Tea production is expected to drop by 10 per cent in Kenya this year following post-election skirmishes and a dry spell in most tea growing regions.
Tea Board of Kenya (TBK) managing director Mrs Sicily Kariuki said last year’s output stood at 369 million kilogrammes compared to 310 million kilogrammes recorded in 2006 but earnings dropped to Sh43 billion($615 million) from Sh47 billion.
The improved output was due to good weather conditions characterised by well-distributed rainfall in the first and second quarters of the year.
Last year’s production also surpassed 2005's output of 328 million kilogrammes.
However, production growth cannot be sustained this year due to the violence that has affected tea-producing districts in the Rift Valley.
An industry official said besides the transport crisis created by road blockade by youths that has hindered tea transportation to the Mombasa tea auction, over 20,000 workers had been displaced, causing an acute shortage of labour in plantations. She warned that the dry spell in the Mount Kenya region was likely to affect production in the first half of this year.
"This year, tea production is projected to drop by 10 per cent to about 335 million kilogrammes," she said.
According to TBK forecasts, export volume may to drop to about 320 million kilogrammes from 345 million kilogrammes registered last year.
However, the industry expects higher prices by the end of the year due to reduced production.
The average auction price realised last month was $2.33 per kg against $1.79 during the corresponding month last year.
The board revealed that despite the high production last year, earnings dropped due to global tea oversupply and a strong shilling.
Due to increased production, export volumes last year also increased by 10 per cent from 313 million kilogrammes to 345 million kilogrammes. Last year, tea production was highest in regions west of the Rift, where output was 20 per cent higher from 179 million kilogrammes in 2006 to 215 million kilogrammes last year.
The east of Rift tea growing areas that include Nyeri, Kirinyaga, Embu, Muranga, Embu and Meru distrists recorded a 17 per cent growth from 131 million kilogrammes in 2006 to 153 million kilogrammes.
"Other factors that contributed to higher production included enhanced processing capacity through the commissioning of three satellite factories in the west of Rift," she said. "This resulted in increased production of about seven million kg."
High yielding and drought resistant varieties also contributed to increased production.
Pakistan maintained its position as the leading export destination for Kenyan tea, having imported 79 million kilogrammes last year, which accounted for 23 per cent of the total export volume. It was followed by Egypt (67 million kilogrammes), UK (58 million kilogrammes), Afghanistan (28 million kilogrammes) and Sudan (24 million kilogrammes).
"The five export destinations which are key markets for Kenyan tea accounted for 75 per cent of the total export volumes," she said.
Local consumption of tea improved by seven per cent from 16.5 million kg to 17.6 million kg.
