QUALITY VERSUS QUANTITY

Kenya sells quantity as Rwanda banks on quality at Mombasa tea

The 7.1 million kilos of Kenyan tea sold also represented 105,760 packages of varying grades of the commodity.

In Summary

Burundian tea posted the second best price per kilo at an average of 245 dollars, having sold a total of 159,780 kilos.

The two day auction also saw 13 percent of the commodity brought to market not selling.

Kenyan tea traded this week at the Mombasa tea auction registered larger volumes compared to tea produced from neighboring countries in the region.

According to data from the Tea Brokers East Africa Ltd (TBEAL),  Kenyan tea amounting to 7.1 million kilograms were sold against the total 8.8 million kilograms regional share at the November 11 and 12 auctions.

 

The 7.1 million kilos of Kenyan tea represented 105,760 packages of varying grades.

Average price for the Kenyan tea was US$232 per kilogram, which was nine dollars higher compared to the total price average per kilogram at US$223.

However it was Rwandan tea that attracted the highest price per kilo selling at an average of US$302 , with volumes of 465,265 kilos of their tea sold.

Burundian tea posted the second best price per kilo at an average of US$245, having sold a total of 159,780 kilos.

The two day auction also saw 13 percent of the commodity brought to market not selling.

“There was irregular demand for the 10.08 million kilograms in the market and eased as the sale progressed with 13.35 percent neglected,” says the report.

Average prices per kilo of tea have not changed much in the last three weeks with figures alternating between US$223 and US$225.

 

However the quantity sold this week increased by over 250,000 kilos compared to last week.

During a similar week in 2018, over 9.2 million kilos had been sold at an average price of 220 dollars per kilo.

According to the report, Pakistan buyers took home the largest share of the commodity sold.

“Pakistan packers lent strong support and were dominant with more interest while Yemen and other middle eastern countries showed strong activity but at lower levels,” said the analysis in part.

Other markets in descending order include Egypt, Sudan, Kazakhstan, Afghanistan, the UK and Russia.

“Somalia were quite active at the lower end of the market,” it added.

The product sold this week included Kenyan, Ugandan, Tanzanian, Rwandan and Burundian tea.

Out of the total 151,710 packages of different tea grades sold commodities produced from Kenyan farms through the Kenya Tea Development Authority accounted for the largest share at 68,060 kilos while Uganda and Rwanda farms had produced 14,000 and 6,839 kilos respectively among others.