JUNE 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JUNE 2017

PRODUCTION

Tea production for the month of June 2017 was 40.53 Million Kgs, against 35.87 Million Kgs recorded during the corresponding month of 2016. The increase in production was largely attributed to scattered precipitation which was experienced in the East of Rift following which the region’s output rose from 9.30 Million Kgs to 12.24 Million Kgs. Consequently, good production was recorded within Smallholder sub-sector with output increasing from 18.26 Million Kgs to 21.84 Million Kgs. However, owing to cold weather conditions coupled with with less rainfall, the output within the West of Rift increased marginally from 26.5 Million Kgs recorded in June 2016 to 28.29 Million Kgs. Similarly, production within the Estate sub-sector increased marginally from 17.60 Million Kgs to 18.68 Million Kgs.

Cumulative production for the period January-June 2017 was significantly lower at 200.91 Million Kgs against 250.59 Million Kgs recorded during the corresponding period of 2016 owing to unfavorable weather conditions that was experienced during the first quarter of the year.

 

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

 

Sector Region June  2017 June 2016 Variance Var.(%) Jan – June 2017 Jan – June 2016 Variance +/- Var.(%)
Plantation West of Rift   17,353,509  16,683,939      669,570 4.01%       78,174,166       91,746,046 – 13,571,880 -14.79%
East of Rift     1,335,732          919,014      416,718 45.34%        7,331,968         9,747,284 –   2,415,316 -24.78%
Total  18,689,241  17,602,953  1,086,288 6.17%   85,506,134  101,493,330 – 15,987,196 -15.75%
Smallholder West of Rift   10,944,117       9,611,203   1,332,914 13.87%     50,007,249       62,635,108 – 12,627,859 -20.16%
East of Rift   10,904,561       8,657,525   2,247,036 25.95%      65,399,360     86,463,100 – 21,063,740 -24.36%
Total  21,848,678  18,268,728  3,579,950 19.60%  115,406,609  149,098,208 – 33,691,599 -22.60%
Plantation & West of Rift   28,297,626     26,295,142   2,002,484 7.62%      128,181,415       154,381,154 – 26,199,739 -16.97%
Smallholder East of Rift   12,240,293      9,576,539   2,663,754 27.82%        72,731,328        96,210,384 – 23,479,056 -24.40%
Total  40,537,919  35,871,681  4,666,238 13.01%  200,912,743  250,591,538 – 49,678,795 -19.82%

 

TEA SALES

AUCTION

 

During the month of June 2017, 23.25 Million kgs of Kenyan tea was sold through Mombasa Auction against 28.02 Million kgs recorded in June 2016. The average tea auction prices for Kenyan tea for the month of June 2017 was higher at USD 3.14 per Kg against 2.41 for the corresponding period of last year.

Cumulative average price for first six months of 2017 was also higher at USD 3.00 per Kg compared to USD 2.28 for the corresponding period of 2016. Improved prices to-date were attributable to good demand against lower supply of tea in the first quarter of the year due to hot and dry weather conditions.

 

EXPORTS

The total export volume for the month of June 2017 was 46.61 Million Kgs compared to 57.79 Million Kgs recorded same period of last year, representing a 19% decrease. During the month, Kenya tea was shipped to forty one (41) 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 19.48 Million Kgs, accounting for 42% of the total export volume. Other key export destinations for Kenyan tea were Egypt (6.24 Million Kgs), UK (4.40), UAE (4.36 Million Kgs), Sudan (2.17 Million Kgs), Russia (1.72), Yemen (1.63), Afghanistan (0.83 Million Kgs), Kazakhstan(0.77) Million Kgs), and USA (0.56 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 91% of Kenya tea export volume. The Sudan, Yemen and USA markets recorded higher tea imports from Kenya while the other markets recorded lower imports.

Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Saudi Arabia, Netherlands, Jordan, Chile, Ukraine, Mauritius and Oman.

 

The total export volume for the period January-June 2017 was 221.15 Million Kgs compared to 271.53 Million Kgs recorded same period of last year.

 

LOCAL CONSUMPTION

Local tea consumption for June 2017 stood at 5.56 Million Kgs against 2.00 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the six months period upto June 2017 stood at 17.92 Million Kgs against 13.80 Million Kgs for the corresponding period of 2016.

 

25TH JULY, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

DESTINATION 2017 QUANTITY KGS 2016 QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                 19,483,341                 23,261,727 -3,778,385 -16%
EGYPT                   6,243,430                   7,370,412 -1,126,983 -15%
UK                   4,406,784                   4,584,867 -178,083 -4%
UAE                   4,363,620                   5,048,115 -684,495 -14%
SUDAN                   2,173,889                   1,913,200 260,689 14%
RUSSIA                   1,726,582                   1,885,326 -158,744 -8%
YEMEN                   1,635,300                       874,790 760,510 87%
AFGHANISTAN                       836,327                   4,719,982 -3,883,655 -82%
KAZAKHSTAN                       779,882                   1,016,190 -236,308 -23%
USA                       562,986                       374,122 188,864 50%
IRAN                       551,114                       938,071 -386,957 -41%
SAUDI ARABIA                       456,336                       294,483 161,853 55%
POLAND                       447,533                       995,654 -548,121 -55%
NETHERLANDS                       376,329                       166,540 209,789 126%
NIGERIA                       349,968                      228,045 121,923 53%
IRELAND                      344,388                       349,340 -4,952 -1%
JORDAN                       277,500                       147,500 130,000 88%
INDONESIA                       258,592                       201,686 56,906 28%
JAPAN                       161,380                       136,460 24,920 18%
CHILE                       143,944                         96,700 47,244 49%
UKRAINE                       141,760                         72,355 69,405 96%
INDIA                       141,210                       255,468 -114,258 -45%
GERMANY                       116,200                       301,480 -185,280 -61%
SOMALIA                         89,500                       599,554 -510,054 -85%
MALAYSIA                         85,140                       275,133 -189,993 -69%
SOUTH AFRICA                        56,000                      224,000 -168,000 -75%
MAURITIUS                         52,100                         25,300 26,800 106%
HONG KONG                         50,206                                  – 50,206 0%
OMAN                         48,424                           3,268 45,156 1382%
TURKEY                         44,120                       176,740 -132,620 -75%
DJIBOUTI                        32,000                         87,356 -55,356 -63%
SRI LANKA                        30,000                         42,105 -12,105 -29%
MYANMAR                         27,000                                  – 27,000 0%
SWIZERLAND                         26,400                      650,480 -624,080 -96%
SINGAPORE                         23,575                       101,568 -77,993 -77%
CANADA                         17,160                         89,920 -72,760 -81%
TAIWAN                         15,520                                  – 15,520 0%
CHINA                         14,720                       114,980 -100,260 -87%
NEW ZEALAND                         12,800                                  – 12,800 0%
GABON                           9,032                                  – 9,032 0%
CHAD                           1,247                         48,558 -47,312 0%
FINLAND                                  –                         20,625 -20,625 0%
PALAU                                  –                           2,720 -2,720 0%
SWAZILAND                                  –                         23,224 -23,224 0%
UZBEKISTAN                                  –                         19,804 -19,804 0%
VIETNAM                                  –                         55,232 -55,232 0%
TOTAL              46,613,338             57,793,080 -11,179,742 -19%

 

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

DESTINATION 2017 QUANTITY KGS 2016 QUANTITY KGS QUANTITY %AGE VARIANCE
PAKISTAN                     88,671,386                     72,945,029 15,726,357 22%
EGYPT                     31,523,060                     48,864,733 -17,341,673 -35%
UK                     19,756,292                     27,440,312 -7,684,020 -28%
UAE                     14,273,481                     19,819,587 -5,546,106 -28%
SUDAN                     11,152,514                     14,425,576 -3,273,062 -23%
RUSSIA                        9,041,197                     10,247,224 -1,206,027 -12%
YEMEN                        7,393,900                        6,188,287 1,205,613 19%
AFGHANISTAN                        6,168,649                     29,630,928 -23,462,279 -79%
KAZAKHSTAN                        3,791,068                        4,170,787 -379,719 -9%
USA                        2,847,410                        3,245,382 -397,972 -12%
SAUDI ARABIA                        2,701,668                        2,672,908 28,760 1%
POLAND                        2,610,763                        3,346,309 -735,546 -22%
IRAN                        1,878,374                        2,797,867 -919,493 -33%
IRELAND                        1,833,044                        2,394,229 -561,185 -23%
JORDAN                        1,762,000                        1,455,631 306,369 21%
INDIA                        1,549,034                        1,543,322 5,712 0%
NIGERIA                        1,365,907                        2,422,324 -1,056,417 -44%
NETHERLANDS                        1,360,260                        1,562,241 -201,981 -13%
INDONESIA                             967,719                        1,065,420 -97,701 -9%
TURKEY                             961,569                        1,396,234 -434,665 -31%
UKRAINE                             875,144                             541,021 334,123 62%
CHILE                            825,690                            663,400 162,290 24%
SOMALIA                             822,317                        2,640,929 -1,818,612 -69%
CHINA                             770,796                             818,599 -47,803 -6%
JAPAN                            738,498                            670,486 68,012 10%
SWITZERLAND                             726,540                        1,682,220 -955,680 -57%
MALAYSIA                            608,220                        1,187,676 -579,456 -49%
SRI LANKA                             590,185                            207,969 382,216 184%
GERMANY                            498,802                            920,596 -421,794 -46%
OMAN                           472,580                            849,476 -376,896 -44%
CHAD                             314,293                             174,116 140,177 81%
DJIBOUTI                            300,450                             215,356 85,094 40%
SOUTH AFRICA                             276,881                            669,260 -392,379 -59%
UZBEKISTAN                             275,196                             254,174 21,022 8%
CANADA                             241,780                             401,536 -159,756 -40%
BANGLADESH                            240,900                             374,622 -133,722 -36%
HONG KONG                             150,607                               11,860 138,747 1170%
MAURITIUS                             143,100                              48,700 94,400 194%
TAIWAN                             136,914                                45,215 91,699 203%
MYAMAR                             136,200                               73,600 62,600 85%
ERITREA                            130,000                                             – 130,000 0%
SINGAPORE                                55,315                             137,643 -82,328 -60%
KYRGYZSTAN                                51,156                            202,400 -151,244 -75%
ISRAEL                              50,000                               25,292 24,708 98%
AZERBAIJAN                              45,000                                             – 45,000 0%
NEW ZEALAND                              38,400                               37,790 610 2%
GREECE                                14,676                               13,800 876 6%
GABON                                 9,032                                             – 9,032 0%
MACAO                                 5,000                                             – 5,000 0%
ITALY                                 2,070                                 1,380 690 50%
CHEC REPUBLIC                                     185                                     100 85 85%
ALBANIA                                             –                              14,960 -14,960 0%
ANGOLA                                             –                                 4,800 -4,800 0%
AUSTRALIA                                             –                              20,550 -20,550 0%
BAHRAIN                                             –                                 1,500 -1,500 0%
BELARUS                                             –                                11,975 -11,975 0%
BELGIUM                                             –                             112,456 -112,456 0%
BRAZIL                                             –                           9000 -9000 0%
CAMEROON                                             –                               50,381 -50,381 0%
EPZ                                             –                            206,203 -206,203 0%
FINLAND                                             –                               20,625 -20,625 0%
LATIVIA                                             –                              60,000 -60,000 0%
MOROCCO                                             –                              66,952 -66,952 0%
PALAU                                             –                                 2,720 -2,720 0%
REUNION                                             –                              38,760 -38,760 0%
RWANDA                                             –                                  1,296 -1,296 0%
SURINAME                                             –                                 9,296 -9,296 0%
SWAZILAND                                             –                               23,440 -23,440 0%
SYRIA                                             –                              26,840 -26,840 0%
US MINOR ISLADS                                             –                              16,948 -16,948 0%
VIETNAM                                             –                             334,934 -334,934 0%
TOTAL                  221,155,222                  271,537,182 -50,381,960 -19%