APRIL 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR

APRIL  2017

 

PRODUCTION

 

Tea production for the month of April 2017 decreased to 31.45 Million Kgs compared to 37.91 Million Kgs recorded during the corresponding month of 2016. Lower production was largely attributed to dry and hot weather conditions experienced in all the tea growing areas. The most affected region was the East of Rift where production declined significantly from 15.49 Million Kgs to 9.81 Million Kgs owing to delayed onset of the “Long-rains” season in March and depressed rainfall conditions in April. Production within the West of Rift decreased marginally from 22.41 Million Kgs recorded in April 2016 to 21.64 Million Kgs. Consequently, the Smallholder sub-sector recorded a significant decrease of 6.55 Million Kgs from 24.09 Million Kgs to 17.53 Million Kgs while the Plantation sub-sector registered a marginal increase from 13.82 Million Kgs recorded in April 2016 to 13.92 Million Kgs.

Cumulative production for the period January-April 2017 was significantly lower at 121.55 Million Kgs against 177.51 Million Kgs recorded during the corresponding period of 2016 owing to unfavorable weather conditions. Going by the current production trend and the fact that most parts of the country are expected to receive depressed “long rainfall” according to the weather forecast by the Kenya Meteorological Services, lower production is expected to be recorded throughout the year.

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

Sector Region April  2017 April  2016 Variance +/- Var.(%) Jan – April 2017 Jan – April 2016 Variance +/- Var.(%)
Plantation West of Rift             13,083,459                12,526,113                 557,346 4.45%                   46,921,795                    61,128,752 –          14,206,957 -23.24%
East of Rift                   843,858                  1,294,417 –              450,559 -34.81%                     4,657,689                      7,182,480 –             2,524,791 -35.15%
Total     13,927,317     13,820,530         106,787 0.77%         51,579,484          68,311,232 –   16,731,748 -24.49%
Smallholder West of Rift               8,562,788                 9,892,591 –          1,329,803 -13.44%                     30,317,117                    43,128,731 –             12,811,614 -29.71%
East of Rift               8,968,353               14,197,764 –           5,229,411 -36.83%                  39,655,978                  66,077,436 –          26,421,458 -39.99%
Total       17,531,141     24,090,355 –   6,559,214 -27.23%        69,973,095       109,206,167 –  39,233,072 -35.93%
Plantation & West of Rift             21,646,247              22,418,704 –              772,457 -3.45%                   77,238,912                104,257,483 –           27,018,571 -25.92%
Smallholder East of Rift                  9,812,211                15,492,181 –         5,679,970 -36.66%                   44,313,667                   73,259,916 –         28,946,249 -39.51%
Total     31,458,458     37,910,885 –  6,452,427 -17.02%       121,552,579       177,517,399 –  55,964,820 -31.53%

TEA SALES

AUCTION

During the month, 23.20 Million kgs of Kenyan tea was sold through Mombasa Auction against 29.43 Million kgs recorded in April 2016. The average tea auction prices for Kenyan tea for the month of April 2017 was USD 2.87 per Kg which was higher compared to 2.11 recorded in April 2016. However, it was slightly lower compared to over USD 2.90 recorded in the months January, February and March 2017, respectively. The Average Auction price for the period January- April was higher at USD 2.98 per Kg compared to 2.41 per kg for the same period of last year.

Improved prices to-date were attributable to good demand against lower supply of tea due to hot and dry weather conditions.

 

EXPORTS

The total export volume for the month of April 2017 was 26.75 Million Kgs compared to 42.05 Million Kgs recorded same period of last year, representing a 36% decrease. During the month, Kenya tea was shipped to thirty nine (39) export destinations compared to forty one (41) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 7.53 Million Kgs, accounting for 28% of the total export volume. Other key export destinations for Kenyan tea were Egypt (3.66 Million Kgs), Afghanistan (2.95), UK (2.26 Million Kgs), Sudan (2.21 Million Kgs), Yemen (1.35), Russia (1.10), UAE (0.49 Million Kgs), Poland (0.43) Million Kgs), USA (0.40 Million Kgs), and Kazakhastan (0.39 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 84% of Kenya tea export volume. Amongst the markets that recorded higher tea imports from Kenya included Yemen and Poland.

Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Jordan, Ukraine, China, Japan, Chile, Chad, Bangladesh and Djibouti.

The total export volume for the period January-April 2017 was 146.48 Million Kgs compared to 170.38 Million Kgs recorded same period of last year.

LOCAL CONSUMPTION

Local tea consumption for April 2017 stood at 2.20 Million Kgs against 2.68 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the first four months period upto April 2017 was 9.28 Million Kgs against 9.64 Million Kgs for the same period of 2016. Lower sales volume were attributed to higher inflation rates, which eroded consumer purchasing power.

19TH MAY, 2017

 

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

DESTINATION 2017 – QUANTITY KGS 2016 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                           7,536,626                        10,624,560 -3,087,935 -29%
EGYPT                           3,665,497                           7,977,022 -4,311,525 -54%
AGHANISTAN                           2,951,752                           3,477,797 -526,045 -15%
UK                           2,264,992                           4,279,913 -2,014,921 -47%
SUDAN                           2,219,162                           2,670,304 -451,143 -17%
YEMEN                           1,355,900                           1,217,640 138,260 11%
RUSSIA                           1,100,000                           1,822,609 -722,609 -40%
UAE                               499,423                           3,180,196 -2,680,773 -84%
POLAND                               430,042                               371,721 58,321 16%
USA                               405,932                               837,572 -431,640 -52%
KAZAKHASTAN                               395,890                               729,622 -333,732 -46%
SAUDI ARABIA                               341,750                               347,720 -5,970 -2%
NIGERIA                               336,876                               378,361 -41,485 -11%
JORDAN                               322,750                               130,500 192,250 147%
IRELAND                               270,442                               681,102 -410,660 -60%
INDIA                               245,543                               209,168 36,375 17%
MALAYSIA                               240,550                               265,071 -24,521 -9%
UKRAINE                               216,177                                  25,300 190,877 754%
SOMALIA                               198,197                               272,216 -74,019 -27%
NETHERLANDS                               197,730                               232,788 -35,058 -15%
IRAN                               152,724                               164,133 -11,409 -7%
TURKEY                               144,172                               337,176 -193,004 -57%
JAPAN                               144,100                               108,480 35,620 33%
CHINA                               138,136                                  76,166 61,970 81%
CHILE                               135,120                                  95,400 39,720 42%
SWITZERLAND                               130,660                               650,680 -520,020 -80%
CHAD                                  94,946                                     9,500 85,446 899%
INDONESIA                                  92,536                               134,424 -41,888 -31%
BANGLADESH                                                                              80,300                                  61,678 18,622 30%
DJIBOUTI                                  72,278                                48,000 24,278 51%
SRI LANKA                                  71,555                               100,684 -29,129 -29%
UZBEKISTAN                                  64,920                                               – 64,920 0%
MYANMAR                                  53,200                                               – 53,200 0%
OMAN                                  51,642                                  76,964 -25,322 -33%
GERMANY                                  47,432                               187,300 -139,868 -75%
CANADA                                  42,660                                  75,428 -32,768 -43%
HONG KONG                                  23,107                                               – 23,107 0%
SOUTH AFRICA                                  14,000                                  70,400 -56,400 -80%
MAURITIUS                                  10,000                                               – 10,000 0%
VIETNAM                                               –                                  79,200 -79,200 0%
GREECE                                               –                                  13,800 -13,800 0%
BELGIUM                                               –                                  12,860 -12,860 0%
NEW ZEALAND                                               –                                  12,030 -12,030 0%
TAIWAN                                               –                                  10,275 -10,275 0%
ITALY                                               –                                     1,380 -1,380 0%
 TOTAL                        26,758,718                        42,057,140 -15,298,422 -36%

 

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

DESTINATION 2017 – QUANTITY KGS 2016 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                                      57,826,008                                        40,971,153 16,854,855 41%
EGYPT                                        21,727,718                  32,278,203 -10,550,485 -33%
UK                                        13,281,679                                        18,707,016 -5,425,337 -29%
SUDAN                                            8,115,166                                        10,314,828 -2,199,662 -21%
UAE                                          6,741,575                                        11,367,203 -4,625,628 -41%
RUSSIA                                          6,488,143                                          6,701,250 -213,107 -3%
YEMEN                                          4,831,450                                         4,273,605 557,845 13%
AFGHANISTAN                                         4,694,894                                       19,430,346 -14,735,452 -76%
KAZAKHSTAN                                         2,635,689                                         2,333,576 302,113 13%
SAUDI ARABIA                                           1,917,872                                          1,864,606 53,266 3%
USA                                          1,904,620                                         2,305,329 -400,709 -17%
POLAND                                          1,866,288                                          1,865,046 1,242 0%
INDIA                                          1,276,704                                          1,075,830 200,874 19%
IRELAND                                          1,244,474                                            1,621,741 -377,267 -23%
JORDAN                                          1,222,750                                          1,099,000 123,750 11%
NIGERIA                                               991,919                                          1,454,934 -463,015 -32%
IRAN                                             880,024                                          1,277,580 -397,556 -31%
TURKEY                                             838,629                                             962,702 -124,073 -13%
NETHERLANDS                                             836,347                                            1,118,900 -282,553 -25%
UKRAINE                                             733,384                                             364,782 368,602 101%
CHINA                                             723,076                                              615,979 107,097 17%
SOMALIA                                             637,073                                          1,920,903 -1,283,830 -67%
SWITZERLAND                                             620,940                                           1,031,740 -410,800 -40%
CHILE                                               515,100                                             402,280 112,820 28%
INDONESIA                                               471,198                                             604,928 -133,730 -22%
SRI LANKA                                             437,987                                              165,864 272,123 164%
MALAYSIA                                             397,534                                             648,543 -251,009 -39%
JAPAN                                               391,518                                             355,026 36,492 10%
GERMANY                                             279,726                                              325,716 -45,990 -14%
UZBEKISTAN                                              275,196                                              186,542 88,654 48%
CANADA                                             224,420                                             265,668 -41,248 -16%
SOUTH AFRICA                                               210,041                                             347,260 -137,219 -40%
BANGLADESH                                              160,600                                              102,298 58,302 57%
OMAN                                               149,198                                              616,788 -467,590 -76%
DJIBOUTI                                              147,994                                               112,000 35,994 32%
CHAD                                               141,046                                              125,558 15,488 12%
ERITREA                                              130,000                                                            – 130,000 0%
MAURITIUS                                                 91,000                                                            – 91,000 0%
MYAMAR                                                 81,200                                                53,600 27,600 51%
TAIWAN                                                66,750                                                36,975 29,775 81%
HONG KONG                                                62,900                                                   9,880 53,020 537%
KYRGYZSTAN                                                  51,156                                             202,400 -151,244 -75%
ISRAEL                                                50,000                                                            – 50,000 0%
AZERBAIJAN                                                45,000                                                            – 45,000 0%
NEW ZEALAND                                                25,600                                                37,790 -12,190 -32%
SINGAPORE                                                22,980                                                29,900 -6,920 -23%
GREECE                                                 14,676                                                 13,800 876 6%
MACAO                                                   5,000                                                            – 5,000 0%
ITALY                                                   2,070                                                            – 2,070 0%
CZECH REPUBLIC                                                        185                                                    1,480 -1,295 -88%
ALBANIA                                                            –                                                 14,960 -14,960 0%
ANGOLA                                                            –                                                   4,800 -4,800 0%
AUSTRALIA                                                            –                                                   4,000 -4,000 0%
BAHRAIN                                                            –                                                    1,500 -1,500 0%
BELGIUM                                                            –                                               112,456 -112,456 0%
BRAZIL                                                            –                                                   9,000 -9,000 0%
CAMEROON                                                            –                                                 50,381 -50,381 0%
EPZ                                                            –                                             206,203 -206,203 0%
MOROCCO                                                            –                                                22,952 -22,952 0%
REUNION                                                            –                                                38,760 -38,760 0%
RWANDA                                                            –                                                    1,296 -1,296 0%
SURINAME                                                            –                                                   9,296 -9,296 0%
SYRIA                                                            –                                                26,840 -26,840 0%
VIETNAM                                                            –                                             279,702 -279,702 0%
TOTAL                    146,486,497                    170,382,694 -23,896,197 -14%