Greenleaf production for smallholder tea farmers under the Kenya Tea Development Agency (KTDA) rose by 15.2 per cent to 763,208,762 kilos for the last seven months (June 2023-January 31st 2024).
This has been attributed to favorable weather conditions within the period among other factors.
Application of subsidised fertilizer and ample rains within the period contributed to an increment in green leaf production, KTDA said in a statement on Monday.
This compares to 662,565,605 million kilos of green leaf delivered to KTDA-managed factories within the same period in the previous year.
The increase in processed teas, especially in the West of Rift is due to the monthly advance payments structure where factories have increased their rates, attracting more green leaf, the agency noted.
The factories increased their rates from Sh20 to Sh24 for one kilogramme of green leaf, while factories in the East of Rift increased their rate from Sh21 to Sh25 from January 2024.
As a result of the increase in green leaf production, KTDA has sold 152 million kilogrammes of processed tea compared to 148 million kilogrammes within the same period last year.
This is a 2.8 per cent increase in sales resulting from the agency’s concerted sales efforts, management said.
“We are working round the clock to push as much tea as possible working with other stakeholders including government agencies. Our single focus remains improving the earnings for the farmers,” KTDA Group CEO, Wilson Muthaura, said.
The average price of KTDA teas within the same period went up by three per cent from $2.70 (Sh392.85) per kg, to $ 2.78 (Sh404.49).
Over the same period, there have been gains from favourable forex exchange rates, which are expected to spur earnings for the farmers compared to the same period, if the sales trend is maintained.
The global tea market however faces headwinds, with rising production costs and fluctuating demand, Muthaura noted.
Despite these challenges, KTDA remains focused on maximising value for our smallholder farmers. We continue to work tirelessly to push as much tea as possible, while exploring new markets and value-added opportunities," he said.
In September 2023, KTDA announced a record Sh44.15 billion final payout to smallholder tea farmers.
This final payout lifted farmers’ total earnings for the year by 7.6 per cent to an all-time high of Sh67.7 billion, from Sh62.89 billion at the same time in 2022.
