Money Markets
Tea farmers to reap higher earnings
Tea Board says major growing areas have received low rainfall, which is likely to compound annual production. Photo/FILE
Posted Wednesday, November 25 2009 at 00:00
In Summary
- Falling supply and foul weather over most growing areas to improve pricing
Pakistan bought 4.3 million kilos and Egypt 3.8 million kilos.
Other key markets included Sudan and Afghanistan that recorded the highest growth in sales.
Together, the five traditional buyers accounted for three quarters of total exports.
Drought affected many growing countries including Sri Lanka, China and India, leading to depressed volumes.
This year, the local industry is grappling with the high cost of electricity arising from the ongoing power rationing, shortage of fuel, high labour costs, costly fertiliser, and a fluctuating exchange rate which could impact negatively on performance in the future.
Should the dollar’s downward trend persist, farmers’ earnings are likely to increase in the next season.
Producers have the option of selling through the Mombasa auction, direct sales, or factory door sales.
TBK has forecast up to Sh65 billion in yearly earnings for the sector.
In 2008, the sector generated Sh62 billion.
RSS