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Informations News Africa News Tea exports: Kenyan tea exports decline as Arab springs affect consumption

Tea exports: Kenyan tea exports decline as Arab springs affect consumption

Tea production Kenya - Kenya’s tea production for the half year period of 2011 declined 16.2% to 178.4 million Kgs, compared to 213 million Kgs recorded during the same period in  2010, the Tea Board of Kenya said Wednesday. The Board attributed the lower production to hot and dry weather conditions experienced during the first quarter of the year and the poor rainfall distribution in most tea-growing areas during the second quarter.

The East African nation recorded reduced consumption of tea mainly from the Arab countries facing political difficulties, including Egypt, Yemen and Afghanistan.

The reduced volume to Egypt was largely attributed to political unrest within the country at the beginning of the year.

The wave of political upheaval in the Muslim religious countries also affected tea exports to Yemen, which recorded a drop of 10%. 

Tea output within smallholder sub-sector decreased by 14.8% from 124.3 million Kgs to 105.8 million Kgs while the Plantation sub-sector recorded decrease of 18% from 88.7 million Kgs to 72.6 Million Kgs.

The small-scale farmers contributed 59% of the production while the Plantation farms contributed 41%.

Tea sales through Mombasa Auction stood at 128.8 million Kgs, 16% lower compared to 152.6 million kgs sold during the same period last year.

The average Auction price for Kenyan tea held firm at US$ 2.98 per Kg compared to US$ 2.81 recorded during the same period in 2010.

Kenya tea export volume reached 211.7 million Kgs which was marginally lower compared to 216.9 million Kgs recorded during the same period last year. Tea was exported to 48 market destinations world-wide compared to 42 destinations last year.

Pakistan was the leading export destination for Kenyan tea exports, having imported 40.1 million Kgs, accounting for 19% of the total export volume. Other key export markets were Egypt, which imported 36.9 Million Kgs, UK (35.5 Million Kgs),

Afghanistan (24.7 Million Kgs) and Sudan (13.7 million Kgs). These markets accounted for 71% of Kenya tea export volume while the other 43 markets accounted for 29%.

Among the traditional markets, Pakistan recorded the highest growth of 29%, while Sudan recorded a growth of 6%.

However, there was a drop in tea exports to Egypt (24%), Afghanistan (15%) and UK (6%).

Unprecedented increase in tea exports to Pakistan and subsequent drop of tea exports to Afghanistan was attributed to continued reduction of smuggling of commodities into the country through Afghanistan.

Pana 28/07/2011