KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR DECEMBER 2018

1.0 PRODUCTION

Tea production for the month of December 2018 was 51.82 Million Kgs, against 47.50 Million Kgs recorded during the corresponding month of 2017. Increased production was largely attributed to the higher precipitation coupled with warm weather conditions experienced in tea growing areas in the West of Rift particularly in Nyamira, Kisii, Nandi, and Kericho counties. Consequently, output Within the West of Rift increased from 29.37 Million Kgs to 33.26 Million Kgs. Higher production was therefore recorded within the Plantation sub-sector which is more dominant in the region, with output increasing from

19.69 Million Kgs to 24.08 Million Kgs.

East of Rift experienced moderate rainfall conditions consequent to which production in the region recorded a marginal increase from 18.12 Million Kgs to 18.56 Million Kgs. Production within the Smallholder sub-sector thus decreased marginally from 27.80 Million Kgs to 27.74 Million Kgs.

Cumulatively, production for the year 2018 (January-December) was significantly higher by 12% to stand at 492.99 Million Kgs against 439.85 Million Kgs recorded during the corresponding period of 2017 owing to good weather conditions experienced througout the year.

Table I: Tea Production by Sub-sector and Region (2018 vis-à-vis 2017)

PRODUCTION KGS December 2018 December 2017 Variance var. % Jan – Dec 2018 Jan . Dec 2017 Variance Var.
Plantation west ot Ritt   17853.514 4,302.604   203,024096 163 24860.583 1395%
East of Rift   845,317 84 233     15.566848   12
Total   19698 831   22.27% 220,471 120 193,730 661 26.740.459 13.80%
                 
Smallholder West at Ritt     _ 415.628 •361% 129 109 419.426 13072.703  
East ot Ritt 16634.613   351851 216%   136.7071652    
              27       125   63,677 -0.23% 272,527 ,603     10.73%
                   
Plantation & Smallholder West ot Ritt 33,265.630 29078.654 3886976 1323% 325616625 239    
East ot Ritt 18.564 163     241% 167.482198 152<2/4.500    
  Total 51829.793   4 323 160 9.10%       12.08%

2.0 SALES

AUCTION

During the month of December 2018, 23.13 Million kgs of Kenyan tea was sold through Mombasa Auction against 24.87 Million kgs recorded in December 2017. The average tea auction prices for Kenyan tea for the month of December 2018 was lower at USD 2.30 per Kg against 2.79 for the corresponding period of last year owing to enhanced supply.

Cumulative average price for 2018 (January – December) was also lower at USD 2.58 per Kg compared to USD 2.79 for the corresponding period of 2017.

EXPORTS

The total export volume for the month of December 2018 was 35.39 Million Kgs compared to 26.83 Million Kgs recorded same period of last year, representing a 32% increase. During the month, Kenya tea was shipped to forty two (42) export destinations compared to thirty nine (39) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 13.86 Million Kgs, accounting for 39% of the total export volume. Other key export destinations for Kenyan tea were Egypt (5.21 Million Kgs), UK (4.09 Million Kgs), UAE (2.66 Million Kgs), Russia (1.50 Million Kgs), Sudan (0.98 Million Kgs), Kazakhstan (0.92 Million Kgs), Yemen (0.72 Million kgs), Bangladesh (0.48 Million Kgs) and

Ireland (0.42 million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 87% of Kenya tea export volume. Most of the traditional markets recorded higher tea imports from Kenya except Egypt and Yemen which registeterd lower imports.

Emerging markets that recorded significantly higher tea imports from Kenya included

Bangladesh, Nigeria, Irelans, Iran, India, Poland, Netherlands, Somalia, Turkey, Indonesia, Japan, Ghana, Malaysia, Uzbekistan, China, Northern Marina Islands and Germany.

The total export volume for the year 2018 (January- December) was 474.86 Million Kgs compared to 415.68 Million Kgs recorded same period of last year while the export earnings increased from Ksh.129 billion to Ksh.140 billion representing an increase of 8.5%. Higher export earnings were attributed to increased export volumes coupled with a stable exchange rate and diversification of markets. Market diversification was on account of initiatives by the stakeholders in both the public and private sector.

LOCAL CONSUMPTION

Local tea consumption for December 2018 stood at 4.55 Million Kgs against 3.89 Million

Kgs for the corresponding period of 2017 while cumulative tea consumption for the year

2018 stood at 38.00 Million Kgs against 37.63 Million Kgs for the corresponding period of 2017. Local consumption has been growing consistently at an average rate of 5% per annum for the last five years. Domestic sales value also increased from Ksh. 15 billion in 2017 to ksh.19 billion. The growth in local consumption is attributed to intensive promotion by brand owners and support by Government through the local generic promotion initiatives to position Kenya tea as the preferred beverage of choice globally.

11 TH FEBRUARY, 2019

Table 2.• Ken a Tea Ex orts b Destination Dec 2018 vis-à-vis Dec 2017    
DESTINATION 2018 – QUANTITY (KGS) 2017 – QUANTITY(KGS) QUANTITY DIFF %AGE VARIANCE
PAKISTAN 13,860,362 9,019,764 4,840,599 54%
EGYPT       -42%
  4,099,661 1,045,219 3,054,442 292%
UAE 2,664,980 1, 166,878 1,498, 102 128%
RUSSIA   730,510 769,983 105%
SUDAN 982,121 654,869 327,252  
KAZAKHASTAN 927,046 547,266 379,781 69%
YEMEN 722,230 1,896,584 1,174,354 -62%
BANGLADESH 488,255   488,255  
IRELAND 428,076 174,966 253,110 145%
SAUDI ARABIA 372,520 426,370 53,850 -13%
NIGERIA 339,480 28,680 310,800 1084%
JORDAN 328,250 344,750 16,500  
IRAN 287,662 24,480 263,182 1075%
AFHANISTAN 281,605 396,236 114,631 -29%
INDIA 280,588 148,588 132,000 89%
POLAND 252,753 61,900 190,853 308%
NETHERLANDS 222,320 26,320 196,000 745%
USA 209,198 135,170 74,028 55%
SWITZERLANDS 206,480 277,200 70,720 -26%
SOMALIA 192,759 61,085 131,674 216%
TURKEY 177,100 58,320 118,780 204%
INDONESIA 153,960 40,800 113,160 277%
JAPAN 139,733 85,820 53,913 63%
NORTHERN MARIANA ISLANDS 135,550   135,550 100%
GHANA 126,000 100,000 26,000 26%
MALAYSIA 116,988 2,600 114,388  
UKRAINE 107,682 99,213 8,469 9%
UZBEKISTAN 102,058 45,000 57,058 127%
CHINA 96,080 11,120 84,960 764%
SRI LANKA 72,000 86,838 14,838 -17%
GERMANY 56,720 10,640 46,080 433%
           

 

         
MAURITIUS 40,000   40,000 100%
DJIBOUTI 30,052   30,052 100%
SOUTH AFRICA 28,000   28,000 100%
MYANMAR 26,400 26,000 400 2%
SINGAPORE 24,000 10,000 14,000 140%
CHILE 23,200   23,200 100%
CHAD 22,950 22,950   100%
HONK KONG 3,960 8,790 4,830  
AZERBAIJAN 1,329   1,329 100%
CENTRAL AFRICAN REPUBLIC   24,000 24,000 0%
EPZ   1,010 1,010 0%
NEW ZEALAND   12,800 12,800 0%
OMAN   23,160 23,160  
TAIWAN   7,560 7,560  
TOTAL 35,396,936 26,839,707 8,557,229 32%
Table 3.• Ken a Tea Ex orts b Destination Jan- Dec 2018 vis-à-vis Jan- Dec 2017  
DESTINATION PAKISTAN 2018 • QUANTITY (KGS) 2017 • QUANTITY(KGS)

153,678,618

QUANTITY DIFF %AGE VARIANCE

16%

EGYPT   70,499,177

38,329,605

3,257,196

8,972,553

5%

23%

UK

UAE

34,769,779 27,890,322 6,879,457 25%

5%

SUDAN

RUSSIA

18,037,751   1,053,426

1,775,006

11%
YEMEN

AFGHANISTAN

14,294,030   48,230 0%

14%

KAZAKHSTAN 10,293,905   1,042,678 14%
POLAND

SAUDI ARABIA

6,218,264 5,346,083

4,383,278

872,181

869,326

16%
NIGERIA 5,126,699   833,400 19%
USA

IRAN

4,811,817 3,110,934 71,722

924,319

2%
IRELAND 3,675,901 3,221,725 454,176 14%
JORDAN INDIA     605,050

173,603

6%
NETHERLANDS   2,089,623

2,721,206

817,827

48, 560

39%

2%

SWITZERLAND 2,769,766
BANGLADESH 2,598,629 480,900 2,117,729 440%
JAPAN 2,464,682 1,933,117 531,565  
TURKEY 2,429,333 2,099,611 329,722

354,080

16%
INDONESIA

UKRAINE

SOMALIA

2,213,770

1,940,140

1,842,805

1,779,719 160,421

207,255

19%

9%

13%

CHILE 1,648,080   152,858 -8%
MALAYSIA 1,561,401 1,260,576 300,825  
CHINA 1,375,626 1,032,751 342,875 33%
SRI LANKA 972,185 998,819 26,634  
GERMANY 903,408 743,172 160,236 22%
OMAN 737,239 714,612 22,627 3%
SOUTH AFRICA 643,132 488,820 154,312 32%
CHAD 635,977 561,835 74,142 13%
CANADA 565,008 399,188 165,820 42%
DJIBOUTI 454,502 424,450 30,052 7%
UZBEKISTAN 427,054 344,196 82,858 24%
BELGIUM 299,578 299,578    
MAURITIUS 277,350 279,350 2,000 -1%
MYAMAR 261,760 260,800 960 0%
ERITREA 260,000 130,000 130,000 100%
HONG KONG 258,360 310,310 51,950 -17%
GHANA 226,800 150,000 76,800 51%
NEW ZEALAND 223,740 210,940 12,800 6%
SINGAPORE 198,335 164,335 34,000 21%
TAIWAN 175,780 202,940 27,160 -13%
NORTHERN MARIANA ISLANDS 135,550   135,550 100%
ECUADOR 98,568   98,568 100%
               

 

ISRAEL 50,000 50,000   0%
AZERBAIJAN 46,329 89,066 42,737  
CZECH REPUBLIC 27,382 27,397 15 0%
VIET NAM 20,570 20,570    
GREECE 14,676 14,676    
US MINOR OUTLING ISLANDS 14,032 14,032    
FRANCE 9,998   9,998  
LATVIA 9,320 9,320    
GABON 9,032 9,032    
AUSTRALIA 7,756 1,600 6,156 385%
BRAZIL 6,000 6,000    
ITALY 5,182 2,882 2,300 80%
MACAO 5,000 5,000    
MOROCCO 500 4,820 4,320 -90%
CENTRAL AFRICAN REPUBLIC   24,000 24,000  
EPZ   2,605 2,605  
TOTAL 474,861,590     14%