SEPTEMBER 2016

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR JAN-SEPT. 2016

PRODUCTION

Tea production for the nine month period ended September 2016 was 344.88 Million Kgs, against 271.09 Million Kgs recorded during the corresponding period of 2015.

Higher production was largely attributed to favourable weather conditions, following the 2015 El-Nino induced “short rains” that continued into the first quarter of 2016 as well as enhanced and well distributed rainfall experienced during the 2016 April-May “long rains” season.

Within the tea growing areas West of Rift, output increased from 164.26 Million Kgs recorded in Jan-Sept 2015 to 223.70 Million Kgs while East of Rift recorded increased production from 106.82 Million Kgs to 121.18 Million Kgs. Similarly, good production was recorded across the sub-sectors, with tea output within Smallholder sub-sector increasing from 162.22 Million Kgs to 193.97 Million Kgs. Production within the Plantation sub-sector rose from 108.87 Million Kgs to 150.90 Million Kgs.

 

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

PRODUCTION (KGS) Jan – Sept 2016 Jan – Sept 2015 Variance +/- Var.(%)
Plantation West of Rift                   138,157,751                   97,424,895             40,732,856 41.81%
East of Rift                     12,749,134                     11,450,259                 1,298,875 11.34%
Total       150,906,885        108,875,154      42,031,731 38.61%
Smallholder West of Rift                   85,544,528                   66,844,883              18,699,645 27.97%
East of Rift                 108,434,337                   95,378,823               13,055,514 13.69%
Total       193,978,865       162,223,706      31,755,159 19.57%
Plantation & Smallholder West of Rift                223,702,279                 164,269,778              59,432,501 36.18%
East of Rift                    121,183,471                 106,829,082              14,354,389 13.44%
Total      344,885,750       271,098,860     73,786,890 27.22%

 

TEA SALES

AUCTION

During the period Jan-September 2016, 258 Million kgs of Kenyan tea was sold through Mombasa Auction against 200.79 Million kgs recorded in Jan-September 2015. The Average Auction price was lower at USD 2.31 per Kg compared to 2.93 per kg for the same period of last year. Lower prices were attributed to enhanced supply at the Auction coupled with higher carry over stocks.

EXPORTS

The total export volume for the period Jan-Sept 2016 was 387.04 Million Kgs compared to 319.14 Million Kgs recorded in the same period of last year.

During the period under review, Kenya tea was shipped to seventy three (73) export destinations compared to fifty eight (58) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 105.13 Million Kgs, accounting for 27% of the total export volume.

Other key export destinations for Kenyan tea were Egypt (78.27 Million Kgs), UK (37.39 Million Kgs), Afghanistan (34.10 Million Kgs), U.A.E (27.85 Million Kgs), Sudan (19.93 Million Kgs), Russia (15.20 Million Kgs), Yemen (10.53 Million Kgs), Kazakhastan (7.43 Million Kgs) and Poland (4.57 Million Kgs). These export destinations, most of which are traditional markets for Kenyan tea accounted for 88% of Kenya tea export volume. Pakistan, Egypt, UK and Afghanistan  maintained similar positions of last year, but at varying import volumes.

 

LOCAL CONSUMPTION

During the period under review Local tea consumption stood at 21.75 Million Kgs against 22.41 Million Kgs for the corresponding period of 2015.

 

Table 2: Kenya Tea Exports by Destination (Jan-Sept 2016 vis-à-vis Jan-Sept 2015)

DESTINATION 2016 – QUANTITY KGS 2015 – QUANTITY KGS QUANTITY KGS %AGE VARIANCE
PAKISTAN                  105,136,942                        79,044,695 26,092,247 33%
EGYPT                     78,274,024                        55,258,230 23,015,794 42%
UK                     37,391,821                        31,120,407 6,271,414 20%
AFGHANISTAN                     34,107,847                        30,798,056 3,309,791 11%
UAE                     27,856,667                        29,631,289 -1,774,622 -6%
SUDAN                     19,938,156                        14,658,309 5,279,847 36%
RUSSIA                     15,200,618                        18,124,184 -2,923,566 -16%
YEMEN                     10,538,057                           9,942,909 595,148 6%
KAZAKHSTAN                        7,430,666                           6,282,616 1,148,050 18%
POLAND                        4,576,584                           5,532,234 -955,650 -17%
IRAN                        3,962,823                           2,711,249 1,251,574 46%
NIGERIA                        3,775,346                           2,800,621 974,725 35%
USA                        3,646,698                           2,687,209 959,489 36%
SOMALIA                        3,534,581                           3,494,098 40,483 1%
IRELAND                        3,394,750                           2,322,741 1,072,009 46%
SAUDI ARABIA                        3,340,641                           2,750,626 590,015 21%
INDIA                        2,419,197                           2,484,366 -65,169 -3%
TURKEY                        2,344,705                           1,239,822 1,104,883 89%
SWITZERLAND                        2,049,860                                   91,700 1,958,160 2135%
NETHERLANDS                        2,018,947                           1,560,494 458,453 29%
JORDAN                        1,554,631                                885,500 669,131 76%
MALAYSIA                        1,478,729                           1,586,209 -107,480 -7%
OMAN                        1,399,390                           1,216,205 183,185 15%
CHILE                        1,370,272                           1,846,499 -476,227 -26%
INDONESIA                        1,250,293                           1,508,456 -258,163 -17%
GERMANY                        1,046,789                                590,338 456,451 77%
CHINA                             947,910                           1,038,870 -90,960 -9%
JAPAN                             912,548                           1,419,466 -506,918 -36%
UKRAINE                             784,372                                560,379 223,993 40%
SOUTH AFRICA                             753,260                                825,133 -71,873 -9%
BANGLADESH                             533,122                           1,494,594 -961,472 -64%
CANADA                             461,043                                566,873 -105,830 -19%
VIETNAM                             381,134                                561,236 -180,102 -32%
EPZ                             354,643                                                – 354,643 0%
SRI LANKA                             306,781                                287,013 19,768 7%
UZBEKISTAN                             299,174                                181,498 117,676 65%
CHAD                             267,166                                225,640 41,526 18%
DJIBOUTI                             215,356                                   96,000 119,356 124%
MYANMAR                             203,400                                259,763 -56,363 -22%
KYRGYZSTAN                             202,400                                                – 202,400 0%
MAURITIUS                             165,700                                159,804 5,896 4%
BELGIUM                             161,328                                282,324 -120,996 -43%
SINGAPORE                             137,843                                171,819 -33,976 -20%
ERITREA                             130,000                                260,000 -130,000 -50%
LATIVIA                                97,120                                      5,592 91,528 1637%
EL SALVADOR                                95,100                                                – 95,100 0%
CAMEROON                                74,403                                                – 74,403 0%
MOROCCO                                66,952                                                – 66,952 0%
NEW ZEALAND                                63,310                                160,850 -97,540 -61%
ISRAEL                                49,292                                   12,000 37,292 311%
TAIWAN                                45,215                                   73,490 -28,275 -38%
REUNION                                38,760                                                – 38,760 0%
AUSTRALIA                                34,356                                   63,469 -29,113 -46%
SYRIA                                26,840                                                – 26,840 0%
SWAZILAND                                23,656                                                – 23,656 0%
TANZANIA                                23,273                                      2,720 20,553 756%
FINLAND                                20,625                                                – 20,625 0%
US MINOR ISLADS                                16,948                                                – 16,948 0%
PALESTINE                                16,500                                                – 16,500 0%
ALBANIA                                14,960                                                – 14,960 0%
HONG KONG                                14,110                                   11,564 2,546 22%
GREECE                                13,800                                                – 13,800 0%
BELARUS                                11,975                                   11,700 275 2%
SURINAME                                   9,296                                                – 9,296 0%
BRAZIL                                   9,000                                   26,500 -17,500 -66%
CAMBODIA                                   8,000                                                – 8,000 0%
ANGOLA                                   6,000                                                – 6,000 0%
SPAIN                                   4,962                                   22,328 -17,366 -78%
PALAU                                   2,720                                                – 2,720 0%
BAHRAIN                                   1,500                                                – 1,500 0%
ITALY                                   1,380                                                – 1,380 0%
RWANDA                                   1,296                                                – 1,296 0%
CZECH REPUBLIC                                       280                                          100 180 0%
UGANDA                                             –                                   92,311 -92,311 0%
GEORGIA                                             –                                   55,856 -55,856 0%
AZERBAIJAN                                             –                                   25,000 -25,000 0%
IRAQ                                             –                                   13,880 -13,880 0%
COMOROS                                             –                                      7,000 -7,000 0%
TOTAL                  387,047,843                     319,143,834 67,904,009 21%