Kenyan Government Plans To Expand Tea Export Market
KEY POINTS
Most of the Kenyan tea is destined for Pakistan, taking up 38 percent of the total weekly sales. Other leading buyers of Kenya’s tea are Egypt (18%), the UK(9%), UAE, and Russia.
KEY TAKEAWAYS
A Market report by the East African Trade Association (EATA) shows that the prices of the beverage dropped by more than 12 percent in the 7 months ending August 2022, to a low of $2.22 (265.70 shillings) from $2.53 (302.80 shillings) recorded in the third week of February.
Tea farmers and exporters may soon enjoy further market diversification opportunities as part of the ongoing trade facilitation efforts announced by Trade Principal Secretary Alfred Ombudo and Cooperatives Principal Secretary Patrick Kilemi.
The two met on Wednesday with tea trade sector players from the East Africa Tea Traders Association to review progress and address challenges in the sector.
The team also discussed design strategies for advancing tea exports. The meeting identified the ongoing global dollar crunch experienced by most exporters, high taxation on the packaging, and some ‘incoherent’ policies that have negatively impacted trade in the commodity.
Tea is among Kenya’s leading exports and has been hailed for earning the country high revenue alongside the horticulture sector. The country exports 95 percent of its tea making it among the world’s leading exporters.
Most of the Kenyan tea is destined for Pakistan, taking up 38 percent of the total weekly sales. Other leading buyers of Kenya’s tea are Egypt (18%), the UK(9%), UAE, and Russia.
The country is now looking to tap new buyers to expand its market, reduce over-reliance on the traditional market as well as the inclusion of MSMEs as part of solutions.
Entry into new markets sets the stage for improved prices for the leaf which has been recording unimpressive performance in the last couple of months owing to low demand from the current buyers.
A Market report by the East African Trade Association (EATA) shows that the prices of the beverage dropped by more than 12 percent in the 7 months ending August 2022, to a low of $2.22 (265.70 shillings) from $2.53 (302.80 shillings) recorded in the third week of February.
During the period, the volume of unsold tea increased to 27.4 percent in the third week of August from 14.75 percent recorded in February. The average price of the beverage decreased by $0.31.
The Russia-Ukraine war, and changing weather patterns were named as the other key drivers of the price decline.
Related Content: Tea Prices Slightly Gains In The First Sale Of The Year
