Tea sales down on oversupply in global market, production up

Tea plantation. /FILE
Tea plantation. /FILE

Small scale tea farmers under the Kenya Tea Development Agency grew their produce by 4.4 per cent for the six months ending December to 611 million kilogrammes.

With average tea auction prices recorded at $2.71 per kilogramme, tea produced during the half-year period collected an estimated Sh166.94 billion at the weekly auctions.

“The increased production six months to December was largely attributed to the reliable rainfall experienced in tea growing areas,” KTDA Group CEO, Lerionka Tiampati said.

He said intensified sustainable agricultural practices such as fertilizer application aslo improved the quality and quantity of green leaf production.

Despite higher farm quantities over the six-month period, gains were Sh51.28 billion lower compared to the same period in 2017.

The average price of tea was reported at $3.27 per kilogramme for 585 million kilogrammes produced over the same period in 2017.

According to KTDA, the price cut was attributed to an oversupply of tea in the global market coupled with the economic sanctions imposed on Iran by the US.

Other tea producing countries such as India and Malawi also reported higher tea production in 2018 adding to global tea stocks which pushed prices down.

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