JANUARY 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JANUARY  2017

PRODUCTION

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%
Total     13,319,826     20,425,966 –       7,106,140 -34.79%
         
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%
Total     19,670,871     29,881,862 –     10,210,991 -34.17%
           
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%
  Total     32,990,697     50,307,828 –     17,317,131 -34.42%

 

TEA SALES

 

AUCTION

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.

EXPORTS

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 CONSUMPTION

 

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
PAKISTAN                  24,896,959                   11,022,279 13,874,680 126%
EGYPT                    4,669,182                     7,583,686 -2,914,504 -38%
UK                    3,675,774                     4,428,630 -752,857 -17%
SUDAN                    2,100,059                     1,303,106 796,952 61%
RUSSIA                    1,989,760                     1,566,332 423,428 27%
UAE                    1,908,253                     1,729,856 178,397 10%
AFGHANISTAN                    1,311,992                     5,234,830 -3,922,838 -75%
YEMEN                       649,540                        843,071 -193,531 -23%
KAZAKHSTAN                       535,664                        386,772 148,892 38%
SAUDI ARABIA                       405,736                        540,142 -134,406 -25%
USA                       353,550                        722,520 -368,970 -51%
IRAN                       324,304                        551,024 -226,720 -41%
POLAND                       316,883                        367,681 -50,798 -14%
TURKEY                       309,043                        327,612 -18,569 -6%
UKRAINE                       252,976                        113,582 139,394 123%
INDIA                       234,601                        362,901 -128,300 -35%
IRELAND                       217,628                        311,101 -93,473 -30%
NIGERIA                       190,600                        135,992 54,608 40%
JORDAN                       163,750                        329,000 -165,250 -50%
SOMALIA                       135,200                        567,982 -432,782 -76%
SRI LANKA                       125,480                                    –    125,480 0%
SWITZERLAND                       120,700                                    –    120,700 0%
NETHERLANDS                       117,241                        317,806 -200,565 -63%
BANGLADESH                          80,300                                    –    80,300 0%
DJIBOUTI                          75,716                                    –    75,716 0%
JAPAN                          73,684                           84,856 -11,172 -13%
TAIWAN                          66,750                                    –    66,750 0%
GERMANY                          54,200                           24,000 30,200 126%
MALAYSIA                          51,060                        166,686 -115,626 -69%
INDONESIA                          47,600                        268,554 -220,954 -82%
UZBEKISTAN                          44,000                           72,490 -28,490 -39%
CHINA                          40,420                        153,221 -112,801 -74%
CANADA                          28,000                           41,400 -13,400 -32%
MYAMAR                          28,000                                    –    28,000 0%
SOUTH AFRICA                          28,000                        108,860 -80,860 -74%
ISRAEL                          26,000                                    –    26,000 0%
KYRGYSTAN                          25,900                           50,600 -24,700 -49%
OMAN                          25,760                        148,578 -122,818 -83%
NEW ZEALAND                          12,800                           12,760 40 0%
CHILE                          12,400                        137,560 -125,160 -91%
MACAO                            5,000                                    –    5,000 0%
SINGAPORE                            2,300                           17,000 -14,700 -86%
VIETNAM                                   –                              75,540 -75,540 0%
BELGIUM                                   –                              74,396 -74,396 0%
REUNION                                   –                              38,760 -38,760 0%
MOROCCO                                   –                              22,952 -22,952 0%
CHAD                                   –                              21,000 -21,000 0%
HONG KONG                                   –                                9,880 -9,880 0%
BRAZIL                                   –                                9,000 -9,000 0%
AUSTRALIA                                   –                                   500 -500 0%
CZECH REPUBLIC                                   –                                   100 -100 0%
GRAND TOTAL                  45,732,764                   40,284,598 5,448,166 14%