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NEWS & CURRENT AFFAIRS

The Nairobian

Harsh weather conditions take toll on tea production

Business

By - | Jul 26, 2012

By James Anyanzwa

Local tea production is expected to fall by five per cent this year due to adverse weather conditions experienced in some tea growing areas.

According to statistics from the Tea Board of Kenya (TBK), cumulative tea production will drop to 360 million kilogrammes (kgs) from last year’s 377 million kgs. Tea production declined by 11 per cent during the first six months of this year, to 158.1 million kgs from 178.4 million kgs recorded in a similar period last year.

However, cumulative average auction price for the half-year period was slightly above $3 (Sh252) compared to the corresponding period last year, in which tea auction price was slightly below $3.

“Better prices for June and the half-year period was due to lower supply that has been recorded in key tea producing countries across the world with exception of China, Bangladesh and Indonesia,” said Sicily Kariuki, managing director, TBK.

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According to TBK, tea production for last month 30.1 million kgs, against 28.9 million Kgs in a similar period last year. Higher production last month was largely attributed to occasional light rainfall experienced during the month in the West of Rift, consequent to which output within the region increased from 19.1 million kgs recorded in the same month last year, to 20.6 million Kgs this year.

However, production in the East of Rift dropped marginally from 9.8 million kgs to 9.5 million kgs due to cessation of the “long rainfall” season and the onset of the cold season. Compared to June last year, there was enhanced production within the plantation sub-sector from 12.6 million kgs to 14.1 million kgs.

Tea output within smallholder sub-sector recorded a marginal drop from 16.2 million Kgs to 16 million Kgs due to adverse weather conditions experienced during the first four months of the year. Cumulative tea exports from January to last month stood at 207.76 million kgs compared with 211.7 million Kgs in a similar period last year.

The total export volume for last month was 30.1 million Kgs compared to 37.7 million kgs recorded same period of last year.

Export destinations for the half-year period were 53 compared to 48 for the same period last year.

Egypt maintained the leading position having imported 6.3 million kgs of the crop, which accounted for 21 per cent of the tea export volume. Other key tea export destinations were Pakistan, which imported 5.5 million kgs, UK (3.9 million kgs), Russia (2.9 million kgs), and Sudan (2.3 million kgs).

These accounted for 70 per cent of the tea export volume. Russian market recorded the highest increase in tea export at 86 per cent, compared to the same period of last year. Sizeable growth was also realised in new markets.

Cumulative export volume for the half-year period of this year was less by 4 million Kgs from 212 million kgs recorded in January-June last year to 208 million kgs. Export projection for this year is estimated at 420 million kgs against 421 million kgs last year.