Nyeri plans value addition in tea industry to boost earnings
Women carry tea leaves in Othaya. A task force in Nyeri County is planning value addition in the tea industry to boost earnings. Photo/File
What you need to know:
A Nyeri value addition task force has proposed robust mechanisms that will fast-track tea value addition in the entire value chain from soil to the mouth, which will see Kenyan tea improve both in quality and quantity.
In its report, the task force says value-added teas fetch higher prices compared to bulk tea and also creates more employment opportunities amongst other benefits to the economy.
Kenya’s earnings from tea could increase if recommendations by a Nyeri County value addition task force are implemented and replicated in other regions.
In its report, the task force says value-added teas fetch higher prices compared to bulk tea and also creates more employment opportunities amongst other benefits to the economy.
The team has proposed robust mechanisms that will fast-track tea value addition in the entire value chain from soil to the mouth, which will see Kenyan tea improve both in quality and quantity.
From the farms, farmers would practise good agricultural methods to ensure the leaves are of quality.
Factories would have to develop and enforce high quality standards in the entire tea value chain and comply with the laid down international standards.
They have to closely coordinate with necessary standards and certification bodies such as Tea Board of Kenya, Kenya Plant Health Inspectorate Services and Kenya Bureau of Standards (Kebs) and others to ensure that they embrace all the vital standards and certification in the value chain.
The Tea Research Foundation of Kenya is to routinely transfer results of research to farmers.
East African Tea Trade Association is to market the value added teas in the auction, taking cue from Colombo auction in Sri Lanka.
Export Promotion Council needs to help in identifying markets for Kenyan value added tea and profile the consumer preferences in the various tea markets and advise the factories as necessary.
The task force is also pushing for incentives from the government to promote tea value addition.
Such incentives include exemption of duty on machinery, fertilisers, packaging materials, export compensations for value added tea, treatment of factories as Special Economic Zone (SEZ) and lowering taxes and levies on teas.
In 2012, Kenya earned Sh112 billion from tea, representing 26 per cent share of the total export earnings.
However, only 15 per cent of this was value added while 85 per cent was in bulk form.
The task force was set up by Nyeri Governor, Nderitu Gachagua, to examine and recommend on ways to promote tea value—addition, making it more profitable.
Compared to other countries which have actively embraced value-addition such as Sri Lanka, Kenya tea earnings from exports have been slightly less.
In 2010, for example, Kenya earned $1.23 billion from exports of 362 million kgs of its own tea as well as re-exports of 79 million kgs of other origin teas, while Sri Lanka earned $1.37 billion from its export of 314 million kgs owing to higher prices and more valued added shipments.
Even though Kenya exported 29 per cent more tea in quantity terms than Sri Lanka, the country earned 10 per cent less in value terms.
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