Tea farmers make Sh2.25bn in weekly auction

Tea farms in Ikumbi area in Kigumo sub county, Murang'a county

Tea farmers raked in Sh2.25 billion from the sale of 5.9 million kilogrammes of green leaf at the Mombasa auction.

In the 26^th weekly sale held between June 30 and July 1, farmers sold their produce at an average price of $204 (Sh26,366) per package, with 85,340 packages presented.

The amount was however a reduction from the 6.8 million kilogrammes represented in the same sale last year, with the variance attributed to climate change effects.

According to Tea Market Report released by Tea Brokers East Africa, the auction saw a total of 7.5 million kilogrammes presented for sale, out of which 52 per cent was sold.

Under the best category, a total of 862,792 kilogrammes were sold at an average price of $3.17 (Sh387) per kilogramme while the lowest plain grade sold 183,641 kilogrammes at $0.99 (Sh127) per kilogramme.

Among the countries that participated in the sale were Pakistan, Yemen, Kazakhstan, Egypt, Somalia and Russia, with South Sudan and Sudan abstaining.

The sale brought the total kilogrammes of local tea sold through the auction this year to 202, 923,342 kilogrammes, indicating a reduction of 17 million kilogrammes.

Uganda presented 17,298 packages of green-leaf that amounted to 978,471 kilogrammes and which sold at $96 (Sh12,407) per package, fetching Sh214 million, while Rwanda offered 7,060 packages (494,060 kgs) at $302 (Sh39,000), raking in 275 million.

Malawi also offered 60,459 kgat $91 (1,176) per package while Tanzania presented 19,848 kg at $97 (12,537) and Burundi sold 16,371 kg at $150 (Sh19,387).

This brought the total amount of tea presented for sale in the auction 7.6 million kgagainst 8.6 kg sold in a similar sale last year.

Out of the 45 buyers, Global Tea and Commodities Kenya bought the highest amount of tea at 9.20 per cent after purchasing 18,540 packages, followed closely by Mitchell Cotts Freight Kenya that bought 12,260 packages and L.A.B International Kenya with 10,940 packages.

Last year, more than 482 million kg were auctioned through the Mombasa auction at an average price of $2.07 (Sh258)per kg.

According to the report, farmers from Murang’a harvested about 83.09 tonnes daily in the week while in Nyeri, farmers sold 44.78 tonnes.

“In Meru, the weather was sunny and cloudy throughout the week and no rainfall was reported. The crop intake averaged 43.32 tonnes everyday”.

“In Kericho, crop intakes went down by 10 percent compared to the previous week. The week was very cold in the morning followed by light showers at night,” the report read.

It further indicated that with most Kenyan farmers expected to start pruning their tea bushes, the crop on offer may drop in coming weeks, aggravated by the cold season.