JULY 2016

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JULY 2016

Tea production for the month of July 2016 was 29.28 Million Kgs, against 30.94 Million Kgs recorded during the corresponding month of 2015.

Lower production was largely attributed to less precipitation and generally cold weather conditions within the tea growing areas East of Rift. Consequently, output recorded from within the region decreased by 30.77% from 8.69 Million Kgs in July 2015 to 6.01 Million Kgs. However, due to scattered rainfall conditions in some parts of the West of Rift, production within the tea region increased marginally by 4.57% from 22.25 Million Kgs to 23.26 Million Kgs.

Due to wider coverage within the East of Rift, production within the Smallholder sub-sector dropped by 19.13% from 16.68 Million Kgs to 13.49 Million Kgs. Plantation  sub-sector, which is more wide-spread in the West of Rift recorded 10.76% higher output from 14.25 Million Kgs to 15.79 Million Kgs.

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

Sector Region July  2016 July 2015 Variance Var.(%)
Plantation West of Rift   15,110,583   13,248,739   1,861,844 14.05%
East of Rift         682,971     1,010,656 –    327,685 -32.42%
Total   15,793,553   14,259,395   1,534,158 10.76%
Smallholder West of Rift     8,158,180     9,002,965 –    844,785 -9.38%
East of Rift     5,333,379     7,679,961 – 2,346,582 -30.55%
Total   13,491,559   16,682,926 – 3,191,367 -19.13%
   
Plantation & West of Rift   23,268,762   22,251,704   1,017,058 4.57%
Smallholder East of Rift     6,016,350     8,690,617 – 2,674,267 -30.77%
Total   29,285,112   30,942,321 – 1,657,209 -5.36%

 

TEA SALES

 

AUCTION

During the month, 23.69 Million kgs of Kenyan tea was sold through Mombasa Auction against 17.14 Million kgs recorded in July 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 2.43 per Kg compared to 3.39 per kg for the same period of last year.

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

 

EXPORTS

The total export volume for the month of July 2016 was higer at 42.62 Million Kgs compared to 37.47 Million Kgs recorded in the same period of last year.

Egypt was the leading export destination for Kenyan tea having imported 12.81 Million Kgs, accounting for 30% of the total export volume.

Other key export destinations for Kenyan tea were Pakistan (9.47 Million Kgs), UK (3.55 Million Kgs), UAE (2.99 Million Kgs), Afghanistan (2.53 Million Kgs), Russia(2.26 Million Kgs), Sudan (1.90 Million Kgs), Yemen (1.76 Million Kgs), Kazakhstan (1.27 Million Kgs) and Poland (0.49 Million Kgs). The top ten export destinations, most of which are traditional markets for Kenyan tea accounted for 92% of Kenya tea export volume.

 

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

 

DESTINATION 2016 – QUANTITY KGS 2015 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
EGYPT                        12,814,018                           8,259,973 4,554,045 55%
PAKISTAN                           9,477,625                           9,338,748 138,877 1%
UK                           3,557,374                           3,234,935 322,439 10%
UAE                           2,998,157                           3,969,959 -971,802 -24%
AFGHANISTAN                           2,538,968                           2,103,603 435,365 21%
RUSSIA                           2,226,018                           2,353,829 -127,811 -5%
SUDAN                           1,909,842                           1,356,153 553,689 41%
YEMEN                           1,765,210                           1,670,878 94,332 6%
KAZAKHASTAN                           1,276,006                              484,331 791,675 163%
POLAND                              493,907                              851,826 -357,919 -42%
OTHERS                           3,563,989                           3,855,628 -291,639 -8%
TOTAL                        42,621,114                        37,479,863 5,141,251 14%

 

 

 

LOCAL CONSUMPTION

Local tea consumption for July 2016 stood at 2.51 Million Kgs against 2.17 Million Kgs for the corresponding period of 2015.