KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR OCTOBER 2018

 1.0 PRODUCTION

Tea production for the month of October 2018 hit an all time high of 49.02 Million Kgs, against 43.42 Million Kgs recorded during the corresponding month of 2017. This is the second highest monthly production after 50.30 Million Kgs recorded in January 2016.

Increased production was largely attributed to the high precipitation in tea growing areas in the West and East of Rift particularly in Kericho, Nyamira, Kisii, Bomet and Nandi counties following the onset of the “short rains” season. Consequently, output Within the West of Rift rose from 26.89 Million Kgs to 31.45 Million Kgs while that of the East of Rift increased from 16.52 Million Kgs to 17.57 Million Kgs. Higher production was recorded within Plantation sub-sector with output increasing from 16.91 Million Kgs to 22.42 Million Kgs. Similarly, production within the Small-holder sub-sector increased marginally from 26.50 Million Kgs to 26.59 Million Kgs.

Cumulatively, production for the period January-October 2018 was significantly higher by 12% to stand at 395.26 Million Kgs against 346.97 Million Kgs recorded during the corresponding period of 2017 owing to good weather conditions experienced to-date.

Table 1: Tea Production by Sub-Sector and Region (2018 vis-à-vis 2017)

PRODUCTION (KGS) October  2018 October 2017 Variance Var.(%) Jan – Oct 2018 Jan – Oct 2017 Variance Var.(%)
Plantation West of Rift                  20,157,174                15,520,543           4,636,631 29.87%               162,682,669               142,759,685            19,922,984 13.96%
East of Rift                    2,271,294                   1,391,099               880,195 63.27%                  13,661,534                   11,678,108              1,983,426 16.98%
Total       22,428,468        16,911,642    5,516,826 32.62%      176,344,203      154,437,793     21,906,410 14.18%
                 
Smallholder West of Rift                  11,294,907                 11,376,954 –        82,047 -0.72%                 100,611,585                 87,124,473              13,487,112 15.48%
East of Rift                  15,301,867                  15,131,442               170,425 1.13%                 118,306,170                105,415,322            12,890,848 12.23%
Total       26,596,774      26,508,396        88,378 0.33%      218,917,755      192,539,795   26,377,960 13.70%
                   
Plantation & Smallholder West of Rift                  31,452,081               26,897,497          4,554,584 16.93%              263,294,254               229,884,158            33,410,096 14.53%
East of Rift                   17,573,161                 16,522,541           1,050,620 6.36%                131,967,704                117,093,430            14,874,274 12.70%
  Total       49,025,242      43,420,038   5,605,204 12.91%      395,261,958     346,977,588   48,284,370 13.92%

 

2.0 SALES

AUCTION

During the month of October 2018, 34.09 Million kgs of Kenyan tea was sold through Mombasa Auction against 33.54 Million kgs recorded in October 2017. Owing to higher supply, the average auction prices for Kenyan tea for the month of October 2018 was lower at USD 2.42 per Kg against USD 3.06 for the corresponding period of last year. However, it was slightly higher compared to USD 2.40 recorded during the month of September.

Cumulative average price for ten months of 2018 was also lower at USD 2.62 per Kg compared to USD 2.99 for the corresponding period of 2017.

EXPORTS

The total export volume for the month of October 2018 was 43.40 Million Kgs compared to 30.84 Million Kgs recorded same period of last year, representing a 41% increase. During the month, Kenya tea was shipped to forty (40) export destinations compared to forty two (42) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 16.44 Million Kgs, accounting for 38% of the total export volume. Other key export destinations for Kenyan tea were Egypt (9.24 Million Kgs), UK (3.67 Million Kgs), UAE (2.82 Million Kgs), Sudan (1.95 Million Kgs), Russia (1.16 Million Kgs), Yemen (0.97 Million Kgs), Saudi Arabia (0.79 Million kgs), Poland (0.66 Million Kgs) and Kazakhastan (0.61 million Kgs). The ten export destinations, most of which which are traditional markets for Kenyan tea accounted for 88% of Kenya tea export volume. Most the traditional markets recorded higher tea imports from Kenya except UAE, Russia and Kazakhastan that recorded lower imports, while Saudi Arabia joined the top ten export destinations.

Emerging markets that recorded significantly higher tea imports from Kenya included Iran, Netherlands, Bangladesh, Japan, Nigeria, Indonesia, Ukraine, Malaysia, China, Somalia, Canada, South Africa and Sri-lanka

The total export volume for the period January-October 2018 was 394.98 Million Kgs compared to 351.58 Million Kgs recorded same period of last year.

LOCAL CONSUMPTION

 

Local tea consumption for August 2018 stood at 3.06 Million Kgs against 3.08 Million Kgs for the corresponding period of 2017 while cumulative tea consumption for the eight month period upto August 2018 stood at 23.02 Million Kgs against 24.33 Million Kgs for the corresponding period of 2017.

26TH NOVEMBER, 2018

Table 2: Kenya Tea Exports by Destination (Oct 2018 vis-à-vis Oct  2017)

DESTINATION 2018-QUANTITY KGS 2017 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
         
PAKISTAN                               16,444,752                                  10,785,747                     5,659,005 52%
EGYPT                                  9,247,279                                     5,274,225                     3,973,054 75%
UK                                  3,676,017                                     3,104,868                         571,149 18%
UAE                                  2,823,774                                     3,726,564 –                       902,790 -24%
SUDAN                                  1,951,295                                          595,490                     1,355,805 228%
RUSSIA                                  1,161,494                                     1,233,006 –                          71,512 -6%
YEMEN                                       974,350                                     1,047,400 –                          73,050 -7%
SAUDI ARABIA                                       799,846                                          303,520                         496,326 164%
POLAND                                       664,436                                          204,472                         459,964 225%
KAZAKHASTAN                                       613,381                                          757,790 –                       144,409 -19%
AFGHANSTAN                                       607,431                                          402,685                         204,746 51%
IRAN                                       475,237                                          126,556                         348,681 276%
JORDAN                                       428,000                                          197,250                         230,750 117%
NETHERLANDS                                       379,301                                                9,672                         369,629 3822%
BANGLADESH                                       338,956                                                          –                           338,956 0%
SWITZERLAND                                       297,440                                          380,536 –                          83,096 -22%
JAPAN                                       279,635                                          221,400                            58,235 26%
NIGERIA                                       272,356                                          140,000                         132,356 95%
INDONESIA                                       270,400                                          195,700                            74,700 38%
UKRAINE                                       202,380                                          156,273                            46,107 30%
MALAYSIA                                       176,906                                          136,480                            40,426 30%
USA                                       153,768                                          399,063 –                       245,295 -61%
IRELAND                                       138,706                                          213,868 –                          75,162 -35%
CHINA                                       137,506                                             28,660                         108,846 380%
SOMALIA                                       123,580                                             68,000                            55,580 82%
TURKEY                                       122,480                                          113,520                               8,960 8%
CHILE                                       111,800                                          238,071 –                       126,271 -53%
GHANA                                       100,800                                                          –                           100,800 0%
GERMANY                                          65,778                                             97,732 –                          31,954 -33%
INDIA                                          79,333                                          195,332 –                       115,999 -59%
CANADA                                          56,000                                             28,000                            28,000 100%
SOUTH AFRICA                                          56,000                                             42,000                            14,000 33%
CHAD                                          52,646                                             70,950 –                          18,304 -26%
UZBEKISTAN                                          49,800                                                          –                              49,800 0%
SRI LANKA                                          26,884                                             20,000                               6,884 34%
MAURITIUS                                          20,000                                             31,000 –                          11,000 -35%
NEW ZEALAND                                          12,800                                          146,940 –                       134,140 -91%
AUSTRALIA                                             6,156                                                          –                                 6,156 0%
HONG KONG                                             2,880                                             12,390 –                             9,510 -77%
ITALY                                             2,300                                                          –                                 2,300 0%
BRAZIL                                                       –                                                  6,000 –                             6,000 0%
CZECH REPUBLIC                                                       –                                                      100 –                                 100 0%
MYANMAR                                                       –                                               26,600 –                          26,600 0%
OMAN                                                       –                                               48,908 –                          48,908 0%
SINGAPORE                                                       –                                               15,020 –                          15,020 0%
TAIWAN                                                       –                                               20,000 –                          20,000 0%
VIET NAM                                                       –                                               20,570 –                          20,570 0%
         
TOTAL                               43,403,883                                  30,842,359                  12,561,525 41%

 

Table 3: Kenya Tea Exports by Destination (Jan- Oct 2018 vis-à-vis Jan- Oct 2017)

DESTINATION 2018 -QUANTITY KGS 2017 – QUANTITY KGS QUANTITY DIFF %AGE VARIANCE
PAKISTAN           147,007,581.00                 130,562,829 16,444,752 13%
EGYPT             62,043,681.00                    52,796,402 9,247,279 18%
UK             39,109,216.00                    35,433,199 3,676,017 10%
UAE             27,391,977.00                    24,568,203 2,823,774 11%
SUDAN             19,608,469.08                    17,657,174 1,951,295 11%
RUSSIA             15,833,181.00                    14,671,687 1,161,494 8%
YEMEN             12,032,850.00                    11,058,500 974,350 9%
AFGHANISTAN               9,079,036.00                      8,471,605 607,431 7%
KAZAKHSTAN               6,887,216.00                      6,273,835 613,381 10%
POLAND               5,828,239.00                      5,163,803 664,436 13%
NIGERIA               4,452,975.00                      4,180,619 272,356 7%
USA               4,430,197.00                      4,276,429 153,768 4%
SAUDI ARABIA               4,425,184.00                      3,625,338 799,846 22%
IRAN               3,238,369.00                      2,763,132 475,237 17%
IRELAND               2,943,975.00                      2,805,269 138,706 5%
JORDAN               2,768,572.00                      2,340,572 428,000 18%
INDIA               2,591,043.00                      2,511,710 79,333 3%
NETHERLANDS               2,442,473.00                      2,063,172 379,301 18%
SWITZERLAND               2,313,046.00                      2,015,606 297,440 15%
TURKEY               2,066,405.00                      1,943,925 122,480 6%
JAPAN               1,995,327.00                      1,715,692 279,635 16%
INDONESIA               1,965,970.00                      1,695,570 270,400 16%
UKRAINE               1,708,781.00                      1,506,401 202,380 13%
CHILE               1,624,880.00                      1,513,080 111,800 7%
SOMALIA               1,586,755.00                      1,463,175 123,580 8%
MALAYSIA               1,288,002.00                      1,111,096 176,906 16%
CHINA               1,083,841.00                         946,335 137,506 15%
SRI LANKA                   850,705.00                         823,821 26,884 3%
GERMANY                   769,630.00                         703,852 65,778 9%
BANGLADESH                   699,856.00                         360,900 338,956 94%
OMAN                   691,452.00                         691,452 0%
SOUTH AFRICA                   534,820.00                         478,820 56,000 12%
CHAD                   522,481.00                         469,835 52,646 11%
CANADA                   403,988.00                         347,988 56,000 16%
DJIBOUTI                   376,450.00                         376,450 0%
UZBEKISTAN                   324,996.00                         275,196 49,800 18%
BELGIUM                   299,578.00                         299,578 0%
HONG KONG                   254,400.00                         251,520 2,880 1%
MAURITIUS                   237,350.00                         217,350 20,000 9%
MYAMAR                   234,800.00                         234,800 0%
NEW ZEALAND                   210,940.00                         198,140 12,800 6%
TAIWAN                   175,780.00                         175,780 0%
SINGAPORE                   154,335.00                         154,335 0%
ERITREA                   130,000.00                         130,000 0%
GHANA                   100,800.00 100,800 100%
KYRGYZSTAN                     51,156.00                            51,156                        –   0%
ISRAEL                     50,000.00                            50,000                        –   0%
AZERBAIJAN                     45,000.00                            45,000                        –   0%
CZECH REPUBLIC                     27,302.00                            27,302                        –   0%
VIET NAM                     20,570.00                            20,570                        –   0%
GREECE                     14,676.00                            14,676                        –   0%
US MINOR OUTLING ISLANDS                     14,032.00                            14,032                        –   0%
LATVIA                       9,320.00                              9,320                        –   0%
GABON                       9,032.00                              9,032                        –   0%
AUSTRALIA                       7,756.00                              1,600 6,156 385%
BRAZIL                       6,000.00                              6,000 0%
ITALY                       5,182.00                              2,882 2,300 80%
MACAO                       5,000.00                              5,000 0%
MOROCCO                           500.00                                 500 0%
         
TOTAL           394,985,128.08                 351,581,245 43,403,883 12%