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High Tea Yield Pushes Down Prices at Mombasa Auction

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KERICHO, Kenya


 

Tea output increased significantly in May, recording 39.6 million kilos compared to 37.3 million in the same month last year. The Kenya Tea Board attributes this to wet weather conditions in tea growing areas during the month, particularly in the West of Rift.

Output within the West of Rift increased from 20.3 million kilos to 23.3 million kgs. Owing to continued good weather conditions, cumulative production for the first five months of the year was 195.0 million kg against 127.9 million recorded in the corresponding period of 2012, said a report send to newsrooms by KTB Managing Director Sicily K. Kariuki.

During the month, 25.4 million kilos of Kenya tea was sold through Mombasa Auction against 12.8million recorded in May 2012.Consequently, cumulative average prices for January-May 2013 declined to $2.87 per kg compared to 3.02 for the corresponding period of 2012 and this was largely due to improved production.

In exports, the total export volume for the month of May 2013 was 45.4 million kilos compared to 29.9 million kilos recorded same period of last year. This was attributed to increased supply compared to that of the same year in 2012.

Egypt continued to be the leading export destination for Kenyan tea having imported 9.8 million kg, accounting for 22% of the total export volume. Other key export destinations were Afghanistan (7.6 million kg), Pakistan (6.1 million kg), UK (5.5 million kg) and U.A.E (2.9million kg). This destinations account for 71% of Kenya tea export volume.

The total export volume for the period January-May 2013 was 204.4 million kg compared to 177.6 million kg recorded same period of last year. Locally, tea consumption continued to register growth with the volume of the consumed in May 2013 amounting to 2.16million kg against 1.57 million kg for the corresponding period of 2012.

The cumulative tea consumption for the first five months of the year was 10.3 million kg against 7.07 million kg for the same period of 2012.

Written by
LUKE MULUNDA -

Managing Editor, BUSINESS TODAY. Email: [email protected]. ke

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