JULY 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JULY 2017

PRODUCTION

Tea production for the month of July 2017 was 31.56 Million Kgs, against 29.50 Million Kgs recorded during the corresponding month of 2016. The increase in production was largely attributed to scattered precipitation which was experienced in the West of Rift following which the region’s output rose from 23.48 Million Kgs to 24.56 Million Kgs. Consequently, good production was recorded within Plantation sub-sector with output increasing from 15.79 Million Kgs to 17.51 Million Kgs. However, owing to continued cold weather conditions coupled with with less rainfall, the output within the East of Rift increased marginally from 6.01 Million Kgs recorded in July 2016 to 6.99 Million Kgs. Similary, production within the Smallholder sub-sector increased marginally from 13.71 Million Kgs to 14.05 Million Kgs.

Cumulative production for the period January-July 2017 was significantly lower at 232.47 Million Kgs against 280.09 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 (2017 vis-à-vis 2016)

Sector Region July  2017 July 2016 Variance Var.(%) Jan – July 2017 Jan – July 2016 Variance +/- Var.(%)
Plantation West of Rift             16,526,449                15,110,583              1,415,866 9.37%                  94,700,615               106,856,628 –    2,156,013 -11.38%
East of Rift                   984,367                     682,971                  301,396 44.13%                     8,316,335                  10,430,255 –     2,113,920 -20.27%
Total   17,510,816     15,793,553      1,717,263 10.87%       103,016,950       117,286,883 –  14,269,933 -12.17%
Smallholder West of Rift  

8,042,455

 

8,377,654

 

-335,199

 

-4.00%

 

58,049,704

 

71,012,762

–   12,963,058 -18.25%
East of Rift                 6,012,157                5,333,379                 678,778 12.73%                     71,411,517                   91,820,612 –     20,409,095 -22.23%
Total     14,054,612       13,711,033        343,579  

2.51%

      129,461,221      162,833,374 –  33,372,153 -20.49%
Plantation & West of Rift            24,568,904             23,488,237             1,080,667 4.60%                152,750,319               177,845,258 –   25,094,939 -14.11%
Smallholder East of Rift               6,996,524                 6,016,350                  980,174 16.29%                 79,727,852               102,250,867 –    22,523,015 -22.03%
Total     31,565,428     29,504,587     2,060,842 6.98%       232,478,171      280,096,125 –  47,617,954 -17.00%

 

 

TEA SALES

AUCTION

 

During the month of July 2017, 29.96 Million kgs of Kenyan tea was sold through Mombasa Auction against 23.69 Million kgs recorded in July 2016. The average tea auction prices for Kenyan tea for the month of July 2017 was higher at USD 2.99 per Kg against 2.43 for the corresponding period of last year.

Cumulative average price for first seven months of 2017 was also higher at USD 3.00 per Kg compared to USD 2.30 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 July 2017 was 36.23 Million Kgs compared to 42.62 Million Kgs recorded same period of last year, representing a 15% decrease. During the month, Kenya tea was shipped to forty three (43) export destinations compared to forty four (44) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 13.10 Million Kgs, accounting for 36% of the total export volume. Other key export destinations for Kenyan tea were Egypt (4.98 Million Kgs), UK (3.01), Sudan (2.60 Million Kgs), UAE (2.18 Million Kgs), Yemen (1.58), Russia (1.31), Poland (0.93 Million Kgs), Afghanistan(0.86 Million Kgs), and Nigeria (0.66 Million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 86% of Kenya tea export volume. Pakistan, Sudan, Poland and Nigeria 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 Netherlands, Switzerlands, USA, Jordan, Ukraine, Canada, Indonesia and Germany.

 

The total export volume for the period January-July 2017 was 257.38 Million Kgs compared to 314.15 Million Kgs recorded same period of last year.

 

LOCAL CONSUMPTION

Local tea consumption for July 2017 stood at 3.31 Million Kgs against 2.51 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the seven months period upto July 2017 stood at 21.24 Million Kgs against 16.31 Million Kgs for the corresponding period of 2016.

 

 

21ST AUGUST, 2017

 

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

DESTINATION 2017 – QUANTITY -KGS 2016 -QUANTITY -KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                     13,106,849                    9,477,625 3,629,224 38%
EGYPT                       4,984,547                  12,814,018 -7,829,471 -61%
UK                       3,018,998                    3,557,374 -538,376 -15%
SUDAN                       2,603,607                   1,909,842 693,765 36%
UAE                       2,186,869                    2,998,157 -811,288 -27%
YEMEN                       1,585,370                     1,765,210 -179,840 -10%
RUSSIA                       1,311,696                   2,226,018 -914,323 -41%
POLAND                           933,940                       493,907 440,033 89%
AFGHANSTAN                           867,907                   2,538,968 -1,671,061 -66%
NIGERIA                           666,964                        277,516 389,448 140%
KAZAKHSTAN                           656,822                    1,276,006 -619,184 -49%
NETHERLANDS                           446,988                        171,674 275,314 160%
SWITZERLAND                           428,400                         87,640 340,760 389%
TURKEY                           384,026                       242,871 141,155 58%
SOMALIA                           378,180                        221,418 156,762 71%
USA                           357,714                       176,696 181,018 102%
IRAN                           260,150                       375,792 -115,642 -31%
SAUDI ARABIA                           252,120                       234,581 17,539 7%
IRELAND                           231,387                       329,156 -97,769 -30%
JAPAN                           204,351                       147,320 57,031 39%
OMAN                           167,364                        103,812 63,552 61%
JORDAN                           148,250                        66,000 82,250 125%
BELGIUM                           123,464                                  – 123,464 0%
CHILE                           116,776                         76,260 40,516 53%
UKRAINE                           112,791                          10,181 102,610 1008%
CANADA                             98,880                         25,620 73,260 286%
INDONESIA                             80,940                         21,700 59,240 273%
HONG KONG                             71,147                                  – 71,147 0%
SRI LANKA                             64,632                                  – 64,632 0%
GERMANY                             58,868                        22,000 36,868 168%
INDIA                             57,752                       390,756 -333,004 -85%
MYANMAR                             54,000                       104,400 -50,400 -48%
MALAYSIA                             40,600                         99,072 -58,472 -59%
SOUTH AFRICA                             39,979                        28,000 11,979 43%
DJIBOUTI                             32,000                                  – 32,000 0%
CHINA                             30,374                         44,200 -13,826 -31%
MAURITIUS                             22,000                        20,000 2,000 10%
US MINOR ISLANDS                             14,032                                  – 14,032 0%
TAIWAN                             12,400                                  – 12,400 0%
LATVIA                               9,320                          37,120 -27,800 -75%
CZECH REPUBLIC                               7,445                                  – 7,445 0%
AUSTRALIA                               1,600                                  – 1,600 0%
ITALY                                   812                                  – 812 0%
EL SALVADOR                                      –                   95,100.00 -95,100 0%
UZBEKISTAN                                      –                         45,000 -45,000 0%
BANGLADESH                                      –                         26,500 -26,500 0%
CHAD                                      –                        24,000 -24,000 0%
CAMEROON                                      –                         24,022 -24,022 0%
PALESTINE                                      –                         16,500 -16,500 0%
NEW ZEALAND                                      –                          12,720 -12,720 0%
SPAIN                                      –                           4,962 -4,962 0%
ANGOLA                                      –                            1,200 -1,200 0%
SINGAPORE                                      –                              200 -200 0%
TOTAL                   36,232,311               42,621,114 -6,388,803 -15%

 

 

 

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

DESTINATION 2017 – QUANTITY – KGS 2016 – QUANTITY – KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                    101,778,235                  82,422,654 19,355,581 23%
EGYPT                      36,507,607                    61,678,751 -25,171,144 -41%
UK                      22,775,290                  30,997,686 -8,222,396 -27%
UAE                      16,460,350                   22,817,744 -6,357,394 -28%
SUDAN                      13,756,121                   16,335,418 -2,579,297 -16%
RUSSIA                      10,253,861                   12,473,242 -2,219,381 -18%
YEMEN                        8,979,270                     7,953,497 1,025,773 13%
AFGHANISTAN                        7,036,556                  32,169,896 -25,133,340 -78%
KAZAKHSTAN                        4,447,890                    5,446,793 -998,903 -18%
POLAND                        3,544,703                     3,840,216 -295,513 -8%
USA                        3,205,124                    3,422,078 -216,954 -6%
SAUDI ARABIA                        2,953,788                    2,907,489 46,299 2%
IRAN                        2,138,524                     3,173,659 -1,035,135 -33%
IRELAND                        2,064,431                     2,723,385 -658,954 -24%
NIGERIA                        2,032,871                    2,699,840 -666,969 -25%
JORDAN                        1,910,250                      1,521,631 388,619 26%
NETHERLANDS                        1,807,248                      1,733,915 73,333 4%
INDIA                        1,606,786                     1,934,078 -327,292 -17%
TURKEY                        1,345,595                     1,639,105 -293,510 -18%
SOMALIA                        1,200,497                    2,862,347 -1,661,850 -58%
SWITZERLAND                        1,154,940                     1,769,860 -614,920 -35%
INDONESIA                        1,048,659                     1,087,120 -38,461 -4%
UKRAINE                            987,935                        551,202 436,733 79%
JAPAN                          942,849                        817,806 125,043 15%
CHILE                          942,466                        739,660 202,806 27%
CHINA                            801,170                        862,799 -61,629 -7%
SRI LANKA                            654,817                        207,969 446,848 215%
MALAYSIA                          648,820                    1,286,748 -637,928 -50%
OMAN                          639,944                        953,288 -313,344 -33%
GERMANY                            557,670                        942,596 -384,926 -41%
CANADA                          340,660                         427,156 -86,496 -20%
DJIBOUTI                           332,450                         215,356 117,094 54%
SOUTH AFRICA                            316,860                        697,260 -380,400 -55%
CHAD                            314,293                         198,116 116,177 59%
UZBEKISTAN                            275,196                         299,174 -23,978 -8%
BANGLADESH                          240,900                         401,122 -160,222 -40%
HONG KONG                            221,754                           11,860 209,894 1770%
MYAMAR                          190,200                        178,000 12,200 7%
MAURITIUS                            165,100                          68,700 96,400 140%
TAIWAN                            149,314                           45,215 104,099 230%
ERITREA                           130,000                                   – 130,000 0%
BELGIUM                            123,464                         112,456 11,008 10%
ERUSSIA                              99,032                                   – 99,032 0%
SINGAPORE                              55,315                        137,843 -82,528 -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                          50,510 -12,110 -24%
GREECE                              14,676                          13,800 876 6%
US MINOR ISLANDS                              14,032                          16,948 -2,916 -17%
LATVIA                                9,320                           97,120 -87,800 -90%
GABON                                9,032                                   – 9,032 0%
CZECH REPUBLIC                                7,630                                100 7,530 7530%
MACAO                                5,000                                   – 5,000 0%
ITALY                                2,882                             1,380 1,502 109%
AUSTRALIA                                1,600                          20,550 -18,950 0%
VIETNAM                                       –                        334,934 -334,934 0%
EPZ                                       –  206,203 -206,203 0%
EL SALVADOR                                       –                          95,100 -95,100 0%
CAMEROON                                       –                          74,403 -74,403 0%
MOROCCO                                       –                          66,952 -66,952 0%
REUNION                                       –                          38,760 -38,760 0%
SYRIA                                       –                          26,840 -26,840 0%
SWAZILAND                                       –                          23,440 -23,440 0%
FINLAND                                       –                          20,625 -20,625 0%
PALESTINE                                       –                          16,500 -16,500 0%
ALBANIA                                       –                          14,960 -14,960 0%
BELARUS                                       –                            11,975 -11,975 0%
SURINAME                                       –                            9,296 -9,296 0%
BRAZIL                                       –                            9,000 -9,000 0%
ANGOLA                                       –    6,000 -6,000 0%
SPAIN                                       –                                4,962 -4,962 0%
PALAU                                       –                                2,720 -2,720 0%
BAHRAIN                                       –                                1,500 -1,500 0%
RWANDA                                       –                                1,296 -1,296 0%
TOTAL                257,387,533           314,158,296 -56,770,763 -18%