JUNE 2018

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JUNE 2018

1.0 PRODUCTION

Tea production for the month of June 2018 was 43.29 Million Kgs, against 40.53 Million Kgs recorded during the corresponding month of 2017. Increased production was largely attributed to the continued precipitation in tea growing areas in the West and East of Rift particularly in Bomet, Nyamira, Kisii, Embu, Muranga, Nyeri, and Kirinyaga counties. Consequently, output Within the West of Rift rose from 28.29 Million Kgs to 30.22 Million Kgs while that of the East of Rift increased from 12.24 Million Kgs to 13.07 Million Kgs. Higher production was recorded within Plantation sub-sector with output increasing from 18.68 Million Kgs to 19.65 Million Kgs. Similarly, production within the Smallholder sub-sector increased from 21.84 Million Kgs to 23.64 Million Kgs. However, total production for the month of June was slightly lower than that of May owing to the onset of the cold weather conditions.

Cumulatively, production for the period January-June 2018 was significantly higher by 14% to stand at 230.99 Million Kgs against 200.91 Million Kgs recorded during the corresponding period of 2017 owing to good weather conditions.

Table 1: Tea Production by Sub-Sector and Region (2018 vis-à-vis 2017)

Sector Region June  2018 June 2017 Variance Var.(%) Jan – June 2018 Jan – June 2017 Variance +/- Var.(%)
Plantation West of Rift   18,451,189   17,353,509   1,097,680 6.33%          89,067,131          78,174,166    10,892,965 13.93%
East of Rift     1,204,129     1,335,732 –    131,603 -9.85%            7,062,491            7,331,968 –      269,477 -3.68%
Total   19,655,318   18,689,241      966,077 5.17%          96,129,622          85,506,134    10,623,488 12.42%
Smallholder West of Rift   11,776,050   10,944,117      831,933 7.60%          61,237,087          50,007,249    11,229,838 22.46%
East of Rift   11,867,694   10,904,561      963,133 8.83%          73,628,391          65,399,360      8,229,031 12.58%
Total   23,643,744   21,848,678   1,795,066 8.22%        134,865,478        115,406,609    19,458,869 16.86%
   
Plantation & West of Rift   30,227,239   28,297,626   1,929,613 6.82%        150,304,218        128,181,415    22,122,803 17.26%
Smallholder East of Rift   13,071,823   12,240,293      831,530 6.79%          80,690,882          72,731,328      7,959,554 10.94%
Total   43,299,062   40,537,919   2,761,143 6.81%        230,995,100        200,912,743    30,082,357 14.97%

 2.0 SALES

AUCTION

During the month of June 2018, 28.93 Million kgs of Kenyan tea was sold through Mombasa Auction against 23.25 Million kgs recorded in June 2017. Sales through the Auction channel represented 67% of the total production while 33% was through direct sales to the export and local market. Owing to higher supply, the average auction prices for Kenyan tea for the month of June 2018 was lower at USD 2.55 per Kg against USD 2.61 recorded during the month of May and USD 3.14 for the corresponding period of last year.

Cumulative average price for first six months of 2018 was also lower at USD 2.76 per Kg compared to USD 3.00 for the corresponding period of 2017.

 

EXPORTS

The total export volume for the month of June 2018 was 45.83 Million Kgs compared to 46.61 Million Kgs recorded same period of last year, representing a 2% decrease. During the month, Kenya tea was shipped to fifty two (52) 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 17.38 Million Kgs, accounting for 38% of the total export volume. Other key export destinations for Kenyan tea were Egypt (6.58 Million Kgs), UK (4.79 Million Kgs), UAE (3.38 Million Kgs), Russia (1.98 Million Kgs), Afghanistan (1.42 Million Kgs), Yemen (1.34 Million Kgs), Sudan (1.23 Million kgs), Kazakhastan (0.94 Million Kgs) and Iran (0.59 million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 87% of Kenya tea export volume. Amongst the markets that recorded higher tea imports from Kenya included Egypt, UK, Russia, Afghanistan, kazakhastan and Iran.

Emerging markets that recorded significantly higher tea imports from Kenya included turkey, Chile, Switzerland, Somalia, Malaysia, China, Djibouti, Taiwan, Sri-lanka and Canada.

The total export volume for the period January-June 2018 was 241.56 Million Kgs compared to 221.15 Million Kgs recorded same period of last year.

 

LOCAL CONSUMPTION

Local tea consumption for June 2018 stood at 3.46 Million Kgs against 5.19 Million Kgs for the corresponding period of 2017 while cumulative tea consumption for the half year period upto June 2018 stood at 16.20 Million Kgs against 17.92 Million Kgs for the corresponding period of 2017.

 

24th JULY, 2018

 

 

Table 2: Kenya Tea Exports by Destination (June  2018 vis-à-vis June  2017)

DESTINATION 2018 – QUANTITY (KGS) 2017 – QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN           17,381,858           19,483,341 -2,101,483 -11%
EGYPT              6,583,927              6,243,430 340,498 5%
UK              4,797,416              4,406,784 390,632 9%
UAE              3,380,190              4,363,620 -983,430 -23%
RUSSIA              1,986,523              1,726,582 259,941 15%
AFGHANISTAN              1,420,740                 836,327 584,413 70%
YEMEN              1,348,662              1,635,300 -286,638 -18%
SUDAN              1,237,566              2,173,889 -936,323 -43%
KAZAKHSTAN                 942,468                 779,882 162,586 21%
IRAN                 590,111                 551,114 38,997 7%
POLAND                 505,956                 447,533 58,423 13%
TURKEY                 505,134                   44,120 461,014 1045%
CHILE                 487,892                 143,944 343,948 239%
SWITZERLAND                 444,124                   26,400 417,724 1582%
EPZ                 388,345 388,345 0%
SAUDI ARABIA                 346,542                 456,336 -109,794 -24%
USA                 319,748                 562,986 -243,238 -43%
INDONESIA                 274,376                 258,592 15,784 6%
NETHERLANDS                 260,052                 376,329 -116,277 -31%
SOMALIA                 254,312                   89,500 164,812 184%
IRELAND                 238,735                 344,388 -105,653 -31%
NIGERIA                 220,700                 349,968 -129,268 -37%
JAPAN                 217,021                 161,380 55,641 34%
MALAYSIA                 211,912                   85,140 126,772 149%
CHINA                 200,499                   14,720 185,779 1262%
DJIBOUTI                 170,760                   32,000 138,760 434%
JORDAN                 164,000                 277,500 -113,500 -41%
GHANA                 126,000                             – 126,000 0%
GERMANY                 124,413                 116,200 8,213 7%
ERITREA                   85,200                             – 85,200 0%
TAIWAN                   79,600                   15,520 64,080 413%
UKRAINE                   74,431                 141,760 -67,329 -47%
SRI LANKA                   65,606                   30,000 35,606 119%
SOUTH AFRICA                   63,288                   56,000 7,288 13%
INDIA                   53,822                 141,210 -87,388 -62%
VIETNAM                   46,408                             – 46,408 0%
CHAD                   42,263                      1,247                        – 0%
CANADA                   41,615                   17,160 24,455 143%
SOUTH  SUDAN                   36,240                             – 36,240 0%
MAURITIUS                   28,470                             – 28,470 0%
HONG KONG                   19,870                   50,206 -30,336 -60%
UGANDA                   18,105                   52,100 -33,995 -65%
BELGIUM                   17,840                             – 17,840 0%
LATVIA                      9,400                             – 9,400 0%
MOROCCO                      7,181                             – 7,181 0%
GUINEA                      5,472                             – 5,472 0%
BULGARIA                      5,156                             – 5,156 0%
KUWAIT                      3,054                             – 3,054 0%
RWANDA                      2,021                             – 2,021 0%
DUTY FREE SHOPS                         738                             – 738 0%
AUSTRALIA                         565                             – 565 0%
MYANMAR(BURMA)                         162                   27,000 -26,838 -99%
GABON                             –                      9,032 -9,032 0%
NEW ZEALAND                             –                   12,800 -12,800 0%
OMAN                             –                   48,424 -48,424 0%
SINGAPORE                             –                   23,575 -23,575 0%
TOTAL           45,836,489           46,613,338 -817,866 -2%

Table 3: Kenya Tea Exports by Destination (Jan- June 2018 vis-à-vis Jan- June 2017)

DESTINATION  2018 – QUANTITY (KGS)  2017 – QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN                                               90,475,374                                     88,671,386 1,803,988 2%
EGYPT                                                  31,331,921                                     31,523,060 -191,139 -1%
UK                                               25,807,552                                    19,756,292 6,051,260 31%
UAE                                                 19,088,177                                 14,273,481 4,814,696 34%
RUSSIA                                                 10,081,452                                    8,942,165 1,139,287 13%
SUDAN                                                  8,865,140                                    11,152,514 -2,287,374 -21%
YEMEN                                                   8,011,360                                  7,393,900 617,460 8%
EPZ                                                 5,645,738                                                   – 5,645,738 0%
AFGHANISTAN                                                 4,582,939                                  6,168,649 -1,585,710 -26%
KAZAKHSTAN                                                 4,009,763                                     3,791,068 218,695 6%
POLAND                                                  3,178,906                                   2,610,763 568,143 22%
NIGERIA                                                 2,668,565                                    1,365,907 1,302,658 95%
SAUDI ARABIA                                                 2,506,460                                 2,701,668 -195,208 -7%
SOMALIA                                                  2,413,448                                         822,317 1,591,131 193%
IRAN                                                  2,084,133                                       1,878,374 205,759 11%
TURKEY                                                 2,072,050                                       961,569 1,110,481 115%
SWITZERLAND                                               2,032,244                                        726,540 1,305,704 180%
USA                                                  1,797,778                                     2,847,410 -1,049,632 -37%
IRELAND                                                  1,603,125                                        1,833,044 -229,919 -13%
CHILE                                                  1,595,338                                        825,690 769,648 93%
JAPAN                                                 1,292,937                                           738,498 554,439 75%
JORDAN                                                  1,236,927                                    1,762,000 -525,073 -30%
INDONESIA                                                  1,158,690                                         967,719 190,971 20%
INDIA                                                     865,779                                        1,549,034 -683,255 -44%
UKRAINE                                                    680,082                                         875,144 -195,062 -22%
MALAYSIA                                                     669,807                                           608,220 61,587 10%
NETHERLANDS                                                      669,106                                    1,360,260 -691,154 -51%
CHINA                                                      495,561                                        770,796 -275,235 -36%
UZBEKSTAN                                                      410,596                                           275,196 135,400 49%
GERMANY                                                     382,220                                       498,802 -116,582 -23%
SOUTH AFRICA                                                     363,673                                        276,881 86,792 31%
DJIBOUTI                                                     359,236                                         300,450 58,786 20%
CHAD                                                     359,093                                         314,293 44,801 14%
SRI LANKA                                                      356,951                                            590,185 -233,234 -40%
GHANA                                                     327,240                                                      – 327,240 0%
CANADA                                                     308,354                                           241,780 66,574 28%
SOUTH  SUDAN                                                      173,097                                                        – 173,097 0%
 ERITREA                                                     169,204                                            130,000 39,204 30%
TAIWAN                                                       168,715                                       136,914 31,801 23%
NEW ZEALAND                                                     159,668                                            38,400 121,268 316%
BANGLADESH                                                      152,772                                         240,900 -88,128 -37%
OMAN                                                       135,101                                        472,580 -337,479 -71%
VIETNAM                                                       130,312                                                      – 130,312 0%
HONG KONG                                                        129,911                                       150,607 -20,696 -14%
BRAZIL                                                       110,269                                                          – 110,269 0%
MAURITIUS                                                        51,465                                            143,100 -91,635 -64%
TANZANIA                                                       50,687                                                         – 50,687 0%
SINGAPORE                                                       50,268                                          55,315 -5,047 -9%
AZERBAIJAN                                                       42,706                                          45,000 -2,294 -5%
UGANDA                                                        31,506                                                         – 31,506 0%
GRENANDA                                                      24,830                                                     – 24,830 0%
 GEORGIA                                                       23,650                                                     – 23,650 0%
MOROCCO                                                       22,916                                                         – 22,916 0%
KYRGYSTAN                                                        21,347                                              51,156 -29,809 -58%
ITALY                                                        18,288                                             2,070 16,218 783%
BELGIUM                                                        17,840                                                     – 17,840 0%
 D R CONGO                                                        16,409                                                    – 16,409 0%
GUINEA                                                        10,944                                                    – 10,944 0%
LATVIA                                                          9,400                                                     – 9,400 0%
MYANMAR(BURMA)                                                          8,099                                         136,200 -128,101 -94%
LITHUANIA                                                          7,500                                                    – 7,500 0%
 MACAO                                                         7,500                                            5,000 2,500 50%
GUINEA                                                          5,472                                                     – 5,472 0%
BULGARIA                                                          5,156                                                       – 5,156 0%
GREECE                                                          4,660                                          14,676 -10,016 -68%
ISRAEL                                                          4,074                                          50,000 -45,926 -92%
SEYCHELLES                                                          3,360                                                   – 3,360 0%
COMOROS                                                           3,125                                                  – 3,125 0%
KUWAIT                                                          3,054                                                    – 3,054 0%
AUSTRALIA                                                          2,292                                                   – 2,292 0%
RWANDA                                                          2,027                                                    – 2,027 0%
DUTY FREE SHOPS                                                           1,476                                                  – 1,476 0%
 NORWAY                                                            896                                                  – 896 0%
KOREA                                                              616                                                    – 616 0%
FRANCE                                                             218                                                      – 218 0%
 BOTSWANA                                                              100                                                       – 100 0%
CZECH REPUBLIC                                                              100                                                   185 -85 -46%
LIBERIA                                                                90  – 90 0%
MALI                                                                  3  – 3 0%
 IRAQ                                                                  2  – 2 0%
ERUSSIA                                                                 –  99,032 -99,032 0%
GABON                                                                 –  9,032 -9,032 0%
TOTAL                           151,093,466                          132,483,836 18,609,630 14%