs recorded same period of last year.
LOCAL CONSUMPTION
Local tea consumption for May 2017 stood at 3.08 Million Kgs against 2.15 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the five months period upto May 2017 stood at 12.36 Million Kgs against 11.79 Million Kgs for the corresponding period of 2016.