Tea market fetch Sh686 million in the auction

The Mountain Journal

editor@themountainjournal.co.ke

Small scale holder tea factories under KTDA last week made Sh 686.3 million  after the auction of 2,629,511kgs.

In the previous week, the market earned the factories in excess of Sh 639.3 million after the auction of 2,478,133 kgs.

During the auction at the Mombasa Tea Auction Imenti Sh 4 million  (11,160 kgs), Mununga Sh 13.5 million, (38,520 kgs) , Gacharage Sh 10.7 million for (31,154kgs). 

Gathuthi, and Kiegoi  achieved the premier price of between Sh364 per kgs and Sh337 per kgs.

The report from the Tea Brokers East Africa Limited (TBEAL) reflected that in the auction held on October 13, Momul factory in  the west of rift offered  83,906 kgs, followed by Kimunye of 70,917kgs were ranked the highest consignment at the auction. 

The factories in the east of the rift continued to perform better at the auction as the price was between Sh 364 per kgs and  Sh242 per Kg. “In the west of the rift, average prices  ranged between Sh 230 per kgs to Sh183 per kg,” added the report.

 Gatunguru  tea factory in Murang’a chaired by Mr Mwangi Kaguma offered 54,305 kgs at an average price of 314 per kgs. 

Other factories Njunu  38,336 kgs, Ikumbi 34,320kgs, Kathangariri 28,396 kgs. 

Peter Karomo , tea value chain expert said the production in the small holder factories reduced owing to adverse weather conditions.

He hinted that the majority of the factories have opened direct linkages with the international market, thus selling the produce directly.

“In Kenya, the production remains low following lack of fertilizer owing to failure of supply by the KTDA,” said Karomo.

At the market, 48 tea buyers participated where produce sourced from  four East African countries offered 95,640 packages weighing 6.4 million kgs.

Kenya presented 5.2 million kgs from KTDA factories and the independent producers, Uganda 13,380 packages, Rwanda 5,400 packages, and Burundi 1,000 packages.

 In the auction performance, the buyers bought 84,920 packages ( 80-percent) while the unsold tea unaccounted for 21,220 packages ( 20 percent).

In the buyers category, Global tea bought 17,660 packages,Mitchell Cott 11,000 packages, James Finlay 6,940  packages , LAB International 5,600 packages, Mombasa Coffee 5,040 packages, KTDA owned Chai Trading 4,680 packages among others.

In summary, the buyers bought 84,920 packages that accounted for 80-percent of the unsold tea  21,220 packages ( 20 percent). 

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