Farmers’ Livelihood Threatened as Kenyan Tea Hits a 5-Year Low

By Korir Isaac / Published July 8, 2021 | 9:30 am




KEY POINTS

While the commodity has averaged 194.31 shillings so far since the beginning of the year, its oversupply is significantly threatening the prices.


Tea

Tea prices have hit a 5-year low at the Mombasa Tea Auction with a kilo retailing at 178.12 shillings, a price last recorded in 2017.

While the commodity has averaged 194.31 shillings so far since the beginning of the year, its oversupply is significantly threatening the prices.

The situation has been worsened by a global glut as top tea exporters are reeling from the effects of the Covid-19 pandemic.

According to the East African Tea Trade Association (EATTA), a price below 2 dollars, as per their estimation, is not good at all.

The highest price recorded this year is 215 shillings. This signals low earnings for farmers in the financial year ending June 30 and is expected to extend through the current financial year.

ALSO READ: Safaricom Customers To Pay More For Calls After 20% Excise Tax

The current price is a drop from last week’s 181.36 shillings, and 18.3 percent of the total kilos availed for sale (13.6 million kilos) remained unsold in the auction.

According to EATTA, of the 205,696 packages (13,615,051 kilos) available for sale, only 168,056 packages (11,149,127 kilos) were sold.

“The UK lent more support but operated at lower rates while Egyptian Packers, Pakistan Packers, Bazaar, Russia and Sudan were active but at lower levels with an increased but selective inquiry from Kazakhstan and other CIS states,” said EATTA MD, Edward Mudibo in a statement.

Yemen and other UAE countries showed less interest. Afghanistan portrayed selective activity while Iran remains subdued. Also, local packers showed less interest as Somalia lingered at the lower end of the market with little interest.

The Kenya Tea Development Agency (KTDA) also pointed out that the high production and a global oversupply have negatively affected the average tea prices across all its factories.

ALSO READ: CBK Data Reveals Poorest Counties Based on Bank Branches

“High volumes of tea produced in the East African region and elsewhere on the globe have contributed to the continued price decline in the global market,” KTDA stated in a statement.

In 2020, the average tea prices dropped 6 percent compared to 2019’s, an effect attributed to high production and a subdued market affected by the prevalence of the Covid-19 pandemic.

The full-year average for 2020 was 194.31 shillings, which was lower compared to 2019 when it fetched an average of 221.30 shillings at the Mombasa Tea Auction.

Currently, more than 620,000 small-scale farmers affiliated with KTDA expect a mini bonus in July, a payment that will be combined with the green leaf supply for June 2021.

The payment will range between 2 and 5 shillings per kilogram of green leaf delivered for six months between July 2020 and December 31, 2020.

ALSO READ: Kenya Tea Growers Shift to Other Crops as Climate Change Bites

The Mombasa Tea Auction is one of the largest in the world where teas from Uganda, Rwanda, Tanzania, Malawi, Ethiopia, and the Democratic Republic of Congo are also traded.





About Korir Isaac

A creative, tenacious, and passionate journalist with impeccable ethics and a nose for anticipated and spontaneous news. He may not say it, but he sure can make one hell of a story.

View other posts by Korir Isaac


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (260)
  • May 2021 (285)
  • June 2021 (274)
  • July 2021 (232)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (237)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (186)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950