DECEMBER 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR DECEMBER 2017

PRODUCTION

 

Tea production for the month of December 2017 increased by 5.33% to stand at 47.50 Million Kgs against 45.10 Million Kgs recorded during the corresponding month of 2016. Improved production was attributed to good weather conditions characterized by moderate rainfall and warm temperatures experienced in tea growing regions within the West of Rift Production where production was higher by 12.7% from 26.06 Million Kgs recorded in the corresponding month of 2016 to 29.37 Million Kgs. Except Kericho,  all the other counties recorded higher output. However, output in the East of Rift was lower at 18.12 Million Kgs compared to 19.03 Million Kgs recorded in December 2016. Within the region, counties of Nyeri and Kirinyaga recorded production increase while the other counties registered lower output due to less precipitation.

Production within the Plantation subsector, which is predominant in the West of Rift, was higher from 18.72 Million Kgs to 19.69 Million Kgs while that of smallholder sub-sector increased from 26.37 Million Kgs to 27.80 Million Kgs.

Cumulative production for the year 2017 decreased by 7% to stand at 439.85 Million Kgs against 473.01 Million Kgs recorded during the corresponding period of 2016. The decrease was attributed to hot and dry weather conditions in the first quarter of the year. Compared to the five-year trend, production for 2017 was also lower than 2014 which recorded 445.10 Million Kgs but higher than 2013 (432 Million Kgs) and 2015 (399 Million Kgs), respectively.

Table 1: Production by Sector and Region (2017 vis-à-vis 2016)

PRODUCTION (KGS) December  2017 December 2016 Variance Var.(%) Jan – Dec 2017 Jan – Dec 2016 Variance Var.(%)
Plantation West of Rift    17,853,514    16,703,086    1,150,428 6.89%     178,163,813     188,696,845  -10,533,032 -5.58%
East of Rift      1,845,317      2,020,734       -175,417 -8.68%     15,566,848         18,705,158 –   3,138,310 -16.78%
Total  19,698,831  18,723,820      975,011 5.21%  193,730,661  207,402,003 -13,671,342 -6.59%
Smallholder West of Rift     11,525,140       9,363,457    2,161,683 23.09%     109,419,426      115,800,569     -6,381,143 -5.51%
East of Rift    16,282,662      17,016,133 –   733,471 -4.31%     136,707,652       149,808,751   -13,101,099 -8.75%
Total  27,807,802  26,379,590  1,428,212 5.41%  246,127,078  265,609,320 -19,482,242 -7.33%
Plantation & Smallholder West of Rift     29,378,654    26,066,543     3,312,111 12.71%    287,583,239      304,497,414 -16,914,175 -5.55%
East of Rift      18,127,979     19,036,867 –   908,888 -4.77%     152,274,500      168,513,909 –   16,239,409 -9.64%
Total  47,506,633  45,103,410 2,403,223 5.33% 439,857,739   473,011,323 -33,153,584 -7.01%

 

 TEA SALES

AUCTION

During the month of December 2017, 25.29 Million kgs of Kenyan tea was sold through Mombasa Auction against 19.32 Million kgs recorded in December 2016. The average tea auction prices for Kenyan tea for the month was higher at USD 2.79 per Kg against 2.67 for the corresponding period of last year. Cumulative average price for the year 2017 was also higher at USD 2.98 per Kg compared to USD 2.36 for the corresponding period of 2016. Improved prices for the year were attributable to good demand against lower supply of tea in the first quarter of the year. Compared to the five-year trend, auction average prices for 2017 were at par with that of 2015 and higher than 2013 (USD 2.53) and 2014 (USD 2.16), respectively.

 

EXPORTS

The total export volume for the month of December 2017 was 26.83 Million Kgs compared to 34.66 Million Kgs recorded same period of last year. During the month, Kenya tea was shipped to thirty nine (39) export destinations similar in number to December 2016 but to varying markets.

Amongst the tea markets for Kenya, Pakistan was the leading export destination having imported 9.01 million Kgs which accounted for 34% of the total export volume. Other key export destinations were Egypt (8.99 Million Kgs), Yemen (1.89 Million Kgs), UAE (1.16 Million Kgs), UK(1.04 Million ), Russia( 0.73 Million Kgs), Sudan(0.65 Million Kgs), Kazakhastan(0.54 Million Kgs), Saudi Arabia(0.42 Million Kgs) and Afghanistan (0.39 Million Kgs). The ten export  destinations accounted for 93% of Kenya tea export volume with Afghanistan recording increased imports by 108%. Significant growth was also recorded in emerging markets of Jordan, Switzerland, Sri-Lanka and Singapore.

The total export volume for the year 2017 was 415.71 Million Kgs compared to 480.33 Million Kgs recorded same period of last year.

 LOCAL CONSUMPTION

Local tea consumption for December 2017 stood at 3.89 Million Kgs against 3.49 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the year 2017 was 37.63 Million Kgs against 29.75 Million Kgs for the same period of 2016.

 

22ND JANUARY, 2018

 

Table 2: Kenya Tea Exports by Destination (Dec 2017 vis-à-vis Dec 2016)

DESTINATION 2017 QUANTITY (KGS) 2016 QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN                      9,019,764                8,626,939 392,825 5%
EGYPT                     8,996,252                7,921,073 1,075,179 14%
YEMEN                     1,896,584                1,025,050 871,534 85%
UAE                      1,166,878                 2,317,700 -1,150,822 -50%
UK                      1,045,219                3,943,729 -2,898,510 -73%
RUSSIA                         730,510                1,984,516 -1,254,006 -63%
SUDAN                        654,869               2,560,786 -1,905,917 -74%
KAZAKSTAN                         547,266                   949,248 -401,983 -42%
SAUDI ARABIA                         426,370                   626,430 -200,060 -32%
AFGHANISTAN                         396,236                    190,504 205,732 108%
JORDAN                         344,750                    163,750 181,000 111%
SWITZERLAND                         277,200                     98,800 178,400 181%
IRELAND                         174,966                    294,934 -119,968 -41%
INDIA                         148,588                    153,580 -4,992 -3%
USA                          135,170                    324,237 -189,067 -58%
GHANA                        100,000                               – 100,000 0%
UKRAINE                           99,213                    192,063 -92,850 -48%
SRI LANKA                          86,838                      56,596 30,242 53%
JAPAN                           85,820                     121,520 -35,700 -29%
POLAND                           61,900                    873,816 -811,916 -93%
SOMALIA                           61,085                    325,940 -264,855 -81%
TURKEY                           58,320                     94,200 -35,880 -38%
UZBEKISTAN                          45,000                     48,308 -3,308 -7%
INDONESIA                          40,800                    319,500 -278,700 -87%
NIGERIA                          28,680                    333,187 -304,507 -91%
NETHERLANDS                           26,320                    318,356 -292,036 -92%
MYANMAR                          26,000                     28,000 -2,000 -7%
IRAN                          24,480                     391,757 -367,277 -94%
CENTRAL AFRICAN REPUBLIC                          24,000                               – 24,000 0%
OMAN                           23,160                               – 23,160 0%
CHAD                           22,950                               – 22,950 0%
NEW ZEALAND                           12,800                               – 12,800 0%
CHINA                            11,120                      31,220 -20,100 -64%
GERMANY                           10,640                      77,280 -66,640 -86%
SINGAPORE                          10,000                            301 9,699 3222%
HONG KONG                             8,790                               – 8,790 0%
TAIWAN                             7,560                                  –

 

7,560 0%
MALAYSIA                              2,600                            75,300 -72,700 -97%
EPZ                              1,010                        1,000 10 1%
ANGOLA                                     –                        6,720 -6,720 0%
CANADA                                   –                       61,160 -61,160 0%
CHILE                                    –                      12,600 -12,600 0%
DJIBOUTI                                     –                     48,000 -48,000 0%
HAITI                                     –                      14,300 -14,300 0%
ISRAEL                                     –                     26,000 -26,000 0%
SOUTH AFRICA                                     –                     28,000 -28,000 0%
 TOTAL               26,839,707          34,666,400 -7,826,692 -23%

 

 

Table 3: Kenya Tea Exports by Destination (Jan- Dec 2017 vis-à-vis Jan- Dec 2016)

DESTINATION 2017 QUANTITY (KGS) 2016 QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN                     153,678,618                     137,032,502 16,646,116 12%
EGYPT                        70,499,177                       91,043,977 -20,544,800 -23%
UK                        38,329,605                       46,779,086 -8,449,481 -18%
UAE                        27,890,322                       35,997,970 -8,107,648 -23%
SUDAN                        21,500,752                       26,255,428 -4,754,676 -18%
RUSSIA                        16,163,713                       20,015,097 -3,851,384 -19%
YEMEN                        14,342,260                       13,668,836 673,424 5%
AFGHANISTAN                           9,044,003                        34,756,914 -25,712,911 -74%
KAZAKHSTAN                           7,506,747                          9,514,593 -2,007,846 -21%
POLAND                           5,346,083                         6,403,262 -1,057,179 -17%
USA                           4,740,095                         4,285,747 454,348 11%
SAUDI ARABIA                           4,383,278                         4,385,960 -2,682 0%
NIGERIA                           4,293,299                          4,581,975 -288,676 -6%
IRELAND                           3,221,725                          4,216,772 -995,047 -24%
IRAN                           3,110,934                          5,118,480 -2,007,546 -39%
JORDAN                           2,951,272                         2,045,881 905,391 44%
INDIA                           2,901,010                          2,722,747 178,263 7%
SWITZERLAND                           2,721,206                         2,414,860 306,346 13%
TURKEY                           2,099,611                         2,885,737 -786,126 -27%
NETHERLANDS                           2,089,623                          2,861,612 -771,989 -27%
JAPAN                           1,933,117                         1,250,088 683,029 55%
INDONESIA                           1,859,690                          2,125,933 -266,243 -13%
CHILE                           1,800,938                          1,382,872 418,066 30%
UKRAINE                           1,779,719                          1,178,020 601,699 51%
SOMALIA                           1,635,550                         4,690,245 -3,054,695 -65%
MALAYSIA                           1,260,576                         2,015,869 -755,293 -37%
CHINA                           1,032,751                         1,064,370 -31,619 -3%
SRI LANKA                                998,819                             484,481 514,338 106%
GERMANY                                743,172                         1,308,800 -565,628 -43%
OMAN                                714,612                          1,775,644 -1,061,032 -60%
CHAD                                561,835                             267,166 294,669 110%
SOUTH AFRICA                               488,820                             795,260 -306,440 -39%
BANGLADESH                               480,900                            623,982 -143,082 -23%
DJIBOUTI                               424,450                             295,356 129,094 44%
CANADA                                399,188                             661,756 -262,568 -40%
UZBEKISTAN                                344,196                             372,282 -28,086 -8%
HONG KONG                                310,310                                14,110 296,200 2099%
BELGIUM                                299,578                            309,584 -10,006 -3%
MAURITIUS                                279,350                            190,800 88,550 46%
MYANMAH                               260,800                            257,400 3,400 1%
NEW ZEALAND                                210,940                               85,698 125,242 146%
TAIWAN                               202,940                                51,215 151,725 296%
SINGAPORE                                164,335                             138,144 26,191 19%
GHANA                              150,000                                        – 150,000 0%
ERITREA                               130,000                            130,000                          – 0%
RUSSIA                                  99,032                                        – 99,032 0%
AZERBAIJAN                                 89,066                                            – 89,066 0%
KYRGYZSTAN                                   55,333                                202,400 -147,067 -73%
ISRAEL                                   50,000                                   99,292 -49,292 -50%
CZECH REPUBLIC                                   27,397                                      7,236 20,161 279%
CENTRAL AFRICAN REPUBLIC                                   24,000                                          – 24,000 0%
VIET NAM                                   20,570                                381,134 -360,564 -95%
GREECE                                   14,676                                   13,800 876 6%
US MINOR OUTLING ISLANDS                                   14,032                                   16,948 -2,916 -17%
LATVIA                                      9,320                                107,040 -97,720 -91%
GABON                                      9,032                                            – 9,032 0%
BRAZIL                                      6,000                                      9,000 -3,000 -33%
MACAU                                      5,000                                            – 5,000 0%
MOROCCO                                      4,820                                   66,952 -62,132 -93%
ITALY                                      2,882                                      1,380 1,502 109%
EPZ                                      2,605                                445,693 -443,088 -99%
AUSTRALIA                                      1,600                                   41,458 -39,858 -96%
ALBANIA                                                –                                   14,960 -14,960 0%
ANGOLA                                                –                                   12,720 -12,720 0%
BAHAMAS                                                –                                   20,000 -20,000 0%
BAHRAIN                                                –                                      1,500 -1,500 0%
BELARUS                                                –                                   11,975 -11,975 0%
CAMBODIA                                                –                                      8,000 -8,000 0%
CAMEROON                                                –                                   74,403 -74,403 0%
EL SALVADOR                                                –                                   95,100 -95,100 0%
FINLAND                                                –                                   20,625 -20,625 0%
HAITI                                                –                                   14,300 -14,300 0%
PALAU                                                –                                      2,720 -2,720 0%
PALESTINE                                                –                                   16,500 -16,500 0%
REUNION                                                –                                   38,760 -38,760 0%
RWANDA                                                –                                      1,296 -1,296 0%
SPAIN                                                –                                      4,962 -4,962 0%
SURINAME                                                –                                      9,296 -9,296 0%
SWAZILAND                                                –                                   23,656 -23,656 0%
 SWEDEN                                                –                                   10,500 -10,500 0%
SYRIA                                                –                                   26,840 -26,840 0%
TANZANIA                                                –                                   73,273 -73,273 0%
TOTAL                     415,715,284                     480,330,230 -64,614,946 -13%