KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JANUARY 2017
Tea production for the month of January 2017 decreased to 32.99 Million Kgs compared to 50.30 Million Kgs recorded during the corresponding month of 2016. The decrease in production was largely attributed to dry and hot weather conditions experienced in the tea growing areas. The dry and hot weather conditions were prevalent in all the tea growing areas. Consequently, Production within the East of Rift decreased from 19.76 Million Kgs recorded in January 2016 to 12.63 Million Kgs. In the West of Rift, production declined from 30.53 Million Kgs to 18.71 Million Kgs.
Across the sub-sectors, lower production was recorded in all the sub-sectors. Plantation sub-sector registered a decrease of 7.11 Million Kgs from 20.42 Million Kgs recorded in January 2016 to 13.31 Million Kgs. The Smallholder sub-sector recorded a decrease of 10.21 Million Kgs from 29.88 Million Kgs to 19.67 Million Kgs.
In comparison to the month of December 2016, which recorded an output of 45.10 Million Kgs, production for the month of January 2017 was relatively lower. Similary, declining production trend is expected into the month of February and March due continued impact of dry and hot weather conditions.
Table 1: Production by Sub-Sector and Region (2017 vis-à-vis 2016)
|Sector||Region||January 2017||January 2016||Variance||Var.(%)|
|Plantation||West of Rift||11,675,190||18,422,504||– 6,747,314||-36.63%|
|East of Rift||1,644,636||2,003,462||– 358,826||-17.91%|
|Smallholder||West of Rift||7,038,419||12,116,322||– 5,077,903||-41.91%|
|East of Rift||12,632,452||17,765,540||– 5,133,088||-28.89%|
|Plantation &||West of Rift||18,713,609||30,538,826||– 11,825,217||-38.72%|
|Smallholder||East of Rift||14,277,088||19,769,002||– 5,491,914||-27.78%|
During the month, 32.67 Million kgs of Kenyan tea was sold through Mombasa Auction against 31.18 Million kgs recorded in January 2016. The average tea auction prices for Kenyan tea for the month of January 2017 was USD 3.05 per Kg which was higher compared to 2.72 recorded in January 2016 and 2.32 in January 2015. However, the average prices were much more improved compared to USD 2.67 recorded during the months of December 2016. 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.
The total export volume for the month of January 2017 was 45.73 Million Kgs compared to 40.28 Million Kgs recorded same period of last year, representing a 14% increase. During the month, Kenya tea was shipped to forty two (42) export destinations compared to forty three (43) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 24.89 Million Kgs, accounting for 54% of the total export volume. Other key export destinations for Kenyan tea were Egypt (4.66 Million Kgs), UK (3.67 Million Kgs), Sudan (2.10 Million Kgs), Russia (1.98 Million Kgs), UAE (1.90 Million Kgs), Afghanistan (1.31 Million Kgs), Yemen (0.64 Million Kgs), Kazakhastan
(0.53 Million kgs) and Saudi Arabia (0.40 Million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 92% of Kenya tea export volume. Amongst the markets that recorded higher tea imports from Kenya included Pakistan, Sudan, Russia, UAE, and Kazakhastan.
Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Sri-Lanka, Switzerland, Bangladesh, Djibouti, Taiwan, Myanmar, Israel and Macao.
Local tea consumption in January 2017 amounted to 2.67 Million Kgs against 2.44 Million Kgs for the corresponding period of 2016.
In comparison to the month of December 2016, local consumption for the month of January 2017 was relatively lower.
Table 3: Kenya Tea Exports by Destination (Jan. 2017 vis-à-vis Jan. 2016)
|DESTINATION||2017 -QUANTITY KGS||2016 – QUANTITY KGS||QUANTITY DIFF||%AGE VARIANCE|