AUGUST 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR AUGUST 2017

 PRODUCTION

Tea production for the month of August 2017 was 32.69 Million Kgs, against 29.58 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 22.46 Million Kgs to 24.83 Million Kgs. Consequently, good production was recorded within Plantation sub-sector with output increasing from 15.65 Million Kgs to 17.23 Million Kgs. Similar, owing to warmer weather conditions coupled with with scattered rainfall, the output within the East of Rift increased from 7.12 Million Kgs recorded in August 2016 to 7.85 Million Kgs while production within the smallholder sub-sector increased from 13.93 Million Kgs to 15.46 Million.

Cumulative production for the period January-August 2017 was significantly lower at 265.17 Million Kgs against 309.68 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) August  2017 August 2016 Variance Var.(%) Jan – Aug 2017 Jan – Aug 2016 Variance Var.(%)
Plantation West of Rift    16,307,180    14,803,225   1,503,955 10.16%      111,007,795 121,659,853  -10,652,058 -8.76%
East of Rift         922,939         852,699        70,240 8.24%         9,239,274        11,282,954 -2,043,680 -18.11%
Total  17,230,119  15,655,924  1,574,195 10.05%  120,247,069  132,942,807 -12,695,738 -9.55%
Smallholder West of Rift      8,527,107      7,656,895      870,212 11.37%       66,576,811       78,773,163 – 12,196,352 -15.48%
East of Rift      6,935,956       6,148,731      787,225 12.80%       78,347,473       97,969,343 – 19,621,870 -20.03%
Total  15,463,063  13,805,626  1,657,437 12.01%  144,924,284  176,742,506 -31,818,222 -18.00%
Plantation & Smallholder West of Rift    24,834,287    22,460,120   2,374,167 10.57%      177,584,606    200,433,016 – 21,556,229 -11.40%
East of Rift       7,858,895       7,129,068      729,827 10.24%        87,586,747     109,252,297 – 21,372,483 -19.83%
Total  32,693,182  29,589,188  3,103,994 10.49%   265,171,353  309,685,313 -42,928,712 -14.37%

TEA SALES

AUCTION

During the month of August 2017, 16.08 Million kgs of Kenyan tea was sold through Mombasa Auction against 25.25 Million kgs recorded in August 2016. The average tea auction prices for Kenyan tea for the month of August 2017 was higher at USD 2.90 per Kg against 2.31 for the corresponding period of last year.

Cumulative average price for first eight months of 2017 was also higher at USD 2.99 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 August 2017 was 28.03 Million Kgs compared to 36.99 Million Kgs recorded same period of last year, representing a 24% decrease. During the month, Kenya tea was shipped to thirty eight (38) export destinations compared to thirty nine (39) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 8.07 Million Kgs, accounting for 29% of the total export volume. Other key export destinations for Kenyan tea were UK (6.54 Million Kgs), Egypt (3.12), UAE (1.83 Million Kgs), Nigeria (1.71 Million Kgs), Russia (1.14), Poland (0.86), Afghanistan (0.57 Million Kgs), India (0.56) Million Kgs), and Sudan (0.35 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 88% of Kenya tea export volume. The UK, Nigeria, Poland and India 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 Indonesia, Japan, Ukraine, Belgium, Sri-lanka, China and Hong Kong.

 

The total export volume for the period January-August 2017 was 285.42 Million Kgs compared to 351.15 Million Kgs recorded same period of last year.

LOCAL CONSUMPTION

Local tea consumption for August 2017 stood at 3.08 Million Kgs against 2.40 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the eight months period upto August 2017 stood at 24.33 Million Kgs against 18.72 Million Kgs for the corresponding period of 2016.

 

21ST AUGUST, 2017

 

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

DESTINATION 2017 -QUANTITY KGS 2016 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                     8,079,722              10,040,236 -1,960,514 -20%
UK                     6,544,857                 3,393,714 3,151,143 93%
EGYPT                     3,128,141                 8,141,022 -5,012,881 -62%
UAE                     1,830,576                 2,616,277 -785,701 -30%
NIGERIA                     1,715,652                     417,750 1,297,902 311%
RUSSIA                     1,146,764                 1,607,097 -460,333 -29%
POLAND                        806,996                   498,024 308,972 62%
AFGHANSTAN                        572,112                 1,433,005 -860,893 -60%
INDIA                        565,596                    376,839 188,757 50%
SUDAN                        352,374                 2,071,677 -1,719,303 -83%
USA                        351,576                    158,040 193,536 122%
IRELAND                        318,380                    359,492 -41,112 -11%
INDONESIA                        287,380                      40,792 246,588 605%
TURKEY                        282,358                    221,860 60,498 27%
JAPAN                        252,468                      56,800 195,668 344%
CHILE                        227,175                    434,436 -207,261 -48%
UKRAINE                        204,404                      95,254 109,150 115%
IRAN                        197,000                    437,905 -240,905 -55%
NETHERLANDS                        176,652                    213,476 -36,824 -17%
BELGIUM                        176,114                      23,676 152,438 644%
SAUDI ARABIA                        152,030                    297,246 -145,216 -49%
SRI LANKA                        149,004                       38,216 110,788 290%
CHINA                           88,480                       66,912 21,568 32%
SINGAPORE                           74,000                                 – 74,000 0%
SOMALIA                           52,000                     397,771 -345,771 -87%
MALAYSIA                           50,000                      76,040 -26,040 -34%
YEMEN                           41,960                 1,518,398 -1,476,438 -97%
KAZAKHKSTAN                           38,517                  1,052,521 -1,014,004 -96%
JORDAN                           36,072                      33,000 3,072 9%
SWITZERLAND                           24,440                      46,700 -22,260 -48%
SOUTH AFRICA                           23,000                                 – 23,000 0%
MAURITIUS                           21,250                      66,000 -44,750 -68%
CZECH                           19,572                                 – 19,572 0%
CHAD                           15,742                      69,050 -53,308 -77%
HONG KONG                           15,000                        2,250 12,750 567%
MYANMAR                             7,000                      25,400 -18,400 -72%
TAIWAN                             6,466                                 – 6,466 0%
OMAN                             2,600                    412,400 -409,800 -99%
BANGLADESH                                    –                    132,000 -132,000 0%
GERMANY                                    –                      71,000 -71,000 0%
VIETNAM                                    –                      46,200 -46,200 0%
CAMBODIA                                    –                        8,000 -8,000 0%
SWAZILAND                                    – 216 -216 0%
TOTAL                   28,033,430               36,996,692  

-8,963,262

 

-24%

 

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

DESTINATION 2017 -QUANTITY KGS 2016 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                             109,857,957                          92,462,890 17,395,067 19%
EGYPT                                39,635,748                            69,819,773 -30,184,025 -43%
UK                                29,320,147                        34,391,400 -5,071,253 -15%
UAE                                18,290,926                           25,434,021 -7,143,095 -28%
SUDAN                                14,108,495                         18,407,095 -4,298,600 -23%
RUSSIA                                11,499,657                          14,080,339 -2,580,682 -19%
YEMEN                                   9,021,230                          9,471,895 -450,665 -5%
AFGHANISTAN                                   7,608,668                       33,602,901 -25,994,233 -77%
KAZAKHSTAN                                   4,486,407                          6,499,314 -2,012,907 -31%
POLAND                                   4,351,699                           4,338,240 13,459 0%
NIGERIA                                   3,748,523                         3,117,590 630,933 20%
USA                                   3,556,700                             3,580,118 -23,418 -1%
SAUDI ARABIA                                   3,105,818                          3,204,735 -98,917 -3%
IRELAND                                   2,382,811                           3,082,877 -700,066 -23%
IRAN                                   2,335,524                         3,611,564 -1,276,040 -35%
INDIA                                   2,172,382                           2,310,917 -138,535 -6%
NETHERLANDS                                   1,983,900                          1,947,391 36,509 2%
JORDAN                                   1,946,322                           1,554,631 391,691 25%
TURKEY                                   1,627,953                           1,860,965 -233,012 -13%
INDONESIA                                   1,336,039 1,127,912 208,127 18%
SOMALIA                                   1,252,497                          3,260,118 -2,007,621 -62%
JAPAN                                   1,195,317                             874,606 320,711 37%
UKRAINE                                   1,192,339                               646,456 545,883 84%
SWITZERLAND                                   1,179,380                          1,816,560 -637,180 -35%
CHILE                                   1,169,641                          1,174,096 -4,455 0%
CHINA                                     889,650                              929,711 -40,061 -4%
SRI LANKA                                        803,821                              246,185 557,636 227%
MALAYSIA                                      698,820                           1,362,788 -663,968 -49%
OMAN                                        642,544                           1,365,688 -723,144 -53%
GERMANY                                        557,670                           1,013,596 -455,926 -45%
CANADA                                       340,660                               427,156 -86,496 -20%
SOUTH AFRICA                                       339,860 697,260 -357,400 -51%
DJIBOUTI                                        332,450                              215,356 117,094 54%
CHAD                                       330,035                              267,166 62,869 24%
BELGIUM                                        299,578                                136,132 163,446 120%
UZBEKISTAN                                        275,196                              299,174 -23,978 -8%
BANGLADESH                                      240,900                              533,122 -292,222 -55%
HONG KONG                                        236,754                                  14,110 222,644 1578%
MYAMAR                                        197,200                              203,400 -6,200 -3%
MAURITIUS                                        186,350                               134,700 51,650 38%
TAIWAN                                        155,780                                  45,215 110,565 245%
ERITREA                                       130,000                                           – 130,000 0%
SINGAPORE                                        129,315                               137,843 -8,528 -6%
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%
CZECH REPUBLIC                                          27,202                                       100 27,102 27102%
GREECE                                           14,676                                 13,800 876 6%
US MINOR OUTLING ISLANDS                                         14,032                                 16,948 -2,916 -17%
LATVIA                                            9,320                                 97,120 -87,800 -90%
GABON                                            9,032                                          – 9,032 0%
MACAO                                            5,000                                          – 5,000 0%
ITALY                                            2,882                                   1,380 1,502 109%
AUSTRALIA                                            1,600                                 20,550 -18,950 -92%
ALBANIA                                                   –                                 14,960 -14,960 0%
ANGOLA                                                   –                                  6,000 -6,000 0%
BAHRAIN                                                   –                                   1,500 -1,500 0%
BELARUS                                                   –                                 11,975 -11,975 0%
BRAZIL                                                   –                                  9,000 -9,000 0%
CAMBODIA                                                   –                                  8,000 -8,000 0%
CAMEROON                                                   –                                 74,403 -74,403 0%
EL SALVADOR                                                   –                                95,100 -95,100 0%
EPZ                                                   –                             206,203 -206,203 0%
FINLAND                                                        –                                 20,625 -20,625 0%
MOROCCO                                                        –                                 66,952 -66,952 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%
VIETNAM                                                        –                                  381,134 -381,134 0%
TOTAL                             285,420,963                               351,154,988 -65,734,025 -19%