MAY 2016

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR MAY 2016

 

PRODUCTION

Tea production for the month of May 2016 was 36.57 Million Kgs, against 37.52 Million Kgs recorded during the corresponding month of 2015.

Lower production was largely attributed to less precipitation occasioned by the cessation of the long rainfall and gradual commencement of the the cold weather conditions within the tea growing areas East of Rift. Consequently, output recorded from within the region decreased by 11.57% from 15.12 Million Kgs in May 2015 to 13.37 Million Kgs. However, owing to good rainfall characterized by warmer temperatures in most parts of the West of Rift, production within the tea region increased marginally by 3.57% from 22.39 Million Kgs to 23.19 Million Kgs.

Due to wider coverage within the East of Rift, production within the Smallholder sub-sector dropped by 11.41% from 23.69 Million Kgs to 20.99 Million Kgs. Plantation sub-sector, which is more wide-spread in the West of Rift recorded 12.68% higher output from 13.82 Million Kgs to 15.57 Million Kgs.

 

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

 

Sector Region May  2016 May 2015 Variance Var.(%)
Plantation West of Rift   13,933,355   12,159,325   1,774,030 14.59%
East of Rift     1,645,790     1,666,713 –      20,923 -1.26%
Total   15,579,145   13,826,038   1,753,107 12.68%
Smallholder West of Rift     9,266,195   10,239,573 –    973,378 -9.51%
East of Rift   11,728,139   13,457,467 – 1,729,328 -12.85%
Total   20,994,334   23,697,040 – 2,702,706 -11.41%
   
Plantation & West of Rift   23,199,550   22,398,898      800,652 3.57%
Smallholder East of Rift   13,373,929   15,124,180 – 1,750,251 -11.57%
Total   36,573,479   37,523,078 –    949,599 -2.53%

 

 

 

TEA SALES

 

AUCTION

During the month, 37.1 Million kgs of Kenyan tea was sold through Mombasa Auction against 16.5 Million kgs recorded in May 2015. Higher auction sales volume was attributed to higher stocks of tea occasioned by unprecedented production in the first quarter of the year. Owing to increased supply, the Average Auction price was lower at USD 2.21 per Kg compared to 3.09 per kg for the same period of last year.

With reduced supply expected following the onset of the cold weather, tea auction prices are likely to  increase gradually during the third quarter of the year.

 

EXPORTS

The total export volume for the month of May 2016 was higer at 43.36 Million Kgs compared to 26.25 Million Kgs recorded in the same period of last year.

Egypt was the leading export destination for Kenyan tea having imported 9.21 Million Kgs, accounting for 21% of the total export volume.

Other key export destinations for Kenyan tea were Pakistan (8.71 Million Kgs), Afghanistan (5.48 Million Kgs), UK (4.14 Million Kgs), U.A.E (3.40 Million Kgs), Sudan (2.19 Million Kgs), Russia (1.66 Million Kgs), Yemen (1.03 Million Kgs), Kazakhstan (0.82 Million Kgs) and Nigeria (0.73 Million Kgs). The top ten export destinations, most of which are traditional markets for Kenyan tea accounted for 86% of Kenya tea export volume.

 

 

 

 

 

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

 

DESTINATION

2016 QUANTITY KGS 2015 QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
EGYPT                              9,216,118                              6,387,840 2,828,278 44%
PAKISTAN                              8,712,149                              5,750,464 2,961,685 52%
AFGHANISTAN                              5,480,600                              2,923,234 2,557,366 87%
UK                              4,148,429                              2,347,046 1,801,383 77%
UAE                              3,404,269                              2,330,367 1,073,902 46%
SUDAN                              2,197,548                                   828,847 1,368,701 165%
RUSSIA                              1,660,648                              1,426,163 234,485 16%
YEMEN                              1,039,892                                                   – 1,039,892 0%
KAZAKHSTAN                                   821,021                                   694,870 126,151 18%
NIGERIA                                   739,345                                   219,336 520,009 237%
 

OTHERS

5,941,389 3,348,262 2,593,127 77%
TOTAL                           43,361,408                           26,256,429 17,104,979 65%

 

 

 

LOCAL CONSUMPTION

Local tea consumption for May 2016 stood at 2.15 Million Kgs against 2.53 Million Kgs for the corresponding period of 2015