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New markets push tea exports up despite production setback

Attacks on vessels by a Yemen terrorist group along Red Sea have continued to disrupt global trade.

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by AGATHA NGOTHO

Star-farmer03 December 2024 - 09:29
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In Summary


  • The August report showed an expansion in exports, particularly to emerging markets, with the exception of Afghanistan, Ireland, Japan, Jordan, Canada and Türkiye.
  • “During the month, Chad and South Sudan continued to expand rapidly as emerging markets for Kenya tea,” the report indicated.

Tea pickers at Gatura Greens tea plantation in Murang’a county on January 30, 2021 /FILE

Kenya recorded a significant increase in tea exports to non-traditional and emerging markets, a Tea Board of Kenya performance report shows.

The August report showed an expansion in exports, particularly to emerging markets, with the exception of Afghanistan, Ireland, Japan, Jordan, Canada and Türkiye.

“During the month, Chad and South Sudan continued to expand rapidly as emerging markets for Kenya tea,” the report indicated.

There were shipments to seasonal markets such as Bangladesh, Australia, Georgia, Burkina Faso, Kyrgyzstan, Mali, Mexico, Guinea, Cameroon, Togo and Israel.

Attacks on vessels by a Yemen terrorist group along the Red Sea have continued to disrupt global trade.

Shipping lines have been rerouting vessels around Africa’s Cape of Good Hope as an alternative. This has led to longer voyage times and higher freight rates, especially for exports from the Port of Mombasa to European and North African markets.

The total export volume for August this year increased by nine per cent, amounting to 50.65 million kilogrammes. This was an increase from 46.35 million kilogrammes in the same period last year.

Kenyan tea was shipped to 56 export destinations, compared to 52 in August 2023. Pakistan remained the largest destination, importing 20.26 million kilogrammes, which accounted for 40 per cent of the total export volume.

Egypt, the second-largest destination, imported 8.46 million kilogrammes, followed by the UK ( 4.66 million), UAE ( 1.89 million) and India ( 1.57 million).

Others are Russia ( 1.21 million), Poland ( 1.15 million), Kazakhstan ( 1.12 million), Saudi Arabia ( 1.09 million) and Oman ( 1.01 million).

The top 10 export destinations, most of which are traditional markets, accounted for 84 per cent of the export volume.

“Apart from Pakistan and UAE, all the other traditional markets recorded higher imports for Kenya tea,” the report said.

In terms of value-added tea exports, Kenya shipped 1,431,057 kilogrammes in August, representing three per cent of the total export volume.

The tea was exported to the UK, Somalia, Ireland, Oman, the US, Yemen, Sudan, Malaysia, Burkina Faso, India, Singapore, South Sudan, Mali, Togo, Mexico, the UAE, Guinea, Saudi Arabia, Cameroon, Germany, South Africa, Japan, France, the Netherlands, Egypt and Poland.

The UK accounted for the largest share of value-added tea exports at 42 per cent, followed by Somalia at 21 per cent, and Ireland and Oman at six per cent each.

On production, the report showed a decline in tea production for August. Production fell by 6.94 million kilogrammes from 45.57 million kilogrammes in August 2023 to 38.62 million kilogrammes. This was also lower than the 40.82 million kilogrammes recorded in July this year.

The decline was attributed to low rainfall and cool weather conditions in tea-growing regions in the West and East of the Rift Valley.

Production in the West of Rift Block decreased by 4.56 million kilogrammes, from 35.65 million kilogrammes in August 2023 to 31.09 million kilogrammes. In the East of Rift Block, there was a reduction of 2.38 million kilogrammes, from 9.92 million kilogrammes to 7.53 million kilogrammes.

Independent producers, who mainly source greenleaf from smallholder farmers, recorded a decline in production of 2.82 million kilogrammes, from 13.16 million kilogrammes to 10.34 million kilogrammes.

The Tea Board of Kenya also reported that smallholder producers in the East of Rift, under the management of the Kenya Tea Development Agency, experienced a production decrease from 18.12 million kilogrammes in August 2023 to 16.28 million kilogrammes.

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