FEBRUARY 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR FEBRUARY 2017

PRODUCTION

Tea production for the month of February 2017 decreased significantly to 22.60 Million Kgs compared to 53.96 Million Kgs recorded during the corresponding month of 2016. The decrease in production was largely attributed to dry and hot weather conditions experienced in all the tea growing areas. Consequently, Production within the West of Rift decreased from 26.35 Million Kgs recorded in February 2016 to 12.23 Million Kgs. In the East of Rift, production declined from 17.60 Million Kgs to 10.37 Million Kgs.

Lower production was also recorded in the two sub-sectors. The Smallholder sub-sector registered a decrease of 12.85 Million Kgs from 26.56 Million Kgs recorded in February 2016 to 13.71 Million Kgs. The Plantation sub-sector recorded a decrease of 8.51 Million Kgs from 17.40 Million Kgs to 8.88 Million Kgs.

Cumulative production for the two months period of the year was significantly low at 55.59 Million Kgs against 94.27 Million Kgs recorded during the corresponding period of 2016.

Similary, declining production trend is expected into the month of March due to continued impact of dry and hot weather conditions.

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

Sector Region February 2017 February 2016 Variance Var.(%) Jan – Feb 2017 Jan – Feb 2016 Variance +/- Var.(%)
Plantation West of Rift          7,650,200        15,304,697 –   7,654,497 -50.01%        19,325,390        33,727,201 – 14,401,811 -42.70%
East of Rift          1,238,180          1,860,409 –      622,229 -33.45%          2,882,816          3,863,871 –      981,055 -25.39%
Total          8,888,380        17,165,106 –   8,276,726 -48.22%        22,208,206        37,591,072 – 15,382,866 -40.92%
Smallholder West of Rift          4,580,447        11,054,205 –   6,473,758 -58.56%        11,618,866        23,170,527 – 11,551,661 -49.85%
East of Rift          9,136,121        15,749,541 –   6,613,420 -41.99%        21,768,573        33,515,081 – 11,746,508 -35.05%
Total        13,716,568        26,803,746 – 13,087,178 -48.83%        33,387,439        56,685,608 – 23,298,169 -41.10%
   
Plantation & West of Rift        12,230,647        26,358,902 – 14,128,255 -53.60%        30,944,256        56,897,728 – 25,953,472 -45.61%
Smallholder East of Rift        10,374,301        17,609,950 –   7,235,649 -41.09%        24,651,389        37,378,952 – 12,727,563 -34.05%
Total        22,604,948        43,968,852 – 21,363,904 -48.59%        55,595,645        94,276,680 – 38,681,035 -41.03%


TEA SALES

AUCTION

During the month, 20.21 Million kgs of Kenyan tea was sold through Mombasa Auction against 37.00 Million kgs recorded in February 2016. The average tea auction prices for Kenyan tea for the month of February 2017 was USD 3.06 per Kg which was higher compared to 2.48 recorded in February 2016 and was also slightly higher to USD 3.05 recorded in January 2017. The Average Auction price for the period January- February was higher at USD 3.05 per Kg compared to 2.59 per kg for the same period of last year.

Improved prices were attributable to good demand following the ongoing winter conditions in the Northern Hemisphere coupled with lower supply of tea due to hot and dry weather conditions.

EXPORTS

The total export volume for the month of February 2017 was 38.94 Million Kgs compared to 31.83 Million Kgs recorded same period of last year, representing a 22% increase. During the month, Kenya tea was shipped to thirty nine (39) export destinations compared to forty four (44) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 14.13 Million Kgs, accounting for 36% of the total export volume. Other key export destinations for Kenyan tea were Egypt (7.51 Million Kgs), UK (4.16 Million Kgs), UAE (2.01 Million Kgs), Russia (1.87 Million Kgs), Sudan (1.31 Million Kgs), Yemen (1.16 Million Kgs), Kazakhastan (0.78 Million Kgs), Poland (0.61Million kgs) and Saudi Arabia (0.53 Million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 88% of Kenya tea export volume. Amongst the markets that recorded higher tea imports from Kenya included Pakistan, Egypt, UK,  Russia, and Kazakhastan.

Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Sri-Lanka, Switzerland, Somalia, USA, India, Ireland, Turkey, Netherlands, Iran, Indonesia, Japan and Oman

LOCAL CONSUMPTION

Local tea consumption for February 2017 stood at 2.21 Million Kgs against 2.26 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the two months period upto February 2017 was 4.89 Million Kgs against 4.70 Million Kgs for the same period of 2016.

 

Table 3: Kenya Tea Exports by Destination (feb. 2017 vis-à-vis Feb. 2016)

DESTINATION 2017-QUANTITY KGS 2016- QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                 14,138,195                    9,120,444 5,017,751 55%
EGYPT                   7,517,849                    5,881,987 1,635,862 28%
UK                   4,165,701                    2,797,740 1,367,961 49%
UAE                   2,014,230                    2,503,043 -488,814 -20%
RUSSIA                   1,871,269                    1,354,134 517,135 38%
SUDAN                   1,317,696                    2,663,134 -1,345,438 -51%
YEMEN                   1,168,868                    1,169,110 -242 0%
KAZAKHSTAN                      781,458                       435,776 345,682 79%
POLAND                      614,576                       685,658 -71,082 -10%
SAUDI ARABIA                      530,416                       545,554 -15,138 -3%
USA                      491,760                       131,344 360,416 274%
INDIA                      463,091                       124,568 338,523 272%
AFGHANISTAN                      390,190                    1,792,152 -1,401,962 -78%
IRELAND                      386,779                       100,196 286,583 286%
TURKEY                      359,458                         88,344 271,114 307%
NETHERLANDS                      347,979                       210,718 137,261 65%
JORDAN                      326,500                       279,000 47,500 17%
SWITZERLAND                      292,100                         23,760 268,340 1129%
NIGERIA                      273,863                       502,189 -228,326 -45%
IRAN                      204,720                       122,360 82,360 67%
SOMALIA                      170,072                         80,029 90,043 113%
INDONESIA                      157,474                         66,996 90,478 135%
UKRAINE                      146,511                       112,985 33,526 30%
SRI LANKA                      119,492                         60,540 58,952 97%
CANADA                      105,800                         91,680 14,120 15%
GERMANY                        92,820                         37,320 55,500 149%
JAPAN                        86,850                         12,000 74,850 624%
MAURITIUS                        81,000                                 – 81,000 0%
OMAN                        71,796                         16,140 55,656 345%
CHINA                        57,820                         65,940 -8,120 -12%
CHILE                        39,080                       120,360 -81,280 -68%
SOUTH AFRICA                        28,041                         98,000 -69,959 -71%
MALAYSIA                        27,200                       108,084 -80,884 -75%
KYRGYZSTAN                        25,256                         75,900 -50,644 -67%
ISRAEL                        24,000                                 – 24,000 0%
CHAD                        22,100                                 – 22,100 0%
HONG KONG                        19,352                                 – 19,352 0%
GREECE                          7,476                                 – 7,476 0%
SINGAPORE                          6,720                         14,200 -7,480 -53%
TAIWAN                                –                       169,073 -169,073 0%
DJIBOUTI                                –                         64,000 -64,000 0%
BELGIUM                                –                         37,180 -37,180 0%
EPZ                                –                         23,600 -23,600 0%
ALBANIA                                –                         14,960 -14,960 0%
NEW ZEALAND                                –                         13,000 -13,000 0%
SURINAME                                –                           9,296 -9,296 0%
ANGOLA                                –                           4,800 -4,800 0%
BAHRAIN                                –                           1,500 -1,500 0%
RWANDA                                –                           1,296 -1,296 0%
TOTAL                 38,945,557                  31,830,089 7,115,468 22%

 

 

 

 

 

 

 

 

 

 

 

 

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

DESTINATION 2017-QUANTITY KGS 2016- QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                   39,035,154                     20,142,723 18,892,431 94%
EGYPT                   12,187,031                     13,465,673 -1,278,642 -9%
UK                      7,841,475                       7,226,370 615,105 9%
UAE                      3,922,483                       4,232,899 -310,416 -7%
RUSSIA                      3,861,029                       2,920,466 940,563 32%
SUDAN                      3,417,755                       3,966,240 -548,485 -14%
YEMEN                      1,818,408                       2,012,181 -193,773 -10%
AFGHANISTAN                      1,702,182                       7,026,982 -5,324,800 -76%
KAZAKHSTAN                      1,317,122                          822,548 494,574 60%
SAUDI ARABIA                         936,152                       1,085,696 -149,544 -14%
POLAND                         931,459                       1,053,339 -121,880 -12%
USA                         845,310                          853,864 -8,554 -1%
INDIA                         697,692                          487,469 210,223 43%
TURKEY                         668,501                          415,956 252,545 61%
IRELAND                         604,407                          411,297 193,110 47%
IRAN                         529,024                          673,384 -144,360 -21%
JORDAN                         490,250                          608,000 -117,750 -19%
NETHERLANDS                         465,220                          528,524 -63,304 -12%
NIGERIA                         464,463                          638,181 -173,718 -27%
SWITZERLAND                         412,800                            23,760 389,040 1637%
UKRAINE                         399,487                          226,567 172,920 76%
SOMALIA                         305,272                          648,011 -342,739 -53%
SRI LANKA                         244,972                            60,540 184,432 305%
INDONESIA                         205,074                          335,550 -130,476 -39%
JAPAN                         160,534                            96,856 63,678 66%
GERMANY                         147,020                            61,320 85,700 140%
CANADA                         133,800                          133,080 720 1%
CHINA                           98,240                          219,161 -120,921 -55%
OMAN                           97,556                          164,718 -67,162 -41%
MAURITIUS                           81,000                                   – 81,000 0%
BANGLADESH                           80,300                                   – 80,300 0%
MALAYSIA                           78,260                          274,770 -196,510 -72%
DJIBOUTI                           75,716                            64,000 11,716 18%
TAIWAN                           66,750                          169,073 -102,323 -61%
SOUTH AFRICA                           56,041                          206,860 -150,819 -73%
CHILE                           51,480                          257,920 -206,440 -80%
KYRGYZSTAN                           51,156                          126,500 -75,344 -60%
ISRAEL                           50,000                                   – 50,000 0%
UZBEKISTAN                           44,000                            72,490 -28,490 -39%
MYAMAR                           28,000                                   – 28,000 0%
CHAD                           22,100                            21,000 1,100 5%
HONG KONG                           19,352                              9,880 9,472 96%
NEW ZEALAND                           12,800                            25,760 -12,960 -50%
SINGAPORE                             9,020                            31,200 -22,180 -71%
GREECE                             7,476                                   – 7,476 0%
MACAO                             5,000                                   – 5,000 0%
BELGIUM                                   –                          111,576 -111,576 0%
VIETNAM                                   –                            75,540 -75,540 0%
REUNION                                   –                            38,760 -38,760 0%
EPZ                                   –                            23,600 -23,600 0%
MOROCCO                                   –                            22,952 -22,952 0%
ALBANIA                                   –                            14,960 -14,960 0%
SURINAME                                   –                              9,296 -9,296 0%
BRAZIL                                   –                              9,000 -9,000 0%
ANGOLA                                   –                              4,800 -4,800 0%
BAHRAIN                                   –                              1,500 -1,500 0%
RWANDA                                   –                              1,296 -1,296 0%
AUSTRALIA                                   –                                 500 -500 0%
CZECH REPUBLIC                                   –                                 100 -100 0%
TOTAL                  84,678,323                     72,114,687 12,563,636 17%