Tea Prices Increase as Production is Expected Dip
Kevin Namunwa  |  Aug 17, 2020

A market report from the East African Tea Traders Association (Eatta) shows that the price of a kilo of tea rose to Ksh 203 from Ksh 197 in the previous sale.

Tea prices at the Mombasa auction last week rose for the fourth sale in a row. This offers hope for better pay for farmers following depressed prices in recent months.

The decline in prices has been attributed to increased volumes of the product from farmers in the high

The volumes of tea withdrawn from the market remained high though at 23 percent. Eatta said 2.5 million kilos of the beverage was taken out of the trading floor.

However, despite volumes of the green leaf produced by farmers having increased in recent months, last week’s trading recorded a decline in volumes from 9.2 million kilos in the previous sale to 8 million kilos in the latest sale.

Tea production in the first half of this year grew by 41% on the back of good weather in the first quarter, marking one of the highest volumes to be witnessed in recent years.

Industry figures from the Tea Directorate indicated the volumes rose to 300.6 million kilos in the period under review up from 212.6 million kilos in the corresponding period last year.

The volumes of production are set to begin plunging as recorded in the latest review. The regulator has predicted that produced volumes will remain depressed for the remainder of the year because of the cold season and cessation of rain.

“The second half of the year is expected to register much lower production on account of cold weather conditions followed by dry weather,” the regulator said.