Tea prices at the Mombasa Auction hit a five-month high this week amid strong demand from buyers exporting to key global markets.
A kilo fetched $2.23 (Sh280.49) up from $2.27 (Sh274.44) last week; with the strong dollar against the shilling ensuring continued high earnings by farmers.
The local currency hit a new low of 120.85 to a unit of the US dollar this week.
“There was a fairly good demand following quality for the 183,420 packages (12,181,172.00 kilos) on offer. 111,460 packages (7,398,495.00 Kilos) were sold with 39.23 per cent of packages remaining unsold,” East African Tea Trade Association (EATTA) notes in its weekly report.
The total volume traded was however 553,505 kilos less than last week.
Pakistan Packers, Bazaar, Yemen, and other Middle Eastern countries lent strong support with Sudan, Kazakhstan, and other CIS states showing improved interest, the association notes.
“The UK maintained inquiry while Egyptian Packers were active but at lower levels with Afghanistan selective,” EATTA managing director Edward Mudibo said.
Russia, Iran, and Local Packers maintained support.
There was also more interest from Somalia but at the lower end of the market.
The highest price so far, this year, remains $2.62 (Sh 316.76 ) which was recorded in the first week of February.
Next week, a total of volume of 180,760 packages (12,098,670.50 kilos) has been lined up for sale, which is a decrease of 2,660 packages (82,501.5 kilos) when compared to this week.
Pakistan remains the biggest export destination for Kenya’s tea, taking up 38 per cent of the total weekly sales at the Mombasa Tea Auction.
It is followed by Egypt (18%), the UK(9%), UAE, Russia and Sudan each five percent, Yemen (3%) while Afghanistan and Poland each take up two per cent share of the exports.
Iran is at the lower end with one per cent with the rest of the world taking up the remaining.
