AUGUST 2016

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR AUGUST 2016

PRODUCTION

Tea production for the month of August 2016 was 29.46 Million Kgs, against 28.41 Million Kgs recorded during the corresponding month of 2015. The marginal increase in production was largely attributed to scattered precipitation which was experienced in the West of Rift following where the region’s output rose from 19.76 Million Kgs to 22.46 Million Kgs. Consequently, good production was recorded within Plantation sub-sector with output increasing from 13.29 Million Kgs to 15.65 Million Kgs. However, owing to consistent cold weather conditions coupled with with less rainfall, the output within the East of Rift decreased from 8.64 Million Kgs recorded in August 2015 to 7.00 Million Kgs. Production within the Smallholder sub-sector with its wider coverage within the East of Rift decreased from 15.11 Million Kgs to 13.80 Million Kgs.

Cumulative production for the period January- August 2016 was significantly high at 308.10 Million Kgs against 234.61 Million Kgs recorded during the corresponding period of 2015.

Table 1: Tea Production by Sub-Sector and Region (2016 vis-à-vis 2015)

TEA SALES

AUCTION

 

During the month, 25.25 Million kgs of Kenyan tea was sold through Mombasa Auction against 22.29 Million kgs recorded in August 2015. Higher auction sales volume was attributed to higher carry over stocks of tea upto June due to increased production. Consequently, the Average Auction price was lower at USD 2.31 per Kg compared to 3.21 per kg for the same period of last year. Cumulative average price for the eight months of 2016 were lower at USD 2.30 per Kg compared to USD 2.91 for the corresponding period of 2015

With continued reduced supply, tea auction prices are likely to  remain firm during third quarter of the year.

 

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EXPORTS

The total export volume for the month of August 2016 was higer at 36.99 Million Kgs compared to 30.69 Million Kgs recorded in the same period of last year.

Pakistan was the leading export destination for Kenyan tea having imported 10.04 Million Kgs, accounting for 27% of the total export volume.

Other key export destinations for Kenyan tea were Egypt (8.14 Million Kgs), UK (3.39 Million Kgs), UAE (2.61 Million Kgs), Sudan (2.07 Million Kgs), Russia (1.60 Million Kgs), Yemen (1.51 Million Kgs), Afghanistan (1.43 Million Kgs), Kazakhstan (1.05 Million Kgs) and Poland (0.49 Million Kgs). The top ten export destinations, most of which are traditional markets for Kenyan tea accounted for 87% of Kenya tea export volume. The total export volume for the period January-August 2016 was 351.15 Million Kgs compared to 278.43 Million Kgs recorded same period of last year.

Table 2: TOP 10 Kenya Tea Exports by Destination (August 2016 vis-à-vis August 2015)

 

DESTINATION 2016 QUANTITY KGS 2015 QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN           10,040,236               7,450,498 2,589,738 35%
EGYPT             8,141,022               4,444,051 3,696,971 83%
UK             3,393,714               3,874,051 -480,337 -12%
UAE             2,616,277               2,782,191 -165,914 -6%
SUDAN             2,071,677               2,638,355 -566,678 -21%
RUSSIA             1,607,097               1,551,364 55,733 4%
YEMEN             1,518,398                  361,435 1,156,963 320%
AFGHANSTAN             1,433,005               2,211,817 -778,812 -35%
KAZAKHASTAN             1,052,521                  634,757 417,764 66%
POLAND                 498,024                  544,696 -46,672 -9%
OTHERS             4,624,721               4,197,660 427,061 10%
TOTAL           36,996,692            30,690,875 6,305,817 21%

LOCAL CONSUMPTION

Local tea consumption for August 2016 stood at 2.40 Million Kgs against 2.54 Million Kgs for the corresponding period of 2015, while cumulative tea consumption for the eight months period upto August 2016 was 18.72 Million Kgs against 19.99 Million Kgs for the same period of 2015.