RESILIENT

Tea prices remain above the $2 mark, demand improves

In the week Pakistan Packers showed strong enquiry

In Summary
  • A kilo fetched $2.18 (Sh231.78) in the review period, up from $2.10 (Sh232) in last week’s trading.
  • During the trading, the good prices saw the total volume of tea traded in the week increase by 109,325 kilos.
Farmers pick tea leaves in Othaya in Nyeri County
Farmers pick tea leaves in Othaya in Nyeri County
Image: EUTYCAS MUCHIRI

The price of tea has been steady, remaining above the two dollar mark at this week's auction.

A kilo averaged $2.18 (Sh240.89) in the review period up from $2.10 (Sh232.05) in last week’s trading.

During the week, the good prices saw increased supply by farmers, with the total volume of tea traded increasing by 109,325 kilos.

A good but irregular demand prevailed for the 125,919 packages (8.3 million kilos) available for sale with 95,320 packages (6.2million kilos) being sold,” said the East African Tea Traders Association (EATTA).

Pakistan Packers showed strong enquiry, while  strong support came from Yemen and other Middle Eastern countries with the UK showing strong interest.

“There was increased activity from Russia while Egyptian Packers and Sudan showed useful support with reduced interest from Kazakhstan, other CIS nations and Bazaar,” said EATTA.

“Iran and Afghanistan were subdued while local packers operated in line with the price. Somalia lent strong support at the lower end of the market.”

The prices at the auction have been going up for the last two months aided by the government’s directive on the reserve price.

In July, the Ministry of Agriculture directed traders to pay a minimum reserve price for all Kenya Tea Development Agency teas at the auction following a sharp decline in prices that the government said was subjecting farmers to losses.

The good prices at the auction have given farmers hope of getting a good bonus at the end of the current financial year.