COFFEE PRODUCTION

Export gains from key cash crops drop despite increased production

In Summary

• Coffee production jumped 15.62 per cent to 22,430 tonnes from 19,400 tonnes the same period last year.

• Production of tea, the country's biggest cash crop by volume, decreased by 8.65 per cent to 212,600 tonnes.

Coffee berries
Coffee berries
Image: FILE

Agricultural production of key cash crops rose during the first half of the year, with quantities increasing amid mixed export earnings over the period, data by the Kenya National Bureau of Statistics shows.

During the review period, coffee production jumped 15.62 per cent to 22,430 tonnes from 19,400 tonnes the same period last year. This did not however coincide with export earnings, which dropped 2.83 per cent to rake in Sh10.86 billion.

The value per kilo registered a significant drop to an average $2.97 compared to $4.15 offered per kilo over the same period last year. This was a 28.43 per cent decline in value.

Production of tea, the country's biggest cash crop by volume, decreased by 8.65 per cent to 212,600 tonnes in the first five months of the year from 230,999 last year.

The data collated by KNBS showed a kilo of tea was priced at an to an average $2.23 compared to $2.76 offered for a kilo during the first half of last year, a 19.2 per cent slump.

“Lower price to-date this year was attributed to reduced trading activities at the auction owing to uncertainties in certain key markets occasioned by political and economic instability,” said the directorate.

The cumulative value of tea exports fell by 20 per cent to Sh49.3 billion compared to Sh61.62 billion earned in the first five months of last year.

According to the East African Tea Traders Association (Etta) low global oil prices and currency devaluation in countries that are major buyers of the Kenyan tea have had a negative impact have resulted in low demand for the commodity.

Cut flower exports, a major foreign exchange earner, in the first six months of the year totaled 91,260 tonnes, a 8.76 per cent increase over the 83,910 tonnes shipped out in a corresponding period last year.

Cut flowers earned Sh5.92 billion less over the review period at Sh55.17 billion from Sh61.09 billion in the six months to June.

While export volumes for vegetables remained stable at slightly over 38,000 tonnes, export receipts increased by 10.29 per cent to Sh13.93 billion compared to Sh12.63 billion last year.

On the other hand, the volume of fruits sold to other states increased by 9.2 per cent to 50,350 tonnes while export earnings registered a marginal growth of Sh78 million to rake in Sh7.4 billion.

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