Officials count on cold weather to warm up tea prices

 

A cup of tea. Tea prices are still depressed making the first half of the year one of the worst performing for Kenya’s top forex earner. PHOTO | FILE | NATION 

In Summary

• Officials, however, hope that the current cold spell in main tea growing regions could trigger an improvement in prices while boosting demand for the beverage.

By NATION REPORTER
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Tea prices are still depressed making the first half of the year one of the worst performing for Kenya’s top forex earner.

 

Statistics by regulator, the Tea Board of Kenya, said the average auction price in June 2014 was $2.03 a kilogramme against $2.44 for the corresponding period last year.

The average price for the first six months in 2014 dropped by 20 per cent to $2.24 a kilogramme against $2.80 recorded over a similar period last year. During the month, 35.4 million kilogrammes were sold at the Mombasa auction against 27.9 million kilogrammes sold in June last year.

However, persistent cold weather and poor rainfall dampened production in tea-growing areas west of the Rift Valley where output decreased from 22.0 million kilogrammes recorded in June 2013 to 20.6 million kilogrammes.

The drop was largely in Kericho, Bomet, Kisii, and Nakuru counties. Plantation volumes fell while small holder growers continued to increase output.

“Average production for the first half of the year was 0.19 per cent lower from 225.6 million kilogrammes recorded during the corresponding period of 2013 to 225.1 million kilogrammes,” the board said in a statement on Wednesday.

COLD SPELL

Officials, however, hope that the current cold spell in main tea growing regions could trigger an improvement in prices while boosting demand for the beverage.

Tea production for the month of June was 31.9 million kilogrammes, against 30.5 million kilogrammes recorded during the corresponding month of 2013.

The marginal increase in production was largely attributed to occasional light rainfall condition which was experienced in the east of Rift Valley following which the region’s output rose from 8.4 million kilogrammes to 11.3 million kilogrammes.

Egypt is still the leading export destination for Kenyan tea accounting for 9.9 million kilogrammes accounting for 23 per cent of the total volume.