Business

By Boniface Gikandi | 18 hours ago

Tea factories that produce quality green leaves attract better prices at the Mombasa tea auction and the annual bonus according to a new report.

In a survey, Gacharage, Ngere and Mununga tea factories attracted better returns at the auction for their growers at the end of the year. In the approval of bonus payment, the directors are keen on debts, production costs and factory equipment maintenance. 

Tea value chain expert Peter Karomo said bonus payment is arrived at upon considerations of production costs, debts, auction prices, and cost of production.

Karomo pleaded with the directors to ensure production costs remain low and maintain well the fleet of green leaf collection trucks. “It is absurd that the farmers went on tea plucking boycotts in various parts of the country due to lack of facts as the cost of production consumes millions of shillings and needs to be addressed,” said Karomo.

In the latest Mombasa tea auction, Momul got Sh27 million, Ngere Sh25.4 million, Makomboki Sh20.4 million, Rukiriri Sh19.2 million and Mungania Sh16.1 million while Imenti got Sh18.2 million. On February 28, the price per kilo of tea for export at Mununga was Sh361, Rukiriri Sh338, Gathuthi Sh337, Imenti Sh328, and Kimunye Sh325.

KTDA Holding Chairman Enos Njeru said this year, the best five factories in bonus payment were Gacharage at Sh62.80 per kilo, Mununga Sh62.65, Makomboki Sh62.50, Njunu at Sh62.20 and Ngere Sh62.

Njeru said a partnership between KTDA, the Tea Board of Kenya (TBK) and the Ministry of Agriculture will bear fruits as more farmers will be educated on plucking two leaves and a bud thus improving quality.

KTDA field officers in the west of the rift, he noted, are under stern instructions to ensure only quality green leaves proceed to the processing in factories.

“We are out to ensure we expand the tea market and sustain the existing ones,” said Njeru.

 On June 10, Njeru said, the market reports indicated the leading in the auction market were, Mununga Sh315, Gathuthi Sh304, Kimunye Sh293, Kathangiriri Sh289 and Rukuriri Sh287.

 Chairman of Gacharage Tea Factory Wilfred Karau said they have been paying better bonuses as it has been a tradition for all the farmers to embrace plucking quality green leaves.

“The directors should visit buying centres in their electoral zones to ensure the quality of green leaf transported to the factory,” said Mr Karau.

Simon Maina, a farmer, says demand by the board has seen them scaling to the national position in bonus payment. “It has been a tradition at Gacharage that only quality green leaf proceeds to the factory,” said Maina.

 At Kanyenya-ini Tea Factory, chairman Alex Macharia said hitting a bonus of Sh51 was a big step for the growers.

“ We have worked towards reduction of production cost and next year’s project to post better results,” said Macharia.