Kenya tea production to drop 4.5pc due to harsh weather

Kenya is a leading producer of black tea and last year earned a record Sh109 billion from tea exports despite a drop in volumes, thanks to high prices and a weaker local currency against the dollar.

This year’s industry performance remains uncertain thanks to a strengthening shilling and weather-related shocks on production

Kenya’s 2012 tea out-put is expected to drop by about 4.5 per cent due to adverse weather conditions experienced during the first part of the year, the industry regulator has said.

The Tea Board of Kenya (TBK) said the country is expected to produce 360 million kg of leaf this year compared to 377 million kg realised the previous year, following a dry-spell experienced over the first four months of 2012.

The dip in production volumes is however expected to boost prices as buyers scrambled for the smaller volumes of the commodity being sold through the regional auction in Mombasa.

“Cumulative average auction price for the half-year period of 2012 was slightly above $3 while for the corresponding period of 2011 was slightly below $3,” TBK managing director Sicily Kariuki said.

Kenya is a leading producer of black tea and last year earned a record Sh109 billion from tea exports despite a drop in volumes, thanks to high prices and a weaker local currency against the dollar.

This year’s industry performance remains uncertain thanks to a strengthening shilling and weather-related shocks on production