Kenyan farmers help lift global tea production as Sri Lanka and TZ falter

Nandi Tea Estate Limited workers in Nandi Hills. PHOTO | FILE

A huge increase in Kenya’s black tea production helped push up global black tea output 2.78 per cent last year compared to 2015, fresh statistics show.

This was despite a massive decline in Sri Lanka production. The South Asian country is among the highest tea exporters in the world.

“According to our compilation, black tea production so far this year is 1,905.13 million kg against 1,853.52 million kg in 2015. This increase of 51.61 million kilo marked a growth of 2.78 per cent,” Global Tea Digest 2016 a tea-focused publication estimated last Wednesday.

The rise was despite Sri Lanka posting a massive shortfall of 40.04 million kilogrammes to dip to 262.53 million. Uganda and Tanzania also posted declines.

However, these shortfalls were offset by the huge increase of 73.30 million kilos in Kenya where production soared to 426.12 million kilogrammes from 352.82 million.

Bangladesh posted an increase of 15.01 million kilos to reach 68.78 million.

Indian production up to October rose by 8.72 million kilogrammes to reach 1049.31 million. Kenya produces black tea and it is among the world’s largest exporters of the commodity.

The country exports more than 95 per cent of its tea.

The top export markets for Kenya are Pakistan, Egypt, the UK, Afghanistan, United Arab Emirates, Russia, Sudan and Yemen.

Records show, 2016 was good for tea farmers, thanks to high prices amidst a weaker dollar and lower global supply.

Growers affiliated to Kenya Tea Development Agency (KTDA) earned a record bonus in the history of the cash crop.

Farmers earned Sh84 billion from leaves delivered in the 2015/2016 season, marking the second year of improved earnings partly helped by a stable exchange rate and high pricing of the commodity in the world market.

However, it is projected 2017 may not be a good year given the low prices that the commodity has been fetching in the market.

Unlike last year, the price of tea did not reach Sh300 a kilogramme with the highest being Sh260.

When announcing the bonus in September, KTDA managing director Lerionka Tiampati said the outlook for 2017 was not impressive due to low prices at the Mombasa auction.

Hand-picked KTDA teas fetch better prices with the cost of a kilogramme in the 2015/2016 financial year rising by 29 per cent to Sh300 per kilogramme from Sh233 the previous year.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.