SEPTEMBER 2017

KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR SEPTEMBER 2017

PRODUCTION

Tea production for the month of September 2017 was 38.38 Million Kgs, against 36.97 Million Kgs recorded during the corresponding month of 2016. The increase in production was largely attributed to significant rainfall amounts experienced over the highlands West and East of the Rift Valley, respectively. According to Kenya Meteorological Department, these regions received higher monthly rainfall compared to September Long-Term Mean (LTM).

Compared to September 2016, output rose from 12.41 Million Kgs to 12.98 Million 24.56 Million Kgs within the East of Rift. Similary, production in the West of Rift increased from 24.5 Million Kgs to 25.40 Million Kgs. Consequently, good production was recorded within smallholder sub-sector with output increasing from 19.01 Million Kgs to 21.10 Million Kgs. However, production within the Estate sub-sector decreased from 17.96 Million Kgs to 17.27 Million Kgs.

Cumulative production for the period January-September 2017 was significantly lower at 303.55 Million Kgs against 346.66 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) Sept  2017 Sept 2016 Variance Var.(%) Jan – Sept 2017 Jan – Sept 2016 Variance Var.(%)
Plantation West of Rift              16,231,347             16,497,898      –   266,551 -1.62%          127,239,142          138,401,955 –     11,162,813 -8.07%
East of Rift                1,047,735               1,466,180      –    418,445 -28.54%            10,287,009            12,876,772 –       2,589,763 -20.11%
Total              17,279,082             17,964,078     –     684,996 -3.81%          137,526,151          151,278,727 –     13,752,576 -9.09%
Smallholder West of Rift                9,170,708               8,063,546        1,107,162 13.73%            75,747,519            86,403,815 –     10,656,296 -12.33%
East of Rift      11,936,407           10,949,739       986,668 9.01%     90,283,880    108,980,134 -18,696,254 -17.16%
Total      21,107,115        19,013,285  2,093,830 11.01%  166,031,399  195,383,950 -29,352,551 -15.02%
Plantation & Smallholder West of Rift      25,402,055           24,561,444         840,611 3.42%    202,986,661     224,805,770 – 21,819,109 -9.71%
East of Rift      12,984,142            12,415,919         568,223 4.58%    100,570,889     121,856,906 –  21,286,017 -17.47%
Total  38,386,197        36,977,363  1,408,834 3.81%  303,557,550  346,662,676 -43,105,126 -12.43%

 

 

TEA SALES

AUCTION

 

During the month of September 2017, 26.80 Million kgs of Kenyan tea was sold through Mombasa Auction against 19.44 Million kgs recorded in September 2016. The average tea auction prices for Kenyan tea for the month of September 2017 was higher at USD 2.96 per Kg against 2.32 for the corresponding period of last year.

Cumulative average price for the nine months of 2017 was also higher at USD 2.98 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 September 2017 was 35.31 Million Kgs compared to 35.89 Million Kgs recorded same period of last year, representing a 2% decrease. During the month, Kenya tea was shipped to thirty nine (39) export destinations compared to forty one (41) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 9.91 Million Kgs, accounting for 28% of the total export volume. Other key export destinations for Kenyan tea were Egypt (7.88 Million Kgs), UK (3.00 Million Kgs), Sudan (2.95 Million Kgs), UAE (2.55 Million Kgs), Russia (1.93 Million Kgs), Kazakhastan (1.02 Million Kgs), Yemen (0.98 Million Kgs), Poland (0.60) Million Kgs), and Afghanistan (0.46 Million Kgs. The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 89% of Kenya tea export volume. Sudan, UAE, Russia, Kazakhastan, and Poland 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 Malaysia, Switzerlands, Jordan, Indonesia, Ukraine, India and Bangladesh.

 

The total export volume for the period January-September 2017 was 320.73 Million Kgs compared to 387.04 Million Kgs recorded same period of last year.

LOCAL CONSUMPTION

Local tea consumption for September 2017 stood at 2.55 Million Kgs against 3.03 Million Kgs for the corresponding period of 2016 while cumulative tea consumption for the nine months period upto September 2017 stood at 26.88 Million Kgs against 21.75 Million Kgs for the corresponding period of 2016.

21ST SEPTEMBER, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

DESTINATION 2017 QUANTITY KGS 2016 QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                        9,919,125                     12,674,052 -2,754,927 -22%
EGYPT                        7,886,429                        8,454,251 -567,822 -7%
UK                        3,008,184                        3,000,421 7,763 0%
SUDAN                        2,953,189                        1,531,061 1,422,128 93%
UAE                        2,550,713                        2,422,646 128,068 5%
RUSSIA                        1,939,024                        1,120,279 818,746 73%
KAZAKHASTAN                        1,029,638                             931,352 98,286 11%
YEMEN                            989,870                        1,066,162 -76,292 -7%
POLAND                            607,632                            238,344 369,288 155%
AFGHANSTAN                            460,252                            504,946 -44,694 -9%
SWITZERLAND                            455,690                            233,300 222,390 95%
USA                            320,666                               66,580 254,086 382%
IRAN                             301,052                                        – 301,052 0%
JAPAN                             298,975                             351,259 -52,284 -15%
NIGERIA                            292,096                             657,756 -365,660 -56%
MALAYSIA                             275,796                             115,941 159,855 138%
SAUDI ARABIA                            216,000                             135,906 80,094 59%
IRELAND                            208,590                             311,873 -103,283 -33%
TURKEY                            202,452                            483,740 -281,288 -58%
JORDAN                             197,000                                        – 197,000 0%
INDONESIA                             163,831                             122,381 41,450 34%
UKRAINE                             157,789                             137,916 19,873 14%
INDIA                             143,996                            108,280 35,716 33%
SOMALIA                             142,678                             274,463 -131,785 -48%
BANGLADESH                            120,000                                        – 120,000 0%
CHILE                             105,368                             196,176 -90,808 -46%
SOUTH AFRICA                                96,960                                56,000 40,960 73%
NETHERLANDS                                69,600                                71,556 -1,956 -3%
CHAD                                68,850                                             – 68,850 0%
GERMAN                                48,450                                33,193 15,257 46%
CHINA                                28,025                                18,199 9,826 54%
DJIBOUTI                                16,000                                             – 16,000 0%
NEW ZEALAND                                12,800                                12,800                                – 0%
MAURITIUS                                11,000                                31,000 -20,000 -65%
SINGAPORE                                10,000                                             – 10,000 0%
CANADA                                   7,328                                33,887 -26,559 -78%
HONG KONG                                   2,376                                             – 2,376 0%
MOROCCO                                       500                                             – 500 0%
EPZ                                             –                             148,440 -148,440 0%
ERITREA                                             –                             130,000 -130,000 0%
SRI LANKA                                             –                                60,596 -60,596 0%
JAPAN                                             –                                37,942 -37,942 0%
OMAN                                             –                                33,702 -33,702 0%
BELGIUM                                             –                                25,196 -25,196 0%
ISRAEL                                             –                                24,000 -24,000 0%
TANZANIA                                             –                                23,273 -23,273 0%
AUSTRALIA                                             –                                13,806 -13,806 0%
CHEC REP                                             –                                       180 -180 0%
TOTAL                     35,317,923                     35,892,853 -574,930 -2%

 

 

 

 

 

 

 

 

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

DESTINATION 2017 QUANTITY KGS 2016 QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN                           119,777,082                   105,136,942 14,640,140 14%
EGYPT                      47,522,177                    78,274,024 -30,751,847 -39%
UK                       32,328,331                  37,391,821 -5,063,490 -14%
UAE      20,841,639                       27,856,667 -7,015,028 -25%
SUDAN                        17,061,684                     19,938,156 -2,876,472 -14%
RUSSIA                     13,339,649                        15,200,618 -1,860,969 -12%
YEMEN                           10,011,100                        10,538,057 -526,957 -5%
AFGHANISTAN                        8,068,920                    34,107,847 -26,038,927 -76%
KAZAKHSTAN                           5,516,045                       7,430,666 -1,914,621 -26%
POLAND                    4,959,331                           4,576,584 382,747 8%
NIGERIA                         4,040,619                     3,775,346 265,273 7%
USA                       3,877,366                         3,646,698 230,668 6%
SAUDI ARABIA                              3,321,818                           3,340,641 -18,823 -1%
IRAN                            2,636,576 3,962,823 -1,326,247 -33%
IRELAND                           2,591,401                       3,394,750 -803,349 -24%
INDIA                           2,316,378                        2,419,197 -102,819 -4%
JORDAN                           2,143,322                        1,554,631 588,691 38%
NETHERLANDS                         2,053,500                            2,018,947 34,553 2%
TURKEY                        1,830,405             2,344,705 -514,300 -22%
SWITZERLAND                               1,635,070                            2,049,860 -414,790 -20%
INDONESIA                          1,499,870                        1,250,293 249,577 20%
JAPAN                           1,494,292                              912,548 581,744 64%
SOMALIA                              1,395,175                           3,534,581 -2,139,406 -61%
UKRAINE                              1,350,128                               784,372 565,756 72%
CHILE                         1,275,009                          1,370,272 -95,263 -7%
MALAYSIA                              974,616                          1,478,729 -504,113 -34%
CHINA                              917,675                             947,910 -30,235 -3%
SRI LANKA                         803,821                               306,781 497,040 162%
OMAN                              642,544                       1,399,390 -756,846 -54%
GERMANY                               606,120                          1,046,789 -440,669 -42%
SOUTH AFRICA                               436,820                            753,260 -316,440 -42%
CHAD                            398,885                               267,166 131,719 49%
BANGLADESH                              360,900                             533,122 -172,222 -32%
DJIBOUTI                      348,450                         215,356 133,094 62%
CANADA                             347,988                      461,043 -113,055 -25%
BELGIUM                           299,578                               161,328 138,250 86%
UZBEKISTAN                                  275,196                            299,174 -23,978 -8%
HONG KONG                        239,130                              14,110 225,020 1595%
MYAMAR                             208,200                          203,400 4,800 2%
MAURITIUS                                186,350                              165,700 20,650 12%
TAIWAN                             155,780                                45,215 110,565 245%
SINGAPORE                                  139,315                               137,843 1,472 1%
ERITREA                                130,000                    130,000 0 0%
ERUSSIA                              99,032                                         – 99,032 0%
NEW ZEALAND                                  51,200                                63,310 -12,110 -19%
KYRGYZSTAN                                  51,156                             202,400 -151,244 -75%
ISRAEL                                   50,000                                49,292 708 1%
AZERBAIJAN                                    45,000                                          – 45,000 0%
CZECH REPUBLIC                                27,202                                  280 26,922 9615%
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                            34,356 -32,756 -95%
MOROCCO                                     500                             66,952 -66,452 -99%
ALBANIA                                –                             14,960 -14,960 -100%
ANGOLA                                             –                           6,000 -6,000 -100%
BAHRAIN                                           –                               1,500 -1,500 -100%
BELARUS                                          –                                11,975 -11,975 -100%
BRAZIL                                             –                                 9,000 -9,000 -100%
CAMBODIA                                           –                                    8,000 -8,000 -100%
CAMEROON                                             –                               74,403 -74,403 -100%
EL SALVADOR                                               –                              95,100 -95,100 -100%
EPZ                                               –                             354,643 -354,643 -100%
FINLAND                                               –                               20,625 -20,625 -100%
PALAU                                              –                                 2,720 -2,720 -100%
PALESTINE                                            –                              16,500 -16,500 -100%
REUNION                                            –                              38,760 -38,760 -100%
RWANDA                                             –                                   1,296 -1,296 -100%
SPAIN                                               –                                   4,962 -4,962 -100%
SURINAME                                              –                                  9,296 -9,296 -100%
SWAZILAND                                         –                            23,656 -23,656 -100%
SYRIA                                         –                           26,840 -26,840 -100%
TANZANIA                                      –                            23,273 -23,273 -100%
VIETNAM                          381,134 -381,134 -100%
TOTAL                320,738,887                387,047,843 -66,308,956 -17%