Tea Industry Performance
The tea industry performance in 2011 posted shs 109 billion in foreign exchange. This was 12.4 % higher than the 2010 earnings that were shs 97 billion. The tea sector performance surmounted the production challenges occasioned by dry weather in 2011.
The assistant Minister for agriculture Hon. Gideon Ndambuki announced the results on 25th January 2011. He was accompanied by the Permanent Secretary Dr. Romano Kiome and the managing Director Tea Board of Kenya Mrs Sicily Kariuki.
It was announced that the cumulative local tea consumption in 2011 was 20 million kgs valued at shs 11 billion.
Announcing the results Hon. Ndambuki directed the tea Board of Kenya to be innovative and proactive in marketing and promotion of tea so that new markets can be opened. He observed that over the years, the Kenya tea industry has relied on few traditional markets specifically Egypt, Pakistan, United Kingdom, Afghanistan and Sudan which take over 4% of total tea exports. However emerging markets which are increasingly taking Kenyan tea include China, Iran, United Arab Emirates, Russia and North America.
Over the last five years exports to Russia grew by 44% from 12.1 million kgs in 2007 to 17.4 million kgs in 2011, exports to UAR grew by 64% from 13.7 million kgs to 22.6 million kgs while exports to China grew by 68% from 1.2 million kgs in 2007 to 2.1 million kgs. Kenya tea exports to Iran increased about five times from 1.1 million kgs in 2007 to 5.4 million kgs in 2011.
The tae Board of Kenya has been undertaking the Local generic promotion Campaign with a view of increasing local domestic consumption as well as enhancing a tea drinking culture in the country. Domestic consumption has grown from 17 million kgs in 2007 to 20 million kgs in 2011.
Production has considerably increased over the last few years owing to growing of high yielding tea varieties, increased productivity from improved husbandry and minimal expansion in acreage. Following enactment of the new tgea Act, regulations will be released shortly to operationalize it.
The assistant Minister for agriculture Hon. Gideon Ndambuki announced the results on 25th January 2011. He was accompanied by the Permanent Secretary Dr. Romano Kiome and the managing Director Tea Board of Kenya Mrs Sicily Kariuki.
It was announced that the cumulative local tea consumption in 2011 was 20 million kgs valued at shs 11 billion.
Announcing the results Hon. Ndambuki directed the tea Board of Kenya to be innovative and proactive in marketing and promotion of tea so that new markets can be opened. He observed that over the years, the Kenya tea industry has relied on few traditional markets specifically Egypt, Pakistan, United Kingdom, Afghanistan and Sudan which take over 4% of total tea exports. However emerging markets which are increasingly taking Kenyan tea include China, Iran, United Arab Emirates, Russia and North America.
Over the last five years exports to Russia grew by 44% from 12.1 million kgs in 2007 to 17.4 million kgs in 2011, exports to UAR grew by 64% from 13.7 million kgs to 22.6 million kgs while exports to China grew by 68% from 1.2 million kgs in 2007 to 2.1 million kgs. Kenya tea exports to Iran increased about five times from 1.1 million kgs in 2007 to 5.4 million kgs in 2011.
The tae Board of Kenya has been undertaking the Local generic promotion Campaign with a view of increasing local domestic consumption as well as enhancing a tea drinking culture in the country. Domestic consumption has grown from 17 million kgs in 2007 to 20 million kgs in 2011.
Production has considerably increased over the last few years owing to growing of high yielding tea varieties, increased productivity from improved husbandry and minimal expansion in acreage. Following enactment of the new tgea Act, regulations will be released shortly to operationalize it.
Kenya's annual tea production on decline
Tea production for the half year ending June 2012 dropped to 158.1 million kg compared to 178.4 million for a similar period in 2011. The Kenya tea board predict that tea production for the year 2012 is expected to drop to 360 million kg, compared to 377 million recorded in 2011. This was attributed to bad weather in the first four months leading to a drop reduced output from the major tea producing areas.
Production for the month of June 2012 rose to 30.1 million kilos compared 28.9 Million Kgs recorded during the corresponding month of 2011. This was attributed to light rainfall in the West of Rift valley where output increased from 19.1 million kg recorded 2011 to 20.6 million kg. Plantation sub-sector recorded increased output from 12.6 million kg to 14.1 million kg. Small holder sub-sector however recorded a marginal drop from 16.2 million kg to 16.0 million kg due to bad weather experienced during the first four months of the year.
In June, 16.7 million kg tea was sold through Mombasa auction, and exported to 40 destinations up from 37 for similar period in 2011 when 23.5 million kg were sold. The number of export destinations for the first half of 2012 rose to 53 compared to 48 for the same period last year, owing to fresh markets including Togo, Cameroon and Brazil. Egypt maintained the lead, buying 6.3 million kg, 21 per cent of Kenya’s tea export volume.
The average tea auction prices for June 2012 at $3per kg was an improvement from $2.97 for the same period of last year. The average prices of Kenyan top grade tea rose for the sixth straight week to $4.07 per kg at this weeks auction from $3.92 per kg last week. Cumulative average auction price for the half of 2012 was slightly above $3 while for the 2011 it was slightly below $3. Locals tea consumption dropped for the month June this year to 1.54 million kg, compared to 1.69 million recorded in in June 2011.
Production for the month of June 2012 rose to 30.1 million kilos compared 28.9 Million Kgs recorded during the corresponding month of 2011. This was attributed to light rainfall in the West of Rift valley where output increased from 19.1 million kg recorded 2011 to 20.6 million kg. Plantation sub-sector recorded increased output from 12.6 million kg to 14.1 million kg. Small holder sub-sector however recorded a marginal drop from 16.2 million kg to 16.0 million kg due to bad weather experienced during the first four months of the year.
In June, 16.7 million kg tea was sold through Mombasa auction, and exported to 40 destinations up from 37 for similar period in 2011 when 23.5 million kg were sold. The number of export destinations for the first half of 2012 rose to 53 compared to 48 for the same period last year, owing to fresh markets including Togo, Cameroon and Brazil. Egypt maintained the lead, buying 6.3 million kg, 21 per cent of Kenya’s tea export volume.
The average tea auction prices for June 2012 at $3per kg was an improvement from $2.97 for the same period of last year. The average prices of Kenyan top grade tea rose for the sixth straight week to $4.07 per kg at this weeks auction from $3.92 per kg last week. Cumulative average auction price for the half of 2012 was slightly above $3 while for the 2011 it was slightly below $3. Locals tea consumption dropped for the month June this year to 1.54 million kg, compared to 1.69 million recorded in in June 2011.
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