OCTOBER 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR OCTOBER 2017

PRODUCTION

Tea production for the month of October 2017 was 43.42 Million Kgs, against 41.34 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 15.27 Million Kgs to 16.52 Million Kgs. Consequently, good production was recorded within Smallholder sub-sector with output increasing from 22.63 Million Kgs to 26.50 Million Kgs. Production within the West of Rift increased marginally from 26.06 Million Kgs recorded in October 2016 to 26.89 Million Kgs. Similary, production within the Estate sub-sector decreased from 18.70 Million Kgs to 16.91 Million Kgs owing to tea workers strike that affected Greenleaf plucking and processing operations..

Cumulative production for the period January-October 2017 was significantly lower at 346.97 Million Kgs against 388.00 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)

PRODUCTION (KGS) October  2017 October 2016 Variance Var.(%) Jan – Oct 2017 Jan – Oct 2016 Variance Var.(%)
Plantation West of Rift       15,520,543     16,604,331 – 1,083,788 -6.53%    142,759,685     154,762,082 – 12,002,397 -7.76%
East of Rift         1,391,099      2,102,858 –    711,759 -33.85%       11,678,108       14,851,992 –   3,173,884 -21.37%
Total       16,911,642  18,707,189 -1,795,547 -9.60%  154,437,793  169,614,074 – 15,176,281 -8.95%
Smallholder West of Rift       11,376,954      9,459,839   1,917,115 20.27%       87,124,473      96,168,909 –   9,044,436 -9.40%
East of Rift       15,131,442      13,175,015   1,956,427 14.85%     105,415,322     122,221,736 – 16,806,414 -13.75%
Total  26,508,396  22,634,854  3,873,542 17.11%  192,539,795  218,390,645 -25,850,850 -11.84%
Plantation & Smallholder West of Rift     26,897,497    26,064,170      833,327 3.20%    229,884,158     250,930,991 – 21,046,833 -8.39%
East of Rift      16,522,541      15,277,873   1,244,668 8.15%     117,093,430     137,073,728 – 19,980,298 -14.58%
  Total  43,420,038  41,342,043  2,077,995 5.03%  346,977,588  388,004,719 – 41,027,131 -10.57%

 

 

TEA SALES

AUCTION

 

During the month of October 2017, 33.54 Million kgs of Kenyan tea was sold through Mombasa Auction against 26.14 Million kgs recorded in October 2016. The average tea auction prices for Kenyan tea for the month of October 2017 was higher at USD 3.06 per Kg against 2.39 for the corresponding period of last year.

Cumulative average price for ten months upto October 2017 was also higher at USD 2.99 per Kg compared to USD 2.32 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 October 2017 was 30.84 Million Kgs compared to 28.31 Million Kgs recorded same period of last year, representing a 9% increase. During the month, Kenya tea was shipped to forty two (42) export destinations compared to thirty five (35) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 10.78 Million Kgs, accounting for 35% of the total export volume. Other key export destinations for Kenyan tea were Egypt (5.27 Million Kgs), UAE (3.72), UK (3.10 Million Kgs), Russia (1.23 Million Kgs), Yemen(1.04), Kazakhastan (0.75), Sudan (0.59 Million Kgs), Afghanistan (0.40 Million Kgs), and USA (0.35 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 89% of Kenya tea export volume. Majorityof these markets recorded higher tea imports from Kenya while Russia and Sudan markets recorded lower imports.

Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Switzerland, Saudi Arabia, Japan, Ukraine, New Zealand, Germany and Nigeria.

 

The total export volume for the period January-October 2017 was 351.58 Million Kgs compared to 414.97 Million Kgs recorded same period of last year.

LOCAL CONSUMPTION

Local tea consumption for October 2017 stood at 3.20 Million Kgs against 3.03 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the ten months period upto October 2017 stood at 27.53 Million Kgs against 21.75 Million Kgs for the corresponding period of 2016.

 

21ST OCTOBER, 2017

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

DESTINATION 2017 – QUANTITY (KGS) 2016 – QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN                       10,785,747                         10,584,526 201,221 2%
EGYPT                        5,274,225                            3,174,477 2,099,748 66%
UAE                         3,726,564                           2,823,105 903,459 32%
UK                         3,104,868                           2,686,160 418,708 16%
RUSSIA                         1,233,006                           1,503,277 -270,271 -18%
YEMEN                         1,047,400                              920,685 126,715 14%
KAZAKHASTAN                             757,790                              476,839 280,951 59%
SUDAN                            595,490                          2,043,089 -1,447,599 -71%
AFGHANISTAN                            402,685                                111,700 290,985 261%
USA                            399,063                               128,532 270,531 210%
SWITZERLAND                            380,536                              242,000 138,536 57%
SAUDI ARABIA                            303,520                               154,759 148,761 96%
CHILE                            238,071                                          – 238,071 0%
JAPAN                            221,400                              204,580 16,820 8%
IRELAND                            213,868                              252,052 -38,184 -15%
POLAND                            204,472                               396,572 -192,100 -48%
JORDAN                             197,250                                          – 197,250 0%
INDONESIA                            195,700                              269,840 -74,140 -27%
INDIA                           195,332                                             – 195,332 0%
UKRAINE                               156,273                                 140,650 15,623 11%
NEW ZEALAND                               146,940                                   22,388 124,552 556%
NIGERIA                               140,000                                   73,800 66,200 90%
MALAYSIA                               136,480                                 217,214 -80,734 -37%
IRAN                               126,556                                 867,984 -741,428 -153%
TURKEY                               113,520                                 134,500 -20,980 -16%
GERMANY                                 97,732                                   44,564 53,168 119%
CHAD                                 70,950                                             – 70,950 0%
SOMALIA                                 68,000                                 290,000 -222,000 -77%
OMAN                                 48,908                                 185,212 -136,304 -74%
SOUTH AFRICA                                 42,000                                             – 42,000 0%
MAURITIUS                                 31,000                                             – 31,000 0%
CHINA                                 28,660                                   43,700 -15,040 -34%
CANADA                                 28,000                                 106,448 -78,448 -74%
MYANMAR                                 26,600                                             – 26,600 0%
VIET NAM                                 20,570                                             – 20,570 0%
SRI LANKA                                 20,000                                   40,888 -20,888 -51%
TAIWAN                                 20,000                                             – 20,000 0%
SINGAPORE                                 15,020                                             – 15,020 0%
HONG KONG                                 12,390                                             – 12,390 0%
NETHERLANDS                                    9,672                                   14,236 -4,564 -32%
BRAZIL                                    6,000                                             – 6,000 0%
CZECH REPUBLIC                                       100                                      6,956 -6,856 -99%
BANGLADESH                                           –                                   90,860 -90,860 0%
ISRAEL                                           –                                   24,000 -24,000 0%
LATIVIA                                           –                                      9,920 -9,920 0%
UZBEKISTAN                                           –                                   24,800 -24,800 0%
         
TOTAL                         30,842,359                           28,310,313 2,532,046 9%

 

 

 

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

DESTINATION 2017 – QUANTITY (KGS) 2016 – QUANTITY (KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN                      130,562,829                      115,721,468 14,841,361 13%
EGYPT                        52,796,402                        81,448,501 -28,652,099 -35%
UK                        35,433,199                        40,077,981 -4,644,782 -12%
UAE                        24,568,203                        30,679,772 -6,111,569 -20%
SUDAN                        17,657,174                        21,981,245 -4,324,071 -20%
RUSSIA                        14,671,687                        16,703,895 -2,032,208 -12%
YEMEN                        11,058,500                        11,458,742 -400,242 -3%
AFGHANISTAN                          8,471,605                        34,219,547 -25,747,942 -75%
KAZAKHSTAN                          6,273,835                          7,907,505 -1,633,670 -21%
POLAND                          5,163,803                          4,973,156 190,647 4%
USA                          4,276,429                          3,775,230 501,199 13%
NIGERIA                          4,180,619                          3,849,146 331,473 9%
SAUDI ARABIA                          3,625,338                          3,495,400 129,938 4%
IRELAND                          2,805,269                          3,646,802 -841,533 -23%
IRAN                          2,763,132                          4,346,441 -1,583,309 -36%
INDIA                          2,511,710                          2,519,945 -8,235 0%
JORDAN                          2,340,572                          1,554,631 785,941 51%
NETHERLANDS                          2,063,172                          2,033,183 29,989 1%
SWITZERLAND                          2,015,606                          2,291,860 -276,254 -12%
TURKEY                          1,943,925                          2,479,205 -535,280 -22%
JAPAN                          1,715,692                          1,117,128 598,564 54%
INDONESIA                          1,695,570                          1,520,133 175,437 12%
CHILE                          1,513,080                          1,370,272 142,808 10%
UKRAINE                          1,506,401                              925,022 581,379 63%
SOMALIA                          1,463,175                          3,824,581 -2,361,406 -62%
MALAYSIA                          1,111,096                          1,695,943 -584,847 -34%
CHINA                              946,335                              991,610 -45,275 -5%
SRI LANKA                              823,821                              347,669 476,152 137%
GERMANY                              703,852                          1,091,353 -387,501 -36%
OMAN                              691,452                          1,584,602 -893,150 -56%
SOUTH AFRICA                              478,820                              753,260 -274,440 -36%
CHAD                              469,835                              267,166 202,669 76%
DJIBOUTI                              376,450                              215,356 161,094 75%
BANGLADESH                              360,900                              623,982 -263,082 -42%
CANADA                              347,988                              567,491 -219,503 -39%
BELGIUM                              299,578                              161,328 138,250 86%
UZBEKISTAN                              275,196                              323,974 -48,778 -15%
HONG KONG                              251,520                                14,110 237,410 1683%
MYAMAR                              234,800                              203,400 31,400 15%
MAURITIUS                              217,350                              165,700 51,650 31%
NEW ZEALAND                              198,140                                85,698 112,442 131%
TAIWAN                              175,780                                45,215 130,565 289%
SINGAPORE                              154,335                              137,843 16,492 12%
ERITREA                              130,000                              130,000                             – 0%
KYRGYZSTAN                                51,156                              202,400 -151,244 -75%
ISRAEL                                50,000                                73,292 -23,292 -32%
AZERBAIJAN                                45,000                                         – 45,000 0%
CZECH REPUBLIC                                27,302                                  7,236 20,066 277%
VIETNAM                                20,570                              381,134 -360,564 -95%
GREECE                                14,676                                13,800 876 6%
US MINOR  ISLANDS                                14,032                                16,948 -2,916 -17%
LATVIA                                  9,320                              107,040 -97,720 -91%
GABON                                  9,032                                         – 9,032 0%
BRAZIL                                  6,000                                  9,000 -3,000 -33%
MACAO                                  5,000                                         – 5,000 0%
ITALY                                  2,882                                  1,380 1,502 109%
AUSTRALIA                                  1,600                                34,356 -32,756 -95%
MOROCCO                                      500                                66,952 -66,452 -99%
ALBANIA                                         –                                14,960 -14,960 0%
ANGOLA                                         –                                  6,000 -6,000 0%
BAHRAIN                                         –                                  1,500 -1,500 0%
BELARUS                                         –                                11,975 -11,975 0%
CAMBODIA                                         –                                  8,000 -8,000 0%
CAMEROON                                         –                                74,403 -74,403 0%
EL SALVADOR                                         –                                95,100 -95,100 0%
EPZ                                         –                              354,643 -354,643 0%
FINLAND                                         –                                20,625 -20,625 0%
PALAU                                         –                                  2,720 -2,720 0%
PALESTINE                                         –                                16,500 -16,500 0%
REUNION                                         –                                38,760 -38,760 0%
RWANDA                                         –                                  1,296 -1,296 0%
SPAIN                                         –                                  4,962 -4,962 0%
SURINAME                                         –                                  9,296 -9,296 0%
SWAZILAND                                         –                                23,656 -23,656 0%
SYRIA                                         –                                26,840 -26,840 0%
TANZANIA                                         –                                23,273 -23,273 0%
TOTAL                      351,581,245                      414,974,538 -63,393,293 -15%