Business News
Kenya’s tea export earnings defy drought to hit Sh69bn
Ms Sicily Kariuki, the MD of Tea Board of Kenya, told a press briefing in Nairobi on Tuesday that the country’s tea exports grew by Sh7 billion last year from the amount recorded in 2008. Photo/CHRIS OJOW
Posted Tuesday, January 26 2010 at 18:00
In Summary
- Favourable exchange rate makes up for reduced volumes, says sector regulator
Tea exports earned the country Sh69 billion last year, up from Sh62 billion in 2008, despite shrinking volumes.
The Tea Board of Kenya, the sector’s regulator, reported on Tuesday that the reduction in volumes caused by prolonged drought was made up for by a favourable exchange rate.
During the period, the shilling weakened against the US dollar, dropping from Sh69 in 2008 to an average of Sh76.
Tea auction
Average tea prices rose to $2.72 a kilo from $2.33. Prices at the Mombasa tea auction were also the highest recorded in close to two-and-half decades, said Tea Board of Kenya managing director Sicily Kariuki.
She said Kenya’s tea export this year is expected to increase to about 370 million kilos from 342 million kilos in 2009.
“But the tea export earnings for the year 2010 are expected to increase marginally to Sh70 billion,” she told a media briefing in Nairobi.
World tea production for 2010 is expected to reach 3.9 billion kilos, or five per cent higher than the 3.72 billion kilos projected for 2009.
During the first quarter of the year, North India, which accounts for over 70 per cent of India’s tea production, and Bangladesh would experience less crop compared to the last three months of 2009 due to the winter season.
Afghanistan and Sudan were the only markets or export destinations that recorded growth, at 29 per cent and 10 per cent respectively.
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Submitted by kruguttPosted January 27, 2010 09:40 PM
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Submitted by mashnjo
News like this makes our leaders happy and makes them think our country is rich. Hope somebody knows what am trying to say.
Posted January 27, 2010 06:41 PM -
Submitted by werssylwer
This is good. Open up more markets and expand Tea growing to more settlement schemes. Some farmers in settlement schemes ought to be advised to switch to tea or coffee in areas where the climate is suitable instead of planting uneconomic crops like they do year in and year out.
Posted January 27, 2010 01:43 AM
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Good to hear that tea is doing wonderfully great! One major factor of locating a factory/processing-plant or manufacturing plant in a place is the available of raw materials—that is Economics 101! The move to try to relocate KETEPA factory from major tea production area to Thika or Nairobi was ill-advised and very selfish as Sicily Kariuki, KTB Managing Director has shown that things are working well as they are of now! It does not sense to building a fish processing plant in Nairobi or any other place other than Kisumu or Mombasa where the raw materials are readily available.