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Kenya's tea production for August up 7 percent
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13:00, September 30, 2008

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Kenya's tea production for August increased by 7 percent to 24.4 million kilograms compared to the same month in 2007 which registered 22.7 million kilograms, tea marketers said on Monday.

The Tea Board of Kenya attributed the high production recorded in August to good weather conditions in tea growing regions, with East of Rift having experienced relatively warm temperatures and showers to record a more impressive production increase of 8 percent.

"Despite improved production in August, cumulative production for January to August 2008 registered a drop of 16 percent to record 206 million kilograms compared to 244 million kilograms for the same period in 2007," the statement said.

The board said lower production for the period to-date was due to depressed rainfall experienced in most parts of the country during the first half of 2008.

"Notably, the month of August marked the cessation of the cold weather conditions and therefore improved production has been recorded in September," the statement said.

Tea is a leading foreign exchange earner for the east African country along with tourism and horticulture.

The region suffered a severe drought in the first quarter of 2006 that killed hundreds of people and thousands of livestock following the post-election skirmishes in 2007 polls.

With most tea growing parts of the country expecting to receive well distributed rainfall during the "short-rains" period (October-December), according to projections by meteorological department, the industry expects improved production during the fourth quarter of the year.

However, the board said total production for the year will not surpass the 2007 record production and is projected to stand at 335 million kilograms, which will be 9 percent less compared to the total production of 369 million kilograms recorded last year.

According to the statement, export destinations increased to 36in August 2008 compared to 33 in August 2007.

Egypt led key markets in importing Kenyan tea, buying a record 10.2 million kilograms in August compared to 4.5 million kilograms in August 2007.

Other key destinations were Pakistan which imported 7.3 million kilograms, British 7.1 million kilograms, Afghanistan 2.5 million kilograms and Sudan 2.4 million kilograms.

Among the traditional markets for Kenyan tea, Egypt registered the highest growth in export volume at 128 percent.

Other markets that recorded significant growth in export volume included Italy (200 percent), Canada (197 percent), U.S.A (138 percent) and Ireland (93 percent).

During the Jan-August period, the board said Egypt also imported the highest quantity of Kenyan tea amounting to 61 million kilograms accounting for 24 percent of the total export volume.

Unlike the tradition, Egypt has for the period to-date taken the lead from Pakistan, following the latter's less buying interest from the lower end market players, which was occasioned by higher prices.

"The Jan-August export earnings stood at 38 billion shillings against 30 billion shillings recorded over the same period of last year," it said.

"With improved prices and weakening of the shillings against the U.S. dollar, total export earnings for tea are expected to hit a record high of over 50 billion shillings by the end of the year."

The country's tea output for 2007 hit a record high, standing at 369 million kilograms compared to 310 million kilograms recorded in 2006.

Last year's tea production was the highest registered surpassing the earlier recorded output of 328 million kilograms in 2005.

Source: Xinhua



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