Tea auction last year generated Sh128 billion

The Mountain Journal

editor@themountainjournal.co.ke

Mombasa Tea Auction last year exported a total of 481.8 million kgs of tea through local and international dealers earning Sh128.3 billion. 

The facility sold Kenya’s tea growers a total of Sh111.1 billion in the year under review for 395,719.059 kgs sourced from KTDA run factories and independent producers.

The data from the East African Tea Traders Association (EATTA) Uganda sold 51.4 million kgs for Sh6 billion, Tanzania 4.1 million kgs for ShSh 464 million.

Rwanda 27.3 million kgs Sh10.4 billion, Burundi 3.1 million kgs  for Sh704.4 million

Report from the East Africa Tea Traders Association (EATTA) released last week, attributes that 86 dealers were at the facility.

 In the market, global tea led with 62.7 million kgs, followed by KTDA backed Chai Trading 58.3 million kgs, LAB International 47.6 million kgs.

The market analysis report reflects that Cargill (K) Limited, which stopped dealing with tea, in the year under review bought 22.5 million kgs.

Mitchell Cotts Freights, which replaced Cargill in the tea market, managed 5.8 million kgs.

Firms that bought the least produce are Clover Unique  and Blackdew that bought 2,880 kgs and  1,040 kgs from Kenya respectively.

According to a survey, a portion of the consignment was allocated to the direct market based on the agreement between the tea factories and the export market. 

EATTA Managing Director George Omuga said in the year under review tea sold at the auction earned Sh128.3 billion, while that sourced from Kenya’s market achieved Sh111.1 billion.

He said 40 percent of Kenya’s tea was exported to Pakistan,  followed by Egypt at 19 percent.

“ Other destinations  for the tea  are the United Kingdom, Iran, UAE, Russia among others ,” he said.

He added that the tea market in Sudan collapsed following the political unrest.

In the market, the export of the commodity to the US is channeled through Pakistan after undergoing value addition. 

Tea Value Chain expert Peter Karomo says the sector is set to grow through the enhanced production of quality tea destined to the market.

Karomo said the initiative spearheaded by the former KTDA Holding Chairman Enos Njeru educated the small scale holders towards the production of quality green leaf.

“The government should employ better marketing strategies to increase the market  for the produce,” said Karomo. 

Other best dealers who bought high quantities are Mombasa coffee 31.3 million kgs, Aditya Birla 27.3 million kgs,  Devchand Keshavji 24.2 million kgs, M. J Clarke 18.3 million kgs, Van Rees 15.6 million kgs, and Abbar Traders 14.9 million kgs

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