Tea market fetch Sh880 million, as price of the commodity declines

Sean Ngirichi/The Mountain Journal

editor@themountainjournal.co.ke

Tea auctions continued to post low returns to the growers following the effects of climate change, as tea factories registered Sh 880.7 million, after the sale of 3,609,634 kgs.

The payments to the 70 factories is less compared to Sh 816.5 million of the last week at the Mombasa Tea Auction after the sale of 3,374,134kgs.

During the auction, held on  Tuesday, the factories that achieved the best price of between Sh 335 and Sh299 per kilogrammes were Mununga Sh14.1 million after the sale of 42,376kgs, Gathuthi Sh 19 million (58,856kgs), Kimunye Sh 14.9 million (47,452kgs) ,Rukuriri Sh 25.5 million (81,300kgs), Githongo Sh 12.2 million(39,592kgs).

Others are Kathangariri Sh16.3 million(52,932kgs) , Imenti Sh9 million (29,660kgs), Gacharage Sh 11 million(37,056kgs) , Kionyo  Sh12.2 million(40,868kgs) , and Makomboki Sh26.6 million(89,272 kgs) that achieved the best prices of between Sh335 and Sh 299 per kilogramme.

Others factories that earned better prices are Ngere, which sold 79,455kgs, Njunu 44,680kgs, Gatunguru 51,928kgs, and Nduti 54,620kgs.

In the market, factories in the east of the rift, garnered best prices of between Sh 335 and Sh219 per kilogramme,while those in the west of the rift earned between Sh 228 and Sh163 per kilogramme.

 The report from Tea Brokers East Africa Limited (TBEAL),  indicates that Michimikuru factory in Meru sold its tea at the lowest price in the east of the rift at Sh219  for each of 13,500kgs presented at the market.

“ Momul factory in the west achieved the highest price of Sh228  for each of the 45,590 kgs at the market,” read the report.

At the same time, the report the auction accommodate 8,017,307 kgs from six countries, with Kenya offered  6,315,328kgs, Uganda 1,075,927kgs , Tanzania 3,468 kgs, Rwanda 504,030kgs,Malawi 110,562kgs, and Burundi 7,992kgs. 

The report outlines that Kenya 6.3 million kgs was from the small holder tea factories under KTDA management and from the independent producers. 

James Mwaura a farmer in Mathioya says it was unfortunate that the price of tea has declined in the last two months, as the growers await explanation from the KTDA directors.

“ The farmers are presently worried about the fate of this year’s bonus, following the fluctuating prices at the auction,” said Mwaura.

KTDA Zone six Board member Enos Njeru said the farmers despite the poor prices have continued producing the quality tea  for the market.

“ In Embu I am happy to report that Kathangariri and Rukuriri factories are ranked among the 10 best factories that achieved best prices,” said Mr Njeru.

Tea value chain expert Peter Karomo blames the low on buyers owing to the demand placed by their customers in the international market.

“ It is a wake up call to the Ministry of Agriculture to move in a speed and explore for the expanded market for the interest of the 800,000 tea growers,” said Mr Karomo.

He added that there was need for the KTDA directors to insure the tea farms to caution the growers from suffering the losses during the times of drought and frost.

“ Presently the income from the sector is reduced and farmers will be forced to seek loans to bridge the gap,” said Karomo.